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<p>With increasing numbers of offshore oil and gas fields reaching the end of their
economic life, forecasts from industry estimate that the annual expenditure for decommissioning
over the next 5 years will be in the region of £1.7 to £2 billion. While decommissioning
is a major cost for industry, and the taxpayer, it offers significant opportunities
for the supply chain that will deliver the constituent elements of decommissioning
activity. This encompasses a wide range of activities, covering a broad range of skills
and expertise.</p><p>With recent estimates from industry suggesting that decommissioning
will represent around 11 per cent of total expenditure on oil and gas for 2017, decommissioning
is already benefitting the north east of Scotland and the rest of the UK’s economy.
Whilst we don’t have specific figures around the economic impact of the increase in
decommissioning of offshore oil and gas installations, we expect to see an increasing
proportion of the offshore oil and gas industry focussing on decommissioning activities
in the coming years.</p>
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