Offshore Decommissioning Market

Market Definition

The market includes the planning and execution of retiring oil & gas platforms, subsea wells, and related infrastructure after their operational life ends. The process includes plugging wells, removing structures, and site clearance, guided by strict environmental and regulatory standards. 

It requires detailed engineering, environmental assessments, and specialized vessels. Applications span shallow to deepwater projects, with growing focus on sustainable practices. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Offshore Decommissioning Market Overview

The global offshore decommissioning market size was valued at USD 5.42 billion in 2024 and is projected to grow from USD 5.83 billion in 2025 to USD 10.25 billion by 2032, exhibiting a CAGR of 8.39% during the forecast period. 

The market is propelled by the rising number of aging offshore wells approaching end-of-life, coupled with tightening environmental regulations. Advancements in decommissioning technologies improve operational efficiency and safety, enabling more cost-effective asset retirement. These factors collectively drive sustained expansion within the market.

Major companies operating in the offshore decommissioning industry are Aker Solutions, AF Gruppen, John Wood Group PLC, Able UK Ltd., Allseas Group S.A, Heerema, DEEPOCEAN, DNV GL, Petrofac Limited, Boskalis, Oceaneering International, Inc., Baker Hughes Company, Halliburton, Ramboll Group A/S, and Exxon Mobil Corporation.

The increasing number of aging oil & gas platforms nearing the end of their production life is driving the market. Several offshore installations built during the 1970s and 1980s have now exceeded their design life. 

Their continued operation presents safety and environmental risks. This has led operators to focus on structured decommissioning plans, encouraging sustained investments and project activity in the market globally.

• In October 2024, Australia's NOPSEMA approved Woodside Energy's plan to decommission the Minerva gas field. The project involves removing pipelines and subsea structures, with activities expected to commence in late 2024, marking a significant step in Australia's decommissioning efforts.

Key Highlights

1. The offshore decommissioning market size was valued at USD 5.42 billion in 2024.
2. The market is projected to grow at a CAGR of 8.39% from 2025 to 2032.
3. Europe held a market share of 35.17% in 2024, with a valuation of USD 1.91 billion.
4. The topside segment garnered USD 2.25 billion in revenue in 2024.
5. The well plugging and abandonment segment is expected to reach USD 5.24 billion by 2032.
6. The shallow water segment secured the largest revenue share of 60.83% in 2024.
7. The market in Asia Pacific is anticipated to grow at a CAGR of 9.59% during the forecast period.

Market Driver

Increasing Number of Offshore Wells

The large inventory of offshore wells developed over the past few decades has resulted in a growing backlog of wells requiring safe plugging and abandonment. With more than 30,000 offshore wells globally approaching end-of-life status, the scale of decommissioning activity is expanding. 

This backlog plays a critical role in the growth of the market, ensuring long-term project pipelines for service providers and specialized engineering contractors.

• In August 2024, Halliburton secured a multi-year contract from Petrobras to provide integrated well interventions and plug & abandonment services for offshore wells in Brazil. The agreement encompasses a wide range of services, including fluids, completion equipment, and coiled tubing, reinforcing Halliburton's strategic position in the Brazilian market.

Market Challenge

High Costs and Complexities of Offshore Decommissioning

A significant challenge hindering the offshore decommissioning market is the high cost and technical complexity involved in removing and dismantling offshore infrastructure. Projects often require specialized equipment, skilled labor, and strict adherence to environmental regulations, which can lead to budget overruns and delays.

Key market players are adopting innovative technologies such as remote-operated vehicles and heavy-lift vessels to improve efficiency and safety. Additionally, they focus on modular and phased decommissioning approaches to spread costs over time. Collaborations and partnerships also help share risks and pool resources, making projects more manageable and cost-effective.

Market Trend

Technological Advancements in Decommissioning

Innovations in subsea cutting, well plugging, heavy lift, and robotics have enhanced the efficiency and safety of offshore decommissioning operations. These technologies reduce operational costs and project timelines, encouraging faster project approvals. 

The adoption of advanced solutions drives the market by making complex tasks more feasible. Operators are more willing to undertake large-scale decommissioning projects, due to the reliability and cost savings offered by these innovations.

• In July 2024, NOV's GustoMSC introduced the Quick Connector for heavy lift cranes. This remotely operated device enhances safety by eliminating the need for on-deck personnel during lifting operations, streamlining the decommissioning process and reducing project timelines.

Offshore Decommissioning Market Report Snapshot

Segmentation	Details
By Type	Topside, Substructure, Sub Infrastructure, Others
By Service	Well Plugging and Abandonment, Conductor Removal, Platform Removal, Others
By Application	Shallow Water, Deepwater
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Topside, Substructure, Sub Infrastructure, and Others): The topside segment earned USD 2.25 billion in 2024, due to the complexity and high value of removing large, above-water structures.
• By Service (Well Plugging and Abandonment, Conductor Removal, Platform Removal, and Others): The well plugging and abandonment segment held 49.51% share of the market in 2024, due to its critical role in safely sealing wells to prevent environmental hazards and comply with stringent regulatory requirements.
• By Application (Shallow Water and Deepwater): The shallow water segment is projected to reach USD 6.07 billion by 2032, owing to lower technical challenges and reduced operational costs, making asset retirement more economically feasible in these areas.

Offshore Decommissioning Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Europe accounted for 35.17% share of the offshore decommissioning market in 2024, with a valuation of USD 1.91 billion. Europe, particularly the North Sea basin, hosts some of the oldest offshore oil & gas infrastructure in the world. Their decommissioning has become a regulatory and operational priority. 

This large volume of aging infrastructure is propelling the market in Europe, creating a continuous pipeline of projects for engineering, removal, and site clearance. Moreover, Europe invests heavily in infrastructure to support the dismantling and recycling of offshore assets. Facilities in countries around the North Sea offer safe and certified locations for handling large steel structures and subsea equipment.

• In December 2024, Mermaid Subsea Services (UK) completed the largest vessel-based decommissioning campaign in the UK North Sea. Utilizing the Island Valiant vessel, the company successfully plugged and abandoned 30 wells, including a 21-well campaign for a North Sea operator. This accomplishment underscores the growing demand for efficient decommissioning solutions in the region.

The offshore decommissioning industry in Asia Pacific is poised for significant growth at a robust CAGR of 9.59% over the forecast period. Several offshore operators in Asia Pacific are adopting modular and phased approaches to reduce the high upfront costs of decommissioning. Instead of full removal in one cycle, asset owners are breaking projects into smaller, manageable phases. 

This cost-aware approach is practical for the region’s resource-limited operators and encourages steady project flow. The focus on affordability and efficiency contributes to the growth of the market by making projects more financially sustainable for smaller players. 

Furthermore, regulatory authorities and stakeholders in the region are demanding transparent decommissioning plans and cost disclosures. These rising expectations are compelling companies to prioritize asset retirement. The shift toward financial accountability is helping drive the regional market, especially among older offshore fields managed by international firms.

• In January 2024, Pertamina and Korea National Oil Company (KNOC) initiated a joint study to explore the conversion of offshore oil & gas platforms into carbon capture and storage (CCS) facilities. This collaboration aims to provide cost-effective alternatives to traditional decommissioning by repurposing existing infrastructure, aligning with environmental goals and reducing financial burdens.

Regulatory Frameworks

• The U.S. regulates offshore decommissioning primarily through the Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE). BOEM requires financial assurances to cover decommissioning costs, ensuring operators bear full responsibility. The Oil Pollution Act of 1990 mandates liability for oil spill cleanup and environmental damage, emphasizing safe removal of offshore infrastructure to protect marine ecosystems and prevent pollution.
• In the UK, offshore decommissioning is governed by the Petroleum Act 1987, requiring operators to submit approved decommissioning programs. The Offshore Safety Act 1992 enforces strict health and safety standards during asset retirement. The North Sea Transition Authority oversees project timelines and may publicly name companies missing deadlines, ensuring accountability and environmental compliance throughout the decommissioning process.
• China regulates offshore decommissioning through the State Oceanic Administration, which issues permits and enforces environmental protection standards. Operators must comply with guidelines minimizing ecological impact during infrastructure removal. The regulatory framework focuses on balancing offshore development with marine conservation, requiring detailed decommissioning plans and adherence to strict environmental controls.
• Japan’s decommissioning regulations include the Feed-in Tariff Act, which mandates project developers to submit decommissioning plans with cost estimates for certification. The Waste Management and Public Cleansing Act classifies decommissioned offshore structures as industrial waste, requiring proper disposal and recycling in line with environmental standards.

Competitive Landscape

Major players are adopting strategies such as deploying advanced heavy-lift vessels and emphasizing sustainable recycling practices, contributing to the market growth. These approaches improve the efficiency and environmental responsibility of offshore decommissioning projects. 

Companies reduce operational risks and costs by using specialized equipment capable of handling large structures and prioritizing high material recovery rates. This development strengthens the market by encouraging innovation and promoting greener, more cost-effective decommissioning solutions.

• In June 2024, Heerema Marine Contractors' vessel, Thialf, successfully removed the wellhead platform production facilities from the Schooner field in the UK Southern North Sea. The operation involved lifting a 1,200-tonne platform deck and jacket, marking a significant step in the decommissioning of the Ketch and Schooner fields, with an emphasis on recycling approximately 95% of the removed materials.

List of Key Companies in Offshore Decommissioning Market:

• Aker Solutions
• AF Gruppen
• John Wood Group PLC
• Able UK Ltd.
• Allseas Group S.A
• Heerema
• DEEPOCEAN
• DNV GL
• Petrofac Limited 
• Boskalis
• Oceaneering International, Inc.
• Baker Hughes Company
• Halliburton
• Ramboll Group A/S
• Exxon Mobil Corporation

Recent Developments (Agreements)

• In March 2025, Norwegian firm AF Gruppen secured a USD 9.3–USD 11.6 million contract to decommission three bridge-linked platforms in the UK North Sea. Engineering work begins immediately, with offshore preparations scheduled for 2026, highlighting the region's commitment to structured decommissioning.
• In October 2024, Island Drilling Company completed a plug and abandonment campaign off the coast of Mauritania, Africa, using its semi-submersible rig, Island Innovator. The operations, conducted in water depths ranging from 208 to 1,200 meters, were finalized within the planned timeframe and under budget, highlighting effective collaboration and project management.