Can You Buy an Old Offshore Drilling Platform and Put It to Use?

There is a company, DixStone, that buys old drilling rigs and fixes them to go to Gabon, Congo, or Cameroon, among other destinations. This company has been working on such rigs for 15 months. However, the process of buying and utilizing an old offshore drilling platform can be complex and requires careful consideration.

Ownership and Sale

The first step in acquiring an old offshore drilling platform is to verify the ownership of the platform by a company or individual who is willing to sell it. Many old platforms are decommissioned by oil and gas companies, and these can be sold as surplus assets. It is crucial to research and ensure that the platform you want to purchase is legally available for sale.

Regulatory Approvals

Selling and transferring an offshore platform involves various regulatory obstacles, especially approvals from government agencies overseeing environmental and safety standards. Compliance with decommissioning regulations is a must. The sale process can be lengthy and requires adherence to specific legal requirements.

Decommissioning and Removal

If the platform is no longer in use, the costs and logistics of decommissioning and removing it can be significant. This process is often regulated by law to ensure environmental safety. Even if the platform needs to be relocated, the process can be costly and may not be feasible.

Potential Uses

For those who are open to alternative uses, some buyers may be interested in repurposing the platform for other purposes. These include turning it into an artificial reef, a research facility, or a base for renewable energy projects. The specific usefulness of the platform depends on its condition and the buyer's intentions.

Market Availability

The availability of old platforms for sale varies, and finding suitable options may require engaging with brokers or companies specializing in offshore assets. The Houston shipyards, for example, often have mothballed semi-submersible and jack-up drilling rigs available.

Buying an Old Platform in Place

If your question is whether one can buy an old offshore platform in place and use it, the answer is generally no. Federal regulators will not allow this. However, in some cases, such as when purchasing a structure for the purpose of relocation and refitting in an adjacent block, it may be possible. This option may also be cost-effective but still requires significant upfront investment.

For example, a company might have purchased an existing structure in place in 2007 and planned to remove, refit, and reinstall it in the adjacent block. The overall process cost as much as fabricating a new platform but potentially saved time.

Conclusion

Buying and utilizing an old offshore drilling platform involves multiple complex steps, including legal and regulatory compliance, and may not always be the most cost-effective option. It is advisable to consult with legal and industry experts to navigate these complexities effectively.

Keywords: offshore drilling platform, platform decommissioning, platform repurposing