June 14, 2024
United Kingdom Offshore Decommissioning Market

The United Kingdom Offshore Decommissioning Market is Estimated to Witness High Growth Owing to Growing Decommissioning Projects

The United Kingdom offshore decommissioning market involves the removal and disposal of offshore oil and gas installations and infrastructure that are no longer in use. Key activities in the decommissioning process include plugging and abandoning wells, disconnection from pipelines, removal and disposal of structures above and below sea level. The UK has a large number of aging oil and gas installations in the North Sea region that are approaching end of life and require to be decommissioned safely and cost-effectively to avoid environmental damage.

The Global United Kingdom Offshore Decommissioning Market Size is estimated to be valued at US$ 1.30 Bn in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period 2024-2031.

Key Takeaways

Key players operating in the United Kingdom offshore decommissioning are Veolia Environnement S.A., Derrick Services (UK) Ltd, Perenco SA, Ramboll Group A/S, AF Gruppen ASA and Among Others. Decommissioning of aging oil & gas infrastructure in the North Sea provides opportunities for specialized service providers to capture large decommissioning contracts. The UK Government is also encouraging increased spending on decommissioning projects to boost economic growth and job creation in the local energy industry.

The growing number of aging offshore installations reaching end of operational life is driving the need for decommissioning projects in the UK North Sea region. Major international oil companies are committed to multi-billion pound decommissioning spends over the next decade to plug wells and remove platforms safely. The global expansion of experienced decommissioning contractors to cater to the UK North Sea decommissioning market requirements.

Market Drivers:

The main driver for growth in the United Kingdom offshore decommissioning market is the large number of installations constructed in the 1970s-80s that are now over 40 years old and need to be safely decommissioned. It is estimated that around 6,000 wells, 4,000 concrete structures and 800 steel structures will require decommissioning works by 2050. The growing decommissioning project opportunities are encouraging new investments and contract wins for international service providers.

PEST Analysis

Political: The government has strict regulations regarding plugging and abandoning offshore wells and decommissioning offshore infrastructure at the end of their productive lives. Companies must follow international laws and standards.

Economic: The decommissioning market is driven by aging offshore oil and gas fields reaching maturity over the forecast period. Rising crude oil prices provide economic incentive for heavy investment in decommissioning.

Social: As focus shifts towards renewable energy, society expects responsible clean up of disused offshore structures for safety and environmental protection. Companies work to reuse and recycle materials where possible.

Technological: Advancements in remote technology allow for more effective inspection and mechanized dismantling processes. New techniques for multi-asset removal campaigns and concurrent operations help reduce costs and environmental footprint.

The North Sea region accounts for the largest share of the United Kingdom offshore decommissioning market by value. Over 300 platforms located in UK waters of the North Sea have passed or are reaching end of productive lives. The Irish Sea also has a significant number of platforms and pipelines approaching decommissioning.

The offshore decommissioning market in the UK Central and Southern North Sea is expected to see the fastest growth over the forecast period. Many large fields began production in the 1960s-70s and operators now plan phased decommissioning programs through 2030 and beyond to safely remove infrastructure from this mature upstream area.

What Are The Key Data Covered In This United Kingdom Offshore Decommissioning Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the United Kingdom Offshore Decommissioning Market’s growth between 2024 and 2031.

:- Accurate calculation of the size of the United Kingdom Offshore Decommissioning Market and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- United Kingdom Offshore Decommissioning Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of United Kingdom Offshore Decommissioning Market vendors

FAQ’S

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*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it