Oil & Gas Decommissioning Market By Service Type (Well Plugging & Abandonment, Platform Removal, Pipeline & Infrastructure Decommissioning, Material Disposal, Site Restoration), By Water Depth (Shallow Water, Deep Water), By Structure Type (Fixed Platforms, Floating Platforms, Subsea Infrastructure), and By Region; Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the Oil & Gas Decommissioning Market was valued at USD 5.5 Billion in 2024-e and will surpass USD 8.4 Billion by 2030; growing at a CAGR of 7.2% during 2025-2030.

The global oil and gas decommissioning market is witnessing robust growth as offshore and onshore oilfields reach the end of their production lifecycle. Governments and environmental agencies emphasize the safe and sustainable dismantling of aging infrastructure, driving demand for decommissioning services. Innovations in technology and increasing investments by operators contribute to the development of this critical market.

Well Plugging & Abandonment Segment Is Largest Owing to Stringent Regulations

Well plugging and abandonment (P&A) represents the largest segment, driven by regulatory mandates for the safe closure of non-productive wells. This process involves sealing wells to prevent environmental hazards, including leakage of hydrocarbons into surrounding ecosystems.

The increasing number of aging wells, particularly in mature basins such as the North Sea and the Gulf of Mexico, has significantly contributed to the dominance of this segment. Technological advancements, such as rigless plugging techniques, have also enhanced the efficiency and cost-effectiveness of these operations, boosting their adoption across the industry.

Deep Water Segment Is Fastest Growing Owing to Increasing Offshore Projects

The deep water segment is experiencing the fastest growth, attributed to the expanding exploration and production activities in offshore regions like Brazil and West Africa. Decommissioning in deep water involves complex logistics, specialized equipment, and advanced technologies, making it a lucrative area for service providers.

As deep water oilfields mature, operators are facing higher pressure to dismantle infrastructure while adhering to environmental standards. This has created substantial demand for innovative solutions in remotely operated vehicles (ROVs) and other technologies that can operate efficiently in deep water conditions.

Floating Platforms Segment Is Largest Owing to Versatile Applications

Among structure types, floating platforms account for the largest share, primarily due to their widespread use in offshore operations. These platforms are integral to deep water and ultra-deep water projects, where they facilitate production and processing activities.

The decommissioning of floating platforms involves complex procedures, including dismantling, transportation, and disposal. Rising investments in offshore projects, coupled with the need to replace aging infrastructure, have increased the demand for decommissioning services for floating platforms globally.

Europe Is Largest Region Owing to Stringent Environmental Standards

Europe leads the market for oil and gas decommissioning, driven by strict environmental regulations and a high concentration of mature oilfields in the North Sea. Governments in the region have established comprehensive frameworks to ensure safe and sustainable decommissioning practices.

Countries like the UK and Norway are at the forefront of decommissioning activities, with operators receiving financial incentives to comply with regulatory standards. The region’s advanced technological infrastructure and experienced service providers further solidify its leading position in the market.

Competitive Landscape

Leading companies in the oil and gas decommissioning market include TechnipFMC, Halliburton, Schlumberger, Baker Hughes, and Saipem. These players are leveraging innovations in technology, such as robotics and AI-driven monitoring systems, to enhance the efficiency of decommissioning processes.

The competitive landscape is marked by strategic collaborations, mergers, and acquisitions aimed at expanding service portfolios and geographical reach. As environmental concerns grow, companies are focusing on developing sustainable and cost-effective solutions, positioning themselves to capitalize on the increasing demand for decommissioning services.

Recent Developments:

• TechnipFMC announced a major decommissioning project in the North Sea, leveraging advanced subsea technology
• Saipem secured a multi-million-dollar contract for pipeline decommissioning in the Gulf of Mexico
• Oceaneering International introduced a new ROV system aimed at improving efficiency in subsea decommissioning
• Subsea 7 completed its first hybrid decommissioning project using AI-based tools in the Asia-Pacific region
• Petrofac collaborated with ExxonMobil on an offshore platform removal project in the UK Continental Shelf

List of Leading Companies:

• TechnipFMC
• Saipem
• Halliburton
• Baker Hughes
• Schlumberger
• Aker Solutions
• Subsea 7
• Oceaneering International, Inc.
• Petrofac Limited
• John Wood Group PLC
• Allseas
• Heerema Marine Contractors
• Mammoet
• ExxonMobil
• Royal Dutch Shell

Report Scope: