The global offshore decommissioning market is projected to reach USD 11.51 billion by 2028, at a CAGR of 5.7% during the forecast period. As oil & gas fields reach the end of their lifespan, they must be decommissioned. This complex task involves a number of highly skilled workers to ensure that the wells and platforms are safely and efficiently dismantled or decommissioned. Decommissioning is the process of ending offshore oil & gas operations at an offshore platform and returning the ocean and seafloor to its pre-lease condition.

Global Off-Shore Decommissioning Market.
Global Off-Shore Decommissioning Market.

Decommissioning involves the following activities:

  • Cleaning and removal of all production and pipeline risers supported by the platform.
  • Removal of the platform from its foundation by severing all bottom-founded components at least 15 feet below the midline.
  • Disposing the platform in a scrap yard or fabrication yard, or replacing the platform at an artificial reef site.
  • Performing site clearance verification at the platform location to ensure that no debris or potential obstruction to other users of the ocean floor remains.
    Global Off-Shore Decommissioning Market
    Global Off-Shore Decommissioning Market

The major driver for the decommissioning market is strengthening & mandatory legal guidelines for offshore oil and gas operations set up by the regulatory bodies of respective nations. With a huge number of offshore rigs expected to reach the end of their production cycle over the next ten years, the global need for technical decommissioning is expected to keep growing. Also, the increasing number of recent oil platforms like the ones in the North Sea and the Gulf of Mexico which will need decommissioning once they saturate is expected to grow the keep the market growth in the future.

Based on depth, the market is segmented into shallow water and deep water. The shallow water segment is expected to dominate to market for offshore decommissioning due to a large number of shallow water oil fields already present and also new ones being developed because of their lower costs to set up.

Most of the decommissioning activity is in more mature fields located in the United Kingdom Continental Shelf and the Gulf of Mexico. According to the Bureau of Safety and Environmental Enforcement (BSEE), 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 the 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. Europe holds a dominant position in the global offshore decommissioning market. The aging infrastructure and maturing oil and gas fields, especially in the North Sea and the U.K have driven this market in Europe.

The recent downturn in prices of oil is expected to be key restraint to not only exploration and development activities of oil and gas but also decommissioning operations. The decrease in oil prices has caused a continued decline in cash inflow and rise or hike in debt levels could challenge the future of the oil and gas industry.

Key Factors Impacting Market Growth:

  • Mandatory legal guidelines for offshore oil and gas operations set up by the regulatory bodies of respective nations
  • A large number of offshore rigs expected to reach the end of their production cycle
  • Discovery and development of new oil reserves in offshore areas around the world

Key Developments:

  • In January 2018, ExxonMobil Upstream Research Company (US), subsidiary of ExxonMobil, entered into a three-year joint development agreement with MagnaBond, LLC, to develop new technologies designed to address well decommissioning activities which focus on developing through-tubing cement evaluation and casing imaging tool that could enhance cost-effective evaluation of well cementing, casing, and tubing. The agreement was an initiative to address challenges associated with well-decommissioning activities such as plugging and abandonment
  • In January 2018, EnQuest (UK) signed an agreement with BP for the management of decommissioning activities for Thistle and Deveron production facilities in the UK northern North Sea
  • In February 2018, Fairfield Energy awarded Bibby Offshore (UK) the contract for the subsea infrastructure decommissioning (SID) of the Greater Dunlin Area

What Does This Report Provide?

This report provides a detailed understanding of the global off-shore decommissioning market from qualitative and quantitative perspectives during the forecast period. The report also provides dynamic indicators with potential impact on the market during the forecast period and an in-depth analysis of the leading companies operating in the market.

Market Segmentation:

By Structure:

  • Topside
  • Sub-Sea Infrastructure
  • Substructure

By Services:

  • Project Management
  • Permitting Compliance
  • Regulatory Compliance
  • Planning & Engineering
  • Well Plugging & Abandonment
  • Conductor Removal
  • Others

By Depth:

  • Shallow Water
  • Deep Water

By Region:

  • North America
    • By Country (US, Canada, Mexico)
    • By Structure
    • By Services
    • By Depth
  • Western Europe:
    • By Country (Germany, UK, France, Spain, Rest of Western Europe)
    • By Structure
    • By Services
    • By Depth
  • Eastern Europe:
    • By Country (Russia, Turkey, Rest of Eastern Europe)
    • By Structure
    • By Services
    • By Depth
  • Asia Pacific
    • By Country (China, Japan, India, Rest of Asia Pacific)
    • By Structure
    • By Services
    • By Depth
  • Middle East:
    • By Country (UAE, Qatar, Iran, Saudi Arabia, Rest of Middle East)
    • By Structure
    • By Services
    • By Depth
  • Rest of the World
    • By Region (Latin America, Brazil, Rest of the World)
    • By Structure
    • By Services
    • By Depth

Companies Covered: Aker Solutions, Epic Companies, Maersk Decom, Bibby Offshore, Proserv Group Inc., Able UK Ltd., Allseas Group SA, Amec Foster Wheeler PLC, John Wood Group PLC, Deepocean Group Holding BV, and Heerema Marine Contractors… 

Reasons To Buy This Report:

  • Market size estimation of the global offshore decommissioning market on a regional and global basis
  • The unique research design for market size estimation and forecast
  • Profiling of major companies operating in the market with key developments
  • Broad scope to cover all the possible segments helping every stakeholder in the market

Customization:

We provide customization of the study to meet specific requirements:

  • By Segment
  • By Sub-segment
  • By Region/Country

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