Decommissioning: Winds of Change in Offshore Oil & Gas - - PowerPoint PPT Presentation

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Decommissioning: Winds of Change in Offshore Oil & Gas - - PowerPoint PPT Presentation

Decommissioning: Winds of Change in Offshore Oil & Gas Accelerating NAMEPA & NOIA Winds of Change in Offshore Oil and Gas February 2014 Accelerating 1 1 Oil & Gas Decommissioning Winds of Change Accelerating What has


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Decommissioning: Winds of Change in Offshore Oil & Gas

NAMEPA & NOIA

Winds of Change in Offshore Oil and Gas

February 2014

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Oil & Gas Decommissioning – Winds of Change

What has changed?

Idle-Iron NTL became effective: October 2010

Structures removed from the OCS:

  • 2002 – 2010: Averaged 164
  • 2011 – 2013: Averaged 262
  • 60% Increase post Idle-Iron

0 ¡ 50 ¡ 100 ¡ 150 ¡ 200 ¡ 250 ¡ 300 ¡ 2002 ¡2003 ¡2004 ¡2005 ¡2006 ¡2007 ¡2008 ¡2009 ¡2010 ¡2011 ¡2012 ¡2013 ¡

  • No. ¡Structures ¡Removed ¡

Gulf ¡of ¡Mexico ¡-­‑ ¡Outer ¡ConDnental ¡Shelf ¡ Decommissioned ¡Structures ¡

Total ¡Removed ¡

  • Avg. ¡Removed ¡'02-­‑'10: ¡
  • Avg. ¡Removed ¡'11-­‑'13: ¡
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Stone Decommissioning – January 2011

Single-Well Caissons Multi-Well Caissons Braced Caissons

Tri-Pods

Work Scope ~ 100 Structures & 130 Wells

4-Pile Structures

36-Pile Structure 6-Pile Structures

Estimated Cost: $235 million

  • ver 3 years
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Oil & Gas Decommissioning – Winds of Change

What needed to change?

The Decommissioning Process Traditional Mini-Van Method

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Oil & Gas Decommissioning – Process Evolution

Mini-Van Method

Multiple Mobilizations – Sequential Steps:

  • 1. Prepare the structure
  • 2. Plug the wells
  • 3. Sever & remove the well conductors (casings)
  • 4. Flush, pig and remove the pipelines
  • 5. Hydrocarbon-free the production equipment
  • 6. Mobilize derrick barge to remove the structure
  • 7. Perform Site Clearance
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  • After well is plugged with required

number of cement barriers

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Mini-Van Method – Explosives to remove the Well

  • Explosives used to sever all well

conductors > 15’ BML

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Mini-Van Method: Structure Removal via Derrick Barge

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  • Explosives to Sever Jacket Piles > 15’ BML

Mini-Van Method: Explosives to remove the Jacket

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Oil & Gas Decommissioning – Winds of Change

What has changed?

The Decommissioning Process New Stone Energy Method Old School Mini-Van Method

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Oil & Gas Decommissioning – Process Evolution

New Stone Energy Method

Single Mobilization – Concurrent Steps:

  • 1. Perform all work in one or two mobilization(s)
  • 2. Utilize the newest technologies
  • 3. Utilize fewer resources – Decommissioning Department of 7

(1 - Manager; 2 - Project Managers; 2 - Engineers; 1 - Regulatory Specialist; 1 - Administrative Assistant)

  • 4. Complete the work scope in ½ the time
  • 5. Spend ⅓ less money
  • 6. Safer, Leaner, Greener and Less Expensive
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§ Operating water depths of 18’ to 280’ § Accommodations for 152 Workers § 15,200 ft² Clear Deck Space § 500 Ton Heavy Lift Crane

New Technology: 335’ Liftboat Robert

\

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New Stone Method Step 1: Mobilize all equipment

Stone Method

  • Platform make-safe
  • Plug wells
  • Flush & pig pipelines
  • Remove pipeline tube-turns
  • Hydrocarbon free vessels
  • Remove production equip.
  • Abrasively sever conductors
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New Stone Method Step 2: Perform Work in Parallel

Stone Method

  • Abrasively sever jacket
  • Diver debris sweep
  • Acoustic bottom scan
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New Stone Method Step 3: Take Structure Away

Stone Method

  • Secure to Material Barge
  • Move to next location
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No Harm to Marine Environment

=

Stone Decommissioning Method: Greener

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Stone Decommissioning Method: Less Expensive

6 Spreads; 6 Mobilizations

42 Days of Work over a 10 Month Period . . .

Spend: $3,557,000

Mini-Van Method

6 Spreads; 1 Mobilization

22 Days of Work over a 22 Day Period . . .

Spend: $2,401,000

Stone Method

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New Technology: Internal Abrasive Cutting

Abrasive Jet Nozzle

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New Technology: Internal Abrasive Cutting

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Old Technology: Horizontal Diamond Wire Saw

60’ 18’ 60’

Diamond ¡Wire ¡Saw ¡Moun0ng ¡

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New Technology: Articulating Diamond Wire Saw

10’ 16’ 10’ Post-Cut Position

7’

Running Position

3’

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Mud Line Diamond Wire

New Technology – Articulating Diamond Wire Saw

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New Technology: Excavation

Diver Jet Wand and Air Lift Mini-Van Method New Auger Dredge Stone Method

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New Stone Method

Stone Energy Decommissioning Method

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New Stone Method: Fast - 94 Locations in 590 Days

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New Stone Method: Regulatory Excellence

86 Structure Removal Permits w/ Site Clearance Plan 86 Structure Removal Final Reports 59 Pipeline Abandonment Permits 59 Pipeline Abandonment Final Reports 46 Well TA Application for Permit to Modify (APM) 44 Well Revised Permit to Modify (RPM) 157 Well PA Application for Permit to Modify (APM) 310 Weekly Activity Reports (WAR) 203 End-of-Operations Reports (EOR) 284 Rig-Move Notifications (RMN) 86 Site Clearance Verification Reports 86 NavAid Discontinuation Reports

1506 Regulatory Filings (3.6 Every Business Day)

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  • 86 - Structures Removed
  • 157 - Wells PA’d
  • 59 - Pipelines Abandoned
  • 1,115 - Air/Mixed Gas Dives
  • 330 - Internal Abrasive Cuts
  • 40 - External Abrasive Cuts
  • > 420,000 Man-Hrs Worked

Results – 20 Months New Stone Method: Accomplishments

Zero Recordable Incidents

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Stone Method: Safer, Greener, Less Expensive

Safer, Leaner, Greener and Less Expensive 2013

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Traditional vs. Stone Decommissioning Methods

Estimated Cost: $235 million Actual Cost: $155 million

Stone Method: Accomplishments

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Stone Method: Safer, Greener, Less Expensive

Questions?

Safer, Leaner, Greener and Less Expensive 2013