Decommissioning seen as growth engine in Asia Pacific market, survey finds
Thursday, Jul 19, 2012
Fifty-four percent of respondents believe decommissioning will be a big part of their business over the next five years
A new survey by DecomWorld found that decommissioning is seen both as one of the biggest challenges and also as one of the most significant engines for corporate growth in the Asia Pacific market.
The survey is based on interviews with over 100 offshore experts working in the Asia Pacific decommissioning industry, and has been released in advance of the upcoming 4th Offshore Decommissioning Workshop, which will take place 31 October and 1 November in Singapore.
Since the year 2000, over 800 new structures have been installed across the Asia Pacific region bringing the total of offshore structures to almost 1800. With roughly 700 assets coming up to or exceeding the 25 year mark, the decommissioning market presents large liabilities for operators and a potentially lucrative market for contractors.
Experts predict that the market for decommissioning in the Asia Pacific could be as high as $32 Billion US Dollars.
The survey found that 86.5 percent of respondents believe decommissioning is going to a big challenge for the industry within the Asia Pacific.
Among the causes they cite are lack of regulatory understanding and limited opportunities to interact with regulators, , followed by lack of training and experience of their personnel, lack of accurate cost estimates for projects, a paucity of experienced contractors in the region, and concerns over financing abandonment projects.
Despite these concerns, 89.6 percent of respondents believe their own company is fairly well prepared for the decommissioning of their own projects.
A strong trend in the survey was the belief that decommissioning will be a source of opportunity in the future. Projections offered by respondents show that despite decommissioning in the region having stuttered in the past few years, over the next five companies will be gearing up for movement in the decommissioning market, and that efforts in these areas will play a major role in their company’s future growth.
Fifty-four percent of respondents believe decommissioning will be a big part of their business over the next five years, and 74 percent said decommissioning will present their company with new opportunities in 2013.
The survey also revealed that Indonesia is perceived as having the most need for decommissioning services within the next few years, followed by Malaysia, Thailand, China, Australia, Vietnam, Singapore and India.
Those interested in downloading the free decommissioning market report can do so at http://www.decomworld.com/asiapac/content2.php
If you have any questions, please feel free to get in touch.
Head of Sector
Article written by Dan McCue