The decommissioning of 21 old oil rigs in the Campos Basin, Rio de Janeiro state, will cost about 50 billion reais (US$12 billion) over the next five years, a state official said.

All 21 old rigs that will be decommissioned are operated by state-controlled oil company Petrobras, development secretary Lucas Tristão told Reuters. He expects decommissioning work to generate 50,000 jobs in the state.

The decommissioning in the Campos Basin mature fields is happening simultaneously with new rigs coming into operation in the Santos Basin, where most of the Brazilian presalt oil is located. Some oil rigs are more than 70 years old, according to oil regulator ANP. About 41% of offshore fields have been operating for more than 25 years.

Earlier this month, Petrobras decommissioning manager Eduardo Zacaron said the company would begin by 10 platforms through 2020, including six FPSO in the Campos Basin.

Offshore