The offshore decommissioning market review, 2011


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The offshore decommissioning market review, 2011

  1. 1. THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICOGulf of Mexico Offshore Decommissioning Map 2012
  2. 2. THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 2Gulf of Mexico Offshore Decommissioning Map 2012 MISSISSIPPI ALABAMA GEORGIA LOUISIANA TEXAS2011 was a record year for the number of platformsdecommissioned, and has exceeded all predictions.The Gulf of Mexico oil and gas industry is clearly WEST CENTRAL EAST FLORIDAin a proactive mood for the decommissioning ofshelf assets. Previous years have been morereactive, principally due to hurricane activity, whichhad caused extensive damage to platforms andassociated infrastructure.Percentage change in number of platforms Size of the decommissioning GOM Marketdecommissioned 2008-20118%7%6%5%4%3%2%1% $3.5 - $5.5 billion $2 - $3.5 billion $1.5 - $2 billion (The estimated total (The estimated cost to P&A and (The estimated cost to P&A0% decommissioning market size) remove the 4,734 wells on expired and remove 3,515 T&A’d 2008 2009 2010 2011 leases to 15ft below mudline) wells to 15ft below mudline)
  3. 3. THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 3Level of decommissioning activity in 2011 19.9% 7.8% 6.1% 6.1% 4.8% 4.3% Apache Corporation Chevron USA Inc McMoRan Energy XXI Maritech Energy Resource Oil & Gas LLC GOM, LLC Resources, Inc Tech GOM Inc 4.3% 2.2% 2.2% 1.7% 1.3% 0.9% 38.5% 100% Merit Energy Company LLC Stone Energy Forest Oil Energy Walter Union Oil Company Other Corporation Corporation Partners Ltd Oil & Gas Corporation of California
  4. 4. THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 4Average platform decommissioning durations 1 day 50 ft Braced Caisson 4 Pile 6 Pile 8 Pile 4 Pile 4 Pile Caisson Platform type Water Depth (ft) Average duration to decommission (d) Caisson 50 1-2 Braced Caisson 100 2 4 Pile 150 3 6 Pile 200 3 -7 8 Pile 200 4-7 4 Pile 400 5-7 4 Pile 500 6-7 The time, presented above, does not reflect the Permanent Plug & Abandonment (P&A) of wells, which is extremely variable and dependent on number of wells, make-up, number of completions, reservoir depth, complexities etc.
  5. 5. THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 5Expired and T&A’d wells in Gulf of MexicoGulf of Mexico expired or terminated leases – borehole distribution by region MISSISSIPPI ALABAMA GEORGIA LOUISIANA TEXAS WEST CENTRAL EAST FLORIDA Condition West GOM Central GOM East GOM Other Total Wells on Expired leases 1,026 3,659 5 44 4,734 T&A’d Wells 497 3,006 8 4 3,515 Total 1,523 6,665 13 48 8,249 % of Total 18.5% 80.8% 0.2% 0.6% 100%Date source: BOEM
  6. 6. THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 6The Gulf of Mexico: status in 2012 Year Installed Decommissioned Remaining Total % Change on Total % Change on Total % Change remaining remaining fleet fleet 2011 7082 0.5% 3829 6.6% 3249 -6.2% 2010 7065 0.7% 3602 5.8% 3463 -5.1%
  7. 7. THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 7Offshore Decommissioning Report, 2012-2013, Gulf of Mexico❝DecomWorld’s Offshore Decommissioning Report,2012-2013, Gulf of Mexico presents a synopsis of theGOM decommissioning market and will be particularlyvaluable to Contractors planning for 2012 and beyond. ❝ The Decomworld 2012-13 report contains important strategic insights into the decommissioning market in the GOM. It is valuable for those seeking to gain a greater understanding of the market and refine ❝ The Decomworld Gulf of Mexico Report 2012-13 provides a comprehensive analysis of the decommissioning market and provides useful information for operators and seasonedThe report provides good background information for their customer engagement strategies.” decommissioning executives.”new entrants as well as the basis of further debate Win Thornton, Global Managing Consultant, Gunther Newcombe, VP Decommissioning,for seasoned decommissioning specialists.” Decommissioning, WorleyParsons Group Global Projects Organisation, BPGary Siems, Decommissioning Manager, (Former Manager, International Decommissioning,Stone Energy Chevron Environmental Management Company)Biography of the authorDarren J. Morahan, Cougar Offshore LLCDarren J. Morahan has utilized over 22 years of oil and gas engineering experience in creating this, his second report withDecomWorld. He has undertaken projects with a range of operators, including consultancy services to BP decommissioninggroup as their chosen Structural Authority on the decommissioning of shelf assets. Notable projects include the high-profilereefing in place and toppling of EI322 P & D.
  8. 8. THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 8DecomWorldThank you for your interest in the decommissioning market in the Gulf of Mexico. DecomWorld hopes you found theinformation extracted from The Offshore Decommissioning Report, 2012-2013, Gulf of Mexico interesting, but this isonly the beginning of the discussions around decommissioning in the region.Please get in touch if there is more information, data, interviews with executives or networking opportunities that you need.For more information please visit and or contact Dean Murphy at the conversation @decomworldDecomworld Gulf of Mexico Offshore Decommissioning market map © 2012 FC Business Intelligence®The information of this document was prepared by DecomWorld (part of FC Business Intelligence) and its partners. DecomWorld has no obligation to tell youwhen information in this document changes. DecomWorld makes every effort to use reliable, comprehensible information, but we make no representation that ➜ To receive the latest discountsit is accurate or complete. In no event shall Nuclear Energy Insider and its partners be liable for any damages, losses, expenses, loss of data or profit caused by on the Offshore Decommissioningthe use of the material or contents of this document. Report, 2012-13, Gulf of MexicoDecomWorld grants you a licence to make one free copy of the information contained herein for personal or non-commercial use only. Accordingly, no partof this document may be copied, performed in public, broadcast or adapted without DecomWorld’s prior written permission. Dean Murphy at for you and/or your team go to request permission.