North Sea operators must take action on decommissioning oil wells to support the UK’s supply chain and stop costs spiralling, the industry regulator has warned.

In its latest decommissioning cost and performance update, the North Sea Transition Authority (NSTA) revealed that the North Sea oil and gas industry spent close to £2bn on decommissioning in 2023.

However, despite this cost, operators only achieved 70% of planned decommissioning activities in 2023.

Hundreds of wells will need to be decommissioned every year as more oil and gas fields shut down.

In the decommissioning process, wells, once they have stopped producing, are plugged with concrete to protect groundwater resources and prevent surface pollution and methane emissions.

Decommissioning is an expensive process. The report found that operators expected to spend about £24bn on decommissioning between 2023 and 2032, up £3bn on the forecast for the same period in last year’s report.

While decommissioning is a legal requirement...