Decommissioning Decommissioning activity is becoming More than 4,500 structures ASIA PACIFIC

& Abandonment even more complex as it shifts

from individual assets to
have been decommissioned
in water depths of less than 4,500+ There are over 1700 offshore oil

Factsheet entire fields, and to larger, 400 ft, compared with just
12 carried out in deeper
installations across the region of
which almost 800 are approaching
more complex structures
water (2015) <400ft the end of their design life, or have
already exceeded it. Cost estimates
DECOMMISSIONING & 8
for the eventual decommissioning
ABANDONMENT OVERVIEW 4
of regional assets range from
There are around 630 leases $30-60 billion, but some
that have an expected expiration believe the eventual total
A four-pile structure GE
Decommissioning an offshore platform date between 2017 & 2019. could be higher
generally entails: in 15 meters of water 15m 13

Plugging all wells supported by the platform depth typically costs ~$2m Estimated routine
Exp
and severing the well casings 15 feet below the just under $2 million decommissioning liabilities . 20
17-1 WEST AFRICA
9
mudline in decommissioning in the Gulf of Mexico Region are
and removal, whereas a Nigeria and Angola hold
Cleaning and removing all production and $40 billion the fastest growing
pipeline risers supported by the platform structure in 100 meters 9
decommissioning markets
Removing the platform from its foundation by of water depth will cost in the region. Its estimated
NIGERIA

severing all bottom-founded components at nearly double that to Historical decommissioning costs for rigs in the that by 2020 Nigeria will have
least 15 feet below the mudline dismantle 100m GOM have been in the $500,000 to $4 million
~$4m performed 107 platform removals,
Disposing the platform in a scrap yard or range for shallow-water structures. Platforms compared to just 1 in the Ivory Coast. ANGOLA
fabrication yard, or placing the platform at an 5 included in this category can vary from single-
pile, one-well platforms that are located in Over this same region, its expected
artificial reef site
several ft of water, to larger, four-pile structures that Chevron will account for 39% of
Performing site clearance verification at the Statoil, Total, Chevron, ExxonMobil and decommissioning work, Perenco 14%
platform location to ensure that no debris or in water depths up to 120m.
ConocoPhillips round out the and ExxonMobil 13%.
potential obstructions to other users of the top-five operators globally in terms of 14
OCS remain $0.5 million $4 million
1
decommissioning spending by operator
CENTRAL & SOUTH AMERICA
10
5 Platform decommissioning in Brazil
Spending on global 25% is expected to account for 56% of
decommissioning projects 6
Over 420 decommissioned
9%
total decommissioning activity
is expected to increase from platforms in the Gulf of between 2013 and 2020.
approximately $2.4 billion in 2015, SPOTLIGHT ON THE Mexico have been converted 56% Trinidad & Tobago comes in
to $13 billion-per-year by 2040 GULF OF MEXICO to artificial reefs. Thirty 2nd at 25% and Venezuela 9%.
percent of the 15 million Its estimated that a total of
fish caught by recreational $220 million may be spent in the

540%
There are more than 2,325 existing structures fishermen annually off the decommissioning of the Agulha oilfield,
the GOM OCS. The four main types of coasts of Texas and Louisiana in the Potiguar basin in Brazil, alone.
are caught near platforms
increase structures found on the GOM OCS are:
11
15

by 2040 Floating Facilities The 10th Annual

2% OTHER REGIONS Decommissioning &
Well Protectors Multi-leg Platforms
2
8% 67% Abandonment Summit
NORTH SEA 20-21 Feb 2018 Omni Hotel, Houston, Tx
Caissons
23% Over the next decade, more than
The Worlds Largest Decommissioning, 500
An additional 2,000 100 platforms are expected to be Abandonment and Late-Life Asset Senior Level
offshore projects will be partially or completely removed, Management Conference Attendees

decommissioned between This includes spars, tension leg platforms over 1,800 wells are forecast to Celebrating its 10th year of bringing 50+
2021 and 2040 and total (TLPs), and mobile offshore production units be plugged and abandoned, together the most influential names in Top Industry
Speakers
(MOPUs). The majority of structures are and close to 7,500 km of the industry, the Decommissioning and

2,000
expenditures from 2010
located off the coast of Louisiana in less than Abandonment Summit 2018 will reflect
to 2040 will amount to pipeline are set to be 2
on a decades worth of lessons learned,
$210 billion 300 ft of water. decommissioned. Oil & Gas late-life data and case study insight, in
Conference
more offshore UK estimates costs for this work
Tracks

decom projects an unrivalled learning experience.

7
to be 17.6 billion ($22.6 billion) 10
3 Years of
Find out more here Knowledge
12

Sources: 1 http://sero.nmfs.noaa.gov/habitat_conservation/documents/gulf_decommissioning_and_rigs_to_reefs_faqs_final.pdf 2,3,4,5,6,10 http://news.ihsmarkit.com/press-release/energy-power-media/decommissioning-aging-offshore-oil-and-gas-facilities-increasing-si?page=2 7 https://www.boem.gov/ESPIS/5/5505.pdf 8 http://analysis.upstreamintel.com/deepwater/spike-gom-decommissioning-quickens-need-deepwater-expertise 9 https://www.boem.gov/2016-02-04-PLANO-Risk-Presentation-Celata

11 http://www.noia.org/policy-issues/rigs-to-reef/ 12 http://insights.claxtonengineering.com/the-future-of-the-ukcs-offshore-decommissioning-industry-2017-predictions 13 DecomWorld: Decommissioning and Ageing Asset Market Map 2016 14 https://www.scottish-enterprise.com/knowledge-hub/articles/insight/oil-and-gas-spends-and-trends-africa 15 https://www.scottish-enterprise.com/knowledge-hub/articles/insight/oil-and-gas-spends-and-trends-south-america