NORTH Sea oil and gas operators have been warned they could face fines for continued delays in decommissioning wells.
The North Sea Transition Authority (NSTA), the industry regulator, said firms are "running out of time" to address a backlog of more than 500 wells needing to be plugged.
The estimated cost of decommissioning these wells is £41 billion, which is shared between the private sector and the taxpayer according to BBC reports.
Further delays could add £4bn to the total cost, the NSTA warned.
When an oil well reaches the end of its productive life, the operator is responsible for permanently decommissioning it.
NSTA launched an investigation after identifying hundreds of wells that had missed their plugging deadlines.
The regulator said the delays risk rig operators and supply chain companies relocating their equipment and personnel to other regions.
If that happens, the regulator believes future decommissioning work in the North Sea would become more expensive.
Currently, there are not enough rigs in UK waters to carry out all the forecasted decommissioning work.
If the backlog continues, NSTA warned that more than 1000 additional wells could require decommissioning by the end of the decade.
Pauline Innes, NSTA’s director of supply chain and decommissioning, called on companies to act without delay.
She said: "The stark reality is that operators are running out of time to get to grips with the backlog as more contractors consider taking their rigs abroad, which damages the supply chain's ability to meet demand and remain cost competitive."
She added that while NSTA is willing to support firms, it will "get tough" on persistent delays.
In 2024, only 103 wells were decommissioned to the final abandonment stage, with some form of work completed on 223 wells.
However, 300 wells per year need to be fully decommissioned to clear the backlog.
Industry body Offshore Energies UK (OEUK) said businesses are working to meet their obligations, but challenges remain.
Decommissioning manager Ricky Thomson said: "Policy instability, including the Energy Price Levy and pauses in the Environmental Assessment process, has introduced significant uncertainty for the sector resulting in project delays and cost increases."
He said the sector is working with the UK Government to ensure stable regulatory and fiscal conditions for safe, efficient decommissioning.
