The Boston Consulting Group (BCG) has identified several emerging decommissioning hotspots in a new report released Wednesday.
Beyond the North Sea and the Gulf of Mexico, BCG suggested that southeast Asia, Latin America and West Africa are key regions for the decommissioning sector.
“Taken together, the structures and wells in these regions represent approximately 50 percent of those expected to become uneconomical in the next 20 years,” the report stated.
BCG’s latest study also outlined the Arabian Gulf as a future hotspot, highlighting that by 2038, more than 1,000 structures and 3,000 wells in the Gulf will be more than 30 years old.
No area in the world has more experience with decommissioning than the Gulf of Mexico, according to the report, which highlighted that since the first wave of decommissioning in the region took place in the late 1980s, operators have removed structures at a rate of between 150 to 250 per year.