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Ship decommissioning usually occurs some years after the ship has been commissioned and is a means by which a vessel that has become too old or too obsolete can be retired from the operating fleet. Decommissioning of a vessel may also occur for safety reasons (such a ship's nuclear reactor and associated parts reaching the end of their service life), depending on the type of ship being decommissioned. In a limited number of cases a ship may be decommissioned if the vessel in question is judged to be damaged beyond economical repair. Although, the increase in offshore exploration has led to several new oil and gas discoveries, it has also laid a negative impact on the environment. The non-functioning offshore oil and gas platforms and other installations pose a threat to the marine environment and are a major source of marine pollution. The increasing need of offshore exploration activities combined with stringent environmental regulations imposed by governmental organizations has augmented the need for marine vessel decommissioning. Moreover, heavy penalties imposed by governments on any negligence by exploration and production companies have resulted in companies investing further in offshore installation decommissioning.

Recent uptrend in the number of deepwater installations, stringent environmental regulations imposed by different countries, the increase in number of non functional and outdated vessels are the major drivers of the oil and gas vessel decommissioning market. The associated costs involved in decommissioning a vessel and negligence on the part of exploration companies act as major restraints for the market. Rapid depletion of land based resources has led to a rapid shift towards offshore exploration, an activity that presents a significant opportunity to vessel decommissioning service providers.

The segmentation of the oil and gas vessel decommissioning market can be done on the basis of decommissioning procedure and the geographical location of the major offshore oil and gas exploration sites. There are varied processes by which vessel decommissioning can be undertaken. Offshore vessel decommissioning depends on factors such as vessel capacity, operating weather conditions, construction and the product that the vessel handles. The decommissioning of vessels can be broadly classified into substructure, and equipment and topside decommissioning. Substructure decommissioning involves the total or the partial removal of the substructure from the vessel. Topside decommissioning involves recycling and reuse of the equipments and other parts from the vessel. The total decommissioning is the most preferred method and involves the removal of each and every asset from the vessel. The service companies take all the necessary steps from licensing to removal of equipments from the vessel. Partial decommissioning is done in cases where vessels are too complex to be dismantled. These vessels may constitute any concrete installations that are fixed to the hull. 

Regional segmentation of oil and gas vessel decommissioning market can be done by identifying the major ports where decommissioning is primarily performed. Major areas include the offshore areas around United States, Canada and Mexico in the Atlantic Ocean and Gulf of Mexico and North Sea in Northern European region. Offshore areas around China, Indonesia, and Malaysia form part of the Asia Pacific region and offshore areas around western Africa constitute Rest of the World.

Some of the major players in the vessel decommissioning market involve companies such as Wood Group, PSN Limited, AMEC, TSB Offshore, Inc., Derrick Services (UK) Ltd. and Worley Parsons Ltd.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Oil Gas Vessel Decommissioning Market

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