Decommissioning of North Sea Oil and Gas Facilities

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Decommissioning of North Sea Oil and Gas Facilities Decommissioning of North Sea oil and gas facilities An introductory assessment of potential impacts, costs and opportunities Background report phase 1 Living North Sea Initiative IMSA Amsterdam April 2011 LNS200_DEF Colophon Written by Janneke Pors Consultant Stephanie Verbeek Consultant/researcher George Wurpel Consultant/researcher Piet Briët Senior consultant Checked by Anne-Mette Jørgensen Director Projects Approved by Wouter van Dieren Chairman Date Version/reference March 30 2011 Version for external review (ref. LNS200_D01) April 14 2011 Incorporated comments external review (ref. LNS200_DEF) Copyright IMSA Amsterdam Niets uit deze uitgave mag worden verveelvoudigd en/of openbaar gemaakt zonder toestemming van IMSA Amsterdam; Not to be copied or transferred in any form without permission of IMSA Amsterdam. 2 © IMSA Decommissioning of North Sea oil and gas facilities Contents Executive summary .................................................................................................................................5 1. Introduction .......................................................................................................................................... 9 1.1. Problem definition........................................................................................................................ 9 1.2. Background..................................................................................................................................10 1.3. Study approach and objectives................................................................................................11 1.4. Report outline..............................................................................................................................12 2. The global decommissioning issue ................................................................................................13 3. The North Sea oil and gas industry ...............................................................................................15 3.1. North Sea......................................................................................................................................15 3.2. Oil and gas developments ........................................................................................................17 3.3. Decommissioning process in the North Sea .........................................................................19 4. Oil and gas facilities in the North Sea ...........................................................................................21 4.1. Infrastructure...............................................................................................................................21 4.2. Main elements of fixed concrete and steel platforms .........................................................24 4.3. Lifetime of platforms .................................................................................................................27 5. Decommissioning practices and technologies.............................................................................28 5.1. Decommissioning process ........................................................................................................28 5.2. Main options for decommissioning........................................................................................30 5.3. Disposal options .........................................................................................................................36 5.4. Vessel operations........................................................................................................................37 5.5. Experiences with decommissioning in the North Sea ........................................................38 6. Environmental impacts.....................................................................................................................39 6.1. Contaminants from the structure............................................................................................40 6.2. Marine growth.............................................................................................................................43 6.3. Drill cuttings ................................................................................................................................45 6.4 Seabed disturbance......................................................................................................................46 6.5. Energy requirements .................................................................................................................46 6.6. Emissions to air ...........................................................................................................................52 6.7. Waste and resources management .........................................................................................53 7. Health and safety ...............................................................................................................................56 7.1. Risk acceptance principles........................................................................................................56 7.2. Assessment of health and safety risks for personnel..........................................................57 7.3. Assessment of health and safety risks associated with remaining structures...............58 7.4. Health and safety in relation to other criteria ......................................................................61 LNS128 3 © IMSA Decommissioning of North Sea oil and gas facilities 8. Technical cost......................................................................................................................................62 8.1. Decommissioning scope North Sea ........................................................................................63 8.2. Regional spread: central and northern versus southern North Sea ................................65 8.3. Basic assumptions in calculating potential cost saving of leave-in-place option .........66 8.4. Influence of the price of steel on decommissioning............................................................69 8.5. Scenarios.......................................................................................................................................71 8.6. Risks and opportunities to take into account .......................................................................75 9. Conclusions.........................................................................................................................................77 9.1. Environmental impacts of decommissioning.......................................................................77 9.2. Health and safety impacts of decommissioning..................................................................78 10. References..........................................................................................................................................80 Annex I. Maps of oil and gas facilities in the North Sea................................................................83 Annex II. Cases decommissioning North Sea..................................................................................86 Annex III. Pipelines North Sea............................................................................................................97 Annex IV. Types of hazards.................................................................................................................98 Annex V. Second-life options for disused offshore installations.................................................99 Annex VI. Glossary of acronyms and terms ..................................................................................103 Annex VII. Regulations.......................................................................................................................104 Annex VIII. OSPAR Inventory of offshore installations in 98/3 derogation category .........106 LNS128 4 © IMSA Decommissioning of North Sea oil and gas facilities Executive summary Introduction, objectives and scope The implicit rationale of the current OSPAR regulation on decommissioning of offshore installations is that it is worthwhile to spend more than 50 billion Euros on removing almost all offshore installations to shore for dismantling and waste handling. Within the Living North Sea Initiative, we take a closer look at this assumption from an ecosystem perspective. What is the expected effect of full removal of oil and gas installations and transportation to shore on the North Sea ecosystem? And what would be the effects of alternative scenarios that might lead to a reduction in costs? To answer these questions, we establish in Phase 1 facts, uncertainties and knowledge gaps surrounding the decommissioning of North Sea oil and gas facilities. Current regulation is not leading in this screening assessment: we have widened our scope in order to seek for new options. This report focuses on the decommissioning process itself: its potential impacts on health, safety and the environment and the associated costs. Also, we look into the size of cost savings that could potentially be realised by leaving in place more oil and gas structures than is currently allowed for. The aim of this report is to provide a common knowledge base on the different decommissioning options for offshore installations and their physical, chemical and economic impacts for all participants in the stakeholder process. Decommissioning
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