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Opportunities for subsea vessels in global decommissioning sector
Decommissioning is a key part of the lifetime and supply chain in the global oil and gas industry that will drive demand for vessels and associated services
Pressure from authorities and non-governmental organisations will encourage energy companies to spend more on well plugging and abandonment and decommissioning fixed, floating and subsea infrastructure.
Boston Consulting Group partner and associate director Martha Vasquez expects decommissioning to constitute around 20% of total capital expenditure in offshore oil and gas basins.
Decommissioning investment will be highest where there are multiple mature production assets coming to the end of their lives, said Ms Vasquez in an exclusive interview during Riviera Maritime Media’s Offshore Support Journal Subsea Conference, in London, UK, in February 2024.
Decommissioning represents a US$7Bn global market in 2024, with around 50% of this spending focused in the North Sea, she explained.
There are emerging hotspots in Australia, US Gulf of Mexico, South America, southeast Asia and west Africa, which will raise spending to become a US$9Bn market by 2034.
Ms Vasquez said decommissioning could be a US$80Bn market over the next 10 years with the highest spending in northern Europe, the Gulf of Mexico, South America and Australia.
Shell, Petrobras, Eni, Total, Chevron, BP, Equinor, ExxonMobil, Sinopec, Repsol and ConocoPhillips are some of the major companies expected to decommission assets in the next 10 years.
Currently, only around 10% of decommissioning spending is focused on subsea vessels, so Ms Vasquez urged vessel owners to consider taking more responsibilities, such as project management and engineering, to capture more of the investment.
Decommissioning opportunities will be discussed during Riviera Maritime Media’s Offshore Support Journal Conference, Americas which will be held in Houston, Texas, 11-12 June 2024, click here for more information on this industry-leading event
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