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Brunei
Saturday, October 8, 2022
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Saturday, October 8, 2022
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    ‘Decommissioning of oil and gas structure part of normal life cycle’: BSP

    Izah Azahari

    Decommissioning is part of the normal life cycle of every oil and gas structure when a facility reaches the end of its life. A growing number of oil and gas platform and facilities are ageing, and their economically recoverable reserves offshore extracted, therefore decommissioning is expected to increase over the next decade, Brunei Shell Petroleum Company Sdn Bhd (BSP) D&R Programme Delivery Manager Haji Idris bin Haji Mohd Jaafar said.

    “As every decommissioning project is different and needs to be tailored to the facility design, local context and local legislation requirements,” he said during the Decommissioning and Restoration (D&R) Forum on ‘D&R Promoting Technology and Business Development’ to provide insight from a Global Shell and BSP perspective through his ‘BSP D&R Technology Deployment’ presentation.

    Haji Idris also elaborated on the current and new technology that BSP deploys particularly in the areas of subsurface and wells plug and abandonment activity under the D&R team’s scope of work.

    He said the wells plug and abandonment poses its own challenges due to the fact that it is sub surfaced and valued at almost half of the total liability that is in BSP, and apart from decommissioning, the company aims to make sure that the most important part, the restoration, is able to leave some legacy for future generations.

    Haji Idris said there is a need to have a focussed target research in this part of the world to create a revenue stream for repurposed areas when looking at deep reservoir wells and how to make it into an economic case to pursue.

    “There are challenges in pursuing this in terms of technical, economic channel, regulatory and liability challenges,” he said.

    ABOVE & BELOW: Brunei Shell Petroleum Company Sdn Bhd D&R Programme Delivery Manager Haji Idris bin Haji Mohd Jaafar delivers his talk; and attendees at the forum. PHOTOS: BAHYIAH BAKIR

    Haji Idris also shared that about seven years ago, the Major International Oil Companies (IOCs) received a wakeup call when they started to calculate the liabilities in the D&R space, as the more they looked at their asset inventories, the more the liabilities grew. This also affected national or smaller IOCs.

    “The decommissioning started about three to five years ago to reduce the liability, and we are going through that journey at BSP as well to make sure that we understand the inventory, we have programmes to address this, and we reduce the liabilities through execution and through thinking of leveraging technology on how to carry this out safely, smartly and efficiently so that we can reduce cost,” Haji Idris said.

    He also touched on the D&R lifecycle and business impact, ongoing D&R projects at Shell, and an overview of BSP’s D&R.

    As some of the onshore wells and offshore early platforms are no longer in production, Haji Idris said BSP will embark on a long-term offshore and onshore redundant facility removal programme, where Phase 1 consists of over 150 wells, Brunei Shell Petroleum Refinery, over 50 platforms, and removing several risers.

    Haji Idris also said Offshore removal is planned to start in 2023, while the onshore removal programme has already commenced. The key value driver for BSP’s D&R is the goal zero (no harm), cost-efficient execution including effective planning, minimising impact to operations, and maximising local business development.

    He also touched on the BSP wells plug and abandonment technologies, the dynamic fault seal analysis, as well as the problem urgency and how to address it.

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