The global Offshore Decommissioning Market is estimated to be valued at US$ 7.07 Bn or Mn in 2023 and is expected to exhibit a CAGR of 16. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Offshore decommissioning refers to the removal of offshore oil and gas infrastructure once production has ceased. It involves removing infrastructure such as platforms, pipelines and cables from production sites located in oceans. Offshore decommissioning helps restore the offshore environment to a pre-production condition or equilibrium which is critical for sustaining marine life. Key advantages of offshore decommissioning include meeting safety and environmental regulations and cost savings from reuse and recycling of infrastructure. With aging oil and gas fields, there is a growing need for offshore decommissioning projects globally.
Market key trends:
One of the major trends in the offshore decommissioning market is an increasing number of multi-client decommissioning contracts. Large oil companies are partnering with specialist decommissioning service providers to jointly bid and execute complex decommissioning projects. This is helping share costs and risks involved. Another key trend is growing reuse and recycling of decommissioned infrastructure. Companies are finding innovative ways to reuse platforms, pipelines and other equipment for other industrial purposes such as offshore wind farms or artificial reef projects. This is boosting sustainability and creating additional revenue streams from decommissioning projects. Supportive government regulations around the world for standardizing decommissioning practices are also fueling market growth.
Threat of new entrants: Low barriers to entry due to specialized skills and equipment required for offshore decommissioning operations.
Bargaining power of buyers: Moderate bargaining power as oil & gas companies have dominance in offshore decommissioning projects.
Bargaining power of suppliers: Low bargaining power for suppliers due to availability of substitute materials and services.
Threat of new substitutes: Low threat of substitutes as offshore decommissioning has no close substitute and involves dismantling of offshore oil & gas infrastructure.
Competitive rivalry: High competitive rivalry among existing operators due to increasing number of projects and availability of skilled workforce.
The global Offshore Decommissioning Market Share is expected to witness high growth, exhibiting CAGR of 16.% over the forecast period, due to increasing number of aging offshore oil & gas infrastructure reaching end-of-life. The market size for offshore decommissioning was valued at US$ 7.07 Bn in 2023.
Europe dominated the offshore decommissioning market in 2023, owing to presence of large number of aging offshore oil & gas assets in North Sea. Countries such as UK and Norway have majority of infrastructure reaching end-of-operational-life. Asia Pacific is expected to witness fastest growth during the forecast period with China and India emerging as lucrative markets.
Key players operating in the offshore decommissioning market are Acteon Group Limited, Topicus Finan BV, AF Gruppen ASA, Tetra Technologies Inc., Allseas Group S.A., DeepOcean Group Holding B.V., John Wood Group Plc, and Exxon Mobil Corporation. The market is highly competitive with presence of global and regional players offering variety of decommissioning services including removal, disposal, environmental consulting etc.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it