Offshore Platform Decommissioning Richard Taylor, MA, MBA, C.Eng., - - PowerPoint PPT Presentation

Offshore Platform Decommissioning

Richard Taylor, MA, MBA, C.Eng., FICE – President BP Brasil Ltda ”International Seminar of Offshore Platform Decommissioning” UKTI - SUT – SOBENA – UK Brazil Centre of Ocean Engineering 10 July 2007

Agenda

• Design and life cycle context
• Scale of operations and growth
• Complex project challenges

Design and Life Cycle Context

Up to 3.000 metres

Source:

fixed structures >25 years floating structures

Context

Evolution of Brazilian offshore production

Context

Ageing of offshore facilities

0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6

Brazilian production (mmbd)

1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002

Petrobras monopoly

• pen market

2005

• ffshore
• nshore
• nshore
• ffshore

shallow water

• ffshore

structures used for production for more than 25 yrs

• ffshore

deepwater and ultra-deepwater

2007

Source:

Context

Evolution of GoM offshore production

Pompano 1994 Marlin 1999 Holstein 2004 Mad Dog 2005 Horn Mtn 2002 Thunder Horse 2008 NaKika 2003 Atlantis 2007 1000m 2000m 1500m 500m Sea Level

• 500
• 300
• 100

100 300 500 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

years

Development

• large initial

investment

• technical

challenges

Exploration and Appraisal

Annual cash flow (US$mm)

Return on investment Reinvestment in new projects

Production

+$

high geological risk

• $
• $

Source:

Decommissioning

Operation of the asset

Decline Peak

Concentration

• f cash flow in

a short period

Context

E&P life cycle

Decommissioning Life Cycle

Estimate Updates Install Operation of the asset Maintain the decommissioning cost estimate throughout the project life Decomm. cost estimate Project feasibility

Application of engineering rigour and best available technology is the key to delivering effective results beginning with project feasibility Context

Decommissioning life cycle

Decommissioning

Development Production

beginning with conceptual engineering before installation

Exploration and Appraisal

Scale of Operations

BP Operations

BP Business Segments Customer Facing Resources

Exploration & Production Refining & Marketing Gas & Renewables, Supply & Trading

BP operations and offshore structures

Latin America and Caribbean ~ 15 North America ~ 25 Africa ~ 10 Europe ~ 95 Other ~ 25

Oil Gas Chemicals Refining Market Positions

• Note. For these ~170 structures,

BP is operator (or JV partner) and has a share of the liability for decommissioning. BP is operator or a JV partner a further ~120 structures for which the local government has liability for decommissioning.

Operations

BP has a participation in ~ 290 out of the industry total of ~6,500 offshore structures

Project Challenges North West Hutton

Platform Decommissioning Case Study

North West Hutton Location Launch

Decommissioning programme

North West Hutton Platform

• Production ceased end 2002.
• Well abandonment & conductor recovery

complete

• Topsides cleaning & making safe

complete (Hydrocarbon Free)

• Process & utility separation complete
• Started Normally Unattended Installation

(NUI) ops July 04

• Oil & Gas pipelines cleaned and

disconnected

Platform & Pipelines

UK regulatory environment

Legislation

• Presumption of clean

seabed

• Petroleum Act 1998
• UK Decommissioning

regulated by DTI

• Oslo & Paris

Commission (OSPAR) Decision 98/3.

• Derogation possible if

>10KTe steel jacket or concrete gravity based structure

North West Hutton – Status

• Includes: Topsides & Jacket (derogation);

Oil Pipeline & Gas Pipeline

• UK public statutory consultation completed March 05
• OSPAR consultation (derogation) completed 12 Dec 05
• Regulator Approved Decommissioning Programme 12 Apr 06
• Topsides & Jacket 2007 – 2009 removal window
• Pipelines trench & bury 2009/10
• Post 2010 obligated to conduct periodic surveys…

Decommissioning Programme

• Awarded to Heerema Marine Contractors Oct 06

Platform Removal/Disposal Contract

• Scope to be developed for 3/4Q 07 approach to Federal

Subsea Contractors Pipeline Trench & Bury Contract

Removal contract

Decommissioning programme

North West Hutton Platform

40m

Removal stages

Future UKCS decommissioning activity

100 200 300 400

< 5 Years 6-10 Years 11 - 25 Years >25 Years

Number of Installations

Indicative phasing

Decommissioning

Role of technology and innovation

• New Heavy Lift Vessels, new Diving Support Vessels
• Removal techniques that are non- lethal to sea life
• Special Purpose Decommissioning Equipment
• Potential Regulatory developments

− Monitor US Gulf of Mexico experience with permitted ‘reefing in place’.

Proposed Keppel Verolme ‘Decommissioning Vessel’

Decommissioning

Role of technology and innovation

• New Heavy Lift Vessels, new Diving Support Vessels
• Removal techniques that are non-lethal to sea life
• Special Purpose Decommissioning Equipment
• Potential Regulatory developments

− Monitor US Gulf of Mexico experience with permitted ‘reefing in place’

• Decommissioning is an integral part of the design and life of the facility
• Demand will grow for decommissioning services

− 6,500 offshore structures worldwide − 450 in the North Sea with US$42bn decommissioning work

• Safety, technical and environmental challenges are complex

− technology, consultation and regulatory innovation can help − learnings from NW Hutton can help build industry capability for future challenges Decommissioning

Conclusions

Thank you