GoM activity spike quickens need for deepwater expertise

Oct 2, 2015

An expected surge in Gulf of Mexico decommissioning activity based on low oil price signals will accelerate the decline in shallow water asset stocks and hasten the need for industry to focus on the challenges of deepwater projects.

Operators must confront the challenges of higher cost deepwater projects. (Image credit: nightman1965)

The decommissioning market in the Gulf of Mexico, presently the largest in the world, is set to increase in activity in 2015 and 2016 as low oil price signals improve the case for decommissioning.

US tightens decom fund rules; Taylor wants Mississippi trust released; North Sea giant vessel delayed

Oct 1, 2015

Decommissioning news you need to know.

BOEM has proposed firms use different instruments for decommissioning funding. (Image credit: Ramcreative)

US’ BOEM toughens decom funding rules

The US Bureau of Ocean Energy Management (BOEM) has proposed tightening the rules on how operators make financial provisions for decommissioning.

According to the proposal, fewer companies will be able to self-insure and decommissioning costs must be set aside using financial assurance bonds rather than surety bonds.

Oil price pressures UKCS firms to share resources to cut costs

Sep 25, 2015

UK North Sea oil operators will need to work in localized groups to optimise supply resources for as many as 140 decommissioning projects in the next five years, Fiona Legate, UK upstream research analyst for Wood Mackenzie, told DecomWorld.

Image credit: DrAfter123

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With Brent crude prices currently lingering below $50/barrel, a new report by Wood Mackenzie (Wood Mac) forecasts up to 140 fields on the UK continental shelf (UKCS) will be decommissioned under the assumption that oil rises to $85/bl.

If oil prices settle at $70, a further 50 UKCS fields may be plugged and abandoned earlier than forecast, putting further pressure on decommissioning resources in the next five years.

This decommissioning outlook is substantially higher than the latest estimates from Oil & Gas UK, the industry association.

Industry survey reveals data, resource risks for Southeast Asia projects

Sep 11, 2015

Operators and vendors must optimize the limited exploration and installation data available for Southeast Asian platforms and build upon a thin base of local resources to better estimate decommissioning costs, industry sources said.

Experts identified Indonesia, Thailand and Malaysia as key decommissioning markets. (Image credit: stock_art)

South-east Asia has about 1,700 oil and gas installations, half of which are more than 20 years old, but almost none of them have been decommissioned. The region therefore presents the industry with a large, virgin market – and a unique combination of technical, financial and regulatory risks.

Decom World has conducted in-depth interviews with more than 30 experts engaged in the oil and gas industry to illustrate how the industry sees the future for decommissioning in Southeast Asia.

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