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.”
Bureau Veritas Publishes UKCS Decomm Guide
Bureau Veritas made available its guide to decommissioning regulations in the UK Continental Shelf.
Supply Chain Consortium Launched for Decommissioning Services
Global spending on oil and gas decommissioning is expected to be $13 billion per year by 2040. The launch of a collaborative supply chain approach to global decommissioning offers an end-to-end solution to reduce the decommissioning burden, risk, and cost for operators in Europe, Asia, and Americas.
Maersk Drilling and Maersk Supply Service Establish JV for Decom
The joint venture will include work on P&A, towage of floating units, and removal of subsea infrastructure, with the ultimate goal of providing the full end-to-end process for decommissioning.
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07 May 2018
08 May 2018