decommissioning

In a down market, plugging and abandoning North Sea wells looks like an opportunity. The cost for operators is reduced because the government is paying more than half of the cost of the work, and many service companies hungry for work are offering discounts.

Decommissioning costs are often made higher by decisions made during the initial engineering and construction stages of an offshore oil or gas field. Designing with a critical eye can go a long way toward reducing the decommissioning costs, which occur decades later.

Regulations are driving increased decommissioning activities in the Gulf of Mexico. Incomplete data is one of the obstacles in planning decommissioning. As fields have changed ownership over time, key information has been lost, creating challenges for the current operator.