North Sea production was more cost-efficient last year, with spending per barrel 9% lower than in 2024, the latest North Sea Transition Authority (NSTA) report shows.
The average cost to produce a barrel of oil equivalent (boe) fell from £19.60 in 2024 to £17.81 in 2025, according to the NSTA’s UKCS Unit Operating Cost report, a key benchmark for the industry. The Brent crude price averaged £52.33 per barrel in 2025.
Operating expenditure fell from £7.8 billion in 2024 to £7.1 billion in 2025, while production rates were steady at approximately 1.1 million boe per day in both years.
Production efficiency, a separate performance measure which compares actual production with maximum potential output, increased by one percentage point to 76% last year, contributing to the enhanced unit operating cost (UOC).
In addition to production, a field's UOC can also be influenced by infrastructure type, water depth and age. Several older assets with high costs ceased production and a number of new fields came online in 2025, helping reduce average costs per barrel.
Loraine Pace, the NSTA’s Head of Performance and Planning, said:
“Unit costs improved in all regions of the UK Continental Shelf in 2025, which is encouraging. However, with costs projected to rise slightly in 2026 and 2027, it is important that operators focus on efficiency, continue to innovate and use new technologies, and share lessons to keep a lid on costs, while continuing to undertake necessary maintenance.”
Notes to editors:
Read the UKCS Unit Operating Cost in 2025 report here.
The report uses data provided by operators to the NSTA via the UK Stewardship Survey and Petroleum Production Reporting System.
Average UOC in 2024 was £19.66/boe in nominal terms and £19.60/boe in 2025 prices.