North Sea operators have backed a new initiative aimed at tackling a backlog of inactive wells while potentially cutting around £200million from the cost of decommissioning.
The North Sea Transition Authority (NSTA) and 17 operators, including Adura, bp, Harbour Energy, Ithaca Energy, Shell and Serica Energy, have signed a charter committing them to greater collaboration on well decommissioning.
Operators will share data, expertise and resources, while identifying opportunities to share vessels for wellhead removal work.
Industry estimates suggest greater use of vessels rather than rigs for the final stages of subsea well decommissioning could reduce the remaining bill for wellhead removals by around 30%, equivalent to approximately £200million.
The initiative comes as new NSTA figures show the industry spent a record £2.6billion on decommissioning in 2025, up from £2.4billion the previous year.
Operators carried out work on 257 wells last year, with 114 progressing to final abandonment, compared with 238 wells worked on and 103 fully abandoned in 2024.
However, around 500 inactive wells are still awaiting final abandonment, with more than 1,000 additional wells expected to require decommissioning over the next five years.
Pauline Innes, NSTA Supply Chain and Decommissioning Director, said: “This initiative has the potential to be a win-win-win for operators, suppliers and taxpayers.
"By collaborating, we can tackle the backlog, lower the cost of well decommissioning, protect the marine environment, and stimulate the offshore service sector. The North Sea's biggest operators have come aboard and embraced the principles of the charter, so we're off to a great start.”
The NSTA said greater use of vessels for removing wellheads could also free up rigs to carry out earlier-stage decommissioning work, including plugging wells with cement.
Mark Wilson, Offshore Energies UK's Energy Operations Director, said: “Industry's commitment to this charter shows a shared determination to work collaboratively and responsibly with the NSTA and partners to address inactive wells safely, efficiently and drive down costs.
"By sharing data, providing expertise and engaging the supply chain early, operators can improve visibility, planning and outcomes across the sector while maintaining legal, regulatory and operational standards.”
The NSTA now estimates the remaining cost of North Sea decommissioning at £43.4billion in 2025 prices, down marginally from £43.6billion.
UK companies secured 71% of the value of decommissioning contracts awarded in 2025, significantly above the North Sea Transition Deal's voluntary commitment of at least 50% local content.