Asia-Pacific Decommissioning To Top US$100 Billion

Asia-Pacific Decommissioning To Top US$100 Billion

The potential market for offshore decommissioning activity in Asia-Pacific could be more than US$100 billion, according to research firm Wood Mackenzie.

The firm estimates that decommissioning in the region will be “a mammoth task,” and will include some 2,600 platforms and 35,000 wells. As a result, it expects batch decommissioning to play "a significant role" for areas with a large number of aging wells and platforms.

"With over 380 fields expecting to cease production in the next decade, the magnitude and cost of work can no longer be ignored. Through learning from global decommissioning projects, the industry can adopt and adapt practices best suited for Asia-Pacific's own set of challenges,” said Jean-Baptiste Berchoteau, Asia upstream analyst at Wood Mackenzie.

Headquartered in Edinburgh, Scotland, Wood Mackenzie provides research and consultancy on the upstream oil and gas sector worldwide.

Photo: Decommissioning platform. Credit: Wikimedia