Offshore Decommissioning Market will Escalate Rapidly in Near Future

As offshore oil and gas fields reach the end of their productive life cycles, decommissioning becomes an important process. Decommissioning entails shutting down and removing offshore installations, pipelines, and structures in a safe and responsible manner.

The global offshore decommissioning market is expected to grow from an estimated USD 5.2 billion in 2021 to USD 8.0 billion by 2027, at a CAGR of 7.4% during the forecast period.

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The offshore decommissioning market growth is attributed to increasing focus on mature oil and gas fields and aging offshore platforms, particularly in shallow water.

According to?Oil & Gas UK, in decommissioning insight 2019, overall, 2,624 wells are expected to be decommissioned in the North Sea during 2019-2028. Furthermore, increasing government focus on well plug & abandonment activities is driving the market for offshore decommissioning services. Increasing need for well plugging & abandonment is driving the offshore decommissioning market.

Europe?is expected to be the largest offshore decommissioning market, driven mainly by activities in the?uk?norway?and?netherlands?. The UK?offshore industry?leads other regions in terms of well-developed and mandatory decommissioning guidelines. In?europe?over?950,000 tons of topsides?are scheduled for removal across the?northsea?out of which more than 605,000 tons will be from?ukcs?. The UK is expected to spend about EUR 15.3 billion on decommissioning, over the next ten years.?Approximately, 2,400 wells?are expected to be decommissioned across the whole North Sea and West of the Shetland region, by 2027.

North America?will also play an important role in driving demand for offshore decommissioning.?north america?is the biggest market in terms of the number of platforms decommissioned per year. Most offshore decommissioning takes place in the?us,?gulf of mexico?where the?rigs?to Reef policy have been in practice for a long time.

Key Market Players:

Some of the key players in the?Offshore Decommissioning Market?include Heerema Marine Contractors (The Netherlands), Royal Boskalis Westminster N.V. (The Netherlands), Petrofac (Jersey), Oceaneering International (US), Baker Hughes Company (US), Halliburton (US), and Schlumberger (US).