The Oil and Gas Authority (OGA) has pitched a £100m loan fund to the UK Government to stimulate North Sea decommissioning activity.
The formal proposal for an oil and gas sector deal will be submitted to the UK government next month.
Forecasts for North Sea decommissioning spending over the next two years have been cut by half a billion pounds by Oil and Gas UK (OGUK).
Efforts to reduce the UK's offshore decommissioning bill last year were "largely negated" by 5% of operators who increased their costs by £1billion, according to the Oil and Gas Authority (OGA).
The Oil and Gas Authority (OGA) has warned UK decommissioning spending will fall short of estimates over the next two years, bringing concerns of a “significant impact” on suppliers.