Market Trends of Norway Offshore Oil & Gas Decommissioning Industry
This section covers the major market trends shaping the Norway Offshore Oil & Gas Decommissioning Market according to our research experts:
Topsides Segment is Expected to Dominate the Market
- Offshore decommissioning refers to ending oil & gas operations on offshore platforms and restoring marine life and seafloor to its pre-production conditions.
- Norway is expected to have an extensive decommissioning portfolio over the ten-year window and is having a significant share in global decommissioning expenditure.
- Overall, 417 wells are expected to be decommissioned in Norway over the next decade. Among them, 313 are platform well and 104 are subsea well. Norway expects to decommission an average of 25 wells per year up until 2024 peaking up to 94 wells in 2025.
- Around 154,598 tonnes of topsides are expected to be removed throughout the Norway Sea over the next ten years. Whereas, around 77,129 tonnes of the substructure is expected to be decommissioned throughout the Norway sea region over the next decade. Hence, the topsides segment is expected to dominate the market over the forecast period.
Understand The Key Trends Shaping This Market
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Increasing Offshore Oil and Gas Activities and Aging Infrastructure to Drive the Market
- The North Sea is endowed with a thriving oil and gas industry which has benefitted the surrounding nations and their economies for many years and will for many more to come. Norway covers around 20% of North Sea fields.
- Norway's oil and gas production is dominated by offshore exploration and production. According to Baker Hughes, Norway's offshore rig count was 17 in May 2020.
- Norway is an important supplier of oil and gas to the global market, and almost all oil and gas produced on the Norwegian shelf are exported. Therefore, a rise in demand for oil and gas is expected to boost oil and gas production over the forecast period.
- In 2019, exploration activity was at the same level as in 2018, and significantly higher than in the previous two years. 57 exploration wells were spudded and 17 discoveries were made on the Norwegian continental shelf.
- The average age of offshore oil and gas fields in Norway is around 24 years and most of the fields are at decommissioning age in recent years and forecast period. Few of the decommissioning projects in Norway are Gyda platform, Huldra gas and condensate field, Frigg gas field, etc.
