Perenco UK Ltd. SNS Decommissioning EEEGr / Decom North Sea Decommissioning Special Interest Group Event 22 nd November 2012
SNS Decommissioning PUK Assets and Decommissioning Strategy Welland Case Study & Overview Late Life Integrity Management Decommissioning Look-ahead
PUK Assets & Strategy 4 Onshore Terminals 49 Installations 71 Separate Jackets 131 Potential Heavy Lifts (400-8000Te) 320 Platform Wells, 23 Subsea, 24 Suspended 2500km Subsea Pipelines 250km Onshore 93 Oil Wells onshore
PUK Assets & Strategy Management in-house with hands-on approach Flexible and changing strategy subjected to annual review Direct flexible contracting preferred Careful high level scheduling to avoid day-rate asset dependencies & SimOps with zero-cost gaps Optimal use of existing PUK infrastructure / logistics Exploration and testing of innovations & alternatives
SNS Decommissioning PUK Assets and Decommissioning Strategy Welland Case Study & Overview Late Life Integrity Management Decommissioning Look-ahead
Welland Case Study & Overview
Welland Case Study & Overview Installed 1990 by Hermod Topsides 960Te - Jacket 840Te 2 platform wells, 3 subsea wells 3 legged jacket in 37m water 16 main pipeline with 3 MEG line 3 x 8 flowlines with 4 umbilicals Throughput capacity 225 mmscf/d
Welland Case Study & Overview Drivers 7 years since CoP Annual Opex drain Opportunity to re-use in another subsidiary Opportunity to learn and embed decommissioning knowledge within the organisation build expertise Opportunity for cost estimate proving & validation
Welland Case Study & Overview Project initiated March 2010 Topsides prep commenced May 2010 DSV work on pipelines & wells in June/Aug 2010. Rig abandoned platform wells Sept 2010 Subsea Well 2 abandoned October 2010. Heavy lift pre-engineering May-Oct 2011
Welland Case Study & Overview Difficulties Limited power genny fire whilst Exxon DH. 3 x subsea well tie-backs un-isolated & poor well history/status. Large piled protection frames. Subsea wells only de-powered at CoP & HPU/EPU & Control System dilapidated & not functional. Platform well 5 14000ft, highly deviated & with down-hole gauge cable. Intra-field 8 pipeline network. Small working deck space.
Welland Case Study & Overview Scaldis s Rambiz HLV selected for project Proserv selected for topsides & subsea cutting DECC approval of Decomm Programme Oct 2010 HSE acceptance of DSC 24th Dec 2010 PUK & Subcontractors ready 1st Dec 2010 Green light for weather-watch 2nd Jan 2011 HLV sailed 6th Jan 2010 -WoW & minor pre-works Topsides cut & lifted mid-jan 2011 Jacket cut & lifted late Jan 2011 3 HLV mobilisations overall
Scaldis SMC awarded contract for heavy lift removal Scaldis Rambiz 3300Te crane barge, compact & powerful with sufficient reach. Twin cranes can combine or work individually
Welland Removal Video Footage
Welland Case Study & Overview TOP THREE (FOUR) LESSONS LEARNT. IN SNS These activities can be executed yearround with appropriate contracting strategy - risk capping. Segregating work phases especially those of 3rd party large assets gives much needed planning flexibility Co-operation between HLV contractor, Cutting contractor & Operator is crucial Healthy & early interface / relationship with Regulators important. DECC & HSE very helpful.
Welland Case Study & Overview 10 month Project Mar 2010 to Jan 2011 Managed internally 3 man team under PUK Decommissioning Manager No injuries/incidents, no spills, one near-miss Offshore man-hours per tonne removed = 9 Lessons learned identify an immediate 30% cost reduction if project was repeated. 45% of material destined for re-use, 50% of material re-processed. Less than 5% disposal.
There will be around 200 SNS installations & estimated 4-5bn (?) budget over coming decades Based on the Welland sample performance the region might see decommissioning revenues of 1bn For the East of England the prize is to invest in skills, people, expertise and equipment to push the split to 40-50%. This IS achievable
Post script
SNS Decommissioning PUK Assets and Decommissioning Strategy Welland Case Study & Overview Late Life Integrity Management Decommissioning Look-ahead
Strategic Options Walk away until Campaign Decomm Project Reduced manning & minimum maintenance Continuity from Operations into Decomm Overlap between Operations & Decomm Divestment
Strategic Options Written Scheme of Verification DSC Written Scheme Write Dismantling Safety Case Write Decomm Programme CoP H/C-free Pre-engineering Pipelines Well abandonment Plant cleaning Physical removal operations Removal & abandonment preparatory work Commercial & Contractual
Late Life Integrity Management Characteristics Continuity of safe production and operations Unpredictable cessation of production (CoP) Changes to maintenance drivers Instability of required operations expertise Preparation for decommissioning works
Unpredictable CoP Late Life Integrity Management 200 INDE AREA Typical SNS Medium Sized, Multi-Platform Gas Field 180 160 140 120 100 80 60 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 m/year 2025 2026 2027 2028 2029 2030 Revenue (20p/th) Revenue (30p/th) Revenue (40p/th) Revenue (50p/th) Revenue (60p/th) Opex ( m/yr) 3 yrs
200 180 160 140 120 100 80 60 40 20 0 Late Life Integrity Management INDE AREA Typical SNS Medium Sized, Multi-Platform Gas Field Revenue (20p/th) Revenue (30p/th) Revenue (40p/th) Revenue (50p/th) Revenue (60p/th) Opex ( m/yr) m/year 2011 2011 2012 2012 2013 2014 2013 2015 2016 2014 2017 2018 2015 2019 2020 2016 2021 2017 2022 2023 2018 2024 2025 2019 2026 2027 2020 2028 2029 2021 2030 2022 80 60 40 20 0
Late Life Integrity Management Preparation for decommissioning works Disposal Wells Lift Integrity Pigging Capability ces eat Recycling Surveys Access Platforms Subsea Surveys Plan Modific Removal Studies DSC / WSE DP Cleaning Process use COSHH Pipeline Structur
Lessons From Experience Post-CoP delays cost.. In Opex, loss of Ops expertise and fabric deterioration. Maintenance has to increase/improve in some areas and change focus in others. Planning is essential once CoP is on the radar financial, operational and projects. CoP is variable. Small changes to economic metrics can move CoP dates significantly. Understand the vulnerabilities & be ready to move to transition. Each asset will have a different strategy for late life integrity management.
SNS Decommissioning PUK Assets and Decommissioning Strategy Welland Case Study & Overview Late Life Integrity Management Decommissioning Look-ahead
Decommissioning Look-ahead Welland Subsea Wells 2, 3 & 4 P&A July 2011 Welland Subsea Well protection frames x 3 cut & lift Sept-Dec 2011 3 x Leman platform wells, rigless abandonment May Jun 2012 6 x platform wells, rigless abandonment 2013 Welland 3 x subsea protection frames Q2 2013 3-6 remote suspended wells Cat. 1.2 & 3 2013-15 6-9 subsea wells & clusters 2014-17 Compression station (3 jackets, 5 wells, 9 subsea wells, 9 pipelines, 8 umbilicals) 2013-2016
PUK Decommissioning Look-ahead Draft view only subject to future commercial, development, technical & regulatory influences P E R E N C O Mannable NUI NUI Mannable NUI Monopod NUI Platform Well Mannable NUI NUI Subsea Well Compression Hub 3 x Subsea Cluster 3 x Subsea Cluster Platform Well Subsea Well Subsea Well Subsea Well Welland Tristam Well Monpod NUI Subsea Well Platform Well Monopod NUI SubseaWell Platform Well x 2 Subsea Well NUIs x 2 Compression Hub NUI Perenco UK Estimated Cessation of Production & Decommissioning 2009 2010 2011 2012 2013 2014 2015 2016 2017 Durango
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