Regulatory Push Grows for Decommissioning of Subsea Equipment
Increasing pressure to properly decommission subsea production systems when offshore oil and gas fields are plugged and abandoned (P&A) is becoming a major issue as low oil prices increasingly force producers to shut in unprofitable wells, Bruce Crager, executive vice president of Endeavor Management, said on 12 January at the monthly roundtable luncheon hosted by the Rice Global Engineering & Construction Forum.
“The subsea decommissioning market is becoming a focus worldwide due to lower oil prices and more regulatory pressure to P&A nonproducing wells,” Crager said in a presentation, Status of Subsea Decommissioning. “There appears to be real consideration of the benefits of leaving subsea systems in place vs. recovering them.”
Crager said most countries with offshore oil and gas production require subsea wells be plugged and abandoned as offshore fields reach the end of their productive lives; most regulatory regimes mandate that subsea flowlines, umbilicals, manifolds, and other subsea hardware be properly decommissioned as part of the P&A process. As many as thousands of offshore wells are and will be affected, he said.
“Decommissioning of subsea production systems and components is becoming increasingly important to offshore oil and gas operators. This means energy engineering and construction (E&C) companies need to solve significant technical, logistical, and management issues whenever subsea equipment is decommissioned,” Crager said. “Offshore production companies frequently reply upon energy E&C companies for the people, skill sets, and know-how needed to properly decommission subsea equipment.”
Better Abandonment Cost Estimates Yield Improved Project Valuations
Developing an asset requires key investment decisions to be made early in the process, and as a result, some critical cost evaluations—such as abandonment—are often ballpark estimates. Adjusting the parameters for evaluating these costs can lead to more-accurate project valuations.
Equinor Plans Extension of Statfjord Field
The plan will extend production of the largest field on the Norwegian Continental Shelf to 2040, while also deferring plans to decommission the Statfjord A platform. Statfjord A was originally scheduled to be decommissioned in 2022.
New Innovations Enable Autonomous Pipeline Inspections
As companies look to reduce the time it takes to inspect a subsea pipeline, as well as the costs involved in the operation, autonomous systems have become a more desirable option. How close are they to becoming the norm?
Don't miss out on the latest technology delivered to your email every two weeks. Sign up for the OGF newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
15 January 2020
14 January 2020
09 January 2020
09 January 2020
13 January 2020