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The supply chain is now actively working to develop low-cost solutions and is gaining valuable experience through recent projects (as documented in many recent SPE papers). Owners need to engage the supply chain early with the relevant asset data for planning and execution of decommissioning. -
Our industry is governed by rules that require cleanup and closure of oil and gas facilities after they cease to produce. Unlike a capital project, decommissioning is not something that you can choose to do or not to do.
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With the current low-oil-price environment, the cost of decommissioning is seen as a key driver for the ongoing economic viability of the basin.
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As an operator approaches the end of a field’s life, the remaining value may lie predominantly in a low-cost decommissioning delivery coupled with some upside value from the retention of critical infrastructure to enable maximum regional resource recovery.
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Industry perceives decommissioning projects as more risky and uncertain than capital projects. Several recent decommissioning projects delivered in an immature marketplace seem to support this view.
