the offshore decommissioning market review, 2011
TRANSCRIPT
THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO
Gulf of Mexico Offshore Decommissioning Map 2012
www.decomworld.com/gomreport
WEST CENTRAL EAST
TEXAS
LOUISIANA
MISSISSIPPIALABAMA
GEORGIA
FLORIDA
THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 2
Gulf of Mexico Offshore Decommissioning Map 2012
2011 was a record year for the number of platforms decommissioned, and has exceeded all predictions.
The Gulf of Mexico oil and gas industry is clearly in a proactive mood for the decommissioning of shelf assets. Previous years have been more reactive, principally due to hurricane activity, which had caused extensive damage to platforms and associated infrastructure.
0%
1%
2%
3%
4%
5%
6%
7%
8%
2008 2009 2010 2011
Percentage change in number of platforms decommissioned 2008-2011
Size of the decommissioning GOM Market
$3.5 - $5.5 billion(The estimated total
decommissioning market size)
$2 - $3.5 billion(The estimated cost to P&A and
remove the 4,734 wells on expired leases to 15ft below mudline)
$1.5 - $2 billion(The estimated cost to P&A
and remove 3,515 T&A’d wells to 15ft below mudline)
THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 3
Level of decommissioning activity in 2011
Apache Corporation Chevron USA Inc McMoRan Oil & Gas LLC
Energy XXI GOM, LLC
Maritech Resources, Inc
Energy Resource Tech GOM Inc
Merit Energy Company LLC Stone Energy Corporation
Forest Oil Corporation
Energy Partners Ltd
Walter Oil & Gas Corporation
Union Oil Company of California
0.9% 38.5% 100%1.3%2.2%2.2%4.3% 1.7%
4.3%4.8%6.1%7.8%19.9% 6.1%
Other
THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 4
Average platform decommissioning durations
The time, presented above, does not reflect the Permanent Plug & Abandonment (P&A) of wells, which is extremely variable and dependent on number of wells, make-up, number of completions, reservoir depth, complexities etc.
1 day
50 ft
Caisson BracedCaisson
4 Pile 6 Pile 8 Pile 4 Pile 4 Pile
Platform type Water Depth (ft) Average duration to decommission (d)
Caisson 50 1 - 2
Braced Caisson 100 2
4 Pile 150 3
6 Pile 200 3 -7
8 Pile 200 4 - 7
4 Pile 400 5 - 7
4 Pile 500 6 - 7
WEST CENTRAL EAST
TEXAS
LOUISIANA
MISSISSIPPIALABAMA
GEORGIA
FLORIDA
THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 5
Expired and T&A’d wells in Gulf of Mexico
Condition West GOM Central GOM East GOM Other Total
Wells on Expired leases 1,026 3,659 5 44 4,734
T&A’d Wells 497 3,006 8 4 3,515
Total 1,523 6,665 13 48 8,249
% of Total 18.5% 80.8% 0.2% 0.6% 100%
Gulf of Mexico expired or terminated leases – borehole distribution by region
Date source: BOEM
THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 6
The Gulf of Mexico: status in 2012
Year Installed Decommissioned Remaining
Total % Change on remaining
fleet
Total % Change on remaining
fleet
Total % Change
2011 7082 0.5% 3829 6.6% 3249 -6.2%
2010 7065 0.7% 3602 5.8% 3463 -5.1%
❝ ❝ ❝
THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 7
Offshore Decommissioning Report, 2012-2013, Gulf of Mexico
DecomWorld’s Offshore Decommissioning Report, 2012-2013, Gulf of Mexico presents a synopsis of the GOM decommissioning market and will be particularly valuable to Contractors planning for 2012 and beyond. The report provides good background information for new entrants as well as the basis of further debate for seasoned decommissioning specialists.”
Gary Siems, Decommissioning Manager, Stone Energy
The Decomworld 2012-13 report contains important strategic insights into the decommissioning market in the GOM. It is valuable for those seeking to gain a greater understanding of the market and refine their customer engagement strategies.”
Win Thornton, Global Managing Consultant, Decommissioning, WorleyParsons Group (Former Manager, International Decommissioning, Chevron Environmental Management Company)
The Decomworld Gulf of Mexico Report 2012-13 provides a comprehensive analysis of the decommissioning market and provides useful information for operators and seasoned decommissioning executives.”
Gunther Newcombe, VP Decommissioning, Global Projects Organisation, BP
Biography of the author
Darren J. Morahan, Cougar Offshore LLC
Darren J. Morahan has utilized over 22 years of oil and gas engineering experience in creating this, his second report with DecomWorld. He has undertaken projects with a range of operators, including consultancy services to BP decommissioning group as their chosen Structural Authority on the decommissioning of shelf assets. Notable projects include the high-profile reefing in place and toppling of EI322 P & D.
THE OFFSHORE DECOMMISSIONING REPORT 2012-2013, GULF OF MEXICO | PAGE 8
DecomWorld
Join the conversation linkedin.com/offshoredecommissioning @decomworld
Decomworld Gulf of Mexico Offshore Decommissioning market map © 2012 FC Business Intelligence®
The information of this document was prepared by DecomWorld (part of FC Business Intelligence) and its partners. DecomWorld has no obligation to tell you when information in this document changes. DecomWorld makes every effort to use reliable, comprehensible information, but we make no representation that it is accurate or complete. In no event shall Nuclear Energy Insider and its partners be liable for any damages, losses, expenses, loss of data or profit caused by the use of the material or contents of this document.
DecomWorld grants you a licence to make one free copy of the information contained herein for personal or non-commercial use only. Accordingly, no part of this document may be copied, performed in public, broadcast or adapted without DecomWorld’s prior written permission. Dean Murphy at [email protected] to request permission.
Thank you for your interest in the decommissioning market in the Gulf of Mexico. DecomWorld hopes you found the information extracted from The Offshore Decommissioning Report, 2012-2013, Gulf of Mexico interesting, but this is only the beginning of the discussions around decommissioning in the region.
Please get in touch if there is more information, data, interviews with executives or networking opportunities that you need.For more information please visit www.decomworld.com and or contact Dean Murphy at [email protected].
➜ To receive the latest discounts on the Offshore Decommissioning Report, 2012-13, Gulf of Mexico for you and/or your team go to www.decomworld.com/gomreport