Offshore platform decommissioning projects currently at $15 billion

“The cost in removing these structures not only covers the topsides and the jackets, but also the subsea installations and associated pipework that is tied-back to the platforms”

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Gordon Gorrie, Industrial Info’s vice president of research, Oil & Gas Industry

SUGAR LAND, Texas – While new drilling and exploration activity in the offshore sector has been on a downward trend since the downturn in oil prices, one aspect of offshore activity continues gaining speed — decommissioning projects, according to Industrial Info Resources, which is tracking offshore oil and gas projects.

“Combined with the low oil price, low production in some fields and the maturity of some of the Offshore Platforms, Industrial Info Resources is currently tracking some 300 plus decommissioning projects, representing close to $15 billion in spending,” said Gordon Gorrie, Industrial Info’s vice president of research, Oil & Gas Industry.

A substantial portion of these projects are occurring in Europe, including Royal Dutch Shell plc’s decommissioning of four platforms and related infrastructure in the Brent Field in the North Sea.

“The cost in removing these structures not only covers the topsides and the jackets, but also the subsea installations and associated pipework that is tied-back to the platforms,” said Gorrie.

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The overall project involves the decommissioning of the Alpha, Bravo, Charlie and Delta platforms in Block 211/29 and has a combined total investment value of approximately $629 million.

The project will be phased in over time and represents just one of hundreds of such decommissioning projects being tracked by Industrial Info.

Posted in: Energy News

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