Monday 5 February 2018

According to Wood Mackenzie's latest analysis, decommissioning Asia Pacific's offshore assets – nearly 2,600 platforms and 35,000 wells – could cost over US$100 billion.

Decommissioning in Asia Pacific appears to be a mammoth task for which the various stakeholders are largely unprepared. Unclear government regulations coupled with a general lack of experience in the region could mean a steep learning curve with high initial costs and potential for mistakes.

Wood Mackenzie has identified four levers to cut costs and decommission Asia Pacific on a budget:

- Transferring knowledge between regulators, operators and service sector firms.

- Choosing optimal commercial and contracting strategy.

- Adopting innovative technologies to cut cost.

- Achieving economies of scale.