Brae Area Pre Decommissioning MARATHON BRAE Brae Area Decommissioning Programme June 2017 Revision 1.0
Why is Marathon Oil decommissioning? Decommissioning is a natural step in the life cycle of an oil and gas field once the source of hydrocarbon has been depleted and production is no longer economical. Marathon Oil has already extended the life of the Brae Field beyond the initial projections and, after careful consideration, including a review of reuse opportunities, the only viable option is to decommission the facilities. Marathon Oil initiated planning for the decommissioning of the Brae field infrastructure in 2009. What is included in the decommissioning scope? The scope of the Brae Area decommissioning is considerable, including three fixed steel jacket platforms, three Marathon Oil operated subsea tie-backs and numerous pipelines and subsea components. All wells will be plugged and abandoned in accordance with Oil & Gas UK guidance. Platform jacket/sub-structures upper sections (subject to acceptance of derogation to leave footings in place) will be recovered and returned onshore for reuse, recycling or disposal. Drill cuttings piles are proposed to be left in place to degrade naturally. Pipelines, cables and umbilicals that are trenched or buried are proposed to be left in place. Those that are not will be either removed or appropriately remediated in place to minimise risk to other sea users. Subsea structures are proposed to be recovered and returned onshore for reuse, recycling or disposal. Mattresses will be reused or recycled offshore or brought onshore and reused, recycled or disposed of as appropriate. What is a Decommissioning Programme? The scope of work must be detailed in a Decommissioning Programme and associated supporting documents before work begins. The scope is developed based on extensive and wide-reaching studies and assessments that are used to evaluate the appropriate options for dealing with the oil and gas infrastructure. Validated assessment techniques that capture safety, environmental, socio-economic, technical and economic factors have been used to develop a balanced and appropriate decommissioning solution. The Decommissioning Programmes: Provide an overview of the work to be completed to decommission the infrastructure and the timeframe in which to comply with regulatory requirements. Define the shape, size, configuration and interdependencies of the assets. Include input from key stakeholders and must receive approval from regulatory bodies. Once the scope of work detailed in the Decommissioning Programme has been completed, a seabed survey will be conducted to verify the scope has been accomplished. Supplementary and ongoing monitoring of any equipment left in place will continue, as required by the Petroleum Act. Where can I learn more? Additional information is available on the Marathon Oil Brae Decommissioning website: www.marathonoil.com/braedecom. Brae Area Decommissioning Programmes Frequently asked questions The seabed will be remediated once dismantling and removal operations have been completed. An ongoing programme will be put in place to monitor any equipment left in place.
Brae Area Pre Decommissioning Images not to scale
Brae Area Post Decommissioning East Brae Brae Bravo Central Brae Brae Alpha KEY Decommissioned Pipelines, left in situ Elevated Support Rock Cover Mattress Images not to scale Marathon Oil assets only
Frequently Asked Questions: Q: Is there a timescale for the decommissioning? A: It is estimated that the entire decommissioning process for the Brae Area could take up to 20 years to complete. Q: How did Marathon Oil assess potential safety and environmental impacts? A: Marathon Oil regards safety and environmental stewardship as crucial to corporate responsibility and have conducted studies and assessments significantly beyond the minimum required by regulation to better understand the short-, medium- and longterm impacts of the decommissioning proposals. Full details are available within the Decommissioning Programmes and associated Environmental Statements, which are available at www.marathonoil.com/braedecom. Q: Are the Marathon Oil platforms in the Brae Area still operational? A: Yes. The Brae Area assets are all important elements of Marathon Oil s production portfolio and continue to be utilised at optimum levels. Investment in these platforms continues to be made, both in line with Marathon Oil s commitment to the highest standards of safety and also with a view to continue to extend the life of the field where possible as new technology and methods are developed. Q: Will the decommissioning of the Brae Area installations mark the end of Marathon Oil s interest in the North Sea? A: The Brae Area is Marathon Oil s only remaining Company-operated asset in the North Sea, but the Company also holds non-operated working interests in the Foinaven area, west of the Shetland Islands and in the Scottish Area Gas Evacuation (SAGE) terminal at St. Fergus and associated North Sea gas gathering pipeline. Q: Are jobs at risk due to the decommissioning? A: The scale and complexity of any Decommissioning Programme requires additional resources to be deployed, both offshore during removal and onshore during dismantling and disposal. Marathon Oil expects that specialist skills within the decommissioning sphere will be needed in both the short and long term. This will present opportunities for both existing employees and others with expertise in the sector. Inevitably, after decommissioning is completed, there will be a reduction in the Company s North Sea workforce. Q: Which contractors are involved in the programmes? A: Marathon Oil will be engaging extensively with the supply chain to select those contractors who share the Company s safety values and can offer effective and costefficient solutions. Q: What will the cost of decommissioning be and who is responsible for funding? A: An accurate cost estimate cannot be quantified until decommissioning plans are finalised and the proposed Decommissioning Programmes are approved. Marathon Oil and its Partners are responsible for all costs associated with the decommissioning. UK Government tax relief is available for operators actively engaged in decommissioning. Q: What economic impact has the Brae Field had on the UK? A: The Brae Fields have been in production for the last 35 years and have now reached the end of their technical producing lives. During that time, the Brae Field infrastructure has created thousands of jobs, and Marathon Oil has contributed more than 1.3 billion in Corporation Tax, Supplementary Charge and Petroleum Revenue Tax. Q: Can the public and other stakeholders have input in the process? A: Yes, Marathon Oil is committed to working with stakeholders to deliver Decommissioning Programmes that take into account the views of groups and individuals with an interest in the North Sea and associated industries. Details of the consultation process are available online, with direct contact also made with many stakeholders to ensure comprehensive input. Those wishing to take part in the consultation can register their interest by emailing StakeholderBraeDecom@Marathonoil.com.