New venture aims to take a slice of the fast growing decommissioning market

New venture aims to take a slice of the fast growing decommissioning market

UK class society Lloyd’s Register (LR), Australian engineering firm WorleyParsons, and salvage giant Ardent have created a new consortium targeting the global oil and gas decommissioning market.

The new venture will cover all aspects of decommissioning, from late-life management to planning, readiness for removal, execution, waste management and monitoring post removal.

“This consortium offers a new, collaborative approach to decommissioning for operators,” said Steve Gilbert, director of asset management and decommissioning from classification society Lloyd’s Register. “It represents a fundamental step change for the industry, aligning assurance, project management, and safe, fit-for-purpose removal and disposal.”

The companies behind the new venture reckon the market for decommissioning of older oil and gas infrastructure is expected to be $13bn per year by 2040.

“Decommissioning can be daunting; the cost uncertainty, the colossal project scope and the unknown long-term liabilities,” Gilbert said. 

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Avatar
    Henning Gramann
    May 2, 2018 at 5:56 pm

    Interesting! What is the role of LR, only technical advisor or also certifier. If the latter it could result in a conflict of interest. Would be interested to learn more about it!