Managing Director at Eye-bot Aerial Solutions, David Palmerton, has analysed the current decommissioning ambit within the Gulf of America, the challenges posed by the vast scope of end-of-life work to carry out, and how robotics and data-driven technologies play an integral role in transforming the market.
In the Gulf of America, a significant number of offshore oil and gas wells and platforms are overdue for decommissioning. According to the Bureau of Safety and Environmental Enforcement (BSEE), there are 1,366 offshore structures, with 273 having submitted decommissioning applications and 451 located on terminated leases, of which only 192 have pending decommissioning applications. These delays pose environmental risks, including potential leaks, structural failures, and threats to marine ecosystems as well as increased costs for operators and regulators.
The financial burden of decommissioning these structures is substantial, potentially reaching billions of dollars, with concerns that taxpayers may ultimately bear the cost if companies fail to meet their obligations. A significant portion of these wells are classified as orphaned or abandoned, meaning the companies responsible for their decommissioning no longer exist or lack the financial capability to carry out the required work.
Under regulations set out by the Interior Department, administered by BOEM and BSEE, operators are jointly and severally liable for decommissioning obligations. Even if a company transfers its lease to another operator, it remains responsible for ensuring that all abandonment and removal obligations are fulfilled. Operators must complete decommissioning within one year of lease termination or within three to five years of a structure becoming idle. However, with aging infrastructure and a backlog of overdue removals, BSEE has emphasised the need for proactive compliance throughout the life of a lease.
Given the magnitude of overdue decommissioning in the Gulf, oil and gas operators are turning to advanced technology to enhance pre-decommissioning inspections and streamline project planning. Drones, robotics, and AI-powered digital modelling are now at the forefront of assessing the structural integrity of offshore platforms, pipelines, and subsea infrastructure before decommissioning begins.
By deploying aerial and underwater drones, operators can conduct high-resolution LiDAR scans, ultrasonic inspections, and photogrammetry surveys without sending personnel into hazardous environments. These drone-based inspections provide real-time structural data, detecting corrosion, metal fatigue, and structural integrity risks before dismantling begins.
Simultaneously, AI-driven Building Information Modelling (BIM) and Simultaneous Localised and Mapping (SLAM)-based 3D mapping allow engineers to simulate decommissioning scenarios, optimise removal sequences and enhance worker safety.
The integration of data-driven decommissioning is reshaping offshore well abandonment practices, making projects safer, more efficient, and cost-effective. With thousands of overdue structures requiring removal, these technological advancements offer a critical solution for tackling the Gulf's growing decommissioning backlog.
The process begins with autonomous aerial and underwater drones conducting high-resolution scans of the platform. These drones are equipped with LiDAR, thermal imaging, and photogrammetry sensors, capable of capturing structural details down to the millimetre. The data collected is processed using SLAM technology, generating a real-time digital twin of the platform.
This BIM model provides:
For areas of the platform that are potentially unsafe for human entry, such as confined interiors or corroded sections, a quadruped robotic system is deployed. This autonomous robotic platform is equipped with a LiDAR camera, thermal sensors, and AI-driven navigation, allowing it to traverse hazardous environments, capture high-resolution scans and transmit critical data to the BIM model.
By integrating robotic mobility solutions, teams can inspect structural conditions without exposing personnel to risk, ensuring a complete and accurate dataset for decommissioning planning.
The digital twin model allows engineers to simulate decommissioning scenarios before physical execution, ensuring a safe and efficient process. Potential structural instabilities can be identified, allowing engineers to plan necessary reinforcement measures before deconstruction.
Key considerations for deconstruction planning include:
The decommissioning process is executed with robotic precision, leveraging drones, autonomous robotics and AI-driven modelling.
Some of the execution processes include:
A number of positive results can come from AI-driven decommissioning processes, including a 40% reduction in project time, enhanced worker safety, greater compliance with both regulatory and environmental standards, and increased material recycling and disposal.
As drone technology, AI-driven modelling, and autonomous robotics advance, offshore platform decommissioning is shifting toward zero-contact, data-driven precision. The integration of real-time digital twin modelling, predictive analytics, and autonomous robotic inspections marks the beginning of a fully AI-driven offshore decommissioning era.
This article was authored by David Palmerton, Managing Director at Eye-bot Aerial Solutions.
D&A GOM, the world’s leading decommissioning conference, is all set to open its doors on 8 April in Houston!
The two-day event, held in partnership with Promethean Energy at Norris Conference Centers, Houston City Center, will provide an unmissable opportunity to gain exclusive access to the latest operator case studies, decommissioning strategies, regulatory insights and best-in-class technology to create long-lasting partnerships for upcoming abandonment campaigns. Delegates will also be able to get together with more than 600 decommissioning decision makers at dedicated networking events.
Leading operators including Apache, bp, Chevron, HESS, LLOG exploration, Petrobras, Promethean Energy, Shell and Woodside will share their decommissioning insights, along with other leading industry experts.
With environmental factors coming to the fore, the event will kick off with an opening presentation on the circular economy and decommissioning, followed by a panel session on reefing processes in Texas, Louisiana, Mississippi and Alabama and presentations focusing on platform reuse and recycling. This will be followed by sessions focusing on aspects of planning and execution of decommissioning projects, a highlight being presentations focusing on the challenges, learnings and success factors of the Chevron Genesis Spar removal campaign.
As a forum for the sharing of international expertise, the event will feature international decommissioning case studies and overviews from the North Sea, Australia and Brazil. A highlight will be a panel session on pipelines, where senior managers and directors from Offshore Operators Committee, bp, Woodside and Appache will discuss global approaches to pipeline removal. This will be followed by a case study from Shell focusing on the relationship between circularity and decommissioning and how these concepts were applied in an offshore field in Brazil.
All the latest technology advances will be covered, from Oilfield Service Professionals’ modular, high-performance drillable technologies for enhanced wellbore isolation and remediation to Rotech Subsea’s state-of-the-art CFE tools and pipeline grabs and Welltec’s advanced wireline intervention tools.
“Last year demonstrated how critical this topic still is with the community as 500+ delegates joined us in Houston from all over the world, as we discussed the pertinent issues within decommissioning and abandonment. We are confident we can build on the successful 2024 conference by ensuring that lessons learned and critical case studies are discussed in 2025,” said Joseph Watson, Lead Project Manager.
Featuring 600+ delegates, 20+ operator delegations, more than 40 expert speakers, 35 decom tech demos, three breakout technical workshops and eight bespoke networking sessions, D&A GOM 2025 promises to be an unmissable event in the region’s oil and gas calendar.
For further information see the website at https://events.offsnet.com/DA-GOM-2025#/ or get in touch with Joseph Watson at
Offshore decommissioning has been considered a growing and expensive issue in the Gulf of Mexico.
Several analyses conducted to estimate the costs of decommissioning infrastructure in the federal waters of the Gulf of Mexico have shown that it would amount to an estimated US$40bn to US$70bn. According to a 2024 report by the Governmental Accountability Office (GAO), out of a total of 8,000 wells and 1,600 oil and gas platforms, nearly 2.700 wells and 500 platforms are overdue for decommissioning. To be considered overdue, a platform needs to be unoperational on an active lease for more than 10 years or left standing with an inactive lease for well over a year. In case of the latter, the lease may have either expired, been relinquished or terminated.
Shallow and deep water wells are the two main types of wells located in the Gulf of Mexico. While shallow-water wells were initially developed by large oil companies, they were later sold to smaller companies over the years, that lacked the financial resources of major oil companies. Being of minimum economic value, shallow-water wells are often at a high risk of being abandoned by their operators. On the other hand, deepwater wells are newer and relatively more complex that shallow-water wells. Being larger and deeper makes them higher in economic value. Therefore, decommissioning these wells during their end-of-life stage is costlier when compared to shallow-water wells.
According to a report by Ocean Conservancy, decommissioning a deepwater well costs a whopping US$24mn, while a shallow-water well costs only around US$660,000. Currently, there are more than 1,600 active deepwater wells in the Gulf of Mexico, with the cost of decommissioning these wells estimated to exceed US$34bn. Considering subsea pipelines that are often left discarded on ocean floors, the exact cost of their removal has not been estimated, but is expected to have a high cost similar to deepwater well decommissioning.
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.”
Blake Habbit has been promoted to Danos’ new Operations Manager to lead the growth and development of the company’s decommissioning services within the Gulf of Mexico.
In his role, Habbit will oversee the business operations and customer support throughout the decommissioning phase while coordinating across Danos’ diverse entity portfolio to ensure safe, seamless and efficient management of client’s end-of-life projects.
CEO Paul Danos said, “Blake’s extensive industry knowledge and proven track record of managing customer accounts make him the perfect fit for this role. We are confident that under his leadership, our decommissioning services will expand, and we will be able to support the changing needs of our customers as they transition to end-of-life.”
Habbit has 25 years of experience within the industry covering offshore production operations, drilling and safety. He joined Danos as a Production Services Account Manager in 2029 and was named Senior Account Manager in 2023.
Danos has previously aided in a series of decommissioning projects within the Gulf of Mexico, including two P&A campaigns for major operators in 2012 and 2017, details of which can be found on its website.
Applicable by a significant master services contract from decommissioning specialist Promethean Energy, wells expert Elemental Energies will be aiding the decommissioning of nine orphaned wells in the Gulf of Mexico.
In February, Elemental Energies provided well management services for the plugging and abandonment of wells in the Matagorda Island area, off the Texas coast.
The five-year contract to decommission orphaned offshore wells in the region was awarded to Promethean by the Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE).
Elemental Energies’ Julie Copland, Head of Decommissioning and Low Carbon, said, “We're thrilled with this award as it marks a significant expansion of our efforts in the Gulf. Our rich history in decommissioning, uniquely equips us to address the Gulf's orphaned wells, applying our expertise to mitigate environmental risks, navigate complex regulations, and reduce the associated OPEX of decommissioning work. This project and partnership is a testament to our commitment to meeting evolving industry standards and safeguarding our environment."
The contract is partially funded by the Bipartisan Infrastructure Law through a US$64mn commitment to address orphaned oil and gas wells on public lands.
Steve Louis, SVP Decommissioning for Promethean Energy, said, “We at Promethean are delighted to have Elemental Energies as a strategic partner, as we work with the federal government and others to deliver these projects of strategic importance to the nation’s environmental stewardship and energy security. Elemental’s well engineering expertise is an important component of our comprehensive wells management capability as an operator of mature assets and their decommissioning.”
The Department of the Interior announced a final rule from the Bureau of Ocean Energy Management (BOEM) that makes the American oil and gas industry accountable to cover decommissioning costs of offshore platforms on the US Outer Continental Shelf (OCS).
This announcement comes as a relief for American taxpayers who had to otherwise bear the brunt of the huge decommissioning liabilities if the oil and gas companies failed to meet them.
Updating 20-year-old regulations, the new law demands financial assurance requirements for the offshore oil and gas industry operating on the OCS. The Government Accountability Office (GAO) found that previous practices followed by industry operators on meeting decommissioning deadlines were not as clearly defined, exposing American taxpayers to bear the cost in the end.
The final Risk Management and Financial Assurance for OCS Lease and Grant Obligations rule amendments address these concerns and reduce financial risks associated with OCS development by substantially increasing the level of financial assurances that operators must provide in advance.
“The American taxpayer should not be held responsible when oil and gas companies are unable to clean up after their own operations. The Interior Department is committed to ensuring that the federal oil and gas leasing program is implemented fairly, with accountability and transparency,” said Secretary Deb Haaland. “This final rule updates, simplifies and strengthens outdated requirements to ensure that taxpayers are protected and current operators are held responsible for their end-of-lease cleanup obligations on the Outer Continental Shelf.”
“For far too long, the federal government has failed to follow through on measures to ensure accountability for oil and gas companies operating offshore,” said Principal Deputy Assistant Secretary for Land and Minerals Management, Dr Steve Feldgus. “Coupled with our recent announcement from the Bureau of Land Management, the Department is ensuring that we have a modern oil and gas leasing programme that protects taxpayers’ interests.”
“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. “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.”
According to the new rules, BOEM will use a credit rating from a Nationally Recognised Statistical Rating Organisation or a proxy credit rating equivalent to access a company's financial strength. The bureau will also consider the current value of the remaining proved oil and gas reserves on the lease compared to the estimated cost of meeting decommissioning obligations. If the lease has significant reserves still available, then in the event of a bankruptcy, the lease will likely be acquired by another operator who will assume the plugging and abandonment liabilities.
Companies without an investment-grade credit rating or sufficient proved reserves will need to provide supplemental financial assurance to comply with the new rule.
BOEM believes that the industry will be required to provide US$6.9bn in new financial assurances to protect American taxpayers from assuming industry decommissioning costs. To provide industry with flexibility to meet the new financial assurance requirements, the bureau will allow current lessees and grant holders to request phased-in payments in a span of three years to meet the new supplemental financial assurance demands.
In a five-year joint framework agreement with Talos Energy Inc, Helix Energy Solutions Group, Inc gets the first right of refusal regarding specific annual work scopes for Talos’s decommissioning requirements in the US Gulf of Mexico.
Scheduled to start in the second quarter of the year, the agreement outlines a base pricing structure and processes for determining and scheduling specific projects Talos requires.
The projected scopes of work include Talos’s normal course abandonment of offshore wells, pipelines and platforms, primarily on the shelf. Helix’s Louisiana-based shallow water abandonment group, Helix Alliance, plans to utilise derrick barges for structure removals, liftboats for plug and abandonment activities, and dive support vessels (DSVs) for pipeline abandonments, plus multiple offshore supply vessels (OSVs), among other assets in the course of the campaign.
Owen Kratz, Helix’s President and Chief Executive Officer, 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.”
Chevron Corporation has announced that for its fourth quarter 2023 it will be impairing a portion of its US upstream assets due to continuing regulatory challenges.
Primarily in California, the challenges in the state have resulted in lower anticipated future investment levels in its business plans according to the statement. It expects to continue operating the impacted assets for many years to come.
In addition, the company indicated it will be recognising a loss related to abandonment and decommissioning obligations from previously sold assets in the Gulf of Mexico as companies that purchased them have filed for bankruptcy and the company deems it probably and estimable that a portion of the obligations will revert to it. As such, the company expects to undertake decommissioning activities on the assets over the coming decade.
Currently, Chevron is now in the process of finalising the financial impacts of these actions and will likely treat them as special items, excluded from adjusted earnings. These actions are currently estimated to result in non-cash, after-tax charges of US$3.5bn to US$4bn in its fourth quarter results.
The global offshore well intervention market is set for a period of extended growth in light of stable oil prices forecast in the short-term, maintained oil demand in the medium- and possibly long-term, and ever-increasing environmental pressures.
Globally, spending on well intervention is on the rise with Rystad Energy predicting an increase by almost 20% in 2023 to take the total tally to US$58bn. This is just the start of a forthcoming surge with 17% of wells predicted to go through the intervention process by 2027.
North America accounts for 64% of the total wells ready for intervention by 2027, according to Rystad, giving rise to the dramatic potential of the market in the Gulf of Mexico. According to BSEE, there are approximately 1,885 active production platforms on the OCS with more than 60% older than 25 years.
This is leaving operators grappling with the need to maintain production rates while also dealing with ever-ageing infrastructure, with mounting regulatory pressure increasing the need to address decommissioning obligations. In facing this conundrum, an increasing amount of well intervention activity is highlighting the importance of this service as a means to address both sides.
As new technological innovations become more viable and the understanding around methods such as light well intervention build, the market will only advance in stature, suggesting it will finally meet the potential it has promised for so long, creating a tantalising future for the crowd of service and equipment providers offering their assistance.
Trendsetter Engineering, a provider of specialised subsea hardware and offshore service solutions from exploration drilling through to abandonment, has announced the recent completion of two deepwater well stimulation campaigns for major operators in the Gulf of Mexico.
The two campaigns resulted in the successful acid treatments of a combined six wells. The campaigns arrived on the heels of a contract agreement to deliver hydraulic intervention and technical services via the Subsea Tree Injection Manifold (STIM) for a Hydrate Remediation and Flowline Flush Project in the Gulf of Mexico.
The Trendsetter STIM offers a 15,000psi rated subsea safety system designed to provide hydraulic well access for both vertical and horizontal tree types. In addition to hydraulic well stimulation, the STIM unit has been used and is capable of supporting various other hydraulic intervention operations including hydrate remediation, bull heading of kill weight fluid and cement as well flowline flushing and testing operations for both pre and decommissioning.
The Bureau of Ocean Energy Management (BOEM) has proposed changes to modernise financial assurance requirements for the offshore oil and gas industry, in order to better protect American taxpayers from incurring the costs associated with the oil and gas industry’s responsibility to decommission offshore wells and infrastructure.
BOEM Director, Liz Klein, commented, “These proposed updates to our financial assurance regulations will help ensure that energy companies that are operating in publicly-owned federal waters are able to fulfill their clean-up and decommissioning responsibilities, without taxpayers having to step in to foot the bill. The commonsense updates that we are proposing would modernise evaluation and financial criteria so that we are better protecting taxpayers from the decommissioning costs associated with aging oil and gas infrastructure on the Outer Continental Shelf.”
Together with reforms to royalty rates, rental rates, onshore bonding requirements, and leasing practices, the changes being announced today continue to advance the Biden-Harris Administration’s federal oil and gas reform agenda, which was outlined in a report that the Department of the Interior developed in response to Executive Order 14008.
The proposed rule would establish two metrics by which BOEM would assess the risk any company poses for the American taxpayer.
To accurately and consistently predict financial distress, BOEM would use credit ratings from a nationally recognized statistical rating organisation, or a proxy credit rating generated through a statistical model. BOEM would require companies without an investment-grade credit rating to provide additional financial assurance. BOEM is seeking public feedback on whether it should rely on credit ratings to make these determinations and what credit rating threshold would best protect taxpayer interests without imposing undue burdens on industry.
Second, BOEM would consider the current value of the proved oil and gas resources on the lease itself when determining the overall financial risk of decommissioning, given that any lease with significant reserves still available would likely be acquired by another operator that would then assume the liabilities in the event of bankruptcy.
The proposed regulatory changes would provide additional clarity and reinforce that current grant holders and lessees bear the cost of ensuring compliance with lease obligations, rather than relying on prior owners to cover those costs.
BOEM would use decommissioning estimates based on industry reported data collected by the Bureau of Safety and Environmental Enforcement (BSEE) at a level that would adequately cover estimated decommissioning costs without being overly burdensome. This proposed rule would allow current lessees and grant holders to request phased-in payments over three years for new financial assurance amounts.
The proposed changes were published in the Federal Register on 29 June, which will open a 60-day public comment period.
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