THREE60 Energy doubles decommissioning scope as North Sea market heats up

THREE60 Energy, an Aberdeen-headquartered energy services company, has significantly expanded its North Sea decommissioning operations, doubling its contractual scope with a major operator. The firm announced it has transitioned three additional offshore assets under an existing decommissioning agreement, bringing its total managed portfolio for this client to six assets. The expansion, which took effect on 1st July, underscores the growing demand for specialised decommissioning services in the UK Continental Shelf (UKCS).

The extended contract sees THREE60 Energy assume comprehensive Duty Holder responsibilities for the newly added assets, encompassing both Installation and Pipeline Operator scopes. This integrated approach is crucial for managing the complex technical and operational challenges inherent in late-life offshore infrastructure. The company confirmed it has scaled its integrated Aberdeen-based team, bringing together expertise across technical, commercial, and supply chain functions to support the enlarged programme.

Walter Thain, Group CEO of THREE60 Energy, commented on the development: “Being entrusted with these additional assets is a strong endorsement of the work our team has already safely delivered and the confidence our customer has in our ability to deliver complex decommissioning programmes across multiple assets safely, efficiently and responsibly. Expanding from three to six assets demonstrates the strength of our operating model and the depth of capability within our team. As decommissioning activity continues to accelerate across the UK Continental Shelf, we’re proud to be supporting operators with the safe delivery, expertise and leadership needed to execute these programmes successfully.”

A Burgeoning Decommissioning Market

The North Sea decommissioning market is experiencing a significant uplift, transitioning from a future concern to a current operational imperative for many operators. The North Sea Transition Authority (NSTA) estimates the total cost for decommissioning UK oil and gas infrastructure at approximately £43.4 billion (in 2025 prices), with nearly half of this expenditure, around £21 billion, projected to occur by 2032. This colossal undertaking involves around 470 platforms, over 5,000 wells, and more than 22,000 kilometres of pipelines within the UK sector alone, reflecting the vast scale of mature fields reaching their cessation of production (CoP).

In 2025, industry spending on decommissioning in the UKCS reached a record £2.6 billion, an increase from £2.4 billion in the previous year, with activity across wells, platforms, and subsea infrastructure all rising. Well plugging and abandonment (P&A) remains the single largest cost component, often accounting for 40-50% of a typical full-field decommissioning budget. Despite efforts to improve efficiency, the sector faces challenges from inflationary pressures, market uncertainty, and tight contractor capacity, particularly for heavy-lift vessels and well intervention units.

The Evolving Role of the Duty Holder

The “Duty Holder” model, where specialist third-party companies assume operational and safety responsibilities for offshore assets, has become increasingly vital. This model, pioneered by firms like Petrofac in the late 1990s, allows asset owners to divest late-life fields or focus on core production activities, entrusting the intricate process of managing operations, maintenance, integrity, emergency response, and ultimately, decommissioning, to experts. THREE60 Energy, with its “complete asset life cycle solutions,” is a prominent player in this segment, offering an integrated service that spans from initial planning and regulatory compliance to post-CoP operations and infrastructure removal.

The NSTA actively encourages collaborative approaches and innovative commercial models to drive down decommissioning costs and ensure safe, responsible execution. Organisations like THREE60 Energy are key to achieving these efficiencies, leveraging their multi-disciplinary teams and comprehensive service offerings.

THREE60 Energy’s Strategic Growth Trajectory

This latest contract expansion is indicative of THREE60 Energy’s strategic growth within the energy sector. The company reported a robust financial performance for the year ending 31st December 2024, with revenue climbing 36% year-on-year to £181.7 million and earnings before tax increasing by 82% to £11.3 million. This growth has been supported by a series of strategic acquisitions, including Pryme Group and Flexlife in 2023, and Samphire Subsea in 2024, which have expanded its capabilities and workforce to over 1,000 employees globally.

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Beyond this latest win, THREE60 Energy has secured other significant decommissioning contracts in the UKCS, including a multi-million-pound contract in a joint venture with AF Offshore Decom for the decommissioning of bp’s Andrew field, awarded in September 2025. The firm also previously took on Duty Holder responsibilities for DNO’s two UKCS assets in 2020. These successes solidify THREE60 Energy’s “differentiated position” as one of the UK’s leading independent outsourced Duty Holders, poised to capitalise on the accelerating decommissioning wave in the North Sea.

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