An analysis to the main economic drivers for offshore wells abandonment and facilities decommissioning

Decommissioning and abandonment is a relevant issue in the petroleum industry because of the complex operations involved and the results after the decision has been made. Several factors could lead to abandoning wells and decommissioning platforms, among others hurricanes, production decline, economic limit, etc. Decommissioning and abandonment operations have a great impact in the revenue stream which is either lost or temporarily deferred depending on the situation. Every year between 100-150 platforms are decommissioned and approximately 620 wells are abandoned in the Gulf of Mexico. A case-by-case scenario should be revised on an annual basis and all the possible options to be considered and submitted to the Government. This thesis presents an overview of the topic and an analysis on when decommissioning and abandoning alternatives are recommended for the optimization of the economical resources.