Ten facts found in the latest Asia Pacific decommissioning survey
4. INDUSTRY CHALLENGES STILL APPARENT
Asked whether they thought decommissioning in the Asia Pacific region was still a big challenge, 87% of respondents agreed or strongly agreed that this was the case. Back in 2012, 88% agreed with the same question, showing the challenges remain in the industry three years later.
5. TOPSIDES AND PLATFORMS THE MOST CHALLENGING
40% of respondents ranked topsides and platforms as the most challenging asset to abandon in the Asia Pacific region. Surprisingly, abandoning wells came a close second with 32.73% of respondents highlighting they were the most challenging – and with wells comprising of anywhere between 30-60% of decommissioning costs, it’s clear to see why it ranked so highly in this question.
6. LACK OF REGULATORY UNDERSTANDING
A continuing trend from the 2012 results, a lack of regulatory understanding was earmarked by respondents as the biggest challenge when moving forward with decommissioning in the Asia Pacific region. Despite numbers falling for this challenge (32.14% in 2015, 37.11% in 2012) it was a clear pain point above a ‘lack of trained and experienced staff’ (19.64%) and a ‘lack of finances to carry out the work (16.07%) which made up the top three responses.
7. RIGLESS TECHNOLOGY KEY TO REDUCING COSTS
Asked what could be done to reduce the costs of well abandonment going forward, over 31% of respondents agreed that rigless technology was the key to this, swiftly followed by collaborative operator campaigns (24.07%) and negotiating better deals with service providers (14.81%).
8. COMPANIES LACK PREPARATION
All respondents were asked how well prepared their company was to carry out decommissioning and abandonment costs in 2015 and beyond. Despite 75% saying they were either ‘fairly well prepared’ or ‘prepared’, clearly there is room for improvement for a quarter of the respondents to ensure they gear themselves up for a busy period of decommissioning.
9. COMPANIES LACK SPECIALIST TEAMS
A continuing theme from the point above, over 43% of respondents said they didn’t have a dedicated decommissioning or abandonment team internally.
10. A COMPREHENSIVE REPORT
With any report, it’s important to know the breadth of respondents from around the world and across sectors. DecomWorld’s insight shows that the questionnaire was completed by a combination of oil companies, integrated contractors, consultants and well plugging specialists who were based around the world with a hotspot, of course, in the Asia Pacific region – proof that the report represents the true outlook of decommissioning professionals in 2015.
Photo Credit: Pixabay
Decommissioning Case Study Pack
The Claxton offshore decommissioning case study pack showcases our vast experience of delivering successful decommissioning projects.