Donald Martin, the Head of Decommissioning and Projects at Spirit Energy, has raised concerns that the oil and gas industry's ambitions to decommission numerous obsolete wells in the North Sea might face obstacles due to a scarcity of available rigs. Martin points out that competition for rig vessels is expected to present significant challenges for the sector's decommissioning efforts going forward.

Recent data from trade organization Offshore Energies UK (OEUK) indicated that over the next decade, more than 2,000 disused wells will be plugged and abandoned (P&A) in the North Sea. The successful execution of these decommissioning tasks relies on operators securing rigs and resources to effectively shut down wells and remove associated structures, which has led to intense competition.

The global oil and gas industry is witnessing an effort to bolster supplies, intensifying the pressure on an already limited rig market. Consequently, the daily rates for leasing rigs have reached historically high levels, and predictions suggest that the production of new rig vessels will be scarce.

Donald Martin expressed that the marine construction market has experienced substantial pressure, primarily due to the increased utilization of resources for offshore wind projects. This has led to rising rates and reduced availability of vessels. He acknowledged that while competitive rates for well P&A work can still be found, the pool of available rigs is shrinking as units leave the North Sea. This scenario is expected to pose significant challenges in achieving cost-effective well P&A over the next five to ten years.

Spirit Energy, a subsidiary of Centrica, recently celebrated its "busiest year-to-date" in decommissioning, conducting campaigns across various regions in the North Sea and the East Irish Sea. The rise in the overall decommissioning costs for the North Sea, which currently stands around £40 billion according to estimates from the North Sea Transition Authority, has been attributed to increased demand for resources, vessels, and services from other sectors like offshore wind.

The shortage of available rigs is leading to an adjustment in the market, as energy security concerns, global decommissioning demand, and the growth of offshore renewables contribute to this shift. Alasdair Thomas, the Decommissioning Manager at the North Sea Transition Authority, emphasized the importance of early contracting, planning, and engagement with the supply chain in achieving cost-effective forecasts for well P&A within the existing market landscape.