Agência Nacional do Petróleo, Gás Natural e Biocombustíveis – ANP

Marcelo Mafra Borges de MacedoHead of Operational Safety & Environment

Decommissioning, Revitalizations & Life Extension at OffshoreFields – Regulatory Overview

Rio de Janeiro, 20th September 2016

Introduction

Life cycle of Oil & Gas Activities

Seismic data acquisition Well drillings

Discovery assessment

plans e reservoirring-fence

Development ofProduction Production Decommissioning

Exploration

Production

From 2014 up to now – around 25 offshore decommissioning requests

Life extension

• Production units – aging process (base: 2016)

• Tipical Life cycle set by project: 20 a 25 yrs

Brazilian Offshore Scenario

2

31

46

2732

9

décadade 60

décadade 70

décadade 80

décadade 90

2001 -2010

2010 -2015

41, 28%

27, 18%79, 54%

< 15 anos

15 - 25 anos

> 25 anos

yrs

yrs

Yrs

60’s 70’s 80’s 90’s 2000- 20102010 2015

• Production unit /Basin (base: 2016)

1

1

7

3 623

41

5

3

14

219

173

326

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

< 15 anos 15 - 25 anos > 25 anos

Brazilian Offshore Scenario

yrs yrs yrs

• Production units/owner (operator) (base: 2016)

2 1 1 1

5

1

20

1

3

2 1 2 1

2

25

2

1

742

0%10%20%30%40%50%60%70%80%90%

100%

< 15 anos 15 - 25 anos > 25 anos

Brazilian Offshore Scenario

yrs yrs yrs

Concession Agreement

9.9.1 The facility shutdown schedule must strictly comply with theapplicable legislation and be in contract with the Best Practices of the oilindustry (…).

9.9 Within a phase of no less than 180 (one hundred and eighty) days beforethe end of production, the Concessionaire must submit to ANP a facilityshutdown schedule, describing in detail all the necessary actions for thedeactivation of the premises

18.8 The Concessionaire must submit security ofdecommissioning and abandonment, upon theconclusion of investments as per the approvedDevelopment Plan.

Resolution ANP nº 17/2015Development Plan

19. Facilities decommissioning

19.1. The description of the deactivation of field facilities should focus on theplanning of wells abandonment operations, removal or decommissioning ofproduction facilities (…), and to provide mechanisms for providing necessaryfunds for decommissioning.

19.2. Point out the adopted design criterias for future facilities decommissioning.

19.3. Submit the forecast cost of decommissioningactivities facilities (…).

19.4. Define the criteria for provisioning resources toperform facilities decommissioning.

Resolution ANP nº 27/2006Facilities Decommissioning

• Rationale for the decommissioning plan• List of facilities to be decommissioned, procedures, schedule,

waste disposal (...)• Environmental licenses• Program submitted to the environmental agency / Copy of

the constraints related to the theme

FacilitiesDecommissioning

Plan

• Describe activities emphasizing environmental protectionand operational safety aspects.

DecommisioningFinal Report

Resolution ANP nº 27/2006Facilities Decommissioning

Facilities can be reversed or divested

• Offshore facilities decommissioning

Observe specifications of the Maritime Authority (Navy) and IBAMA;

Well abandonment: ANP specific regulation;

Offshore facilities must be remover:

- Failure to remove facilities when technically justified,shall be authorized by the Maritime Authority and theremaining should be flagged

- After the removal of production facilities, the seabedshould be cleaned of any scrap at lower water depths of80 m.

• Decommissioning of offahore facilities

Resolution ANP nº 27/2006Facilities Decommissioning

• The use of production facilities to createartificial reefs must be approved by the MaritimeAuthority and IBAMA

• The adequacy and transport of productionfacilities to be used for creation of artificial reefsshould include all safety measures andprevention of environmental damage whileperforming these operations

• Artificial reefs

Resolution ANP nº 27/2006Facilities Decommissioning

Portaria ANP nº 25/2002Well Abandonment

Art. 20. No abandono permanente de poço aConcessionária ou a Empresa de aquisição de dadosdeve remover da locação todos os equipamentos depoço instalados, de modo que: Art. 20. In the wellpermanent abandonment the Operator must removeany equipment installed so that:

I – in the offshore fields placed in water depths of up to80m, any equipment must be removed above theseabed, or twenty meters below the bottom in thoseareas subject to intense erosive processes (...)(...)

1) Resolution ANP nº 43/2007Establishes the Operational Safety Management System (SGSO) for offshore production units and drilling rigs.

4) Resolution ANP nº 06/2011Establishes the Onshore Pipelines Technical Regulation (RTDT).

2) Resolution ANP nº 44/2009Establishes the procedure for Incidente Communication for companies regulated by ANP.

3) Resolution ANP nº 02/2010Establishes the Integrity Management System (SGI) for onshore production fields.

ANP Safety Regulation Framework for E&P

5) Resolution ANP nº 21/2014Establishes the regulation for Unconventional Fracking.

6) Resolution ANP nº 37/2015Establishes de procedures and the main concepts of inspection process when finding non-conforming practices.

7) Resolution ANP nº 41/2015Establishes the Subsea Safety Management Sistem (SGSS).

8) Resolution ANP nº XX/2016Establishes the Well Integrity Management Sistem (SGIP). Draft of resolution will be submitted to public consultation & public hearingmade in september 2016.

Offshore Regulatory Framework

Fonte: Google

SGSO

SGIP

SGSO

SGSS

SGIP

Resolution ANP nº 43/2007 - SGSO

10.3 Sefety in the Design, Construction, Installation and Decommissioning phases

The Unit Operator shall stablish a management system that:

a) All aspects that can introduce risk to operational safety are properly considered in theinstallation project and its subsequent revisions in the phases of (...) decommissioning

b) human factors related to the working environment shall be taken into account at the(…) decommissioning stage (...)

Management Practice nº 10: Design, Construction, Installation and Decommissioning

12.6.4 It should be evident that the risks were systematicallyassessed during the design phase, construction,commissioning and operation, as well as beforedecommissioning

Management Practice nº 12: Risk Assessment

26.2 Permanent Decommissioning Plan

26.2.1 The Operator Subsea System shall establish, implement and document thePermanent Decommissioning Plan (...).

26.2.2 The Operator Subsea System must update the Permanent Decommissioning Planwhen the procedures were changed for any technical reasons or requirements of theMaritime Authority or Environmental Agency.

26.2.3 The Permanent Decommissioning should consider the legal, technical, economic,safety, environmental protection and industry best practices.

26.2.4 The Operator Subsea System shall issue thedecommissioning certificate confirming that services wereperformed as provided in the Permanent DecommissioningPlan.

Resolution ANP nº 41/2015 - SGSS

ABANDONMENTINTERVENTIONPRODUCTION

Well Integrity Management System(WIMS / SGIP)

• Performance based regulation (Management System – Specific requirements)• Well life Cycle

• Safety Well Barriers Management (2 barriers principle)• Responsability of the Operator • Elimination of gaps in SGSO related to drilling contractors:

Well risk assessment – Well Life Cicle MOC related to Well Life Cicle SIMOPS / Combined Operations: Operator x Drilling Contractors x Service Companies Well Controll Emergency Response Plan Operator Audits: Manuals, Standards, Design, Well Controll Emergency Response Plan …

• Well documentation: Evaluation of critical wells / Incident report• Revision of Well Abandonment will repeal the Portaria ANP nº. 25/2002

CONSTRUCTIONDESIGN

Case of Cação Field

Cação

Cação Field (Espitito Santos Basin)

• Water depht: 19 m

• 6 km far from shore

• Fist oil in 1978

• Production shutdonw in 2010

• 3 WHP

• 13 wells (7 production, 5 injection e 1 wildcat)

• 3 pipelines

Alternatives?

Final Remarks

• Expansion of offshore decommissioning activities in the comingyears;

• ANP has both regulations prescriptive and not prescriptive,dealing with the decommissioning of facilities;

• The current scenario has shown that some resolutions requireupdates. WG of decommissioning (wokshop with industry 6th

and 7th July);

• New regulations based on performance: quality gain andtraining required;

• Benchmarking strengthening with national & internationalinstitutions and regulatory bodies.

Agência Nacional do Petróleo, Gás Natural e Biocombustíveis – ANP

Marcelo Mafra Borges de MacedoHead of Operational Safety & Environment

Rio de Janeiro, 20th september 2016