Marappan-Presentation-DECC.pdf

8/11/2019 Marappan-Presentation-DECC.pdf

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SUSPENDED WELLSON THE UKCS

Saravan Marappan

Senior Environmental Manager

Offshore Oil & Gas Environment and Decommissioning Unit

4th June 2014


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In 2012, DECC Licensing Exploration and Development

(LED) initiated a review to update the inventory of open-water suspended wells on the UKCS

O&GUK convened a industry workshop in June 2012 todiscuss the inventory and how to prioritise the

abandonment of suspended wells DECC LED took an action from the workshop to review the

available information and write to industry to encourage thedevelopment of abandonment programmes

In view of the environmental issues relating to suspendedwells, it was decided that DECC Offshore Oil & GasEnvironment and Decommissioning (OGED) should take

this work forward

BACKGROUND


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To encourage industry to develop arisk-based programme / campaign to

abandon legacy open-watersuspended wells, and to developproposals for future well suspensionand abandonment policy

AIM


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DECC OGED reviewed the existing informationprovided by DECC LED

Following its review, OGED wrote to operators early in2013 to seek additional information, to facilitate a riskassessment broadly based on the output of theindustry workshop

There were challenges reconciling LED legacy data

against current well ownership, indicating thatsuspended wells receive little attention during assettransfer processes

DATA COLLECTION


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RISK ASSESSMENT

Criteria Risk Factor

Potential for re-use / abandonment plans No clear plans for reuse (appraisal or development)

or abandonment of the wells

Well suspension category Category type 3 & 4 (using O&G UK well

suspension and abandonment guidelines)

Hydrocarbons Hydrocarbon type (Oil>Condensate>Gas)

Natural flow to surface

High pressure and/or high temperature

Well status Leaking or damaged

Confirmed degradation of barriers

Outwith design life (>25 years)

No recent inspection / survey (>5 years)

Environmental factors Water depth (>300 m or >1,000 m)

Environmental sensitivity

Fishing activity

Safety zone or proximity of infrastructure

Information quality Complete and relevant information not provided


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THE LEGACY EXTENT

SUSPENDED E & A WELLS

40

32

61

89

27

9 3

Need more information

Category 1

Future use

Abandonment planned 2014 - 2022

Abandonment at COP

Well in safety zone

Close to infra-structure

Total 261 wells (updated May 2014)


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SHUT-IN PRODUCTION WELLS

THE LEGACY EXTENT (contd.)

21

25

115

52

16

115Need more information

Category 1Future use

Abandonment planned 2014 - 2018

Abandonment at COP

Well in safety zone

Total 344 wells (updated May 2014)


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Operators proactively develop an abandonmentprogramme initially targeting wells that requirefurther action

Industry should explore opportunities for jointabandonment campaigns for wells in same area

Joint campaigns should:

Maximise vessel / rig availability

Mitigate costs

DESIRED OUTCOME


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The data collection exercise and risk assessmentundertaken last year identified 124 wells thatrequired further action i.e. additional information tocomplete the risk assessment or provision of a

schedule for plugging and abandonment OGED wrote to operators early in 2014

seeking further information from the operatorsresponsible for the 124 wells requiring furtheraction; and

setting out future policy on suspended E&A wellsand shut-in production wells

PROGRESS SO FAR


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FURTHER INFORMATION

56

44

14

9

1

Need more information

Abandonment planned

Abandonment at COP

Future use

Well in safety zone

Update on 124 wells (E&A wells & shut-inproduction wells) that required further action


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Economic option would be plug and abandon explorationand appraisal wells immediately following completion ofthe drilling activity. There should therefore be a verystrong business case for the suspension option

If there are no obvious concerns, new applications for

suspension will receive approval for a maximum of 5 years After 5 years, extension applications must be supported by

recent (


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Applications seeking continued suspension for wells thathave already been suspended for >5 years will have to be

supported by recent inspection / survey and riskassessment information (if not already provided)

DECC OGED will undertake a risk assessment and, if theoutcome is satisfactory, recommend that continuation of the

suspension should be approved

If the risk assessment highlights potential issues, operatorswill be required to submit proposals to abandon the wellbefore the continuation of the suspension is approved

DECC OGED will contact operators annually to update theinventory of suspended wells and review the riskassessment

FUTURE POLICY (contd.)


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Any enquiries:

[email protected]

Documents

Marappan-Presentation-DECC.pdf