United Kingdom Offshore Decommissioning Market anticipated to witness High Growth owing to Stringent Government Regulations

United Kingdom Offshore Decommissioning Market anticipated to witness High Growth owing to Stringent Government Regulations

The United Kingdom offshore decommissioning market comprises removal of aging offshore oil & gas infrastructure including platforms, pipelines, and other structures at the end of fields’ productive lives. These infrastructure need to dismantled and removed as per government regulations to ensure safety and prevent environmental pollution. Decommissioning plays a key role in enabling further development of offshore areas. The services include plugging and abandoning wells, removing subsea infrastructure, and dismantling topsides and jackets.

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 market are Veolia Environnement S.A., Derrick Services (UK) Ltd, Perenco SA, Ramboll Group A/S, AF Gruppen ASA and Among Others. These players are focusing on contracts to remove aging infrastructure and enter into new service agreements. Veolia recently won two huge decommissioning contracts worth $336 million.

The key opportunities in the market include growing expenditure on decommissioning of fields reaching end of life and government push for decommissioning to boost safety and environmental protection. Rapid decommissioning of fields is expected to generate opportunities exceeding $15 Billion by 2030.

Globally, companies are eyeing expansion to cater to decommissioning needs across Europe and Gulf of Mexico. Ramboll acquired Decom North Sea in 2021 to leverage its expertise for projects in Netherlands and Norway. AF Gruppen aims to double its decommissioning business to $500 million by 2025 through new projects in UK and partnerships in Asia and Middle East.

Market Drivers

Strict government regulations mandate full removal of all infrastructure after field abandonment. Operators face heavy penalties and loss of licenses for non-compliance. This is a key driver as it ensures regular investments in decommissioning activities.

Market Restrains

Decommissioning projects involve complex engineering challenges due to aging of structures and safety risks which increase costs substantially. Projects are often delayed or cancelled due to cost overruns. This acts as a major restraint. Lack of skilled workforce with experience in offshore decommissioning also poses challenges.

Segment Analysis

The United Kingdom offshore decommissioning market can be segmented based on decommissioning procedure, abandonment, removal, conservation/preservation. The removal segment dominates the market as it involves complete removal of offshore platforms and facilities which account for over 70% of the total decommissioning cost. The segment will continue to dominate during the forecast period due to large number of platforms expected to be decommissioned through removal route as mandated by UK policies and OSPAR convention requirements.

Global Analysis

Regionally, North Sea is the largest and fastest growing regional market. Over 70% of offshore oil & gas installations in UK continental shelf are located in North Sea. Majority of these platforms are mature and require decommissioning in the coming decade. The region holds over 3,500 installations of which many will undergo decommissioning through the forecast period. Increase in number of infrastructure reaching end of field life and stringent environmental laws are driving the growth of North Sea decommissioning market. Asia Pacific market is also expected to grow at a high rate owing to number of offshore assets expected to be decommissioned in countries like China, India and Indonesia in the coming years.

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's growth between 2024 and 2031.

:- Accurate calculation of the size of the United Kingdom Offshore Decommissioning 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 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 vendors

FAQ’s

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