Haynes Boone Partner Glenn Kangisser spoke with Bloomberg for their “First Read” newsletter as the United Kingdom’s energy transition efforts have slowed in the North Sea.
Read an excerpt below.
The UK’s energy transition efforts are being undermined by a slow decommissioning of North Sea fields, Glenn Kangisser, head of the oil and gas team at Haynes Boone’s London office, said in an interview.
The delay will increase the cost of the work when it does eventually take place, and companies are missing opportunities to redeploy workers to projects that are related to the energy transition, he said.
- “It actually will materially impact on the UK’s ability to deliver an energy transition because you are relying on the same infrastructure and people and investment environments.”
The North Sea Transition Authority estimates the full cost of decommissioning from 2025 will be £44 billion in 2024 prices, but delays in well-plugging and abandonment work have created a growing backlog.
- Decommissioning is “essentially a step to the energy transition,” Kangisser said.
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