A 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.
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.
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.
Australia’s total decommissioning liability is estimated at around US$40.5bn, with the region’s disposal industries, although being well placed, possess some critical knowledge gaps that urgently need addressing.
According to a report by CODA, a scenario mapping exercise based on the Strengths, Weaknesses, Opportunities Threats (SWOT) analysis was performed. From the analysis, the following potential disposal solutions were found to be ideal:
With the presence of an efficient domestic recycling industry and concrete recycling market, the waste management and recycling phase of Australia’s offshore decommissioning seems to be on track. However, a number of negative factors have resulted in the preference of abroad disposal over domestic disposal:
By working towards enhancing domestic disposal capabilities, Australia can not only reap economic and environmental benefits, but also promote technology and infrastructure development and adhere more strongly to local laws. This in turn helps in building public trust and reputation, thereby giving Australia a chance to position itself as a leader in sustainable offshore decommissioning.
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.
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.
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.”
A prominent provider of energy data and intelligence called TGS has announced the award of a 4D streamer contract acquisition project in the Barents Sea covering the Goliat 4D field operated by Var Energi.
The Goliat 4D project is scheduled to start in July with a total duration of approximately 20 days. The Goliat field was the first one to come into production in the northernmost area of the Norwegian continental shelf. It boasts one of the largest and advanced production units, including floating production storage and offloading (FSO) installations with permanent mooring.
Infrastructure development and drilling projects initiated in the region contributes to production boost, enhanced recovery and asset lifetime extension. Since the first discovery of oil in 2023, several exploration wells have been drilled to connect the resources as tie back to Goliat.
Kristian Johansen, CEO of TGS, commented, "We are very pleased to secure more 4D work on the Norwegian continental shelf for the 2025 summer season. We already have secured one contract in the Barents Sea with a duration of approximately 45 days, and this award is scheduled to be acquired back-to-back. Adding on the recently announced multi-client project, we have built a solid Barents Sea acquisition campaign."
To know more about the well intervention scene in and around EU, click here.
Repsol Norge has awarded Odfjell Technology a contract to deliver drilling services on the Yme Inspirer, a jack-up rig producing oil from the Yme Field in the eastern Norwegian North Sea
The agreement covers drilling, completion, re-completion, well intervention, maintenance, engineering, and plug and abandonment (P&A) services. The firm contract spans five years, commencing this spring, with options for two additional three-year extensions. The estimated value of the firm period is NOK 400 million ($38 million), while the full contract, including options, could reach NOK 1 billion (US$95mn).
In a separate deal, Odfjell Technology has secured a contract from OSM Thome to perform upgrades and modifications on the Heidrun B Floating Storage Unit (FSU) in the Norwegian Sea. This facility is owned by Equinor and its partners, with OSM Thome responsible for daily operations and maintenance.
The scope of work includes engineering, construction, and installation, such as implementing a new volatile organic compounds (VOC) recovery system and replacing an existing crane to enhance the FSU’s safety and technical integrity. While the upgrade efforts commenced in May 2022, they have now been formalized under this contract, with completion expected by early 2027.
Additionally, OSM Thome has subcontracted Odfjell Engineering to carry out specific modifications under this agreement.
These contracts reinforce Odfjell Technology’s strong position in the North Sea energy sector, providing critical drilling, intervention, and engineering solutions to optimize offshore assets and support long-term energy production.
A technical hiccup in the Bauna floating production storage and offloading (FPSO) vessel deployed in the Santos Basin offshore Brazil has cost exploration and production company, Karoon Energy, about 10 days of production shut in, resulting in 4% lower yeild in the fourth quarter of 2024, when compared to the previous quarter.
This was triggered by the failure of two of the 16 FPSO mooring anchor chains, which is currently being addressed by Karoon and the FPSO operator, Altera & Ocyan (A&O), as the team tries to figure out the root cause behind the failure and identify ways to mitigate the risks of recurrence. Karoon is considering acquiring the FPSO for a smoother monitoring of the vessel, and is in talks with A&O to gauge the feasability of the plan.
"Longer term, given the significance of the FPSO to our operations, we see measurable operational and economic advantages in having direct control over the vessel. The company is in negotiations to acquire the FPSO from the current owner and operator, A&O, subject to finalising terms. Further details will be provided if and when a binding agreement is reached," said Julian Fowles, the Chief Executive Officer and Managing Director of Karoon.
Achieving around 95% FPSO efficiency has also been a roadblock for Karoon as it remained low by atleast a 10% for 2024. To boost performance reliability, Karoon will soon be initiating a flotel-supported maintenance campaign on the vessel following the acquisition of relevant regulatory approvals. This floating hotel moored by the FPSO has been contracted to accommodate extra
manpower for a planned maintenance programme to methodically eliminate maintenance backlog so that equipment redundancy on the FPSO can be attained. The entire campaign might span across a period of two months, requiring the FPSO to remain non operational for at least 30 days. The company is expecting the Bauna FPSO to attain monthly efficiency of 88-92% (excluding shutdowns) in this year.
"While the Bauna Project production is starting to benefit from the work completed to clear the most production-critical maintenance issues, FPSO efficiency in CY24 was 84.5%, well below our long term expectations of 90-95%. A key focus in 2025 will be to increase FPSO efficiency towards that goal. The first step, a flotel-supported campaign to substantially reduce the maintenance backlog and improve equipment redundancy, is expected to commence shortly, once remaining regulatory approvals are received," said Fowles.
Karoon has also secured a vessel to conduct well intervention activities in SPS-88 in Bauna within the first half of the year so that it can be brought back onstream before mid-year. Fowles believes this to be a crucial step, alongside the flotel-supported maintenance campaign, in 'the reinstatement of production from SPS-88, which we expect back online at rates of 2,000 – 2,500 bopd before mid-year, is expected to help mitigate natural decline in 2025'.
A lightweight well intervention vessel will be deployed to replace the faulty gas lift valve in the SPS-88 completion string. The relevant approvals and necessary support vessels have been put in place for the intervention activities to begin.
To know more about the global well intervention scene, click here.
A 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.
Amplus Energy Services has acquired the Petrojarl I vessel, marking a significant milestone in the company’s market position.
The purpose-built FPSO unit is renowned as one of the most versatile and widely deported FPSOs in history. Amplus has acquired the Petrojarl I from UK-based Altera Infrastructure. Fully classes, the vessel has recently completed a successful deployment in Brazil.
Notably, this acquisition marks Amplus’ initial vessel ownership, positioning the company to expand its strategy and meet growing market demands. To date, Amplus has focused on delivering innovative field development solutions, offering vessel design and leasing options over direct ownership.
Steve Gardyne, Managing Director at Amplus, said, “This vessel is unquestionably the most flexible and most deployed FPSO in history – and Amplus now has the opportunity to apply our experience and approach to steward it safely and successfully for years to come. The addition of this vessel strengthens our ability to meet growing market demands and ensure we are well-positioned to address client needs.”
Petrojarl I is available for deployment in early production system applications, extended well tests and standalone marginal field developments. Additionally, the vessel is ideal for cost-effective, lower-prediction operations and can support both early-phase and tail-phase production.
Ian Herd, Executive Director, commented, “There is a market opportunity for a trusted, entrepreneurial FPSO contractor operating at the flexible, niche end of the spectrum offering fit-for-purpose vessels at a very competitive price, backed up by a leadership team with extensive operator experience supported by a scalable and aligned set of subcontractors.
“The acquisition marks a significant advancement for Amplus Energy and we look forward to meeting the evolving needs of the industry.”
The offshore well intervention market in the Asia-Pacific region is experiencing steady growth, driven by increasing investments in oilfield optimisation and advanced intervention technologies.
According to a report by Future Market Insights (FMI), the global downhole tractor market is expected to expand from US$4,033.6mn in 2025 to US 7,088.4mn by 2035, at a 5.8% CAGR.
Rising demand for downhole tractors
The growing complexity of offshore drilling operations in the region has heightened demand for downhole tractors, particularly in deepwater and horizontal well applications. Countries like China, Australia, and Malaysia are leading investments in offshore exploration, requiring efficient well-intervention solutions.
Technological advancements driving growth
Technological advancements, such as real-time monitoring and AI-driven automation, are enhancing the efficiency of downhole tractors. "The growing need for efficient well intervention and technological advancements will continue to drive the downhole tractor market’s expansion. The increasing application of these tools in complex drilling operations and emerging oilfields, especially in key regions, positions the market for sustained growth over the next decade," said Nikhil Kaitwade, Associate Vice President at Future Market Insights (FMI).
With increased investment in offshore well optimization, the Asia-Pacific region is poised to play a critical role in shaping the future of downhole intervention technologies.
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DOF Group ASA has announced two more contracts for subsea projects for two international companies in the Gulf of Mexico.
Skandi Implementer, which has recently departed Mexico due to a contract termination, will be deployed for the projects. Overall the projects’ expected duration is approximately two months.
The vessel will complete the integration of survey services and two of DOF’s remotely operated vehicles (ROVs).
Mons Aase, CEO of DOF Group ASA, said, “We are pleased to be able to quickly secure work for Skandi Implementer following the recent contract termination. Beyond contributing with asset utilisation and backlog, these contract awards represent advancing another of our I-class vessels into our subsea project business in line with our plan to add subsea service scopes to our most recent additions to the fleet.”
The Skandi Implementer was designed for subsea construction, inspection, repair and maintenance (IRM) and ROV services up to 3,000m of depth.
Earlier this month DOF Group also announced the acquisition of two subsea contracts in the APAC region for work offshore Malaysia and Indonesia.
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