As the topic of decommissioning has appeared on boardroom agendas, PwC’s member firms have had the opportunity to serve operators, governments, and OFS companies across the world to ensure they are prepared for this business imperative. Collectively, our advisory, tax, and assurance teams have outlined six key challenges that these parties will face as larger volumes of decommissioning projects are executed.
The offshore exploration and production of oil and gas is one of the most prominent industries on a global scale. Capital projects such as offshore platforms, pipelines, and production facilities span from North to South America, Europe, the Middle East, West Africa, and Asia. For decades, billions of dollars have been invested in the physical assets installed to extract and transport these resources to global markets.
Since decommissioning is a relatively new business imperative, there is a wide spectrum of capabilities in terms of talent teams, technology, and processes among the upstream companies responsible for executing these projects safely and successfully. In addition, the third parties involved with different steps in the decommissioning process are still building their own service offerings in order to address this new market need.