Scotland launches £4m oil and gas decommissioning fund

Industry reports suggest £15.3bn is forecast to be spent on the UK Continental Shelf until 2027

The Scottish Government has announced new funding worth £4 million for the decommissioning of oil and gas infrastructure in the North Sea.

It will provide support for projects to enhance the decommissioning market and the supply chain in Scotland.

The money from the Decommissioning Challenge Fund, which is open until 2nd September 2019, is in addition to the £10 million committed in the first three rounds.

Industry reports suggest £15.3 billion is forecast to be spent on the UK Continental Shelf (UKCS) between 2018 and 2027.

Scottish Energy Minister Paul Wheelhouse said: “Scotland’s Energy Strategy highlights the significant economic opportunities that decommissioning offers and commits to enhancing our skills and capacity. As the industry continues to build on established capabilities and internationally recognised expertise, such as in-well plugging and abandonment techniques, the fund plays a crucial role in supporting the future development of this growing industry.

“Decommissioning North Sea infrastructure will help Scotland’s supply chain gain an even higher share of North Sea projects and capitalise global market opportunities by exporting knowledge and experience. This fund will support innovation in the supply chain, further cost reduction and improve the recognised skills of the Scottish workforce – which is why it has proved so popular with businesses.”

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