What are the Historical Developments and Current Growth Metrics of the Offshore Decommissioning Market?
The offshore decommissioning market has seen considerable growth due to a variety of factors.
• In the past few years, the market size for offshore decommissioning has seen substantial growth. It is projected to increase from $6.38 billion in 2024 to $6.97 billion in 2025, reflecting a compound annual growth rate (CAGR) of 9.3%.
Factors such as an increasing number of deserted wells, heightened investments in the remediation of inactive oil and gas wells, and a rise in mature offshore oilfields have contributed to this growth during the historical period.
What Is The Projected Growth Of The Offshore Decommissioning Market?
The offshore decommissioning market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for robust expansion in the offshore decommissioning market over the coming years. Projections indicate that it will expand to an impressive $9.52 billion by 2029, demonstrating a compound annual growth rate (CAGR) of 8.1%.
The anticipated growth during this forecast period is primarily due to an upswing in government financial aid for decommissioning and abandonment programs of wells, heightened exploration and production activities in the oil and gas sectors, and increased demand for products derived from crude oil. Key trends during this forecast period include a growing focus on decommissioning contracts with industry leaders, increased efforts to expand acquisitions for a wider geographical reach, heightened attention to topside removal projects, strategic alliances and cooperations among market competitors, and advancements in the processes and systems used for subsea transportation.
What Key Factors and Trends are Driving the Growth of the Offshore Decommissioning Market?
The offshore decommissioning market is anticipated to witness progress due to a rise in government funding towards well-plugging and abandoned activities. Well-plugging involves utilizing certain materials and methods to permanently prevent an abandoned well from contaminating surface drainage. Offshore decommissioning emphasizes sealing off plugged wells to prevent any leakage, post-abandonment—It involves ceasing offshore oil and gas production at a platform and allowing the ocean and seafloor to return to their initial statuses before lease. To exemplify this, a piece of news published by Business Standard, an India-based English-language newspaper in May 2022, specified that the US would expend $33 million for rehabilitating oil and gas wells on federal property. Moreover, 277 of the expected 15k deserted oil and gas wells on federal land would be purified using approximately $33 million from the $1 trillion bipartisan infrastructure package freshly approved by President Joe Biden. The law would assign $4.7 billion for refurbishing deserted oil and gas wells, inclusive of those on federal grounds. Hence, heightened government investment is fueling the expansion of the offshore decommissioning market.
What Are The Principal Market Segments In The Global Offshore Decommissioning Healthcare Industry?
The offshore decommissioning market covered in this report is segmented –
1) By Type: Project Management, Engineering And Planning, Platform Preparation, Well Plugging And Abandonment, Conductor Removal, Platform Removal, Pipeline And Power Cable Decommissioning, Material Disposal And Site Clearance, Other Services
2) By Structure Type: Topside, Substructure, Subsea Infrastructure
3) By Application: Shallow Water, Deep Water
Subsegments:
1) By Project Management: Project Planning And Scheduling, Risk Management, Budgeting And Cost Control
2) By Engineering And Planning: Site Assessment and Surveys, Environmental Impact Assessments, Decommissioning Methodology Development
3) By Platform Preparation: Structural Modifications, Safety Inspections, Hazardous Material Removal
4) By Well Plugging And Abandonment: Well Integrity Assessments, Plugging Operations, Regulatory Compliance
5) By Conductor Removal: Conductor Cutting And Removal Techniques, Environmental Considerations, Equipment And Tooling
6) By Platform Removal: Dismantling And Deconstruction, Transport And Logistics, Disposal Methods
7) By Pipeline And Power Cable Decommissioning: Pipeline Cleaning And Purging, Cutting And Removal Techniques, Environmental Management
8) By Material Disposal And Site Clearance: Waste Management Strategies, Site Restoration Activities, Reuse And Recycling Initiatives
9) By Other Services: Subsea Decommissioning, Salvage Operations, Regulatory And Compliance Consulting
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Which Emerging Market Trends Are Altering The Offshore Decommissioning
Strategic collaborations stand out as an important trend in the offshore decommissioning market. Major companies are forging partnerships to exploit shared resources and maintain their momentum in the market. For instance, in February 2024, Malaysia-based offshore contractor, Sapura Energy forged a partnership with AF Offshore Decom to satisfy the escalating demand for offshore decommissioning in Southeast Asia by providing comprehensive services from engineering to waste disposal. Their combined venture, Kitar Solutions, merges the local knowledge of Sapura with the expert skill of AF Offshore Decom in taking apart and recycling oil and gas infrastructure for more efficient operations. AF Offshore Decom is a US company specializing in offshore decommissioning.
Who Are the Key Players in the Offshore Decommissioning Market?
Major companies operating in the offshore decommissioning market include:
• TechnipFMC PLC
• Petrofac Limited
• John Wood Group Plc
• Aker Solutions ASA
• Allseas Group SA,Equinor ASA
• Schlumberger Ltd.
• Acteon Group Ltd
• DNV GL
• AF Gruppen ASA
• Reliance Industries Limited
• Cairn Oil and Gas
• Essar Offshore Subsea Limited
• Afcons Infrastructure Limited
• Seamec Ltd
• China Offshore Oil Engineering Corporation
• Shanghai Salvage Company
• China Oilfield Services Limited
• Shanghai Zhenhua Heavy Industries Company
• Boskalis Subsea Services
• Augean North Sea Services
• Veolia Environmental Services
• ASCO Group
• Gazprom
• Rosneft
• LUKOIL
• NOVATEK
• Sovcomflot
• ExxonMobil Corporation
• Baker Hughes Company
• Halliburton Offshore Services Inc.
• Weatherford International PLC
• Tetra Technologies Inc.
• Allnorth Consultants
• Petrogas Group
• R.J. MacIsaac Construction Ltd
• Petrobras
• OceanPact
• Subsea 7
• Ocyan
• Oceaneering
• Norwell Engineering
• Aries Marine
• Gulfstream Services
• Decom Engineering
• Environment Quality Services
• The Sparrows Group
• Southey Contracting
• Sasol
• Alduco Engineering Services
What are the Regional Insights into the Offshore Decommissioning Market?
Europe was the largest region in the offshore decommissioning market in 2024. The regions covered in the offshore decommissioning market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
