Funding Approved for Oil and Gas Decommissioning Project

The Government in Scotland has announced new funding of £4 million will go towards the decommissioning of fossil fuels. The money will help dismantle oil and gas infrastructure in the North Sea.

The fund will also provide support for various projects enhancing the decommissioning market as well as the Scottish supply chain. The money will come from the Decommissioning Challenge Fund, which remains open until the beginning of September this year.

The Decommissioning Challenge Fund Details

The new money is in addition to £10 million already committed during the first three rounds of the fund raising. It will go toward decommissioning projects at a number of locations including Shetland, Kishorn, Aberdeen, Dundee, Leith and Hunterston.

The Decommissioning Challenge Fund opened in the middle of July. It will remain open to expressions of interest until the 2nd of September.

This fourth round of funding will deliver resource funding for projects during the financial year betwixt 2019 and 2020. Previous funded projects include port infrastructure upgrades and innovative technological development. The latter includes improvement for plugging and abandonment to onshore decommissioning and waste handling.

Decommissioning Funding ‘Crucial’ to Future Development

Paul Wheelhouse is the Scottish Energy Minister and he said of the decommissioning project: “Industry reports tell us that £15.3 billion is forecast to be spent in the UKCS between 2018-2027, with further market demand beyond this. This represents a great opportunity for Scotland’s supply chain and I am delighted to announce this £4 million fund.

“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 on 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.”

Scotland’s Oil and Gas Decommissioning Action Plan

The Decommissioning Action Plan was launched by Scottish Enterprise along with Highlands and Islands Enterprise in 2016. It sets out how they intend to make the most of decommissioning opportunities at home and abroad.

The plan also incorporates funding and assistance to enhance the capability of the Scottish supply chain. The ambition is to make Scotland a world leader in such oil and gas decommissioning projects.

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