Murchison

decommissioning

project update

Presented by: Roy Aspden

AECC 27th May 2014

2

Questions I’d like to help answer today

• How can suppliers find out if your services are useful in preparing

for Decommissioning Programmes and Cessation of Production ?

• How has this operator organised its contract work packages and

why ?

• What have we learned from the early stages of project execution ?

• What is the transition from producing asset to decommissioning

project like ?

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Murchison and its environs

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What’s involved in preparing to decommission ?

key aspects of a

decommissioning

programme

Safety:

• HAZID / HAZOP

• Quantitative risk

assessment

• Human factors impacts

• Safety case strategy

• Other users of the sea

…

…

Environment:

• EIA

• Seabed sampling

• Drill cuttings mapping

• Waste inventory

• Hazardous waste

mapping

• Impacts on

mammals, birds, fish

• Energy and carbon

emissions

…….

…….

Societal:

• Fishing impacts

• Noise and air pollution

• Employment impacts

……

……

Technical:

• Data gap

assessment

• Integrity surveys

• Process / utility

decommissioning

studies

• Well abandonment

• Removal method

assessment

• 3D laser model

surveys

• weight / CoG

• Subsea and

pipelines

• Cleaning methods

…….

……. Economics

• Field life

economics

• Work scope cost

estimates

• Taxation

implications

….

….

Process

management:

• Stakeholder relationships

• Independent verification

• Independent chairmanship

…….

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Information about services and studies is on-line !

www.cnri-northsea-decom.com/decommissioning-programme.htm

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Our contracting execution strategy – key features

• Simple big scopes / few interfaces / manageable by compact PMT

• Competitively tender everything unless ………Risk of losing critical knowledge / competence

Have recently tendered and know we have best-in-class services

• Extensive pre-engagement before ITTsTo understand the market capability

To communicate our project needs

To gauge interest

To maximise competition

To explore and create commercial alignment / risk sharing / to underpin excellent performance

• Continuity of Operations Management

• Planning for Employment Security / Personnel TransitionsCollective success for operator, service providers and individuals

• Field partners fully engaged in process

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Our contracting strategy – main work elements

Operations

support services

Well P&A and

Conductor

removals

Topsides

Decommissioning

Services (DSC)

Engineer down,

clean, temporary

utilities, module

separations

Removal and

disposal –

topsides & jacket

(RSC)

Subsea removals

and debris

clearance

Conductor

recovery

Project Work

Breakdown

Structure

Competitive

Tender

Optimisation

process with

incumbents

Well P&A

~ 70 study contracts

to support the DP preparation

Subsea well LWIV

/ MODU

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How has this strategy delivered so far ?

• Project plan conceived in 2010 is unchanged

• Stared platform well P&A October 2013

• Shut in production 28th Feb 2014

• Permanent CoP 31st March 2014

• Insight into our wells P&A campaign …….

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It‘s our critical path

33 Platform wells

Well P&A operations planned and carried out using the Oil & Gas UK Guidelines for

the suspension and abandonment of wells.

P&A operations broken into different phases to optimise delivery and flexibility

resulting in the following phasing -

Rigless (wireline) Operations (Average actual duration 6 days per well)

Placement of Reservoir Barriers , displacement of hydrocarbons and punching / cutting

tubing to prepare wells for Rig Based ops.

Rig Based (Average planned duration 12 days per well)

Placement of additional Reservoir barriers where required, recovery of the tubing, ASV &

Casing where required, installation of Intermediate Barrier & Environmental Plug.

Conductor Recovery (Average planned duration of 6.2 days per well)

This phase involves the cutting and recovery of the surface casing string and

conductors.

Planning for execution – Well P&A

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Murchison Well Slot Diagram

• 31 of 33 wells in production or water injection before CoP

• Many re-completed / side-tracked : good integrity knowledge

• 11 x 3 wellbay layout lends itself to SIMOP opportunities

112009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Well Plug and Abandonment

2020 2021

MURCHISON

RESERVOIR

There are 33 platform wells and

1 subsea well to be plugged and

abandoned.

The Well Plug and

Abandonment process will be

executed in accordance with

CNRI Policies & Procedures

and Oil & Gas UK Guidelines for

Suspension & Abandonment of

Wells.

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First phase - Rigless Operations on 29 of 33 wells

132009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

MURCHISON

RESERVOIR

The Well Plug and

Abandonment process

includes the following stages:

• Pumping water down the

tubing to flush residual

hydrocarbons into the

reservoir

Well Plug and Abandonment

142009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

MURCHISON

RESERVOIR

The Well Plug and

Abandonment process

includes the following stages:

• Pumping water down the

tubing to flush residual

hydrocarbons into the

reservoir

• Inject cement to isolate

reservoir

RESERVOIRBARRIER 1

Well Plug and Abandonment

152009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

MURCHISON

RESERVOIR

The Well Plug and

Abandonment process

includes the following stages:

• Pumping water down the

tubing to flush residual

hydrocarbons into the

reservoir

• Inject cement to isolate

reservoir

• Perforate tubing to facilitate

water circulationRESERVOIRBARRIER 1

Well Plug and Abandonment

162009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

MURCHISON

RESERVOIR

The Well Plug and

Abandonment process

includes the following stages:

• Pumping water down the

tubing to flush residual

hydrocarbons into the

reservoir

• Inject cement to isolate

reservoir

• Perforate tubing to facilitate

water circulation

RESERVOIRBARRIER 2

• Inject cement plugRESERVOIRBARRIER 1

Well Plug and Abandonment

17

Second phase – rig based on all 33 wells

182009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

MURCHISON

RESERVOIR

The Well Plug and

Abandonment process

includes the following stages:

• Pumping water down the

tubing to flush residual

hydrocarbons into the

reservoir

• Inject cement to isolate

reservoir

• Perforate tubing to facilitate

water circulation

• Inject cement plug

RESERVOIRBARRIER 2

RESERVOIRBARRIER 1

• Cut and recover tubing

and insert packer.

PACKER

Well Plug and Abandonment

192009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

MURCHISON

RESERVOIR

The Well Plug and

Abandonment process

includes the following stages:

• Perforate casing to facilitate

water circulation

RESERVOIRBARRIER 2

RESERVOIRBARRIER 1

PACKER

Well Plug and Abandonment

202009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

MURCHISON

RESERVOIR

The Well Plug and

Abandonment process

includes the following stages:

• Perforate casing to facilitate

water circulation

RESERVOIRBARRIER 2

RESERVOIRBARRIER 1

• Inject cement plug to create

intermediate barrierPACKER

INTERMEDIATE BARRIER

Well Plug and Abandonment

212009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

MURCHISON

The Well Plug and

Abandonment process

includes the following stages:

• Perforate casing to facilitate

water circulation

• Cut and recover surface

casing strings

RESERVOIR

• Inject cement plug to create

intermediate barrier

Well Plug and Abandonment

RESERVOIRBARRIER 2

RESERVOIRBARRIER 1

PACKER

INTERMEDIATE BARRIER

222009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

MURCHISON

The Well Plug and

Abandonment process

includes the following stages:

• Perforate casing to facilitate

water circulation

• Cut and recover surface

casing strings

RESERVOIR

RESERVOIRBARRIER 2

RESERVOIRBARRIER 1

• Inject cement plug to create

intermediate barrier

• Insert packer and inject

cement to create

environmental barrier.

Well Plug and Abandonment

PACKER

ENVIRONMENTAL BARRIER

PACKER

INTERMEDIATE BARRIER

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MURCHISON

CONDUCTORS

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

On completion of platform well

plug and abandonment phase,

the conductors will be cut at

EL -124m removed.

MURCHISON PLATFORM

CONDUCTORS (REMAINS)EL -124m

Final phase – 26” and 30” conductor recovery

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ASV, tubing and 75/8” casing recovery M55

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Well P&A progress

• Progress thus far on the 33 platform wells P&A program:

– Rigless P&A Ops – Oct ‘13 – May ’14

• 208 days / 21 days over plan

• 4 well problems

• 4 weather related delays

• 3 sequence changes

– Rig Based P&A Ops – April ’14 – April ’15

• (started 6 days ahead of baseline plan)

– Conductor Removal Ops – April ’15 – Dec 15

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We needed to get one of these …….

To buy all the on-line DECC WONSes

Peter Will

Well Services Engineer

Incidental challenges .. WONS (Well Operations and

Notifications System) hosted through DECC portal

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Lube oil system decommissioning

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Electrical isolations

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Maximo maintenance system development

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Rope Access under cellar deck survey

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Additional crane access landing areas

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.. and finally

• Hopefully that has provided some helpful supplier-oriented

insights

• Here’s that transition from Production Operations into a

Decommissioning Project