Decommissioning and abandonment

Decommissioning and abandonment

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EXPECTATION

EXPECTATION

EXPECTATION

ƒ Pipeline decommissioning ƒ Principal factors influencing selection of method ƒ Legislation and current thinking ƒ Differences worldwide ƒ Options for a disused pipeline ƒ Operations for decommissioning and leaving in-situ ƒ Recovery of pipelines ƒ Potential for re-use ƒ Hazard/safety and financial costs ƒ Expected UKCS market from 2014 - 2019 ƒ £4,5 billion ($6 billion)

An overview is given of the processes for decommissioning pipelines and other offshore components. The principal factors that influence the methods of decommissioning are identified: these being environmental and safety concerns, public opinion, political needs and finally cost- effectiveness. The latest legislation and current thinking regarding the correct decommissioning strategy is discussed. Decommissioning of pipelines in-situ is examined in detail and the required operations are detailed. Also, the methods available for the possible recovery or re-use of certain pipeline systems are discussed. An estimation is provided of the likely financial and safety costs and benefits for removal of pipelines. The estimated UKCS decommissioning market in the next 5 years will be about £4.5 billion ($6 billion) focusing on 40 platforms at their associated wells, pipelines and subsea structures across 80 fields. The estimate for similar operations in the Gulf of Mexico is £20 to £25 billion ($30 to $40 billion). The Brent decommissioning has been announced by Shell and is scheduled to start 2014/2015 for Brent Delta