National Science Challenges “Sustainable Seas”
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National Science Challenges “Sustainable Seas” March 2018 This page has been left intentionally blank Our key partners © 2018 Elemental Group Ltd – All Rights Reserved Page 3 of 29 A thank you to our support partners © 2018 Elemental Group Ltd – All Rights Reserved Page 4 of 29 Executive Summary There are a number of offshore oil and gas installations in New Zealand that are approaching the end of their economic field-life and there is an interest in understanding local perspectives of decommissioning and how that may align with international practice. This study investigates the regulatory, economic, environmental, and social considerations of future decommissioning practises in New Zealand. This summary report is intended to provide a brief overview of each component of the study and how collectively the results presented here link together to address the overarching research aim of “Re-use of offshore infrastructure and platforms: Assessing value to communities, industry and the environment”. Presented in this report are summaries of the following key studies: A regulatory review of New Zealand’s current legislation and regulatory frameworks related to offshore decommissioning, accompanied by a comparison of selected international jurisdictions; The local Cost verse Benefit analysis of decommissioning options used globally and how that could be applied in the New Zealand context; An analysis of benthic community composition around existing offshore oil and gas structures, including consideration of whether the structures themselves have an effect on the composition; A review of marine mammal sightings in the Taranaki Bight with an explanation of migratory, resident or transient behavioural patterns; and An investigation of social considerations towards decommissioning obtained through media analysis and a range of social engagements. Our research programme comprised several stand-along investigations that together contribute to understanding any potential environmental or social benefits relating to the re-use of offshore oil and gas structures in New Zealand, or whether associated risks or costs may outweigh those benefits. The funding for this research project was provided through an innovation grant from the Sustainable Seas National Science Challenge, with the aim of increasing the value of New Zealand’s marine resource estate through scientific research. The project was completed through the collaborative efforts of Elemental Group, ERM New Zealand Limited, and Victoria University of Wellington. We would like to acknowledge Beach Energy, Anadarko OMV, Shell, Tamarind, and New Zealand Oil and Gas, all of whom supported this project through provision of their environmental monitoring databases and information regarding their operations. Project Team: Dr Alison Lane (ERM). Project Lead Stephanie Jervis (Elemental) Dr Kate Bromfield (Elemental). Project Director Thomas Johnston (Elemental) Kylie Capundan (Victoria University of Wellington) Carmen Lau (Victoria University of Wellington) Prof Simon Davy (Victoria University of Wellington) Dr Taciano Milfont (Victoria University of Michael Guthrie (Elemental) Wellington) Tom Harvey (Elemental) Andrew Revfeim (Elemental) Molly Halder (Elemental) Brett Rogers (Elemental) © 2018 Elemental Group Ltd – All Rights Reserved Page 5 of 29 Table of Contents Our key partners ................................................................................................................................................. 1 A thank you to our support partners .................................................................................................................. 4 Executive Summary ............................................................................................................................................ 5 Table of Contents ............................................................................................................................................... 6 The Research Focus Area .................................................................................................................................... 7 1. Literature Review - New Zealand Environmental and Regulatory Frameworks in a Global Context ......... 8 1.1 Literature Review - Introduction and Aims ..................................................................................... 8 1.2 Literature Review - Key Findings ..................................................................................................... 8 2. Benthic Community Analysis of Offshore Installations in New Zealand’s South Taranaki Bight ........... 11 2.1 Benthic Analysis - Introduction and Aims ..................................................................................... 11 2.2 Benthic Analysis - Key Findings and Results ................................................................................. 12 3. Decommissioning of Offshore Structures in the Taranaki Bight and Potential Effects on Marine Mammals .......................................................................................................................................................... 16 3.1 Marine Mammal Mapping – Introduction and Aims .................................................................... 16 3.2 Marine Mammal Mapping - Key Findings and Results ................................................................. 16 4. Cost Benefit Analysis of Decommissioning Scenarios ............................................................................... 20 4.1 Cost Benefit Analysis – Introduction and Aims ............................................................................. 20 4.2 Cost Benefit Analysis - Key Findings and Results .......................................................................... 21 5. Exploring Understandings of Different Decommissioning Options for Offshore Oil and Gas Structures in the South Taranaki Bight of New Zealand ........................................................................................................ 22 5.1 Exploring Understanding – Introduction and Aims ....................................................................... 22 5.2 Exploring Understanding - Key Findings and Results .................................................................... 22 Study 1 .................................................................................................................................................... 22 Study 2 .................................................................................................................................................... 24 Focus Group with Recreational Marine Users ....................................................................................... 25 6. Iwi Engagement ........................................................................................................................................ 27 7. Conclusions ............................................................................................................................................... 28 APPENDIX 1: Literature Review of New Zealand Environmental and Regulatory Framework in a Global Context ............................................................................................................................................................. 29 APPENDIX 2: An Analysis Of The Benthic Diversity Around Offshore Installations In The South Taranaki Bight29 APPENDIX 3: Decommissioning Of Offshore Structures In The Taranaki Bight And Potential Effects On Marine Fauna .................................................................................................................................................... 29 APPENDIX 4: Cost Benefit Analysis ................................................................................................................... 29 APPENDIX 5: Focus Group with Recreational Marine Users (Summary Notes) ............................................... 29 APPENDIX 6: Iwi Engagement Summary .......................................................................................................... 29 © 2018 Elemental Group Ltd – All Rights Reserved Page 6 of 29 The Research Focus Area Figure 1 Map of the Research Focus Area Figure 1 outlines the research focus area, providing the context for our wider research programme. The South Taranaki Bight, located centrally on the map, is home to four of New Zealand’s currently producing offshore oil and gas fields and was the focus for our benthic analysis and marine mammal mapping study. The cost benefit analysis and discussions with communities also included a fifth producing field in the North Taranaki Bight. The black stars represent the six offshore oil and gas installations currently in operation (noting site 1 and 2 are both located within the same producing field). The installations range in age from 38 to 8 years old, and some are approaching the end of their economic field life. The offshore installations consist of four normally unmanned wellhead platforms, one manned platform and two Floating Production Storage and Offloading vessels (FPSOs). © 2018 Elemental Group Ltd – All Rights Reserved Page 7 of 29 1. Literature Review - New Zealand Environmental and Regulatory Frameworks in a Global Context 1.1 Literature Review - Introduction and Aims The literature review contains an analysis of selected international jurisdictions associated with offshore decommissioning and relates these to existing and proposed regulatory frameworks in New Zealand. In particular,