May Decom Presentation

Knowledge Sharing Breakfast; Decommissioning Efficiency

Aberdeen, 20th May 2015

Multi-Operator Decommissioning Campaigns and the Suspended Well Abandonment Tool (SWAT)

By Valerio Percoco

Introducing OIS

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• As a leading provider of offshore and engineering services, OIS understands that decommissioning is an expense and not an investment and believes that cost minimisation and “Fit for Purpose” need to be the drivers for a successful collaboration with its clients.

• We love our planet and intend to assist in restoring the environment to an unspoilt and enjoyable sea; during this time OIS has had no reportable environmental incidents or a single offshore lost time incident.

A Quick Overview

• The SWAT system is an integrated tool deployed from a Light CSV and can perform all the P&A tasks for a safe and responsible operation on Cat 2 Subsea and* Mud‐line wells.

• In 2013 the campaign consisted of six subsea wells which were successfully abandoned for three operators in Central North Sea.

• In March 2014 OIS completed its first well abandonment campaign in Norway.

• Summer 2015 will consist of multiple wells in the North Sea being abandoned on behalf of Centrica. The initial campaign includes six subsea wells in the Central North Sea, in categories 2.1 and 2.2, which will be abandoned using a driverless, vessel‐based approach.

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The Track Record

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OIS has successfully abandoned 118 category 1 and 2 wells since 1996 during 17 UKCS multi‐operator campaigns by employing a turnkey, vessel‐based solution.

• 12 wells were Category 1 • 50 wells were Category 2.1• 53 wells were Category 2.2• 3 wells were Category 2.3

Well Abandonment Campaign

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OIS provided integrated project management throughout the onshore and offshore operations, including:

Sourcing and reviewing well‐specific data to identify assets suitable for vessel‐based abandonmentPerforming initial well reviewsAppointing and managing all subcontractors

Supporting completion of environmental data related to abandonment operations, including: OPEP (Oil Pollution Emergency Plan), PON 5 (Application to Abandon a Well), PON 15f (Permit to use/discharge chemicals during well abandonment) and Marine Coastal Access Act License

UK Oil & Gas Well Categorisation Requirements

• Under UK Oil & Gas guidelines, wells requiring insertion of shallow cement plugs across the well bore and annuli are classed as category 2 with the following sub‐categories in place:

• Category 2.1 – One casing string. • Category 2.2 ‐ Two casing strings. • Category 2.3 – Three casing strings.

• In order to be classed as category 2, wells must have deep set permanent cement plugs in place. If they do not then they are not suitable for intervention using the OIS systems.

• Upon insertion of shallow cement plugs (UK O&G requirement – 100ft of good cement), a well will be classified as category 1.

• In order to be abandoned in line with UK Oil & Gas requirements, category 1 wells not only require removal of well head and casing (UK O&G requirement – casing to be cut 10ft below mudline) but also any permanent guide base, temporary guide base or associated subsea structure.

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2015 Multi- Operator Campaign

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In July 2015 OIS will be conducting its 17th Multi‐Operating Campaign in the Central North Sea.

Work Scope:• OIS will design, engineer and manage the

abandonment of 6 x Category 2 subsea wells in the Central North Sea for Centrica Energy.

• Water depths range from 300 to 420ft. • OIS will contract the Island Valiant to perform

the intervention operations and utilise the Market leading, Claxton owned SWAT tool to perforate, recover drilling fluids, install additional barriers and pressure test the new barriers. Following the intervention operations the vessel will begin the abrasive severance and recovery of each of the wellheads. Operations are likely to take 28days in total.

2015 Multi-Operator Campaign

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Innovative Solutions

A further operator has 2 suspended category 2 subsea wells however these wells require an additional barrier to be positioned at 2000 to 3000ft below the seabed. OIS and our sister company Claxton Engineering have developed the SWAT capability to enable positioning of the new barriers far deeper than has been achieved to date.

Wellintel

In order to have the opportunity to take part to a Multi Operator campaign, permits need to be submitted to the authorities timely.

• OPEP (Oil Pollution Emergency Plan) – consent can take up to 60 days from submittal.

• PON 5 (Application to Abandon a Well) – consent can take up to 21 days.• PON 15f (Permit to use/discharge chemicals during well abandonment) – consent

can take up to 28 days.• Marine Coastal Access Act License ‐ new applications can take several weeks.

Early engagement is vital with the supply chain as preparation with the permits will enable clients to jump onto an early campaign and benefit the cost saving.

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Costs

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Weather RisksThe risk of waiting on weather is mitigated by having a large number of wells/ customers. This would mean sharing of the costs associated with such periods

Total TransitThe higher the number of participating wells, the lower the cost for each operator.Total Transit = 6 days.4 participating wells = 1.5 days Transit allocated per well.

Multi- Operator vs Standalone

Multi – Operator Campaign Stand Alone Campaign(Low Number of Wells)

Commercially Efficient YES NO

Detailed Planning YES YES

Consistent Equipment YES YES

Shared Risk of WoW YES NO

Shared Cost YES NO

Shared Transit/Mob/Demob

YES NO

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SWAT

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• The SWAT System is designed to permit perforation, circulation and cementation of multiple casing annuli.

• Designed for deployment from the back deck or ideally through the moon pool of a light CSV. The tool is landed on the 9 5/8” casing hanger and controlled from the surface through an umbilical.

• 100% redundancy as one complete spare system is carried on deck.

• The system received the Queen’s Award for Engineering Innovation and Petroleum Institute Platinum Award.

SWAT Tool- Technical Snap Shots

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Recover Trash Cap Position Guide Cone

SWAT Tool – Technical Snap Shot

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Lowering of Guns SWAT Running in Hole

SWAT Tool – Technical Snap Shots

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Packers Inflated Pressure Tests between SWAT Packers


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Pressure Test to confirm lower packer functionality and integrity of well

Firing 3‐3/8 inch gun perforating 9 ‐5/8in casing


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F.I.T on 13‐3/8in shoe Firing upper 2 inch guns perforating 9.5/8in casing


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Circulate path bore and A annulus –Clean up annulus

1st stage cement job reversed circulation in A annulus


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Pressure test A annulus cement plug Firing lower 5.5 inch guns perforating 9.5/8inch and 13.3/8in

casing


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F.I.T 20 inch shoe Fire upper 3.3/8inc guns, perforate 9.5/8 inch and 13.8 inch casing


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Circulate path bore and B annulus ‐Clean up annulus

2nd stage cement job –conventionally circulate into bore and B annulus (Both annuli and bore are filled with cement)

SWAT Tool – Technical Snap Shoot

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Releasing of lower guns Pressure test on new plug

Documents

May Decom Presentation