Global Offshore Decommissioning Market (2021 to 2027) - Aging Offshore Infrastructures, Especially in North Sea and Gulf of Mexico Presents Opportunities

Dublin, July 22, 2021 (GLOBE NEWSWIRE) -- The "Global Offshore Decommissioning Market by Service (Well Plugging & Abandonment, Platform Removal, Conductor Removal) Depth (Shallow, Deepwater) Structure (Topsides, Substructure) Removal (Leave in Place, Partial, Complete), and Region - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.

The global offshore decommissioning market is projected to reach USD 8 billion by 2027 from an estimated USD 5.2 billion in 2021, at a CAGR of 7.4% during the forecast period.

The factors driving the market include maturing oil & gas fields, low crude oil prices, and aging offshore infrastructure. Offshore decommissioning refers to ending oil & gas operations on offshore platforms and restoring marine life and seafloor to its pre-production conditions.

Well plugging & abandonment segment dominates the global market

The well plugging & abandonment segment is expected to be the largest market, by service type during the forecast period. This growth is evident owing to key activity to be performed regardless of decommissioning type; it ensures that oil wells do not have any type of leakage after the cessation of production. According to norms and regulations, wells that are matured and no longer productive need to be properly plugged & abandoned. It is essential to plug the wells before platform removal to prevent any kind of leakages, which can pollute the seafloor and damage the surrounding marine environment.

Complete removal dominate the global offshore decommissioning market

The complete removal segment of offshore decommissioning is estimated to be the largest market during the forecast period. Complete removal involves restoring the oilfield site to its natural or pre-commissioning state. It is an expensive decommissioning option for both operating companies and taxpayers. In the North Sea, a complete removal is currently required by the Convention for the Protection of the Marine Environment of the North-East Atlantic, or the 'OSPAR' agreement.

Europe to lead the global offshore decommissioning market in terms of growth rate

Europe is the largest market, by value, for offshore decommissioning, followed by North America. Owing to mature oil and gas fields, particularly in the UK and the North Sea. The impending cessation of production in major oil and gas fields would ensure that the European market would grow at the highest pace. Europe is estimated to witness the highest offshore decommissioning spending, with its well-developed regulatory framework compared to other regions.

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights
4.1 Attractive Opportunities in Offshore Decommissioning Market
4.2 Offshore Decommissioning Market, by Region
4.3 Offshore Decommissioning Market, by Service
4.4 Offshore Decommissioning Market, by Structure
4.5 Offshore Decommissioning Market, by Depth
4.6 Offshore Decommissioning Market, by Removal
4.7 Offshore Decommissioning Market in Europe, by Structure & Country

5 Market Overview
5.1 Introduction
5.2 COVID-19 Health Assessment
5.3 Road to Recovery
5.4 COVID-19 Economic Assessment
5.5 Market Dynamics
5.5.1 Drivers
5.5.1.1 Growing Number of Abandoned Wells and Presence of Large Mature Offshore Oilfields Worldwide
5.5.1.2 Fluctuations in Oil Prices Boost Offshore Decommissioning Activities
5.5.2 Restraints
5.5.2.1 High Cost Associated with Offshore Decommissioning Processes
5.5.2.2 Lack of Skilled Workers in Developing Countries
5.5.2.3 Environmental Concerns Associated with Offshore Decommissioning
5.5.3 Opportunities
5.5.3.1 Aging Offshore Infrastructures, Especially in North Sea and Gulf of Mexico
5.5.3.2 Deepwater Discovery and Development in Offshore Areas
5.5.4 Challenges
5.5.4.1 Growing Adoption of Technologies to Increase Production from Mature Fields
5.5.4.2 Impact of COVID-19 on Offshore Decommissioning Spending
5.6 Trends/Disruptions Impacting Customers' Businesses
5.6.1 Revenue Shift and New Revenue Pockets in Offshore Decommissioning Market
5.7 Supply Chain Overview
5.7.1 Key Influencers
5.7.1.1 EPC Companies
5.7.1.2 Service Providers
5.7.1.3 Operators
5.8 Market Map
5.9 Technology Analysis
5.10 Patent Analysis
5.11 Offshore Decommissioning Market: Regulations
5.12 Porter's Five Forces Analysis
5.13 Case Study Analysis

6 Offshore Decommissioning Market, by Service Type
6.1 Introduction
6.2 Project Management, Engineering, and Planning
6.2.1 Project Management, Engineering, and Planning Phase of Decommissioning Can Start as Early as 2-3 Years Prior to Cessation of Production
6.3 Permitting & Regulatory Compliance
6.3.1 Middle East & Africa is Among Fastest Markets in Following Regulatory Compliance
6.4 Platform Preparation
6.4.1 Platform Preparation Helps in Reducing Offshore Decommissioning Costs and Time
6.5 Well Plugging & Abandonment
6.5.1 Increasing Investments in Well Plugging & Abandonment are Driving Market
6.6 Conductor Removal
6.6.1 Growing Emphasis on Safety is Expected to Drive Market for Conductor Removal Segment During Forecast Period
6.7 Mobilization & Demobilization of Derrick Barges
6.7.1 Rising Need for Economical and Safe Transportation of Structures to Onshore Locations is Expected to Drive Market During Forecast Period 91
6.8 Platform Removal
6.8.1 North Sea and Gulf of Mexico are Home to Maximum Number of Platforms, Which are Ideal and Not Producing Any Type of Hydrocarbons and Eligible for Decommissioning
6.9 Pipeline & Power Cable Decommissioning
6.9.1 Ageing Offshore Infrastructures are Estimated to Drive Market for this Segment During Forecast Period
6.10 Material Disposal
6.10.1 Rising Need for Safe Disposal and Recycling of Structure is Expected to Propel Market Growth During Forecast Period
6.11 Site Clearance
6.11.1 Availability of Regulatory Framework Guides Operating Companies to Conduct Their Site Clearance in Environmentally Safe Manner

7 Offshore Decommissioning Market, by Structure
7.1 Introduction
7.2 Topsides
7.2.1 Growing Number of Projects & Investments for Topside Removal is Expected to Drive Market During Forecast Period
7.3 Substructure
7.3.1 Increasing Substructure Decommissioning Activities in North Sea are Driving Market During Forecast Period
7.4 Subsea Infrastructure
7.4.1 Aging Subsea Equipment and Infrastructure are Expected to Boost Market Growth

8 Offshore Decommissioning Market, by Depth
8.1 Introduction
8.2 Shallow Water
8.2.1 Shallow Water Projects are 30-40 Years Old and Hence Need to be Decommissioned
8.3 Deepwater
8.3.1 Increasing Need to Decommission Abandoned Wells in Deepwater Areas is Driving Market

9 Offshore Decommissioning Market, by Removal
9.1 Introduction
9.2 Complete Removal
9.2.1 Safety Concerns Regarding Marine Life are Expected to Drive Market for Complete Removal Segment During Forecast Period
9.3 Partial Removal
9.3.1 Government Policies in US Gulf of Mexico are Driving Market for this Segment
9.4 Leave in Place
9.4.1 Leave in Place Removal Requires No Site Clearance and Provides Migratory Animal Habitat, Which is Estimated to Boost Market Growth for this Segment

10 Offshore Decommissioning Market, by Region

11 Competitive Landscape

12 Company Profiles
12.1 Key Companies
12.1.1 Halliburton
12.1.2 Petrofac
12.1.3 Oceaneering International
12.1.4 Royal Boskalis Westminster N.V.
12.1.5 Aker Solutions
12.1.6 Schlumberger
12.1.7 Baker Hughes Company
12.1.8 TechnipFMC
12.1.9 Subsea 7
12.1.10 Weatherford
12.1.11 Saipem
12.1.12 John Wood Group plc
12.1.13 AF Gruppen
12.1.14 Heerema Marine Contractors
12.1.15 Allseas Group
12.2 Other Companies
12.2.1 Deepocean Group
12.2.2 Acteon Group
12.2.3 Maersk Decom
12.2.4 Able UK
12.2.5 Mactech Offshore

13 Appendix

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