Report

Offshore Decommissioning Market: Development, Opportunities and Market Outlook (2016-26)

For over a century, the oil and gas industry has represented the largest sector of industrial development and has contributed billions of dollars to the economy. The petroleum reserves are depleting day by day with increased petroleum operations in order to meet the global demand. The companies set the production rate higher and try to suck the maximum hydrocarbons from the reservoir. The economic lifetime of a project normally terminates once its net cash flow turns permanently negative. When all the economically recoverable reserves are exhausted after employing all stages of production- primary, secondary and tertiary, the companies have no choice except to decommission the field with minimum environmental effects and without incurring excessive costs. Offshore decommissioning is the process of safe plugging of the drilled hole in the earth’s surface and dispose of the equipment and units used in offshore oil production.

Offshore decommissioning is a rapidly developing market as the oil companies need cost effective methods to decommission the project. The global offshore decommissioning market is estimated to be 5.63 billion in 2016, growing at a CAGR of XX% in the forecast period of 2016-2026.

The process of offshore decommissioning involves ten steps:

  • Project management, Engineering and Planning: It starts approximately three years before a well runs dry. It involves review of contractual obligations, engineering analysis, operational planning and contracting.
  • Permitting and Regulatory Compliance: It takes upto three years to obtain a permit for decommissioning an offshore rig. Operators often contact the regional consulting firms to ensure that all permits are legal before decommissioning as these firms are familiar with the regulatory framework of their region.
  • Platform Preparation: This step involves: tanks, processing equipments and pipings are flushed; platform equipment is removed, reinforcing the structure, disposing of residual hydrocarbons, etc.
  • Well Plugging and Abandonment: Plugging and abandonment majorly contribute to the costs of a decommissioning project and can be explained in two phases: the planning phase and the well abandonment phase.
  • Conductor Removal: According to BOEMRE, all platform components including conductor casings must be removed to at least 15 ft below the ocean floor or to a depth approved by the Regional Supervisor based upon the type of structure or ocean-bottom conditions. Companies can choose any of the procedure to remove the conductor casing.
  • Mobilization and Demobilization of Derrick barges: The Offshore units are unemployed and then moved to the next site where they are required.
  • Platform Removal: The platform removal step starts with the mobilization of derrick barges and involves many steps like removal of underwater jacket, cutting of topsides, etc.
  • Pipeline and Power cable can be decommissioned on site if they do not disturb the navigatioPipeline and Power Cable Decommissioning:n or create fishing problems.
  • Materials Disposal: Platform materials can be refurbished and reused, scrapped and recycled or disposed of in specified landfills.
  • Site Clearance: For the site clearance step, the operators need to follow a four-step procedure.

The characteristics and the process of each step are described in detail in our exclusive report.

Ageing and maturing oil reserves along with abandonment of wells are the factors driving the offshore decommissioning market. The decommissioning process is mandatory after completion of every oil and gas project as abandoned structures can cause environmental hazards. The strict environmental policies also have a positive impact on the market. In the past two years, the flat oil prices have led to declining cash flows in the oil companies. This decline has not only challenged the offshore exploration and development market but has also caused restraints to the offshore decommissioning market. The opportunities in the market lies in the development of cost effective decommissioning processes, preventing environmental hazards, proper disposal of residual oil preventing leakage in oceans, etc.

The profiles and the comprehensive operational study of various key service providers in the offshore decommissioning market like Amec Foster Wheeler ASA (France), Aker Solutions (Norway), AF Gruppen S.A. (U.S.), Tetra Technologies (U.S.), John Wood Group PLC (U.K.), Able UK (U.K.), DNV GL (Norway), Heerema Marine (The Netherlands), Allseas Group (Switzerland), Deep Ocean Group (The Netherlands), Technipfmc PLC (U.S.), etc. have been well analyzed and included in the report.

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By Technology

  • Removal Type:
    • Leave in Place
    • Partial Removal
    • Complete Removal
  • Structure
    • Topside
    • Substructure
    • Sub infrastructure

By Application

  • Shallow Water
  • Deep Water

By Geography

  • North America
  • Europe
  • Asia Pacific
  • South & Central America
  • Middle East & Africa
  • Rest of the World (ROW)
  • Market overview and forecasting covering Optimistic, Realistic and Pessimistic scenarios (2016-2026)
  • Analysis and study of various services provided by major players active in the Offshore Decommissioning market
  • Market segmentation based on Technology, Application & Geography
  • Detailed coverage of technology and services involved
  • Technical comparative studies and case analysis
  • Competitive landscape with in depth analysis of the market players’ strategy
  • Infraline’s Techno Managerial edge covering SWOT, TOWS, Porter’s five forces and PESTLE analysis

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