UK North Sea Decommissioning Spending Hits Record £2.6 Billion

Industry spending on decommissioning in the UK North Sea reached a record high of £2.6 billion in 2025. According to the North Sea Transition Authority, well decommissioning is the primary cost driver and will account for roughly half of all expected expenditures on the UK Continental Shelf through 2032.

The regulator warned that a backlog of approximately 500 wells currently await final abandonment, with another 1,000 wells forecast to require decommissioning over the next five years. Because the region is maturing and new projects are scarce, decommissioning costs are projected to exceed capital expenditure starting in 2029.

Political approaches to the region have shifted. Former Prime Minister Keir Starmer previously sought to ban new drilling, but current Prime Minister Andy Burnham is expected to support some new projects.