Australia
- Region: Australia
- Topics: Decommissioning
- Date: Feb, 2022
To ensure planning and management of increased levels of decommissioning activity, the Australian Government has made changes to the offshore oil and gas decommissioning framework.
These enhancements were made after extensive consultation with the public, industry and regulators. The first of a suite of measures will come into force on 2 March, 2022. The updated guidelines will assist the offshore oil and gas industry to understand and comply with the changes. The measures will strengthen and build on existing provisions in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act) and regulations.
Policy, legislation and regulatory enhancements cover three themes – financial oversight, planning and management, accountability and trailing liability. Work is on to implement enhancements to the decommissioning framework over the coming years.
Changes to the legislation
The first stage of implementation included legislative amendments. The Offshore Petroleum and Greenhouse Gas Storage Amendment (Titles Administration and Other Measures) Act 2021 (Titles Administration Act) gives effect to key measures of the enhanced decommissioning framework. It also implements relevant recommendations from the independent Walker Review into the administration and liquidation of Northern Oil and Gas Australia.
The Titles Administration Act increases oversight of changes in titleholder control, expands existing trailing liability provisions, increases regulatory scrutiny of the suitability of companies operating, or looking to operate, within Australia’s offshore petroleum regulatory regime and expands information-gathering powers.
To give full effect to the changes in titleholder control and trailing liability measures, amendments were made to The Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 (Levies Act) and Regulations under the OPGGS Act and the Levies Act.
Under these amendments, a person who receives a remedial direction will need to comply with the same regulatory requirements as a titleholder. This includes environmental management and safety requirements. The amendments also include changes that enable the regulator and titles administrator to recover the costs associated with administering these measures. This means anyone receiving a remedial direction or applying for a change in titleholder control will need to pay associated levies and fees.
D&A Aus 2022
From 10-11 May, the first ever Decommissioning and Abandonment conference will be arriving in Perth, Australia to provide the offshore community with the best blueprint for the wave of decommissioning projects on the horizon. For more information, download the brochure here: https://offsnet.com/da-aus/conference-brochure
Or contact:
Erin Smith
Global Accounts & Australasia Regional Manager
Offshore Network
t: +64 289 900 118
e:
- Region: Australia
- Topics: Decommissioning
- Date: Feb, 2021
The Australian Securities & Investments Commission (ASIC) has taken note of the additional US$239mn that Woodside Petroleum Limited (Woodside) has provided for its decommissioning requirements.
In its financial report for the year ended 31 December 2021, Woodside estimated that the extra costs would primarily come from the removal for rigid plastic-coated pipelines.
ASIC continued that Woodside has also improved its disclosure of the basis to provide for future restoration costs. This includes disclosing the types of offshore and onshore infrastructure assets for which full removal has been provided; that full removal has not been provided for certain pipelines and infrastructure, parts of offshore platform substructures, and certain subsea infrastructure; and an indication of the additional costs if certain items for which full removal has not been provided for are not exempted from full removal by The National Offshore Petroleum Safety and Environmental Management Authority.
Although acknowledging the extra capital that was being observed, ASIC, as part of its financial reporting surveillance programme, also raised concerns about the offshore infrastructure assets that were not included for full removal in the restoration provision in Woodside’s financial report for the year ended 31 December 2020, and the adequacy of related disclosures. ASIC said that it is continuing its inquiries about why Woodside did not allow for the full removal of certain infrastructure assets in its financial report.
D&A Aus 2022
From 10-11 May, the first ever Decommissioning and Abandonment conference will be arriving in Perth, Australia to provide the offshore community with the best blueprint for the wave of decommissioning projects on the horizon. For more information, download the brochure here: https://offsnet.com/da-aus/conference-brochure
Or contact:
Erin Smith
Global Accounts & Australasia Regional Manager
Offshore Network
t: +64 289 900 118
e:
- Region: Australia
- Topics: Decommissioning
- Date: Feb, 2022
Esso Australia, a subsidiary of ExxonMobil Australia, has entered into a multi-year agreement with DOF Subsea to charter a Multi-Purpose Supply Vessel for the support of its decommissioning activities in Bass Strait.
Dylan Pugh, ExxonMobile Australia Chair, said that the subsidiary is committed to safely decommissioning the Bass Strait offshore facilities and over the last few years has completed around US$600mn of early decommissioning works in the strait, including removing the Seahorse and Tarwhine facilities, completing P&A activities on Blackback and Whiting wells, and making significant progress on Kingfish B and Mackerel.
“As we continue to progress these important, early decommissioning works, we are also planning for the eventual decommissioning of our facilities that are to cease production in the near future,” Pugh commented.
The DOF Subsea vessel is expected to arrive in Bass Strait in the middle of 2022 where it will support early decommissioning works on the Perch and Dolphin facilities before moving onto other topside and subsea work scopes.
Pugh added, “We continue to assess new projects in Bass Strait with the aim of extending our production of Gippsland gas into the next decade.”
“Just last year we commissioned West Barracouta, one of the largest domestic gas projects this decade. As it showed, there is still potential left in Bass Strait and we are working hard to unlock its full value so we can continue to deliver the gas Australians need.”
- Region: Australia
- Date: Jan, 2022
Using Wire Arc Additive Manufacturing (WAAM), Vallourec has recently produced two lifting plugs for Weatherford with meet its urgent operational demands.
When Weatherford approached Vallourec with an urgent request for a VAM TTR HW Riser Lifting Plug capable of 100T for a customer’s workover scope off the coast of Australia, Vallourec proposed a more economical and faster solution using Additive Manufacturing (AM) in order to meet the deadline.
The lifting plugs were re-designed with WAAM to include tailor-made non-standard diameters that were compatible with Weatherford’s existing equipment. The lifting plugs’ outside diameter (OD) was therefore increased by 15% as per the customer’s request. Leveraging WAAM’s flexibility, Vallourec was able to mitigate any weight increase by re-designing the component without impacting lifting performances.
The 3D-printed safety-critical components weighed 175kg each with a tailor-made diameter of 50cm and were designed for load carrying applications of around 100 metric tons.
These new lifting plugs were 3D-printed with the Vallourec WAAM robot located in Singapore, only a six-hour flight away from the end-customer. The safety-critical components were delivered in just under two months instead of the usual three to four months.
“We approached Vallourec with an urgent request for a lifting plug for a customer of ours operating in the Timor Sea. Their solution was to use WAAM, a more economical and quicker option to the traditional route”, explained Shane Ferguson, Project Manager for Weatherford. “They executed this on time and delivery was made well before operations commenced. We were extremely happy with the finished product and will look to Vallourec and this method for future requirements.”
WAAM – and AM more widely – offers numerous benefits for the oil and gas industry, one of the most important being shorter, guaranteed lead times, which would make a huge difference to end users. WAAM also allows for greater freedom of shape – parts can be created to the exact size and specifications of each customer – as well as for printing of very large components. The ultimate benefit of this process is to allow companies to create a digital or virtual warehouse through which they can order spare parts as a printable file.
Thanks to WAAM, Vallourec is able to eliminate the traditional concerns regarding the unpredictability of material sourcing and minimum order quantity requirements, providing customers with solutions meeting their specific requirements any time.
“We look forward to making possible future projects such as this one, providing customers with the high quality they are used to from Vallourec with faster delivery times”, commented Jinwei Li, Asia Pacific Sales Manager at Vallourec.
- Region: Australia
- Date: Nov, 2021
The New Zealand Ministry of Business, Innovation and Employment (MBIE) has entered into an agreement with Helix Offshore Services Limited, a subsidiary of Helix Energy Solutions Group, for the plugging and abandonment (P&A) of the wells in the Tui Oil Field.
This is part of Phase 3 of the Tui Oil Field decommissioning.
“Helix was awarded the contract after a competitive procurement process to select a supplier that met MBIE’s objectives of a robust technical solution, flexibility in timing, competitive pricing and a commitment to working with iwi and local stakeholders,” said MBIE Tui Project Director, Lloyd Williams.
“Helix is widely recognised internationally as one of the largest and most capable contractors for well intervention and abandonment, and we are looking forward to working with them to complete the final phase of the decommissioning."
“Helix’s proposed vessel to carry out the work, the Q7000, is a state-of-the-art unit which is optimised for well decommissioning and features specialised equipment required to complete the work safely and efficiently,” added Williams.
Wharehoka Wano, CEO of Te Kāhui o Taranaki Trust, remarked, “We are very pleased the project has secured a highly competent contractor for Phase 3. This gives us every confidence as Taranaki Iwi and the hapū of Ngāti Kahumate, Ngāti Tara, Ngāti Haupoto and Ngāti Tuhekerangi as kaitiaki, to fulfil and maintain our responsibility and obligation of ensuring the mouri of our environment and cultural resources are protected and enhanced for future generations.”
The disconnection and demobilisation of the FPSO Umuroa, the first phase of the decommissioning of the Tui Oil Field, was completed in May 2021. In October 2021 the contract for the second phase of the decommissioning process, the removal of the subsea infrastructure, was awarded to Shelf Subsea Services Pte Limited. It is anticipated this phase of the work will be carried out in the summer of 2021/22 or alternatively in the summer of 2022/23.
MBIE has submitted an application for marine consents with the Environmental Protection Authority (EPA) for the removal of the subsea infrastructure and the plugging and abandoning of the Tui wells. An independent board of inquiry is considering MBIE’s application.
Subject to EPA granting the marine consents, it is anticipated the plugging and abandonment work will be carried out from late 2022.
- Region: Australia
- Topics: Decommissioning
- Date: Oct, 2021
The Centre of Decommissioning Australia (CODA) has appointed six industry leaders to form the organisation’s Supervisory Committee to bring increased strategic focus and expertise to the efforts to address decommissioning Australia’s aging oil and gas infrastructure.
CODA, which was established in March 2021, is uniquely positioned to drive collaboration in Australia’s oil and gas industry to collectively answer strategic questions about decommissioning options based on technical, safety and environmental knowledge. CODA's research shows there is more than $50bn of necessary offshore decommissioning work to be done — over half of which is anticipated to be started within the next ten years.
Francis Norman, CODA General Manager Decommissioning and Strategy, said the committee’s appointment marked a change of gear for CODA. He noted, “The support and input from a group of such experienced and engaged industry leaders will help accelerate CODA’s ability to work across the whole of Australian industry to build our domestic capability to address our own decommissioning needs, as well as position Australia to become a significant partner in the region’s decommissioning work.”
The committee consists of:
• Richard Perry — Decommissioning Manager, ExxonMobil Australia
• David Banks — Chief Technical & Marketing Officer, Santos Ltd
• Jay Southwell — APAC Subsea Services leader, Baker Hughes
• Brian Matthews — Marine, Subsea & Automation Manager, IAS Group
• Ineke Reyboz — Contracts and Commercial Consultant (independent member)
• Harvey Johnstone — Environment Director, International Association of Oil & Gas Producers (independent member)
“By applying research from the National Decommissioning Research Initiative, we and our industry partners will ensure Australia's future decommissioning activity will be built on independent and sound scientific research, providing the best possible outcomes for industry, environment and community,” said Norman.
Richard Perry, Decommissioning Manager, ExxonMobil Australia, said, “After an extensive history of successful resource development and energy supply across Australia, our national fields are starting to reach the end of their productive life leading to the dawn of a new industry, and with it, some fantastic opportunities.
“With the broad geographical expanse between major basins in Australia, CODA will be a crucial conduit to enable growth of this industry to be optimised for all parties throughout the supply chain and it is very exciting to be part of this journey.”
Jay Southwell, APAC Subsea Services leader, Baker Hughes, added, “The decommissioning era within Australia is swiftly gaining momentum, but it’s a complex subject. Strategic complexity requires an evolution in the way we share project and service information.
“With the launch of CODA, we now have a great opportunity to collaborate, share best global practices and make a real difference to support the Australian decommissioning sector to permit the safe removal of assets without impacting the environment.”
Contracts for CODA foundation phase projects have been recently awarded. Due for delivery in early 2022, these projects will build knowledge and understanding of the local decommissioning and recycling capability, provide Australian industry with an easily accessible digest of international best practice that can be used locally, and set out a pathway for innovation and new technologies for the industry. These include:
• Understanding the opportunity for local disposal and recycling pathways — Advisian
• Development of a decommissioning innovation and technology roadmap — Linch-pin
• Global review of decommissioning planning and execution learnings — Advisian
- Region: All
- Date: Oct, 2021
Interventek, a subsea engineering business, has launched a new API 17G qualified, in-riser subsea landing string system, named the ‘Revolution-7’.
The landing string is an advanced, 7-inch nominal, 10,000psi rated system incorporating Interventek’s unique Revolution safety valve – proven to provide superior shear-and-seal performance. The system also includes Interventek’s PowerPlus technology, which is a unique arrangement of a locally integrated, gas-accumulated power source.
The landing string incorporates lower and upper subsea test tree valves, a latch, a retainer valve and lubricator valve. A slick joint, shear sub and project specific adaptors enable space out in the BOP and interface with the tubing hanger running tool and landing string tubulars. The system components are integrated via pre-loaded connections which provide high operational performance and fatigue resistance.
The Revolution-7 landing string is market-ready and the first systems have already been dispatched to a customer.
The company believes the system is a stand-out solution, offering industry qualification to the highest standard, combined with advanced shear-seal valve technology, rapid failsafe gas-accumulated actuation, plus a range of technical, functional and cost benefits. The valve performs both cutting and sealing functions, using separate internal components, in a single rotation, reducing the need for the usual secondary valve to provide a post-cut seal.
With fewer, simpler components, the landing string system is compact and lightweight, but stronger and more fit-for-purpose. Supply lead time, redress and maintenance are faster, which in turn reduce project and lifetime costs. The system is suitable for deployment in all BOPs and its modular nature allows additional or alternative valve functions to be incorporated.
Gavin Cowie, managing director at Interventek, said, “Historically, operators requiring subsea landing string services have relied on a handful of tier one, integrated service companies that have their own fleet of proprietary systems. We work with both the operators and service companies to supply our advanced safety valves as system upgrades, where enhanced performance and functionality is demanded.
“In developing our offering, we are now delighted to be able to supply a complete subsea landing string system to a variety of customers in this market. We see a large and collaborative opportunity in providing cost-competitive and technically advanced solutions, to improve safety and operational efficiency for the wider industry.”
For subsea well completion, intervention, workover or decommissioning operations, a landing string is deployed from a floating vessel, via a marine riser, to enable safe and environmentally secure operations. The landing string system includes a subsea test tree which provides the capability to close in the well, cut any medium in the bore and disconnect in the event of an emergency.
The shear-and-seal Revolution valve technology used in the in-riser system is also compatible with open water, tree-on-tree abandonment and surface applications. Interventek is also working towards the provision of a subsea control system to complement their advanced landing string package.
Cowie added, “Our technology is modular and universal, allowing it to be scaled up or down in its configuration and capability, and integrated with other third-party equipment. We can offer simplified landing string systems, spanner joint systems, ultra-deep water systems and high-pressure, high-temperature systems depending on the field application.”
- Region: Australia
- Topics: Decommissioning
- Date: Sept, 2021
EXCEED, an industry-leading specialist in delivering well management and performance improvement solutions to the energy sector, has announced the launch of EXCEED Australia, as it eyes the country’s burgeoning decommissioning sector and a revitalised offshore market.
The company continues to implement an unwavering strategy of international expansion with its fifth overseas entity, which builds upon recent expansion into Mexico and Norway
Brad Girdwood has been nominated to steer the ship, after his appointment as Operations Manager, Australia. He brings 30+ years’ local and international experience to EXCEED Australia.
Girdwood commented, “In the pipeline for some years, the time is now right for EXCEED to make its mark upon the region. In particular, significant legislative developments surrounding the decommissioning of Australia’s offshore and onshore assets have accelerated the sector’s timeline. Honed in the North Sea, EXCEED’s spectrum of decommissioning capability provides this evolving US$40.5bn market with critical experience and expertise.”
In with ICON
EXCEED’s entry into the local decommissioning and well management market is bolstered by the advent of a collaborative relationship with Perth-based oil and gas services provider, ICON Engineering.
EXCEED Managing Director, Ian Mills said, “ICON’s impressive track record in delivering unrivalled innovative, practical turnkey solutions to the offshore field development industry in both facilities and in support of drilling operations is entirely congruent with our approach across all stages of the well lifecycle.
“Since 2010, EXCEED has built upon its well management service through the development and implementation of efficient intervention and abandonment programmes, expertly executed in full compliance with all North Sea regularity requirements. Initially, our joint objective with ICON is to provide the emerging Australian decommissioning sector with the end-to-end project service it requires, with full focus upon compliance, safety and efficiency.”
To hear more about the blossoming opportunities presented by the Australian offshore market, be sure to attend OWI AUS, in Perth 23-24 November. To find out more information follow this link: https://www.offsnet.com/owi-aus/conference-brochure
- Region: Australia
- Date: Sept, 2021
At the OWI AUS Baker Hughes webinar, Michael Lewis, Service Business Development Leader at Baker Hughes, was joined by a panel of industry experts as they explored a number of challenges and opportunities being faced by the Australian offshore community.
Collaboration and local availability
Lewis opened the session by reflecting on light well intervention (LWI) which can bring tangible benefits to operators and suppliers in terms of reduced costs, faster operations and lower carbon footprint. The challenge, the host continued, is capturing these advantages and using global knowledge to do so. He asked how this can be achieved, and what is the importance of ensuring equipment is available locally for immediate deployment.
Mark de Castro, Business Development Manager at Sapura Energy Well Services,
was the first to respond, and explained that collaboration was a key part of this and suggested that information and lessons acquired from previous projects should be shared not just within organisations but with strategic partners, contractors, etc. The industry needs to share information from the start, rather than withholding or waiting to be asked.
The panellists echoed these sentiments with Grant Pierce, Subsea Completion & Well Intervention Consultant, Intervention Performance Ltd., adding that the withholding of information is not something companies actively pursue, rather it is just something traditionally inherent in the industry. Jay Southwell, APAC Subsea Services Leader, Baker Hughes suggested that altering this will require a change in mindset, something that needs to be challenged and which will ultimately help all players within the industry.
Turning to local availability de Castro said, “Local availability can be the difference between work going ahead or not. Preparation, shipping times etc are all major influences that can determine whether an operation goes ahead in light mode or rig mode which could add millions of dollars to cost. Having access to local engineering/facilities is a significant de-risker for these campaigns to take place both for the fast tracking it facilitates and how quickly unexpected events can be dealt with on a campaign.”
Fostering the next generation equipped with the latest technology
In the last 18 months, Lewis said, the industry has undergone a downsize with lots of experienced people retiring or leaving for other sectors. Attracting new talent has always been a challenge, but now more than ever it appears to be of paramount importance. Therefore, Lewis asked, could the industry ensure there is a competent new generation ready to enter the workforce and how can new technology support this?
Southwell pointed at the importance of working with universities, developing apprenticeship programmes and sponsoring graduate schemes as essential to foster the idea that it is an exciting time to join the industry. He also pointed at cross-training between product companies, something that Baker Hughes has been very successful in, which has helped ensure that a new, capable, workforce is ready to take the reigns in the future.
Francis Norman, General Manager Decommissioning and Strategy at National Energy Resources Australia (NERA), built on this by pointing at competency benchmarking as an area which can put people off companies. He said, “There is a tendency to think what we do is so different to what competitors do and so we end up building all these internal competency benchmarking and internal training which in fact mirrors what competitors do. This can be a significant cost to a lot of businesses.”
He advocated, instead, common competency frameworks which can make it much easier to identify where some shared skill gaps may be. He added, “If people move around you are not looking to completely rebuild them and make them forget everything they have learned before you hire them. When you look at the costs organisations expend on doing this it is astronomical.”
The panellists explored how the introduction of new technology, in the form of remote communication for example, can help to attract and train the next generation of engineers and commented on some advances which they will be working with, and which will surely help the industry.
De Castro commented that remote operations and remote control brings safety enhancements and cost enhancement and advances in the integration of machine learning, and machines becoming semi-autonomous will be a step forward. This will be bolstered by things such as low orbit satellite which will reduce latency and the cost of high bandwidth.
Returning to the conversation, Southwell also highlighted the importance of utilising the vast amount of data the industry holds and by introducing advanced software and AI this can really become a formidable weapon for operators to become more effective with diagnostics, monitoring wear and tear, and making decisions on interventions and performance etc.
Australian Decommissioning
Decommissioning has been a hot topic in Australia due the ongoing debate around the Northern Endeavour FPSO. With many more Australian assets coming to the end of their productive life, Lewis asked the panellists how the cost of decommissioning can be reduced and how can operators be encouraged to perform this work.
Norman took the chance to note that there was a staggering opportunity for decommissioning in Australia, highlighting that there was US$40bn+ worth of work that needs to be executed over he next 20-30 years. In order to being nibbling away at this, he suggested it was important to disseminate such information to ensure everyone understands the size of the challenge ahead. Once done, relatively simple ideas such as sharing equipment for campaigns can have an enormous cost reduction effect.
De Castro commented, “If we understand the scope of work and the timing of the scope it will help. In the past we have seen service providers make investment into the region on the expectation that work would follow and it didn’t. They therefore had to wear the costs on a gamble effectively. More clarity on timing and requirements of operators would be helpful.”
The panellists also noted the importance of learning lessons and best practices from around the world, especially from regions where decommissioning is more regularly carried out. Pierce added that an open mind about contracting models would be essential here. While it wouldn’t be advantageous to take a whole model from other regions and apply it in Australia, it would help to take pieces or ideas from contracts (such as West Africa’s contracting models regarding vessel shares) and change them to suit.
One of the biggest decommissioning challenges which is faced in Australian and global waters alike is the difficulties with entering older wells where, often, data and information is lacking. The panellists noted that in addition to this, the condition of equipment is continually degrading with every year that passes. Whilst this is enough to put operators off from conducting decommissioning work, in reality it should be an encouraging factor. As de Castro added, “Regulations are also becoming more onerous. The longer operators delay, the cost and risk are only going to go one way due to those three factors. It therefore presents a good case to move quicker.”
Despite this, Southwell commented, “I think the future of decommissioning in Australia is exciting and something that will be very prominent going forward. I would love to see it as an add on in the life of a field as well, as opposed to it being pushed after production ends. All operators know its coming; it was always on the cards and will always be there. If we can plan for it now, they can reap the rewards from a cost perspective. We are still fairly young compared to other regions, described as a teenager, we are still learning. We have a great opportunity to take lessons from other regions therefore.”
These topics, and more, will be discussed in further detail at OWI AUS, in Perth 23-24 November. To find out more information follow this link: https://www.offsnet.com/owi-aus/conference-brochure
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