Decommissioning of an offshore asset refers to the process of ending the operations on the asset and returning the ocean or seafloor to the pre-lease condition. Decommissioning is necessary for minimizing the risks to safety and the environment that can occur from leaving unused structures in the ocean. A strict legal framework of national, regional and international regulations governs how disused offshore facilities are decommissioned. A growing part of today’s offshore oil & gas assets is fast approaching the end of their design-specified life, and this is driving the growth of the offshore oil & gas decommissioning industry. With a number of idle offshore wells approaching decommissioning age globally, the global market for decommissioning of offshore oil & gas installations is anticipated to grow during the forecast period.
The market is driven by several factors, such as the growing number of aging offshore oil and gas platforms with many of them operating beyond their lifespan, sustained low oil price environment, d environmental concerns, and increasingly stringent decommissioning regulations.
Governments have strict regulations concerning the abandonment and plugging of offshore assets, especially in view of growing concerns regarding offshore accidents involving offshore oil & gas assets. According to a few Notices to Lessees and Operators, effective from Oct. 15, 2010, in popular regions like the Gulf of Mexico, platforms and supporting infrastructure that has been idle for five or more years must be removed within 5 years from the date of the last usage. These regulations are helping in the growth of the decommissioning market.
The Gulf of Mexico as the Emerging Hotspot for Decommissioning Projects
Most of the decommissioning activity is in more mature fields located in the United Kingdom Continental Shelf and the Gulf of Mexico. The Gulf of Mexico (GOM) has the highest number of decommissioned platforms across the globe. There are 17,841,739 acres of leased land comprising 3,344 total leases in the Gulf of Mexico alone. The Gulf of Mexico has been the largest region in the world for the number of wells decommissioned. Though the average number of structure decommissioned fell to 113 in 2015, the total number of structure removed in the GoM Outer Continental Shelf (OCS) reached 254 in 2016. More than 2,000 structures and around 9,000 wells are expected to be removed by operators from GOM in the coming years. The US government has established a robust regulatory framework, including technical standards and financial security requirements to support the decommissioning efforts put forward by operators, which in turn is expected to support the decommissioning activities undertaken by operators.
Asia-Pacific presents a decent growth opportunity, owing to the improvement in regulatory frameworks and new guidelines, along with the rising inventory of structures nearing the end of life and operating beyond the lifespan.
Key Developments in the Market
- February 2018: Fairfield Energy has awarded Bibby Offshore the contract for the subsea infrastructure decommissioning (SID) of the Greater Dunlin Area.
- Jan 2018: EnQuest has signed an agreement with BP for the management of decommissioning activities for Thistle and Deveron production facilities in the UK northern North Sea.
Reasons to Purchase This Report
- Current and future onshore oil & gas pipeline outlook in the developed and emerging markets
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- The segment that is expected to dominate the market
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- Identify the latest developments and strategies employed by the major market players.
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1. Executive Summary
2. Research Approach and Methodology
3. Market Overview
3.2 Market Size and Demand Forecast until 2023
3.3 Recent Trends and Developments
3.4 Government Policies and Regulations
4. Market Dynamics
5. Supply Chain Analysis
6. Industry Attractiveness - Porter's Five Forces Framework
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitute Products and Services
6.5 Intensity of Competitive Rivalry
7. Market Segmentation and Analysis, by Depth
7.1 Shallow Water
7.2 Deepwater and Ultra-deepwater
8. Regional Market Analysis (Overview, Market Size and Demand Forecast until 2023)
8.1 North America
8.4 Middle East & Africa
8.5 South America
9. Key Company Profiles* (Overview, Products and Services, Financials** and Recent Developments and Analyst View)
9.1 Aker Solutions
9.2 Bureau Veritas S. A.
9.3 EPIC Companies (EPIC)
9.4 Bibby Offshore
9.5 Maersk Decom
9.6 Proserv Group Inc.
9.7 Linch-pin Offshore Management Services
10. Competitive Landscape
10.1 Mergers & Acquisitions
10.2 Joint Ventures, Collaborations and Agreements
10.3 Strategies Adopted by Leading Players
*List not Exhaustive
**Subject to availability on public domain