Danos Integrated Services Offering to the Decommissioning Market
The Gulf of Mexico (GOM) shallow water decommissioning work has kept Danos busy in 2022. Currently, there are over 1700 structures in the shallow water gulf with most of those older fields in production declining. From 2017 to 2021, 383 total structures were removed and only five new structures were installed on the shelf. Over the next 20 years, the shallow water decommissioning market is valued at over $6.3 billion as operators and regulators look to address the task of facility, well and pipeline abandonment and removal. Multiple Danos service lines are positioned well to support this activity. At current levels of decommissioning, it will take over 20 years before inventories are cleared in the shallow water GOM.
In 2022, we have been collaborating with several customers as the industry ramps up. The opportunity to have several of our service lines work alongside our customers and other decommissioning service companies have kept us busy throughout the year. Currently, our production services team, fabrication and construction group, scaffolding, I&E, power generation group, valve and mechanical division are working on decommissioning projects. Decommissioning activity for Danos includes regulatory compliance checks by our operators, facility “make-safe” for our projects and energy systems teams, as well facility prep for plugging and abandoning of wells, and platform removal. We have also provided logistics and offshore transportation support for this work. Our project managers and construction managers, as well as our account managers, plan out daily work and activities for our crews. Our field personnel are executing work safely and have engaged regulatory officials with the utmost professionalism.
At various times this year, we have been called on to provide both onshore and offshore solutions to our customers. Due to the nature of facility decommissioning, our capability to offer integrated services has increased the efficiency and safety of these projects and will continue to present opportunities for growth!