Decommissioning costs of offshore oil and gas assets are falling with some operators reporting savings of nearly 20 days per well between the start and end of a project, according to UK-based maritime advisors and research consultants Maritime Strategies International (MSI). The average cost for decommissioning an onshore rig is around £60,000, but Msi said that figure could be as low as £25,000 in some cases. The company predicts $78bn will be spent on decommissioning and well abandonment projects over the next nine years.
Decommissioning costs of offshore oil and gas assets are falling with some operators reporting savings of nearly 20 days per well between the start and end of a project, according to UK-based maritime advisors and research consultants Maritime Strategies International (MSI). Reduced decommissioning costs result from lower drilling rates and greater efficiencies as operators leverage lessons learned, reduce complexity and utilise specialised equipment, MSI associate director-offshore Greg Brown said. The company predicts $78bn will be spent on decommissioning and well abandonment projects over the next nine years.