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Australia’s offshore oil and gas industry is facing a significant challenge: how to decommission its aging infrastructure. However, recent developments in forecasting have brought a positive shift in the outlook for the sector. A new report from global energy consultancy Xodus estimates the long-term cost of removing offshore oil and gas infrastructure will be A$43.6 billion (A$66.8 billion in inflation-adjusted terms) through 2070 significantly lower than the previous estimate of A$61.8 billion from 2020. This updated cost projection comes as Australia’s energy sector gains more clarity and expertise in offshore decommissioning, signaling both financial relief and improved planning for operators, policymakers, and investors. In this blog, we’ll explore the reasons behind the revised cost estimate, the potential for future savings, and what this means for the industry’s future. Australia offshore decommissioning costs ; What’s Behind the Revised Estimate? The revised estimate reflects better forecasting techniques, improved data, and a more refined understanding of the full scope of decommissioning activities. Over the past few years, Australia's offshore oil and gas industry has gained significant experience in well decommissioning, pipeline removal, and vessel mobilization. With more accurate cost modeling tools and a clearer understanding of the technical challenges, the energy sector is now better positioned to plan for decommissioning activities in a more cost-effective manner. The revised estimate covers: Over 700 wells to be decommissioned 7,600 km of pipelines to be removed 520 subsea structures to be dismantled These numbers paint a comprehensive picture of the massive undertaking ahead. Yet, thanks to improved industry knowledge, costs are projected to be much lower than previously anticipated. What Does This Mean for Operators and Policymakers? For operators and policymakers, this update is a crucial piece of the puzzle. The revised forecast of A$43.6 billion offers a more accurate financial roadmap for long-term planning and budgeting. This provides better certainty, which is key to ensuring safe and sustainable decommissioning practices, especially as Australia’s offshore energy assets begin to age and come to the end of their operational life. Andrew Taylor, Head of Advisory APAC at Xodus, emphasized the importance of this updated analysis: “Accurate cost forecasting is critical as Australia develops a safer and more sustainable decommissioning sector.” This revised forecast helps operators and government bodies better prepare for the financial implications of decommissioning and avoid any surprises down the line. Opportunities for Further Savings Even though the updated figure of A$43.6 billion represents a significant reduction, there’s still room for further savings in the sector. According to the Xodus report, there are several opportunities to reduce costs even more, including: Coordinated Decommissioning Campaigns By combining decommissioning activities and coordinating efforts between different operators, the cost of removing assets can be significantly reduced. Collaborative campaigns can optimize resource use, cut down on mobilization costs, and reduce the number of vessels required, leading to overall savings. Technology Improvements New technologies are continually improving the efficiency of decommissioning processes. For instance, advancements in automation, robotics, and data analytics can help streamline well plugging, pipeline removal, and subsea structure dismantling. As these technologies evolve, they will likely reduce the time and labor required, leading to further cost reductions. Leveraging Offshore Wind Development Another potential avenue for cost reduction lies in leveraging the growth of offshore wind construction. The development of offshore wind farms could provide economies of scale in vessel mobilization, port utilization, and infrastructure, making decommissioning activities more efficient. Challenges Ahead Despite the positive outlook, there are still challenges to overcome. The report highlights the need for substantial investment in critical infrastructure to support decommissioning activities. Ports, vessels, and recycling facilities will need to be upgraded to handle the volume of work expected in the coming decades. Moreover, while the forecast for decommissioning costs is lower, the sector will still need to manage a range of technical and regulatory challenges. Ensuring that decommissioning is conducted safely, sustainably, and in line with environmental regulations will remain a priority. The Future of Offshore Decommissioning in Australia This new outlook on offshore decommissioning costs in Australia is a step in the right direction. By reducing the projected cost from A$61.8 billion to A$43.6 billion, the industry has gained a clearer, more realistic understanding of what lies ahead. The shift towards smarter planning, better forecasting, and more advanced technology is helping to create a safer, more sustainable, and cost-effective decommissioning sector. As Australia moves toward a future of energy transition and growing offshore wind development, the lessons learned from offshore oil and gas decommissioning will be invaluable. Operators and policymakers alike will need to continue collaborating, adopting new technologies, and investing in the infrastructure required to support these efforts. For those in the industry, this is an opportunity to take a proactive approach in planning and executing decommissioning projects ensuring a future that is both economically viable and environmentally responsible. The revised estimate of A$43.6 billion for offshore decommissioning in Australia is a significant development for the energy sector. It reflects improved forecasting, better data, and a more efficient approach to well, pipeline, and subsea removal. As technology continues to evolve and the industry works together to streamline decommissioning processes, further cost reductions may be possible. This update is a positive sign that Australia’s offshore decommissioning efforts are on track for a more sustainable and financially predictable future. Explore our services: https://www.aries-one.com/ Source: https://www.worldoil.com/news/2025/11/19/new-analysis-lowers-australia-s-projected-offshore-decommissioning-costs-to-43-6-billion/

The Bureau of Ocean Energy Management (BOEM)  has finalized plans for a December 10 lease sale in the U.S. Gulf of Mexico , offering 80 million acres  across more than 15,000 unleased blocks . The sale covers about half of the Gulf’s Outer Continental Shelf (OCS) , spanning waters from 9 to 11,115 feet deep  and 3 to 231 miles offshore . This lease round is the first of 30 mandated under the One Big Beautiful Bill Act (OBBBA) , which requires two Gulf lease sales annually through 2040. The initiative marks a significant policy shift toward expanding access to offshore energy resources and boosting domestic production capacity. Expanding Alaska’s Offshore Outlook in this New Offshore Lease Sales In addition to the Gulf sale, BOEM has proposed a 1 million-acre lease offering in Alaska’s Cook Inlet , scheduled for March 2026 . This will be the first of six planned sales  in the region through 2032, as outlined in the OBBBA. The last Cook Inlet lease sale was held in 2022, attracting only one bid — but this new round, supported by improved market conditions and regulatory clarity, could reawaken industry interest in Alaska’s offshore potential. Both upcoming lease sales will be set at a 12.5% royalty rate , following adjustments under the OBBBA to encourage participation and investment in U.S. offshore resources. Renewed Confidence in U.S. Offshore Energy The planned lease sales reflect a broader resurgence of confidence  in U.S. offshore development. With over 80 million acres available , operators have the opportunity to pursue new frontier blocks, integrate existing infrastructure, and advance lower-carbon deepwater strategies through technology-driven efficiency . The combination of regulatory clarity, infrastructure maturity, and global energy demand  positions the U.S. Gulf as a continued anchor for offshore production — while Alaska’s Cook Inlet offers strategic diversification in a high-potential basin. Balancing Energy Expansion and Sustainability These new lease rounds come at a time when the global offshore sector is balancing the dual goals of production growth and emissions reduction . Advances in subsea technology, digital monitoring, and FPSO efficiency  are helping operators deliver projects that are both economically and environmentally sustainable. As offshore activity accelerates, the U.S. remains a key player in ensuring stable energy supply while transitioning toward a lower-carbon future. At Aries One , we support operators and investors involved in offshore projects across every stage of development. Our expertise helps clients execute with precision, safety, and efficiency. 🔗 Explore our Services:   www.ariesoneenergy.com 📖 Source:  Upstream Online – BOEM unveils plans for next lease sale in US Gulf

Weekly Rig Count Overview According to Baker Hughes , global rig activity remains resilient despite ongoing market uncertainty, reflecting disciplined growth and targeted capital deployment across regions. United States:  548 rigs ( +1 week | -37 year ) Canada:  198 rigs ( +5 week | -19 year ) International:  1,084 rigs ( +8 month | -72 year ) These figures suggest a gradual rebound in North American drilling , supported by stable commodity prices and a renewed push toward year-end project completions. U.S. Rig Count: Marginal Growth Amid Efficiency Gains The U.S. rig count inched higher this week, signaling steady confidence among shale producers. Even with a 37-rig decline year over year , operators continue to deliver strong output through: Improved drilling efficiency  and longer laterals Selective capital allocation  toward high-return basins Technology integration  to optimize well productivity This combination allows producers to sustain output while maintaining cost discipline and shareholder returns — a hallmark of the current upstream investment cycle. Canada Rig Count: Strong Seasonal Momentum Canada posted the most significant weekly increase, adding five rigs  as winter drilling preparations accelerate. Activity remains concentrated in Western Canada’s Montney, Duvernay, and Clearwater plays , driven by: Growing natural gas demand  for LNG exports Attractive condensate pricing Increasing service-sector readiness for Q4 campaigns Canadian operators appear poised for a robust winter drilling season , reflecting confidence in long-term gas development. International Rig Count: Stable Growth in Offshore and Emerging Markets The international rig count  remains unchanged month to month at 1,084 active rigs, though it reflects steady offshore expansion  in regions such as West Africa, the Middle East, and Latin America .Long-cycle developments and national oil company (NOC) investments  continue to anchor growth, offsetting declines in mature basins. As global demand stabilizes and deepwater projects ramp up, international activity is expected to gradually strengthen into 2026 . Explore our Services:   www.aries-one.com Source:   Baker Hughes Rig Count

According to Baker Hughes , global rig activity remains resilient despite ongoing market uncertainty, reflecting disciplined growth and targeted capital deployment across regions. United States:  548 rigs ( +1 week | -37 year ) Canada:  198 rigs ( +5 week | -19 year ) International:  1,084 rigs ( +8 month | -72 year ) These figures suggest a gradual rebound in North American drilling , supported by stable commodity prices and a renewed push toward year-end project completions. U.S. Rig Count : Marginal Growth Amid Efficiency Gains The U.S. rig count inched higher this week, signaling steady confidence among shale producers. Even with a 37-rig decline year over year , operators continue to deliver strong output through: Improved drilling efficiency  and longer laterals Selective capital allocation  toward high-return basins Technology integration  to optimize well productivity This combination allows producers to sustain output while maintaining cost discipline and shareholder returns — a hallmark of the current upstream investment cycle. Canada Rig Count : Strong Seasonal Momentum Canada posted the most significant weekly increase, adding five rigs  as winter drilling preparations accelerate. Activity remains concentrated in Western Canada’s Montney, Duvernay, and Clearwater plays , driven by: Growing natural gas demand  for LNG exports Attractive condensate pricing Increasing service-sector readiness for Q4 campaigns Canadian operators appear poised for a robust winter drilling season , reflecting confidence in long-term gas development. International Rig Count : Stable Growth in Offshore and Emerging Markets The international rig count  remains unchanged month to month at 1,084 active rigs, though it reflects steady offshore expansion  in regions such as West Africa, the Middle East, and Latin America .Long-cycle developments and national oil company (NOC) investments  continue to anchor growth, offsetting declines in mature basins. As global demand stabilizes and deepwater projects ramp up, international activity is expected to gradually strengthen into 2026 . Aries One Perspective: Navigating Market Momentum The current rig trends reflect a balanced global outlook  — mature basins emphasizing efficiency and cost control, while emerging regions drive growth through new exploration and infrastructure investment. At Aries One , we help clients interpret and respond to these shifts with integrated solutions that enhance operational readiness and project success: Consulting:  Market intelligence, rig forecasting, and asset planning Project Management:  End-to-end oversight for drilling and completion progra ms Staffing:  Access to skilled engineering and field professionals worldwide Technology:  Digital workflows for performance and emissions optimization Training:  Workforce development to ensure safe and sustainable operations 🔗 Explore our Ser vices:   www.aries-one.com 📊 Source:   Baker Hughes Rig Count

Equinor and its partners have officially begun production at the Bacalhau field , located in the pre-salt Santos Basin  off the coast of Brazil. Situated in ultra-deep water exceeding 2,000 meters , Bacalhau represents one of the largest oil and gas developments in the country — with recoverable reserves of more than 1 billion barrels of oil equivalent (boe) . The field is developed using one of the most advanced floating production, storage, and offloading (FPSO)  vessels in operation today — a 370-meter-long, 64-meter-wide unit with the capacity to produce 220,000 barrels of oil per day (bpd) . Advanced Engineering Meets Lower Carbon Operations Bacalhau’s combined-cycle gas turbine (CCGT)  system represents a major step forward in sustainable offshore production. By integrating power generation with waste heat recovery, the FPSO achieves an expected CO₂ intensity of around 9 kg per boe  — significantly below global deepwater averages. The field also employs advanced emission abatement  measures across flaring, processing, and storage systems, setting a new industry benchmark for low-carbon, cost-efficient production  at scale. Phase 1 Development and Project Scope of Bacalhau Production Phase 1  includes 19 subsea wells  — a mix of producers and injectors — which will be brought online progressively to achieve steady-state production. MODEC , the FPSO contractor, will operate the vessel during the initial production phase, after which Equinor  will assume operatorship for the remainder of the license period. The project partners include: Equinor (40%, operator) ExxonMobil Brasil (40%) Petrogal Brasil (20%)   (a Galp | Sinopec JV) Pré-Sal Petróleo S.A (PPSA)   (government-managed PSA partner) Driving Efficiency, Scale, and Value Creation According to Anders Opedal , Equinor’s President and CEO, “Bacalhau represents a new generation of projects that bring together scale, cost-efficiency, and lower carbon intensity. With this development, we are strengthening the longevity of our oil and gas production and securing value creation for decades to come.” This development underscores Brazil’s leadership in deepwater innovation , supported by robust regulatory frameworks and growing investment in pre-salt exploration and production. Supporting the Future of Deepwater Projects At Aries One , we partner with global operators, EPC contractors, and investors to deliver the next generation of offshore and deepwater developments  — safely, efficiently, and sustainably. Our expertise spans: Consulting:  Field development planning, risk assessment, and cost optimization. Project Management:  Execution oversight for FPSO, subsea, and drilling programs. Staffing:  Deployment of skilled professionals across engineering and operations. Technology:  Digital tools that enhance performance and emissions tracking. Training:  Capacity building for local workforces and operational readiness. Explore our Services:   www.ariesoneenergy.com Source:   Upstream Online – Equinor Starts Production at Bacalhau Field Offshore Brazil

According to the latest Baker Hughes Rig Count , the global oil and gas drilling landscape remains dynamic, reflecting shifting capital flows and regional investment priorities. United States:  547 rigs ( -2 week / -39 year ) Canada:  193 rigs ( +3 week / -26 year ) International:  1,084 rigs ( +8 month / -72 year ) While overall global activity is steady, the mix between regions tells a nuanced story about where operators are focusing their efforts amid evolving market conditions. U.S. Rig Count: Consolidation Amid Efficiency Gains The slight decline in U.S. rigs signals ongoing capital discipline  among shale operators. Companies continue to prioritize free cash flow and operational efficiency  over aggressive drilling programs.Despite fewer active rigs, productivity per well remains strong , driven by technology adoption, longer laterals, and precision completions. This trend supports stable output levels even as rig counts fluctuate. Canada Rig Count : Modest Uptick as Seasonal Drilling Returns Canada’s modest week-on-week increase reflects seasonal recovery  and renewed activity in key basins such as the Montney and Duvernay .Producers are preparing for winter drilling programs , supported by firm natural gas prices and continued demand for LNG export supply  commitments. International Rig Count : Momentum Builds in the Middle East and Africa The international rig count continues to rise, with notable growth in the Middle East, Latin America, and West Africa . These regions benefit from long-term investment cycles and national oil company (NOC)  development strategies focused on resource expansion and energy security. Rising offshore activity — from deepwater West Africa to the Eastern Mediterranean  — highlights ongoing confidence in frontier exploration and development despite global price volatility. Strategic Insight: A Balanced Global Outlook The current rig trends underline a balanced upstream environment  — mature basins focusing on efficiency, and emerging regions expanding through new discoveries and large-scale projects.This equilibrium supports both short-term production stability and long-term supply diversification as the energy transition  reshapes capital priorities. 🔗 Explore our Services:   www.aries-one.com 📊 Source:   Baker Hughes Rig Count

Italian energy major Eni  has strengthened its position in Côte d’Ivoire’s offshore sector  with the acquisition of the I-707 exploration block , located near its 2024 Calao discovery . The move expands Eni’s footprint to 10 offshore blocks  across the country, reinforcing its long-term commitment to West Africa’s emerging deepwater play. Eni Côte d’Ivoire deepwater exploration - Strategic Growth and Synergy Potential The I-707 block  spans 2,926 square kilometers  in water depths ranging from 1,000 to 3,000 meters . Its proximity to the Calao field offers a strategic opportunity for infrastructure-led exploration —a model designed to accelerate development timelines and optimize capital efficiency. Eni now holds a robust production base in the region, exceeding 62,000 barrels of oil per day  and 75 million cubic feet of gas per day . The company’s portfolio approach in Côte d’Ivoire underscores its focus on synergy, scalability, and gas-led growth —key elements of its broader African energy strategy . West Africa’s Deepwater Momentum Eni Côte d’Ivoire deepwater exploration also highlights the growing momentum within the Ivorian sedimentary basin , a zone attracting increasing attention from global operators and investors. With established infrastructure, rising local capability, and favorable geology, Côte d’Ivoire is positioning itself as a regional deepwater hub . Supporting Energy Expansion in Emerging Frontiers At Aries One , we help energy companies navigate the technical, operational, and workforce challenges of deepwater exploration and project delivery . From consulting  and project management  to staffing , technology , and training , our integrated services ensure safe, efficient, and strategic execution across every project phase. 🔗 Explore our Services:   www.ariesoneenergy.com Source: https://www.upstreamonline.com/exploration/eni-acquires-ivory-coast-exploration-block/2-1-1879249

Petrobras is moving one step closer to beginning exploration in Brazil’s Foz do Amazonas basin , located in the Equatorial Margin—a region rich in potential but under intense environmental scrutiny. Petrobras Moves Closer to Amazon Oil Drilling The company recently conducted a large-scale emergency drill  to test its readiness for spill response, a requirement ahead of final licensing approval. This milestone reflects Petrobras’ commitment to demonstrating operational safety as it seeks to balance exploration with ecological protection. A $3 Billion Investment Petrobras has allocated $3 billion  for the drilling of 15 exploration wells  in the basin over the next five years. This initiative could unlock significant reserves and bolster Brazil’s position in global oil markets, particularly as offshore developments gain momentum. Balancing Energy and Environment While the Equatorial Margin presents an opportunity to expand Brazil’s offshore production, it also raises debates about environmental risks in sensitive Amazonian waters. Industry observers will be watching closely to see how Petrobras navigates regulatory, environmental, and social challenges while pursuing growth. Supporting Complex Energy Projects At Aries One , we specialize in guiding energy clients through high-stakes, technically challenging projects—from offshore exploration to project management and workforce solutions. Our experience ensures that operators have the right strategies, people, and resources in place to execute safely and efficiently. 🔗 Explore our Services:   www.aries-one.com

The latest Baker Hughes rig count highlights diverging trends across North America and international markets: Global Rig Count Update: Stability Abroad, Declines at Home United States:  538 rigs (Week: -1 | Year: -47) Canada:  180 rigs (Week: -3 | Year: -39) International:  914 rigs (Month: +1 | Year: -20) Key Observations 🔽 North America Slows Down:  Both the U.S. and Canada continue to post week-over-week declines, reinforcing the broader slowdown in drilling activity that has persisted through 2025. Lower capital spending and cautious operator strategies remain major drivers. 🌍 International Resilience:  In contrast, international markets show stability, with a slight month-over-month increase. This reflects ongoing investments in offshore projects, LNG developments, and exploration in regions less impacted by short-term market fluctuations. ⚖️ Market Balancing Act:  The contrast highlights the complexity of global energy strategies—while North America scales back, other regions push forward to secure future production and meet rising demand. Partnering for What’s Next At Aries One , we know the energy sector never stands still. Our expertise in Project Management , Technical Advisory , and Workforce Solutions  ensures that our partners can adapt to market cycles and keep projects on track—whether scaling up or optimizing operations. 🔗 Explore our Services:   www.aries-one.com

As we pass the midpoint of 2025, the Baker Hughes rig count update reveals divergent trends across key regions: Global Rig Activity Sees Mixed Movements Amid Mid-Year Energy Landscape United States:  540 rigs (Week: -2 | Year: -46) Canada:  177 rigs (Week: -5 | Year: -42) International:  914 rigs (Month: +1 | Year: -20) While North American drilling continues its downward trend, international rig activity shows a modest but meaningful uptick—suggesting a regional rebalancing in response to economic, geopolitical, and operational factors. Key Drivers of Current Trends 🔽 North America Cooling Down: Ongoing cost control, reduced capital investment, and market uncertainty continue to pressure U.S. and Canadian rig activity. The annual decline underscores a broader hesitancy among operators. 🌍 International Stability and Recovery: The slight rise in international rig activity may indicate project restarts or new developments in areas where energy demand and government support remain strong—particularly in the Middle East, Latin America, and parts of Asia. 📊 Energy Market Dynamics: From fluctuating commodity prices to longer-term energy transition strategies, the global landscape remains highly dynamic. Operators are balancing short-term margins with long-term investments. Supporting Energy Operations in Every Cycle At Aries One , we understand the shifting nature of energy markets. Whether you’re scaling up, optimizing operations, or managing complex transitions, our integrated services in Technical Advisory , Project Management , and Workforce Solutions  are tailored to your goals. 🔗 Explore our Services:   www.aries-one.com

Last week's Rig Count  from Baker Hughes paints a nuanced picture of today’s upstream landscape. While international drilling accelerates, U.S. activity slows further — and Canada bucks the trend with a seasonal surge. Here’s what the numbers show: 🇺🇸 United States : 542 rigs ( Week: -2 | Year: -47 ) 🇨🇦 Canada : 182 rigs ( Week: +10 | Year: -29 ) 🌍 International : 913 rigs ( Month: +27 | Year: -44 )📊 Source : Baker Hughes Rig Count Rig Count Reflects Global Recalibration With Canada posting a sharp increase  and international rig counts climbing , some regions appear to be ramping up activity — while U.S. operators maintain a disciplined retreat . U.S.: Controlled Decline Operators continue pulling back to protect capital amid pricing fluctuations, regulatory pressure, and long-term strategy shifts toward efficiency. Canada: Summer Uplift Canada’s 10-rig jump reflects seasonal execution, supported by short-term demand and better field conditions. International: Investment Expansion Increased rig activity outside North America signals broader exploration and production investment, particularly in MENA, Latin America, and parts of Asia where energy security is top of mind. Why the Numbers Matter The current rig count isn’t just about volume — it signals market psychology: Capital Discipline Over Speed : Operators are drilling smarter, not faster. Energy Transition Influence : Investment is tilting toward diversified energy portfolios. Adaptability is Everything : Companies must stay nimble — expanding where it counts, and optimizing where it doesn’t. Aries One Delivers Stability Aries One Energy Consultants  is built to support every pivot. We help upstream teams: Scale resources without overextending Deploy expert consulting on strategy and operations Navigate international execution challenges As the market shifts, our job stays the same: keep your projects moving with clarity, capability, and confidence. 🔗 Explore Our Services : www.aries-one.com

As Summer 2025 moves into full swing, the global oil and gas sector is seeing a steady decline in active drilling rigs. According to the latest Baker Hughes rig count update: United States:  547 rigs (Week: -7 | Year: -34) Canada:  140 rigs (Week: +1 | Year: -36) International:  886 rigs (Month: -5 | Year: -67) Mid-Summer Rig Count Trends Signal Slower Drilling Momentum This continued downward trend raises important questions: What’s driving the slowdown, and what does it mean for the remainder of 2025? Possible Contributing Factors 📉 Commodity Price Volatility  – With oil prices experiencing fluctuations, some operators may be pulling back on new drilling until markets stabilize. ⚖️ Capital Discipline  – Many energy companies remain cautious with capital spending, prioritizing returns and shareholder value over rapid production growth. 🛢️ Geopolitical Uncertainty  – Ongoing global conflicts, shifting energy policies, and regulatory challenges may also be influencing international drilling programs. 🌱 Energy Transition Pressure  – Investment interest is growing in lower-carbon and renewable energy projects, slightly tempering upstream activity, especially outside North America. What’s Next for the Sector? Despite the rig count dip, the long-term outlook remains robust. With energy demand still strong and new technologies improving exploration efficiency, the sector continues to adapt. At Aries One , we help energy companies navigate change by offering reliable Technical Advisory , Project Management , and Workforce Solutions . Whether scaling up or optimizing in a downturn, we ensure your projects stay on track. 🔗 Explore our Services:   www.aries-one.com