Decommissioning & Well Abandonment
Late-life assets need to achieve a drastic reduction in costs to
remain profitable; and that can come only with elimination of
activities that do not deliver cash or safety
• Decommissioning is the process of ending
offshore/Onshore oil and gas operations and returning the
ocean , seafloor or Land to its pre-lease condition. The
removal of components for reuse, remanufacturing,
recycling, storage, and/or disposal
• Oil and gas installations decommissioning is an expensive
and challenging activity and one that operators try to push
as far into the future as possible
• It can cost operators an average of $4-$US 10 million in the
shallow water Gulf of Mexico.
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Five reasons to decommission abandoned wells
• Ground water / water supply protection: Abandoned wells that have not been
properly decommissioned provide a direct channel for contaminants stored or
spilled above ground to move into aquifers being used for drinking water supply
• Safety: Abandoned wells are physical hazards to people and animals. These
wells are potentially dangerous because many are open holes in the ground that
may be hidden by vegetation
• Potential liability : A landowner/ Operator can potentially be held liable for
accidents or ground water contamination, which may be caused by an abandoned
well. Some country Protection Regulations require that the owner / operator of a
well properly decommission it within ninety (90) days of its abandonment
• Responsible transfer of license/Title: A well must be sealed within ninety (90) days
of its abandonment. If a person/ operator purchases a piece of land and later finds
an abandoned well on the property, the new owner / operator would be
responsible for decommissioning the well or would be exposed to the potential
liability of owning an abandoned well and failing to comply with the state’s
regulations
• PEACE OF MIND : Decommissioning abandoned wells can bring responsible well
owners/operator and their neighbor's peace of mind from knowing that an open
well no longer poses a threat to their children’s immediate physical well being or
their future supply of clean drinking water.
6 Key Well Abandonment & Decommissioning Challenges
• Well Abandonment & Decommissioning Guidelines
• The quality, robustness and philosophy of well abandonment and
decommissioning guidelines vary by country
• Data Availability and Quality
• Lack of centralized data, poor quality data, limited sharing of experience and
knowledge
• Technical Standards
• well P&A standards and designs vary by operator and country
• Cost Estimating Methodology & Accuracy
• A lack of benchmarks and limited standardization have led to cost overruns of
30% to more than 100% and a 14% increase in asset retirement obligations
annually
• Limited Experienced Personnel
• Ensuring Long-Term Integrity of the Well P&A
• How long is the well guaranteed to not release in the future?
• How long will the cement retain its integrity?
• Could the reservoir re-pressurize over time?
• Who carries the liability to repair a previously abandoned, now leaking, well?
Decommissioning & Well Abandonment
Typical requirements are :
• Wells that have not been used for the last five
years to be permanently abandoned, temporarily
abandoned, or zonally isolated within 3 years
• If wells are zonally isolated, operators have 2
additional years to permanently or temporarily
abandon the wellhead
• Platforms and supporting infrastructure that
have been idle for five or more years must be
removed within 5 years.
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Decommissioning & abandonment procedure
• Remove the hazard of the open hole
• Prevent the borehole contaminating ground water
• Prevent the mixing of contaminated and uncontaminated groundwater from
different aquifers
• Prevent the wastage of groundwater from an artesian borehole
• Ensure the well is free from obstructions that may interfere with sealing the hole
• Carry out CCTV survey to determine whether the casing can be removed safely
• When back filling the borehole never use contaminated material and ensure the
ground is restored to its previous condition
• For deep boreholes, a specialist workman may be needed to install a bridging
seal
• All records of the abandonment should be kept for future reference and
notification given to the Environment Agency
How Is An Offshore Installation Decommissioned
There are 10 steps to the process:
• Project Management
• Engineering and Planning
• Permitting and Regulatory Compliance
• Platform Preparation
• Well Plugging and Abandonment
• Conductor Removal
• Mobilization and Demobilization of Derrick Barges
• Platform Removal
• Pipeline and Power Cable Decommissioning Materials Disposal
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• Site Clearance.
Project Management and Permitting and regulatory Compliance
Project management, engineering and planning Permitting And Regulatory Compliance
for decommissioning usually starts three years
before the well runs dry. • Obtaining permits to decommission can take
up to three years to complete
• The process involves:
• Review of contractual obligations • Often, operators will contract a local
consulting firm to ensure that all permits are
• Engineering analysis in order prior to decommissioning
• Operational planning
• Local consulting firms are familiar with the
• Contracting regulatory framework of their region.
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Platform Decommissioning
To prepare a platform for Well Plugging And Abandonment
decommissioning
Plugging and abandonment is one of the
• Tanks, processing equipment and
major costs of a decommissioning project
piping must be flushed and
and can be broken into two phases.
cleaned, and residual
hydrocarbons must be disposed
The planning phase of well plugging
• Platform equipment must be includes:
removed
• Data collection
• Underwater, workers prepare the
• Preliminary inspection
jacket facilities for removal, which
• Selection of abandonment methods
includes removing marine growth.
• Submittal of an application for approval.
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Well abandonment
Well abandonment involves :
• Well entry preparations , such as use of a slick line unit or
workover rig
• Filling the well with fluid and removal of downhole
equipment
• Cleaning out the wellbore and plugging open-hole and
perforated intervals(s) at the bottom of the well
• Plugging casing stubs and annular space
• Placement of a surface plug and placement of fluid
between plugs
• Plugs must be tagged to ensure proper placement or
pressure-tested to verify integrity
• Plugs must be tagged to ensure proper placement or
pressure-tested to verify integrity. 9
Conductor Removal
• Normally , all platform components including conductor casings
must be removed to at least 15 ft below the ocean floor or to a
depth approved by the Regional Supervisor based upon the type of
structure or ocean-bottom conditions
• To remove conductor casing, operators can choose one of three
procedures:
• Severing, which requires the use of explosive, mechanical or
abrasive cutting
• Pulling/sectioning, which uses the casing jacks to raise the
conductors that are unscrewed or cut into 40 ft-long segments.
• Offloading, which utilizes a rental crane to lay down each
conductor casing segment in a platform staging area, offloading
sections to a boat, and offloading at a port. The conductors are
then transported to an onshore disposal site. 10
Mobilization/Demobilization and Platform Removal
• Mobilization and demobilization of derrick barges is a key • Pipelines or power cables may be
component in platform removal decommissioned in place if they do not
• Platforms, templates and pilings must be removed to at least interfere with navigation or commercial fishing
15 ft below the mudline operations or pose an environmental hazard.
• First, the topsides are taken apart and lifted onto the derrick • However, if the local regulator rules that it is a
barge. Topsides can be removed all in one piece, in groups of hazard during the technical and environmental
modules, reverse order of installation, or in small pieces review during the permitting process, it must be
• Removing the jacket is the second step in the demolition removed.
process and the costliest. First, divers using explosives,
mechanical means, torches or abrasive technology make the
bottom cuts on the piles 15 ft below the mudline.
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Materials Disposal And Site Clearance
• Platform materials can be refurbished and reused, scrapped and
recycled or disposed of in specified landfills.
• To ensure proper site clearance, operators need to follow a four-
step site clearance procedure
• Pre-decommissioning survey maps the location and quantity of
debris, pipelines, power cables, and natural marine
environments.
• Post decommissioning survey identifies debris left behind
during the removal process and notes any environmental
damage
• ROVs and divers target are deployed to further identify and
remove any debris that could interfere with other uses of the
area.
• Test trawling verifies that the area is free of any potential
obstructions. 12
Test
2 - Oil and gas installations decommissioning is :
1 - Decommissioning is the process of A. Expensive
ending offshore/Onshore oil and gas B. Challenging activity
operations and returning the ocean , C. One that operators try to push as far into the future
seafloor or Land to its pre-lease as possible
condition. D. All above
• True E. None above
• False
Test
3 - How Is An Offshore Installation Decommissioned – Process
A. Project Management 4 - To ensure proper site clearance, operators need to
B. Engineering and Planning follow the following step site clearance procedure
C. Permitting and Regulatory Compliance
A. Pre-decommissioning survey
D. Platform Preparation
E. Well Plugging and Abandonment
B. Post decommissioning survey
F. Conductor Removal C. ROVs and divers target are deployed to further
G. Mobilization and Demobilization of Derrick Barges identify and remove any debris that could
H. Platform Removal
interfere with other uses of the area.
I. Pipeline and Power Cable Decommissioning Materials Disposal
J. Site Clearance
D. Test trawling verifies that the area is free of any
K. A, B,C,D and E potential obstructions
L. G,H and I E. All above
M.
N.
All above
None above
F. None above
