Offshore Decommissioning Market– Global Industry Size, Share, Trends, Opportunity, and Forecast, `Segmented by Service (Project Management, Engineering, and Planning, Platform Preparation, Well Plugging and Abandonment, Platform Removal, Material Disposal, Site Clearance, Others), By Structure (Topside, Subsea Infrastructure, Substructure) By Water Depth (Shallow Water, Deep Water), By Region. 2021-2031F

Market Overview

The Global Offshore Decommissioning Market will grow from USD 7.59 Billion in 2025 to USD 11.58 Billion by 2031 at a 7.29% CAGR. Offshore decommissioning constitutes the systematic process of safely plugging wells, dismantling platforms, and removing subsea infrastructure once oil and gas production ceases. The market is primarily driven by the growing volume of aging assets reaching the end of their operational lifecycles and stringent environmental regulations that mandate complete site restoration. Additionally, operators are motivated by the financial necessity to eliminate the ongoing liability and maintenance costs associated with non-productive facilities.

A significant challenge impeding market expansion is the exorbitant cost associated with complex removal operations, which often strains operator budgets and delays project execution. Volatile commodity prices can further restrict the capital available for these non-revenue-generating activities, creating logistical and financial bottlenecks. According to the North Sea Transition Authority, in 2024, operators spent a record £2.4 billion on decommissioning activities within the UK sector, underscoring the immense financial scale required to address legacy infrastructure.

Key Market Drivers

Aging Offshore Infrastructure and Asset Maturation acts as the fundamental force propelling the global market, as a vast number of platforms and subsea wells installed decades ago now exceed their design lives. This driver necessitates immediate intervention to prevent structural failures and environmental hazards, forcing operators to prioritize plugging and abandonment (P&A) campaigns over continued production enhancement. The scale of this requirement is particularly acute in mature basins where legacy assets are concentrated and structural integrity is a growing concern. According to Offshore Energies UK, November 2024, in the 'Offshore Decommissioning Report 2024', the sector is expected to decommission just over 2,050 wells in the next decade, reflecting the critical volume of infrastructure requiring permanent isolation.

Stringent Environmental Regulations and Compliance Standards further accelerate market activity by legally mandating the complete removal of facilities and the restoration of seabeds to their original state. Regulatory bodies are increasingly enforcing rigorous liability frameworks to ensure that operators, rather than taxpayers, bear the full financial burden of remediation, thereby transforming decommissioning from a discretionary operational choice into a non-negotiable compliance obligation. This regulatory pressure drives immense capital allocation toward removal projects. According to Petrobras, December 2024, in the 'Strategic Plan 2025-2029', the company expects to invest $9.9 billion in platform decommissioning through 2029, highlighting the substantial capital dedicated to meeting these obligations. Broader market data reinforces this trend of rising expenditure; according to the North Sea Transition Authority, in 2025, operators estimated they will commit £27 billion to decommissioning between 2023 and 2032, illustrating the long-term financial commitment required to address these regulatory mandates.

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Key Market Challenges

The exorbitant cost associated with complex removal operations acts as a significant restraint on the growth of the global offshore decommissioning market. Operators are faced with the heavy financial burden of funding these projects that do not generate revenue, which severely impacts their balance sheets and reduces the capital available for active development. The high expense required for specialized heavy lift vessels and technical equipment often renders these operations economically challenging, compelling companies to postpone activity whenever possible. This trend of deferral creates a volatile workflow for the supply chain and prevents the market from establishing the consistent momentum required for steady expansion.

The magnitude of this financial challenge is highlighted by recent industry projections which illustrate the escalating funding requirements. According to 'Offshore Energies UK', in '2024', the sector is forecast to incur a total expenditure of £24.6 billion by 2033 to address the backlog of aging infrastructure. This immense projected outlay underscores the severe pressure on operator budgets, which directly hampers the speed at which decommissioning projects are approved and executed within the market.

Key Market Trends

Repurposing Offshore Infrastructure for Carbon Capture and Storage Projects is reshaping the market by transforming retiring assets into essential components of the energy transition. Instead of viewing aging platforms and pipelines solely as liabilities requiring expensive removal, operators are increasingly retaining infrastructure for CO2 transport and storage to meet net-zero goals. This strategic pivot defers immediate abandonment costs and creates a secondary market for legacy facilities, effectively extending their economic lifecycle. The scale of this trend is significant; according to the Global CCS Institute, October 2024, in the 'Global Status of CCS 2024' report, the global development pipeline for carbon capture and storage facilities surged by 60% year-on-year to 628 projects, directly driving the demand for convertible offshore assets.

Advancement of Rigless Plug and Abandonment Technologies is accelerating as operators seek to mitigate the prohibitive costs associated with traditional heavy drilling units. Utilizing light well intervention vessels and wireline methods enables the permanent isolation of wells with significantly lower operational expenditures and reduced mobilization times compared to full-sized rigs. This technological adoption is critical for maintaining project economics, particularly as well work remains the primary financial burden in removal campaigns. According to the North Sea Transition Authority, July 2024, in the 'UKCS Decommissioning Cost and Performance Update 2024', well plugging and abandonment is forecast to comprise approximately 50% of total decommissioning expenditure, necessitating the widespread deployment of these cost-efficient rigless solutions.

Segmental Insights

The shallow water segment currently represents the fastest-growing category within the global offshore decommissioning market, driven primarily by the maturation of aging infrastructure. Since early oil and gas exploration focused heavily on accessible depths, a significant number of these assets have now reached the end of their operational lifespans. Strict environmental mandates from organizations such as the OSPAR Commission compel operators to remove disused installations, accelerating activity in mature basins like the North Sea. Furthermore, the reduced logistical complexity of shallow water operations allows companies to execute these retirement obligations more efficiently than deepwater projects.

Regional Insights

Asia Pacific commands a leading position in the global offshore decommissioning market due to a vast inventory of aging infrastructure across Southeast Asia and Australia. A significant volume of fixed platforms has exceeded operational lifespans and now necessitates immediate dismantling. This activity is intensified by strict compliance frameworks from institutions like the National Offshore Petroleum Safety and Environmental Management Authority, which enforce comprehensive removal obligations. The combination of maturing oilfields and rigorous regulatory oversight establishes the region as a dominant force in the global landscape.

Recent Developments

• In October 2025, Heerema Marine Contractors announced that it had been awarded a decommissioning contract by BP for the Andrew platform in the North Sea. The scope of the agreement included the engineering, preparation, and removal of the platform's topsides and jacket. This project represented a significant addition to the company's portfolio of removal and disposal projects in the region. The heavy lift vessel Sleipnir was selected to execute the lifting operations, leveraging its capabilities to manage heavy infrastructure. The contract underscored the continued demand for specialized heavy lift solutions in retiring aging North Sea energy assets.
• In April 2025, Petrofac’s Asset Solutions division was awarded a series of contract expansions and new agreements totaling $500 million across several global regions. These awards encompassed late-life asset management and decommissioning services in the United Kingdom, Europe, the Middle East, Africa, Asia Pacific, and the United States. The secured work highlighted the company’s growing footprint in the decommissioning sector and its capability to manage mature assets. The Chief Operating Officer of Asset Solutions noted that these contracts reinforced the company's strategy to expand its integrated services into new geographies and deliver value to clients.
• In December 2024, Allseas secured a major contract with Esso Australia to execute a significant offshore decommissioning campaign. The project involved the removal of twelve retired platforms, including topsides and steel jackets, from the Gippsland Basin in the Bass Strait. The company planned to deploy its heavy lift vessel, Pioneering Spirit, to utilize single-lift technology for removing the structures in a single piece. This method was selected to significantly reduce the offshore campaign duration. The removed infrastructure was scheduled for transport to a marine terminal in Victoria for dismantling and recycling.
• In February 2024, Helix Energy Solutions Group announced the establishment of a five-year joint framework agreement with Talos Energy for offshore decommissioning work in the U.S. Gulf of Mexico. The collaboration granted Helix the first right of refusal for specific annual work scopes regarding the operator's decommissioning requirements. The agreement covered the abandonment of offshore wells, pipelines, and platforms, primarily situated on the shelf. Helix Alliance, the company’s shallow water abandonment group, was designated to utilize derrick barges, liftboats, and dive support vessels to execute the campaign, expanding the company's full-field decommissioning capabilities.

Key Market Players

• Acteon Group
• Aker Solutions
• Allseas Group S.A.
• Baker Hughes Company
• DeepOcean Group Holding
• Halliburton
• Heerema Marine Contractors
• Oceaneering International
• Ramboll Group
• Royal Boskalis Westminster N.V.

Report Scope:

In this report, the Global Offshore Decommissioning Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Offshore Decommissioning Market, By Structure:

• Topside
• Subsea Infrastructure
• Substructure

• Offshore Decommissioning Market, By Water Depth:

• Shallow Water
• Deep Water

• Offshore Decommissioning Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE