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Much of the world’s offshore oil and gas infrastructure is reaching the end of its lifetime. In the North Sea around 940 wells need decommissioning. Two hundred offshore wells in Southeast Asia alone will start producing by 2030, and at present around 700 offshore facilities are awaiting decommissioning in the Middle East.
But relative to other oil and gas activities, decommissioning experience is limited for a procedure that can be dangerous, complex, and costly. The process includes removing structures and equipment, unplugging wells. But there is no single standard decommissioning procedure due to differences in the design of structures, the depths they operate in, sea conditions, and the types of marine life present.
Infrastructure can be completely or partially removed, or dropped to the ocean depths to create a man-made reef. This rig-to-reef method is attractive for oil companies, as it costs around half the price of removing an entire structure. But a 2023 study found that there wasn’t yet enough evidence to determine if a rig left in the ocean caused more harm or benefit environmentally.
Globally, the offshore decommissioning cost is currently estimated at around $300bn, with Brazil holding the greatest liability, followed by the US, UK, and Norway. Sound decommissioning strategies are also going to be crucial for the growing number of offshore renewable energy sites, but there is no global legally binding agreement when it comes to disassembling offshore rigs and platforms.
The closest thing to it is the OSPAR Convention. Fifteen governments and the EU co-operate under this treaty, which also applies to green energy infrastructure. Worryingly, till now progress on decommissioning has been far from encouraging.
In the North Sea, over 500 inactive oil wells legally required to be deconstructed have missed their original deadlines. As of June 2023, more than 2,700 wells and 500 platforms in the Gulf of Mexico were overdue for dismantling. The mission to safely decommission the world’s offshore infrastructure in a timely fashion has only just begun.
