North America

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

The decommissioning of offshore fields is no longer the final chapter in their lifecycle. Increasingly, these sites are being repurposed for carbon capture and storage (CCS), a key strategy in the global push to achieve net zero emissions by 2050.

By utilising depleted fields to store CO₂ beneath the seabed, operators can transform non-productive assets into environmental solutions, aligning with international climate commitments.

The International Energy Agency (IEA) highlights CCS as a crucial tool for reducing emissions from existing energy infrastructure, decarbonising hard-to-abate industries, and facilitating low-carbon hydrogen production. The technology has long been linked to enhanced oil recovery (EOR), with operators injecting CO₂ into reservoirs to boost extraction rates—a practice dating back to the 1970s.

CCS growth

Despite growing interest, the CCS sector faces economic and technical hurdles. The IEA reported a 35% increase in announced capture capacity and a 70% rise in storage capacity in 2023, bringing projected CO₂ capture to 435 million tonnes annually by 2030.

However, this remains well below the 1 gigatonne required to meet net zero targets. Analysts at Rystad Energy warn that many announced projects may not materialise due to economic feasibility concerns, a common critique of CCS. Additionally, the Center for International Environmental Law (CIEL) notes that many past projects have faced operational challenges or failures.

Nevertheless, government incentives are spurring investment. In the US, the Inflation Reduction Act of 2022 expanded the 45Q tax credit, offering US$85 per tonne of CO₂ permanently stored and US$60 per tonne for EOR, attracting new investors and developers to the sector.

“The sector is on the verge of a breakthrough,” said Benn Cannell, innovation director at Aquaterra Energy. “Trailblazing companies are now going through the steps needed to deliver CCS at scale.” As more projects move forward, the industry’s success will hinge on advancing technology, securing financial backing, and overcoming operational setbacks.

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

Paul Goodfellow has been appointed as the new President and Chief Executive Officer at Talos Energy where he will utilise his 30 years of experience to help the business define its next phase of growth and develop a new strategic plan.

He said, “I appreciate the confidence the Board of Directors has shown in selecting me to lead Talos with its strong asset base and solid balance sheet. I look forward to working with the Board, senior management, and its dedicated employees as we develop and execute a strategy to drive performance and maximise value for our shareholders.

“During my first 100 days at Talos, I plan to gain a deeper understanding of our business and identify the key drivers of Talos's success. Additionally, I will collaborate with the leadership team to define the next phase of our growth and develop a strategic plan. Once this process is complete, we plan to announce our new strategic plan."

Goodfellow, who will also join the Board of Directors for the company, is bringing more than three decades’ worth of domestic and international experience in the oil and gas industry to Talos. During his career, Goodfellow has held various senior executive roles at Shell, including leading the operator’s global deepwater business across the Gulf of Mexico, Brazil, West Africa, Malaysia and the North Sea. He also held positions overseeing Shell’s well intervention organisation and served as a key member of the Projects & Technology and Upstream leadership teams.

Currently, Goodfellow is Executive Vice President and Group Chief Internal Auditor for Shell. He has also served as Executive Vice President, Deep Water for Shell’s global deepwater business, as well as Executive Vice President, Wells, Vice President and Managing Director, UK and Ireland and Vice President, Unconventionals US and Canada.

Neal Goldman, Chairman of Talos’ Board of Directors, commented, “I am very pleased to welcome Paul to Talos. The Board of Directors is confident that his extensive oil and natural gas experience, particularly in deepwater operations, along with his strategic judgement, performance track record and seasoned perspective, will be key in continuing to drive Talos’ strategy.

“Under Paul’s leadership, we expect to remain focused on leveraging our strengths in deepwater exploration and development to create compelling value for all our shareholders.”

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

The Woodside-operated Shenzi field has undergone planned shutdown to approach integrity and reliability scopes

An unplanned outage also had to be addressed, after which a key well was brought to production in November 2024. 

The Shenzi North project has been in production in the US Gulf of Mexico since September 2023. For optimised production, this two-well subsea tieback operates as an extension of the existing Shenzi infrastructure.

Situated approximately 195 km off the coast of Louisiana in the Green Canyon protraction area, the Shenzi assets comprise of the Caesar oil pipeline and the Cleopatra natural gas pipeline that form the main source of the several connecting pipelines that help the product reach onshore from the Green Canyon region. While the crude oil produced is consumed in Gulf Coast, the natural gas generated from the field is directed to the Cleopatra via a lateral pipeline that connects onshore to the Neptune processing plant in St Mary’s Parish, Louisiana.

Commenting on the project's notably short turnaround, Woodside CEO Meg O’Neill had said, "First production from Shenzi North shows how we are leveraging existing infrastructure to increase production and provide attractive returns from our Gulf of Mexico business.

"Taking the project from FID to first oil in 26 months is a great achievement. I commend the project team on safely bringing this resource into production well ahead of schedule.” 

Enjoying a 72% interest, Woodside had discovered the Shenzi field in 2002, with first hydrocarbons production following in 2009. Besides Woodside, Repsol is a partner in the field with a 28% interest. 

Gulf Coast customers benefit from more than 100,000 barrels of oil per day and 50 million standard cubic feet of gas per day that comes from the Shenzi field.

Peak production from Mad Dog

A well from the Mad Dog Argos that is part of the Mad Dog conventional oil and gas field situated 200km off the coast of Louisiana in the south-eastern Green Canyon protraction area, US Gulf of Mexico, has maintained production at the peak rate of ~130 kbbl/d, and is undergoing an infill injector well.

Argos is considered the driving force of the second phase of the Mad Dog project as it helped the brownfield site to reach a gross production capacity of up to 140,000 boepd. This semi-submersible platform has helped bp to boost production by atleast 20%. "Argos is key to our strategy of increasing our Gulf of Mexico production to around 400,000 barrels of oil equivalent per day by the middle of this decade,” said Ewan Drummond, Senior Vice President, Projects, Production and Operations.

An infill development well work has also began at Mad Dog A-Spar, besides a planned offshore facility shutdown. 

A Spar is a subsea truss spar which processed Phase 1 of the Mad Dog project, with over 100,000 boepd transported to Ship Shoal 332B through the Caesar pipeline, followed by the Cameron Highway Oil Pipeline System, which further provides gateway to the US interior. More than 60 mn st cu/ft of gas, on the other hand, goes through the Cleopatra pipeline to finally reach the Nautilus Gas Transportation System into Louisiana. 

While bp operates the Mad Dog field, Woodside holds a 23.9% interest in the project. 

To know more about the global well intervention scene, click here.

• Region: North America
• Topics: Decommissioning
• Date: Jan, 2025

A recent report on Offshore Oil and Gas Decommissioning by the Australian Academy of Technology Sciences and Engineering highlights the surge in the development and deployment of advanced technologies tailored to the decommissioning process.

The oil and gas industry has embraced a sector-wide digital transformation, with the benefits of enhancing worker safety, reducing environmental impacts, driving efficiencies and cutting costs. This transformation has enabled a reduction in the number of workers on offshore facilities, for example, thanks to increasing remote operations and increased automation.  There is likewise scope for the decommissioning sector to undergo a similar transformation.

However the report notes that, while digital technologies are a key enabler for more efficient decommissioning practices, they need to be accompanied by the further development of physical technologies to advance decommissioning processes.

One key area of technological advancement highlighted is the use of robotics and autonomous systems for subsea infrastructure removal and dismantling. These technologies enable precise and controlled operations in challenging offshore environments, such as the Gulf of Mexico, reducing the need for human intervention and minimising safety risks. Automated cutting systems use robotics and advanced machinery to perform precise cutting tasks during the removal phase of decommissioning, for example ROVs equipped with cutting devices can be used to cut pipes into sections, facilitating pipeline removal, and swarm robotics for collaborative subsea monitoring, involving the use of multiple small, autonomous robots for collaborative monitoring tasks, can enhance efficiency and coverage in subsea environments. The integration of AI and ML algorithms is enhancing the predictive maintenance of decommissioning equipment, facilitating process optimisation, and improving cost-effectiveness.

Rigless P&A processes are being explored globally due to potential cost efficiency gains, improved environmental compliance and enhanced safety outcomes, the report notes. This approach enables safe pressure testing, providing a comprehensive understanding of individual well conditions, leading to safer and more cost-effective P&A interventions. In addition, alternative barrier technologies such as thermite plug technology, resin plugs and bismuth alloy play an important role in ensuring the integrity of decommissioned wells as attentions shifts towards more cost-effective, efficient and environmentally compliant decommissioning solutions.

Another technological development highlighted is the application of advanced sensing and monitoring systems, which can assess environmental impacts and support risk assessment during decommissioning activities. This includes autonomous and remote systems equipped with state-of-the-art sensors, as well as satellite imagery. These technologies are also being used to provide real-time data on areas such as water quality, marine life and ecosystem health, helping operators to make informed decisions about decommissioning strategies and mitigating potential environmental risks.

Circular economy principles are increasingly driving innovation, the report notes, particularly in recycling and reusing decommissioned materials. Advanced material separation technologies and processing methods can be used to recover valuable resources from decommissioned equipment and structures, contributing to resource conservation, and reducing waste.

• Region: North America
• Topics: Decommissioning
• Date: Jan, 2025

Talos Energy has reported a total US$37.7mn in capital expenditures for plugging and abandonment (P&A) and settled decommissioning obligations for the third quarter 2024.

Besides comittment to end-of-life activities, the company's total capital expenditures for the period stands at US$118.9mn. Its quarterly report also revealed an increase of spending on P&A and decommissioning  to US$100-110,000. 

Talos' decommissioning services up untill 2028 has been covered by Helix Energy Solutions Group under an agreement signed early last year. This agreement empowers Helix with the first right of refusal involving significant segments of Talos’ decommissioning schedule in the US Gulf of Mexico. Helix will be in charge of leading Talos' abandonment goals, including offshore wells, pipelines and platforms. For the campaign, Helix Alliance, the company's shallow water abandonment wing from Louisiana, will be deployed for structure removals by using its derrick barges, liftboats for plug and abandonment activities, and dive support vessels (DSVs) for pipeline abandonments. The initiative will see multiple offshore supply vessels (OSVs) among a divwerse range of other assets as well. 

Speaking of the agreement, Helix’s President and Chief Executive Officer, Owen Kratz, had said, “We are excited to have been awarded this significant framework agreement for well and structure removal and decommissioning. Helix and Talos have worked together on field production, well intervention and decommissioning in the deepwater arena for many years, and this framework expands the relationship onto the shelf, further demonstrating Helix’s position as the preeminent company for full-field decommissioning in the Gulf of Mexico.”

Events leading up to the P&A

The second and third quarters of 2024 saw significant decommissioning obligations for Talos, during which time the plugging and abandoning of the Sebastian prospect also took place. While operated by Murphy Oil Corporation at a 26.8% interest, Talos holds a 25.0% interest in the prospect. Other partners include Westlawn Americas Offshore at 18.2%, Alta Mar Energy at 20.0%, and Houston Energy at 10.0%. 

Drilled in the third quarter 2024, Murphy had to finally plug and abandon the Sebastian number 1 exploration well after only non-commercial hydrocarbons were encountered. This involved the removal of various tubulars and equipment, which can only be initiated once all safety and sustainability measures are put into place. 

Talos had eneterd into an agreement regarding the Sebastian prospect in the Mississippi Canyon Block 387 of the US Gulf of Mexico, where drilling began in the later half of August 2024. The drilling aimed to reach a true vertical depth of approximately 12000 ft of the rich Upper Miocene K-1 reservoir situated in the region. There were plans to tie back the Sebastian prospect to the Delta House facility, where Talos holds interests as well. 

While initial tests suggested  an estimated gross resource potential of 9-16 mn boe with an aticipated early production rate of 6-10 mn boe per day, from this amplitude-supported prospect, post drilling results hardly matched expectations. The well had to be plugged and abandoned even though stakeholders initially considered it as one of the 'tactical, lower-risk opportunities' that can be 'brought online relatively quickly' to aid bigger upstream projects. 

To know more about Gulf of Mexico's decommissioning and abandonment scene, click here. 

• Region: Gulf of Mexico
• Topics: Decommissioning
• Date: Jan, 2025

Failure to decommission offshore oil and gas infrastructure on time and in compliance with requirements poses safety, environmental, and financial risks.

Safety risks

Failure to maintain offshore oil structures, while leaving them idle and unused can degrade these structures and pose safety risks to employees and regulators visiting the site. Moreover, a lack of maintenance can restrict access to the platform, requiring them to undergo expensive repairs and further contributing to delays in decommissioning operations. Moreover, poorly maintained structures lack appropriate lighting which can behave as a navigational hazard by disrupting ships that are operating in the area. 

Financial risks

Delays and noncompliance with decommissioning requirements can give birth to financial risks, particularly to the US government and taxpayers. In most cases, post-bankruptcy decommissioning liabilities in federal waters have been met by co-owners, previous owners, or new owners. However, some instances have had the government having to use taxpayer dollars to pay the costs of cleaning up after delinquent oil companies. When a current leaseholder is unwilling or unable to pay decommissioning costs, federal regulators can, under a system known as 'joint and several liability,' require any or all co-owners or previous lease-holders to pay the decommissioning costs for that infrastructure. For big oil companies with operations in the Gulf of Mexico, these 'contingent liabilities' could amount to two to six times the amount of their direct decommissioning liabilities. Oil companies often do not report these contingent liabilities on their balance sheets.

Some observers have voiced concern and doubt about the strength of federal joint and several liability regulations and the government’s ability to force previous lease-holders to pay decommissioning costs as more offshore oil and gas facilities reach the end of their productive lives.

Environmental risks 

Stagnant oil and gas infrastructures in the Gulf of Mexico can be vulnerable to deterioration and decay, thereby becoming a source of pollution. This is because detereoration and decay of these structures can lead to oil spills due to a failure of tanks and pipelines. The resulting release of corroded metal into the water can cause chronic pollution. Generally, offshore wells that are either improperly plugged or unplugged are found to become a source of pollution along with leaky or shallow-water wells or abandoned platforms that could be significant sources of greenhouse gas emissions. 

While oil spills from idle or unused oil and gas infrastructure are unlikely to discharge high volumes of material, even small amounts of oil are toxic to marine organisms—from plankton to marine mammals—and can cause adverse impacts to their health or their ability to reproduce.

Moreover, deteriorated infrastructures can be prone to hurricanes and other major weather events, which have been increasing in frequency and intensity due to climate change. The Gulf of Mexico is subject to powerful hurricanes that can destroy equipment such as oil storage tanks, move subsea pipelines, or even topple entire platforms.52 Any of these events can trigger oil spills, either directly from the damaged equipment or through impacts to connecting or adjacent facilities. 

• Region: North America
• Topics: Decommissioning
• Date: Jan, 2025

Amidst the stringent regulations in place regarding liability in the face of end-of-life assets, and the substantial cost associated with decommissioning activities, the ‘Rigs-to-Reef’ policy the Bureau of Safety and Environmental Enforcement (BSEE) has adopted has presented itself as an attractive option in light of the sheer scope of end-of-life work ahead.

BSEE have previously stated that the policy can help operator’s cut their decommissioning costs by up at least a quarter, while remaining sustainably conscious in a process where concerns have been raised about environmental ramifications associated with decommissioning.

Looking deeper into the reefing process, as outlined in Offshore Network’s Gulf of Mexico Decommissioning and Abandonment 2024 conference (D&A GOM 2024), there are various types of reef constructions. Those consist of:

• Submerged structures, including concrete modules, artificial caves and pipes and culverts,
• Sunken vessels,
• Artificial islands,
• Artificial coral reefs,
• Tire reefs,
• Decommissioned vehicles,

The process of rigs-to-reef operations include vehement survey and evaluation tests to ensure the rig structure is compatible with reef development (all of which is outlined on the BSEE website). The size of the platforms, structural integrity and locations of the structure of key factors to consider when determining the validity of the project. Thus far within the region, the Department of the Interior has approved approximately 600 rigs-to-reef proposals, with only a handful denied since the policy’s introduction in 1986.

The pros and cons of reefing

Countless studies have been conducted by the US Government to examine the impact the reefs have both on the structures themselves and the surrounding marine ecosystem. One benefit is that of marine restoration and biodiversity enhancement – the deployment of artificial reefs in areas that have been affected by situations such as coral bleaching and destructive fishing practices allows new habitats to house a variety of marine life and play a significant contribution to ecosystem restoration.

Other benefits can include the enhancement of fisheries around the localised area; a rise in ecotourism, in particular destination diving; added coastal protection from erosion as the rigs act as submerged breakwaters; advancement in marine research; increased maintenance of nutrient cycling and water quality; contribution to environmentally responsible practices; and coral restoration and conservation.

On the other side of the coin, however, there has been some pushback within the industry regarding rigs-to-reef operations due to a number of posed risks associated with the process.

Some of the concerns include habitat displacement as some reefs can alter local marine habitats; the risk of pollution from improperly prepared materials; physical damage to the seafloor if the design or placement of the rig is not appropriate; damage to the surrounding ecosystem if the construction has not been actioned properly; the negative impacts associated with long-term maintenance of the rigs; the economic costs of reef management; and design flaws which may create conflict with the local environmental conditions.

While these concerns remain a continuous reminder about the fragility of rigs-to-reef operations, operator’s must decide whether shouldering the financial burden of fully decommissioning their assets outweighs the benefits presented by the reef policies. Even with these risks in min, the Gulf is currently one of the world’s leading nations for rigs-to-reefs projects, and the future continues to look bright for the environmentally-friendly alternative to decommissioning.

Playing a key role D&A GOM 2024, reefing discussions will once again shine in the spotlight for the 2025 edition of the world’s biggest decommissioning event. All of the details regarding the upcoming conference in April can be found here.

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

Ultra-deepwater applications require high performance, modular well stimulation services.

The digital control system in Caltex’s Rigless Stimulation Tool (RST) helps in minimising flow path restrictions as its fast response time and seamless integration into a Multi-Purpose Service Vessel (MPSV) with multiple command stations ensure prompt addressal.

The tool can withstand any chemicals used in stimulations and scale treatments, ranging from acids, solvents, paraffin treatments, fines, and asphaltene deposits in production tubing, completions, and reservoirs. Operators can deploy RST to access candidate wells, particularly the ones with limited direct vertical access (DVA) under production facilities, to safely operate interventions as well as other activities.

Caltex’s RST is rated for sub-ambient pressure operations where the well mudline pressure is lower than hydrostatic conditions. The company's instrumentation and conduits are suitable from near 0 PSIA to 15,000 PSIA at 10,000 feet subsea. 

Learn more about Offshore Network's well intervention conferences here.

• Region: North America
• Topics: Decommissioning
• Date: Jan, 2025

Fishing forms an integral part of even the plugging and abandoning process, besides its significance in drilling, completing or recompleting.

A North American company called Wellbore Fishing & Rental Tools LLC provides operators with these services, with a special emphasis on risks, costs and downtime reduction. 

With strategically located yards in Port Fourchon and Texas City, the company's position near the loading docks serve as holding locations for fishing tools, eliminating shipping time, thus in turn, working wonders in bringing down NPT. 

Serving an ever-evolving industry

Comprising of a workforce with decades-long experience in the industry, the company personnel works on the basis of continued research and development to meet the demands and challenges of an ever-evolving industry. Personnel training in the company is usually driven by exposure to new equipment and process solution. Currently, the team is focusing on adapting real time technology to monitor tool performance parameters and high performance tool properties for extreme deep-water service applications.  

• Region: North America
• Topics: Decommissioning
• Date: Jan, 2025

To resolve methane emissions challenges during a decommissioning programme, Interwell P&A's RockSolid turns out to be an ideal solution

The company had addressed such an issue during a Canada operation, when it was able to shut in a shallow methane gas source ejecting around 0.55 cu/m per day by installing a gas-tight barrier at 773mKB inside a competent caprock.

Effective sealing solution

The emission was initially isolated and later stopped, enabling a smooth delivery of the decommissioning programme. It was a result of a surface casing vent flow (SCVF) issue in a well, where two different gas sources were identfied following pre-intervention logging. The installation of the RockSolid barrier ensured that it was effectively sealed from the roots, allowing ongoing research to address the shallow source. This was shut off by the installed RockSolid that replaced the casing and cement, obstructing any hydrocarbon flow inside the borehole. As gas pockets above the barrier had bled off, the well decommissioning programme was carried out unhindered.

The RockSolid remains a sustainable plugging alternative. 

Click here to register for Offshore Network's Gulf of Mexico Decommissioning and Abandonment conference. 

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

One of the latest industry innovations in the subsea well intervention market is Unity's Subsea Compact Shear-Seal Blowout Preventer.

As a BOP safety head, the CSS can provide critical safety barrier above the subsea tree as part of the landing string.

A result of Unity’s original, field-proven, compact and lightweight surface design, the Subsea CSS comes with a friendly modular interface, ideal for any mode of deployment, be it rig-based, in-riser intervention, or light well intervention open water riser and riserless as well.

Redefining strength and durability in the subsea environment, the Subsea CSS can be classified as a high performing safety barrier which takes less than 10 seconds of closing time. It is 50% lighter than conventional designs, and measures 33.5″ at its widest point, requiring less deck space. Targeted at the shallow water market for standard pressure abandonment and intervention applications, the model requires on additional personnel for operation. It boasts of an universal shear and seal capability, applicable to rods, coiled tubing, wireline, slickline and e-line.

Easily adaptable to dual ram configuration, it is designed for easy access to rams and seals for redress and to replace rams for varying applications. 

Check out Offshore Network's upcoming well intervention conferences here.

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

In December 2024, INEOS Energy acquisitioned the Gulf of Mexico deepwater assets of CNOOC Energy Holidays USA Inc., a subsidiary of CNOOC International Ltd, marking the third major investment for INEOS within the US in the last three years.

The deal includes the acquisition of non-operated assets built around two deepwater early production assets within the Gulf (Appomattox and Stampeded fields), as well as several mature assets and supporting businesses. The additional asset increase INEOS global production rate to more than 90,000 barrels of oil equivalent per day.

Brian Gilvary, Chairman of INEOS Energy, said, “This is a major step for us into the deepwater Gulf of Mexico, which builds on our growing energy business. INEOS Energy is all about competing in the energy transition to provide reliable, affordable energy to meet world demands as the population continues to grow.”

INEOS Energy’s CEO, David Bucknall, added, “The USA is a very attractive place for INEOS Energy to invest. This is our third deal in three years following the 1.4 mtpa LNG deal with Sempra and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas. Total capital spend on energy assets in the USA now exceeds US$3bn, providing a strong platform for future growth.”