On 13 August 2026, the NSTA published its annual UKCS Decommissioning Cost and Performance Update, which shows industry spent a record £2.6 billion in this area in 2025, reflecting continued progress in the decommissioning of wells, platforms and subsea infrastructure.
Operators carried out decommissioning work on more wells than in the previous year, while topside and infrastructure removal activity also increased, demonstrating a continued commitment to meeting regulatory obligations and delivering safe and responsible decommissioning.
Despite this record level of expenditure, the estimated cost of completing the remaining UKCS decommissioning programme has reduced only marginally to £43.4 billion. While operators and the supply chain continue to pursue efficiencies, progress has been offset by inflationary pressures, market uncertainty, growing competition for specialist offshore resources and increasing demand from other energy sectors.
Encouragingly, industry continues to demonstrate positive behaviours that support cost-effective decommissioning. Operators are increasing collaboration with the supply chain, exploring innovative commercial arrangements, trialling and adopting new technologies and establishing longer-term contracting strategies. In addition, 71% of the value of decommissioning contracts awarded during 2025 was secured by UK-based organisations, exceeding the ambitions set out in the North Sea Transition Deal and helping sustain the domestic capability required to deliver future activity.
Read the report by clicking here.