The Scottish Government has launched a new £5 million fund to help support decommissioning work in the North Sea's oil and gas sector.

Launching the fund today, 08 February, First Minister Nicola Sturgeon said the Decommissioning Challenge Fund (DCF) recognises the industry as an emerging activity in the North Sea. A total of £17.6 billion is expected to be spent over the next 10 years in the sector.

The DCF will support infrastructure upgrades and innovation in salvage and transport methods at Scotland's ports and harbours. In addition, it will encourage engineering scoping work at key sites to build business cases that will attract further private investment, as well as making the most of decommissioning opportunities at home and abroad.


The announcement comes after Shell unveiled its plans to begin decommissioning its Brent oil field in the North Sea.

Speaking today at Sparrows, an Aberdeen-based supply chain company, Ms Sturgeon said: "With up to 20 billion barrels of oil and gas remaining, the Scottish Government's top priority remains working with industry and stakeholders to maximise economic recovery from the North Sea.

"The new £5 million Fund also recognises that decommissioning is an emerging, but growing, activity in the North Sea, with £17.6 billion expected to be spent in the North Sea over the next decade.

"Scottish-based firms are already seizing opportunities, securing the lion's share of value from a range of decommissioning activities, including project management of decommissioning programmes and high value well plugging and abandonment activity.

"Here at Sparrows, expertise developed in the oil and gas sector is being transferred to other energy and manufacturing sectors, and securing a major new contract is a significant milestone for the company.

"News today that Shell plans to apply to begin decommissioning its Brent oil field underlines the importance of planning for decommissioning."

(LM)