Since 2016, the Bureau of Safety and Environmental Enforcement (BSEE) has collected decommissioning expenditure data from operators in the deepwater US Gulf of Mexico, defined as water depth greater than 122 m, to estimate the decommissioning liability of leases. BSEE uses both statistical tools and work decomposition methods to estimate the decommissioning cost of all active wells, structures, and pipelines on deepwater leases. The purpose of this paper is to evaluate BSEE cost estimates in the deepwater US Gulf of Mexico across four decommissioning stages and to infer unit cost statistics and cost functions in the region. Fixed platforms in 250–500 m water depth are expected to cost between $10 and $80 million to decommission, spars about $55 million, ship-shape floaters around $30 million, and tension leg platforms and their smaller (mini) versions between $18 and $25 million. The deepwater decommissioning market value is estimated at $24.3 billion circa 2022.


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    Title :

    BSEE decommissioning cost estimates in the deepwater US Gulf of Mexico


    Additional title:

    SHIPS AND OFFSHORE STRUCTURES
    M. J. KAISER


    Contributors:

    Published in:

    Publication date :

    2024-02-01


    Size :

    22 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English





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