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offshore-oil-rig-against-blue-sky
The new rule is designed to better protect the taxpayer from shouldering the costs of decommissioning. (Image source: Adobe Stock)

US judge rejects bid to block new decommissioning rule

  • Region: North America
  • Topics: Decommissioning
  • Date: 14 March 2025

Offshore Oil and gas platformA federal judge in Louisiana has rejected a bid by three US states to block a rule adopted in 2024 that strengthens the financial assurance requirementsfor offshore oil and gas companies to ensure they meet their decommissioning obligations.

The judge declined to issue a preliminary injunction sought by the Republican-led states of Louisiana, Mississippi and Texas along with the Gulf Energy Alliance, Independent Petroleum Association of America, Louisiana Oil & Gas Association, and U.S. Oil & Gas Association.

The 2024 rule was issued by the U.S. Bureau of Ocean Energy Management (BOEM), which noted that since 2009, more than 30 corporate bankruptcies had occurred involving offshore oil and gas companies that did not have sufficient financial assurance to cover their decommissioning obligations, which had highlighted a weakness in BOEM’s current supplemental financial assurance programme. BOEM noted that the new rule finalises amendments to existing provisions and increases regulatory clarity about financial obligations “to better protect the taxpayer from potentially bearing the cost of facility decommissioning and other financial risks associated with OCS development, such as environmental remediation.” The new rule includes the requirement that companies which cannot provide adequate financial assurance have to put up a surety bond.

The three states and industry groups argued that the rule if enforced would result in  "potentially existential consequences" for small and medium-sized companies as they would be unable to obtain such bonds.

The judge said that issuing a preliminary injunction was not warranted on the grounds that the threatened harm is not imminent, given that the new requirements are being phased in over three years, and demands for supplemental financial assurance would not be issued until mid-2025 at the earliest.

"While these harms may be likely, a preliminary injunction can only be issued if the threatened harm is also imminent," the judge said.

However he  said he would expedite the case so the court can reach a final decision on the merits before the demand letters are issued and plaintiffs incur any resulting costs.

Watch this space!

Image_of_well_control_solution_by_MWCC
The new equipment will further enhance MWCC’s capabilities. (Image source: W-Industries)

MWCC partners with W-Industries on advancing well control solutions

  • Region: North America
  • Topics: Well Intervention
  • Date: 13 March, 2025

windustriesmwccDeep water well control service provider, Marine Well Containment Company (MWCC), has onboarded W-Industries with a multimillion contract to conduct the engineering, fabrication, and delivery of its new drill-ship deployed containment system. 

This will enhance the coverage for potential deep water well control situations that majorly impact the offshore oil & gas industry. MWCC’s new MODU Deployed Containment System (MDCS) will be put into place by W-Industries, involving designing, manufacturing, and integration of its seven key flowback modules. This new equipment will further enhance MWCC’s already extensive capabilities to capture and keep hydrocarbons out of the environment in the event an incident well cannot be immediately shut-in. Designed to operate reliably in challenging offshore environments, the flowback solution will provide dependable performance for up to six months, allowing sufficient time for relief wells to be drilled to permanently plug the well.

“W-Industries is proud to partner with MWCC on this critical project,” said Michael Bain, SVP Integrated Systems at W-Industries. “With our extensive technical experience in offshore automation and modular fabrication, we are dedicated to delivering an efficient and robust solution that will significantly enhance MWCC’s containment response capabilities.”

“MWCC is excited to work with W-Industries on this important enhancement to our current flowback capabilities, a great example of our never-ending focus on continuous improvement,” said David Nickerson, CEO of MWCC. “W-Industries’ expertise in delivering highly automated modular processing systems is exactly what MWCC was looking for.”

This partnership reinforces W-Industries’ leadership in offshore energy innovation, particularly in supporting industry safety initiatives and regulatory requirements. By contributing to MWCC’s continued advancements in well control capabilities, W-Industries is demonstrating its commitment to operational safety, regulatory compliance, and offshore risk mitigation. This positions the company as a trusted partner for offshore and subsea energy solutions, ensuring that well containment technology continues to keep pace with developments in offshore drilling practices.

image_shows_offshore_oil_and_gas_decommissioning_platform
Addressing key challenges is essential for long-term decommissioning success. (Image source: Adobe Stock)

Recommendations for long-term success in offshore decommissioning

  • Region: Gulf of Mexico
  • Topics: Decommissioning
  • Date: 13 March, 2025

AdobeStock 980689519 800x450

To address the challenges associated with offshore oil and gas decommissioning, the Ocean Conservancy has recommended the following actions to be taken to set the stage for long-term success:

Strengthening oversight and enforcement for expired decommissioning leases

The Bureau of Safety and Environmental Enforcement (BSEE) should develop mandatory decommissioning plans, under which operators are able to clear their decommissioning backlog within a set timeline. For offshore wells and platforms located on expired, terminated, or relinquished leases, the BSEE must enforce appropriate decommissioning deadlines and ensure that they are up-to-date. In case of uncertainities regarding the enforceability of BSEE sanctions, the agency should issue clarifying guidance or set up new or revised guidelines. 

Strengthening oversight and enforcement for active decommissioning leases

For idle wells and platforms located on active leases, the BSEE should codify its decommissioning deadlines for such infrastructure. It should also shorten deadlines to ensure that idle wells and platforms are cleaned up promptly, while ensuring that these wells and platforms are decommissioned within one year. Furthermore, the BSEE should be cautious of granting decommissioning waivers for potential future use of wells or platforms. In case it does grant a future use waiver, the agency should require operators to provide supplemental financial assurance that will cover the full cost of decommissioning. The BSEE should also increase its use of sanctions to compel compliance with decommissioning deadlines.

Strengthen decommissioning requirements for subsea pipelines

When a pipeline no longer proves useful, the BSEE should require its owner to remove it from the seabed. Regulations need to be revised and the agency needs to permit decommissioning in place only in rare circumstances, during which operators need to monitor the condition and location of the pipeline over time to ensure that it remains secure. Moreover, a fee needs to be paid to combat the impact of the discarded pipeline. The BSEE operators are also required to perform site clearance activities and ensure that the agency steps up its observation, inspection and verification, so that it does not entirely rely on self reported data provided by the operators.  

Strengthen requirements for supplemental financial assurance

The Bureau of Ocean Energy Management (BOEM) should also consider implementing a system that would require each lessee to establish a dedicated account, into which the lessee would invest funds sufficient to satisfy estimated decommissioning obligations. The main advantage of this system is the absence of bonding requirements. Funds should also be made available to the lessee during the conclusion of lease operations. Most importantly, the BOEM should ensure minimisation of US taxpayer exposure to decommisioning liabilities.

Developing and implementing qualification standards of offshore operators

The BSEE and BOEM need to establish 'fitness to operate' standards to ensure that lessees and operators are qualified to conduct business on federal offshore oil and gas leases. Factors such as past compliance, and lease permit terms and the financial health of lessees and operators need to be considered. A formal rulemaking process needs to be undertaken to ensure that the standards are enforceable. During this process, agencies must disqualify existing or potential lessees or operators that fail to meet the required fitness standards.

Boosting commitments to transparency and data sharing 

Both the BSEE and BOEM need to increase their commitments to transparency and data sharing in regard to offshore oil and gas decommissioning operations. By expanding their dashboard with additional details on status and ownership of wells and pipelines, they can ensure that publicly available data is more accessible and understandable. The dashboard could also be made more elaborate and user friendly by adding more details about the disposition of structures, including the reuse of platforms and rigs-to-reeds status. Furthermore, it could also disclose estimated and final costs for decommissioning activities. 

Opportunities for congressional action 

To strengthen government oversight and enforcement of offshore oil and gas decommissioning activities, the Congress can pass legislation mandating any of the above policy solutions and also to achieve outcomes that are beyond the existing authority of administrative agencies. Additionally, job training programmes can also be facilitated to train those oil and gas workers who are interested in transitioning to work on renewable energy projects or offshore decommissioning work. 

The Nauticus robotic software in the water along with a rig and the Aquanaut vessel.
The strategic acquisition of SeaTrepid, which is projected to be completed by May 2025, underscores Nauticus’ commitment to innovation and revenue growth in 2025. (Image Source: Nauticus Robotics)

Nauticus Robotics to acquire SeaTrepid International

  • Region: North America
  • Topics: Well Intervention
  • Date: 10 March, 2025

NauticusNauticus Robotics has announced the signing of a definitive agreement to acquire subsea robotics expert SeaTrepid International.

The strategic acquisition, which is projected to be completed by May 2025, underscores Nauticus’ commitment to innovation and revenue growth in 2025. By integrating Nauticus’ AI-driven autonomy software ToolKIT into SeaTrepid’s existing ROV fleet, the combination will showcase strong advancements in power efficiency and operational performance.

The ability of ROVs and Aquanaut to communicate at depth unlocks new service opportunities which enable the two autonomous systems to collaborate in delivering cutting-edge underwater solutions.

Bob Christ, SeaTrepid’s previous CEO and now President of SeaTrepid Operations, said, “We look forward to combining with Nauticus to extend ROV capabilities and enhance execution on a global scale."

David Huber, current SVP of Ocean Minerals, commented, “SeaTrepid is a long-time reliable subsea services provider to the deepwater companies I have worked for over the past several decades. With the combination of Nauticus' autonomous cutting-edge controls technology coupled with SeaTrepid's deep knowledge of subsea services, I see this as a breakthrough development for the offshore sector."

image_indicates_loopholes_in_decommissioning_regulations_of_subsea_pipelines
There are a number of gaps in regulations governing the decommissioning of subsea pipelines that are considered as an obstruction. (Image source: Adobe Stock)

Loopholes in decommissioning regulations of subsea pipelines

  • Region: Gulf of Mexico
  • Topics: Decommissioning
  • Date: 10 March, 2025

AdobeStock 968322820

While subsea pipelines that are not in use are considered obstructions and need to be cleared by operators from the seafloor, there are a number of gaps in regulations governing the decommissioning of subsea pipelines.

For example, when the BSEE staff refuses to find a pipeline as obstructive, they may proceed to clear the inside of the pipeline, secure its ends, and leave it on the seafloor. This is considered an exception which has resulted in nearly 97% of disused pipelines to remain on the ocean floor. According to the Governmental Accountability Office (GAO), operators had left around 18,000 miles of disused pipeline at the bottom of the Gulf of Mexico, as of 2021. Although these structures might go on to become an obstruction over time, their removal has been largely unsuccessful in most cases, due to a lack of funding mandate allocated towards pipeline removal. 

Another notable loophole is the absence of fixed decommissioning deadlines within existing regulations. Verification regarding the absence of obstructions on decommisioned pipeline sites are also not mandatory. Moreover, BSEE regulations do not require operators to monitor and report on decommissioned-in-place pipelines, nor does BSEE itself monitor decommissioned-in-place pipelines. There is also no fixed data on the extent to which the industry is actually complying with any of the agency regulations that have been laid out. 

 

 

 

An_oil_rig_in_the_Gulf_of_America
The campaign has yielded promising results. (image source: Seadrill)

LLOG Exploration advances Gulf of America development studies

  • Region: North America
  • Topics: Well Intervention
  • Date: 6 March, 2025

owigom5

Last month, LLOG Exploration, a US-based privately owned oil and gas company, initiated development studies for two hydrocarbon-bearing wells following a successful three-well exploration and appraisal campaign in the Gulf of Mexico, now rebranded as the Gulf of America.

This is according to a report by Offshore Energy.

The campaign, which included the Who Dat East and Who Dat South wells, has yielded promising results, prompting further evaluation of potential development options.

The Who Dat East well, drilled in late April 2024 using Noble’s Noble Valiant drillship, revealed a hydrocarbon-bearing aggregate net pay thickness of 44 m measured depth (MD), with 31 m MD within two discrete reservoir units.

The joint venture partners—LLOG (operator, 40%), Karoon (40%), and Westlawn (20%)—are now conducting development concept studies to assess the technical and commercial viability of the Who Dat East prospect.

Karoon has revised its net revenue interest (NRI) for Who Dat East’s 2C contingent resource upward by 190%, from 5.4 million barrels of oil equivalent (boe) to 15.7 million boe, based on data from wireline logs, fluid samples, and subsurface studies.

The Who Dat South well, drilled in the fourth quarter of 2024 using Seadrill’s West Neptune drillship, reached a total depth of 7,014 m MD.

Preliminary interpretations indicated hydrocarbon-bearing sandstone intervals with an aggregate true vertical thickness (TVT) of 67 m, exceeding pre-drill estimates of 40 m.

Initial analysis of formation pressure measurements and fluid samples confirmed the presence of high liquid yield gas-condensate fluid.

The well has been suspended as a potential future producer pending further joint venture studies.

In contrast, the Who Dat West well, drilled in late December 2024 and reaching a total depth of 7,147 m in January 2025, did not encounter significant hydrocarbon-bearing intervals and has since been plugged and abandoned.

Who Dat field production update

The Who Dat field, located in 800 m of water offshore Louisiana, has been in production since 2011. The field produces a mix of 60% oil and 40% gas from nine wells, processed through the Who Dat floating production system (FPS) and transported via common carrier pipelines.

Gross production in Q4 2024 averaged 29,576 boe per day, a 3% decline from the previous quarter due to an extended 18-day maintenance shutdown caused by Hurricane Rafael and a gradual 10-day ramp-up period to restore full production.

Average realised prices for Who Dat liquids, including oil, condensate, and natural gas liquids (NGLs), fell by 9% to US$68.44 per barrel, reflecting global oil price trends. However, the average realised gas price increased by US$83.07 per thousand cubic feet (mcf), driven by higher seasonal demand during winter.

Dr Julian Fowles, Karoon’s CEO and MD, said, “In the US, the Who Dat gross production for the quarter was 3% lower than in 3Q24, primarily due to the planned annual platform shutdown and gas compressor maintenance. As a mature asset, without interventions Who Dat production, is expected to naturally decline by approximately 15% pa on average.

“During 2024, natural decline was largely offset by well interventions, sidetracks and production system optimisations. 2025 production will also benefit later in the second half from two well interventions, in line with our long term aim to offset decline rates through periodic infield activities.”

An_oil_rig_depicting_well_intervention
Mooring pile installation has already been completed.

Beacon Offshore’s Shenandoah FPS arrives in Gulf of America

  • Region: North America
  • Topics: Well Intervention
  • Date: 4 March, 2025

owigom4

The Shenandoah floating production system (FPS), a key component of Beacon Offshore Energy’s deepwater project, has reached the Gulf of America following its journey from South Korea.

Built at HD Hyundai Heavy Industries’ shipyard in Ulsan, the 26,050-metric-ton FPS was transported aboard the semi-submersible vessel Xin Yao Hua and arrived at Kiewit Offshore Services’ fabrication yard in Ingleside, Texas, on 10 February 2025.

The unit is now undergoing final preparations and regulatory inspections before its installation at the Shenandoah field in the Walker Ridge area.

With a nameplate capacity of 120,000 barrels of oil per day (bopd), the FPS is set to play a pivotal role in the Shenandoah Phase 1 development.

Mooring pile installation has already been completed, with infield pipelay activities scheduled for the first quarter of 2025.

Preparing for phase two

The project’s 102-mile SYNC oil export pipeline and upgrades to the CHOPS GB 72 platform are also finished, paving the way for first oil production in the second quarter of 2025.

Located approximately 230 miles from New Orleans in water depths of up to 5,500 feet, the Shenandoah field is a major deepwater venture for Beacon Offshore and its partners.

The company has also sanctioned Shenandoah Phase 2, which includes drilling two additional wells, expanding the FPS capacity to 140,000 bopd, and installing a subsea booster pump to enhance hydraulic efficiency.

These activities, planned between 2025 and 2028, are expected to add 110 million barrels of oil equivalent (MMBOE) in resources.

To support the expanded development, Beacon Offshore and its partners, including HEQ Deepwater and Navitas Petroleum, have secured an additional US$mn in debt commitments, bringing total project financing to over US$1.2bn.

In parallel, Beacon Offshore is advancing plans for the Shenandoah South discovery in Walker Ridge 95. This project, located in water depths of 5,800 to 6,000 ft, will leverage the existing Shenandoah FPS infrastructure via a three-mile subsea tieback.

Initial production from Shenandoah South is anticipated in the second quarter of 2028, with an estimated 74 MMBOE of resources. A final investment decision for Shenandoah South is expected by mid-2025.

Abandoned_offshore_oil_rig
There are strict regulations around the decommissioning of installations which have reached the end of their life. (Image source: Adobe Stock)

Strong growth forecast for North America decommissioning market

  • Region: North America
  • Topics: Decommissioning
  • Date: 3 March 2025

abandoned oil rigA recent report on the North America Decommissioning and Closure Service market by Verified Market Reports forecasts that the market will reach US$14.8bn by 2030, growing at a CAGR of 6.9% from 2024 to 2030.

This is driven by factors such as ageing infrastructure, stricter environmental policies and the increasing cost-effectiveness of decommissioning technologies, with key advancements including improved safety standards, automation of certain decommissioning processes and enhanced waste management techniques.

Ageing infrastructure is a major driver with older plants requiring decommissioning and closure as they reach the end of their life cycle, to ensure compliance with safety and environmental standards, such as the BSEE regulation that stipulates that wells must be plugged and abandoned within three years of being deemed ineligible for further work, and platforms must be removed within five years of being no longer useful for operations.

Increasingly stringent environmental regulations and policies related to waste disposal, emissions control and site remediation are pushing companies to engage in responsible decommissioning practices and improve the environmental footprint of their operations, which is vital for safeguarding public health and the environment.

Trends such as the emphasis on environmental sustainability and the integration of circular economy practices also play a significant role in shaping the market’s future, with an increasing focus on repurposing and recycling decommissioned assets.

Technology plays a critical role in improving the efficiency, safety and environmental impact of decommissioning services. The integration of advanced technologies such as AI, drones, robotics and automation in the decommissioning process has significantly improved efficiency, reduced human exposure to hazardous environments, and lowered operational costs. Furthermore, advancements in data analytics and AI help companies manage decommissioning projects more effectively by predicting potential risks and improving decision-making.

Challenges highlighted by the report include ongoing supply chain disruptions, particularly in the materials needed for decommissioning projects, which can result in delays, necessitating the improving of supply chain management and diversification of sources of materials. Navigating complex regulatory environments can also delay projects, with increased collaboration between service providers and regulatory bodies needed to streamline approval processes. Pricing pressures are also a constraint, driving the leveraging of technology to reduce operational costs and improve overall efficiency.

An_oil_rig_depicting_well_intervention
By the end of 2034, the market is expected to reach an estimated US$3.5bn

Global high pulsed power market set to surge, driven by well intervention demand

  • Region: North America
  • Topics: Well Intervention
  • Date: 28 Feb, 2025

owigom3

The global high pulsed power market for well intervention, valued at approximately US$267mn in 2023, is poised for remarkable growth, according to a market report by Transparency Market Research.

The organisation has indicated a compound annual growth rate (CAGR) of 23.2% from 2024 to 2034 for the sector.

By the end of 2034, the market is expected to reach an estimated US$3.5bn, according to industry analysts.

High pulsed power solutions have become indispensable in modern well intervention, offering efficient energy delivery to address blockages and enhance the productivity of aging oil wells.

As global energy demand rises and production rates from mature wells decline, the oil and gas industry is increasingly relying on these technologies to extend asset life and improve recovery rates.

Additionally, growing investments in onshore intervention activities are further propelling market expansion, as operators prioritise maximising output from existing assets over drilling new ones.

Well intervention encompasses a range of techniques—such as workover, slickline, wireline, and coiled tubing operations—aimed at maintaining and boosting the production of oil and gas wells. High pulsed power technology plays a critical role in these interventions by compressing and delivering energy pulses that effectively break up blockages and improve fluid flow. Typically, these systems power specialised equipment, such as diamond drilling bits, which help remove debris and optimise hydrocarbon flow.

Key drivers of market growth

1. Rising adoption of liquefied gases and renewable energy initiatives
As global energy demand escalates and mature wells struggle to maintain production, operators are increasingly turning to interventions to extract additional resources. High pulsed power solutions are proving essential for enhancing the efficiency of these operations, particularly in onshore fields where aging assets require innovative technologies to boost recovery.

2. Increased investment in onshore interventions
Developing countries, aiming to reduce their reliance on imported oil, are ramping up investments in onshore interventions. For instance, Petrobras recently tendered for 15 land rigs to perform intervention activities in mature fields. Such initiatives are driving market demand as operators seek to extend the life of existing wells and optimise asset performance.

3. Research and development of pulse modulators and advanced components
Ongoing research into standardised pulse modulators and the development of high-voltage interconnects—including cable assemblies and receptacles—is expanding the product portfolio of high pulsed power systems. These innovations are crucial for delivering reliable and energy-efficient solutions that meet the demanding requirements of well intervention operations.

In 2023, North America dominated the high pulsed power market for well intervention, driven by the adoption of efficient and cost-effective techniques for well maintenance. The region’s focus on optimising existing oil and gas assets—through advanced technologies such as wireline perforating and coiled tubing—has significantly bolstered market growth.

offshore_oil_rig
The new rule to better protect the American taxpayer from bearing the cost of oil and gas facility decommissioning. (Image source: Adobe Stock)

Three US states sue against new decommissioning rule

  • Region: North America
  • Topics: Decommissioning
  • Date: 26 Feb, 2025

Decommissioning rule

 

The states of Louisiana, Mississippi and Texas are suing against a new rule that tightens up the criteria for oil and gas companies to prove they can meet the financial obligations for decommissioning, according to a recent press article published by Public Radio wbhm.

Oil and gas companies with offshore infrastructure are obligated to decommission it when it is no longer useful, by plugging wells and removing platforms within set deadlines.

As of June 2023, more than 2,700 wells and 500 platforms were overdue for decommissioning in the Gulf of Mexico, according to the US Government Accountability Office. It states that the lack of effective enforcement by the Bureau of Safety and Environmental Enforcement (BSEE) has contributed to widespread decommissioning delays that have grown into a substantial backlog, and that the Bureau of Ocean Energy Management (BOEM) does not effectively assure that operators have the financial and technical capacity to meet decommissioning obligations in advance of potential delays, bankruptcies, or other defaults. Delays can increase environmental and safety risks, as well as potentially indicating that companies are in financial trouble and may leave the government to foot the bill for decommissioning.

Protecting smaller companies

A 20-year-old BOEM rule requires a company to provide financial assurance to prove it can clean up the infrastructure afterward before it can get a lease to drill. In April 2024, the BOEM passed a new rule, substantially strengthening the financial assurance requirements for the offshore oil and gas industry operating on the U.S. Outer Continental Shelf (OCS), to better protect the American taxpayer from bearing the cost of oil and gas facility decommissioning. It includes the requirement that companies which cannot provide adequate financial assurance have to put up a surety bond.

“The offshore oil and gas industry has evolved significantly over the last 20 years, and our financial assurance regulations need to keep pace,” said BOEM director Elizabeth Klein at the time of the issue of the updated rule. “Today’s action addresses the outdated and insufficient approach to supplemental bonding that does not always accurately capture the risks that industry may pose for the American taxpayer – like financial health of a company or the value of the assets that the lessee holds.”

The three states are suing against the new rule on the grounds it would be unaffordable for independent small and mid-sized oil companies, potentially causing bankruptcies and job losses. Meanwhile, environmental groups, the API and major oil companies (who might be better able to shoulder any additional costs), are supporting the new rule.

It is reported that the district judge for the Western District of Louisiana will decide whether or not to approve an injunction, which will pause the rule while arguments are heard. In the meantime, the rule remains in effect.

Image_shows_abandoned_oil_wells_in_the_Gulf_of_Mexico_that_are_likely_to_double_by_2030
The number of overdue wells in need of decommissioning could nearly double by 2030, ballooning to more than 5,000 wells. (Image source: Adobe Stock)

Abandoned offshore oil wells in the Gulf of Mexico likely to double by 2030

  • Region: Gulf of Mexico
  • Topics: Decommissioning
  • Date: 25 Feb, 2025

AdobeStock 642387144

An analysis by Ocean Conservancy has shown that the number of offshore oil wells that are overdue and in need of decommissioning could likely double by 2030.

A report entitled 'Protecting the Ocean and Taxpayers by Strengthenening Standards for Offshore Oil and Gas Decommissioning,' that was released during the end of last year, provides a comprehensive outlook at the state of offshore oil and gas decommissioning in the Gulf of Mexico, the growing consequences of the failing regulatory system, and policy changes to address them.

As of 2023, the federal waters of the Gulf of Mexico contained roughly 2,700 wells and 500 platforms that were overdue for decommissioning and considered delinquent. This idle and deteriorating infrastructure in the ocean is a growing risk to the environment and wildlife, and a growing risk to taxpayers if the government is forced to use tax dollars to cover cleanup costs. Risks associated with delinquent oil wells include oil spills which not only pose a major risk to the environment and wildlife, but are also a growing risk to taxpayers if the government is forced to use tax dollars to cover cleanup costs.

An analysis by Ocean Conservancy found that if the challenges with decommissioning policy are not fixed and the backlog is not addressed, the number of overdue wells in need of decommissioning could nearly double by 2030, ballooning to more than 5,000 wells. 

“Experts estimate the cost to decommission all Gulf of Mexico oil and gas infrastructure–including active and idle– could be anywhere from US$40mn to US$70bn. Meanwhile, the federal system that governs offshore decommissioning is plagued by widespread and substantial shortcomings,” said Andrew Hartsig, an expert on offshore oil and gas policy and senior director of Arctic Conservation at Ocean Conservancy. “We need to make changes before this already-failing system comes under more strain and leaves taxpayers footing the bill.”

 

Image of a reef formed at the base of a rig
Rigs-to-reefs is one of the approaches that can be used for decommissioned platforms. (Image source: Adobe Stock)

Technologies facilitating the repurposing of decommissioned platforms

  • Region: North America
  • Topics: Decommissioning
  • Date: 20 Feb, 2025

rigs to reefA recent report by the Australian Academy of Technological Science and Engineering on offshore oil and gas decommissioning highlights technologies that can facilitate alternative uses for in situ decommissioned platforms.

As the report points out, in situ decommissioning and repurposing of infrastructure can preserve marine ecosystems, reduce decommissioning requirements, and mitigate the risks of transporting invasive species. Such alternative uses can include rigs-to-reefs, commercial fishing, tourism, maritime logistics, alternative energies, coastal surveillance and research. Some of these approaches are already being used or planned in the Gulf of America. However, it is important to ensure that legal and regulatory issues, as well as technical challenges such as preserving structural integrity, are adequately addressed to ensure the long-term viability of repurposed assets.

Infrastructure that is intended to be repurposed will need to be prepared accordingly, assuming all the regulatory approvals have been obtained, to include ensuring integrity of the structure, removing or containing any contaminants to ensure there are no leaks throughout the lifespan of the repurposed facility, and continuous monitoring to mitigate against any ongoing risks.
Measures can include geotextile wrapping to protect against corrosion and guard against potential contaminant release; and stabilisation and encapsulation of contaminants to ensure their long-term containment and prevent leakage.

As would have been the case with the original facility, ensuring integrity of the repurposed structure for its proposed lifespan will be crucial. Approaches can include reinforcing infrastructure such as concrete and steel to boost structural integrity and extend lifespan, particularly where re-use purposes require topside refurbishing with heavy equipment; advanced anti-corrosion coatings and treatments; and capping and plugging for long-term well integrity.

Continuous monitoring of the infrastructure itself as well as the sea and ecosystem surrounding it is crucial to preserve the local marine environment. Here, autonomous systems and sensor technologies capable of providing real-time data to facilitate prompt remediation when necessary can come into play. Miniaturised sensors using nanotechnology dispersed throughout the marine environment can collect data on various parameters such as water quality, pollutants, and biological indicators. Genetically engineered microorganisms or synthetic biological systems could be designed to detect specific pollutants or environmental changes in real-time.

Advanced machine learning algorithms could be integrated into monitoring systems to analyse vast amounts of data and identify anomalies that could indicate environmental disturbances or hazards. These algorithms would continuously learn from historical data and real-time observations to improve their accuracy in detecting abnormal conditions and trigger alerts.

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