Petroleum Decommissioning
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select Arrange and Send to BackPresented by Jason Medd
Key challenges
• Large portfolio of petroleum production assets at
or near the end of production life
• Australian offshore decommissioning liability
estimated at AUD $18 billion over the next 50
years
• Outlook for persistent low oil prices
• Regulatory and policy uncertainty at
State/Commonwealth
• Government and community expectations
Key challenges
Various types of facilities and operating environments:
• Offshore vs onshore
• Platforms
• Pipelines
• Subsea facilities
• Wells
• Tanks, vessels, ponds processing facilities
Different types of structures require different
engineering solutions for decommissioning
Current Situation in Western Australia
• Petroleum decommissioning has already
commenced with Tubridgi, Thevenard, Harriet,
Dongara, Mt Horner, Yardarino, etc.
• DMIRS in the process of developing
decommissioning guidelines in consultation with
industry
• Current bid for a WA based Decommissioning
Offshore Infrastructure Cooperative Research
Centre
Legislation in Western Australia
• Removal of property - section 101 of PGERA 67
and section 104 of PSLA 82
• Remove all property concerned with
operations or to make arrangements that are
satisfactory to the Minister
• Plug or close off wells to the satisfaction of the
Minister
• Conservation and protection of natural
resources in that area to the satisfaction of the
Minister
• Made good any damage to the seabed or
subsoil
Regulation of Decommissioning
The three primary regulatory instruments still applies
to decommissioning activities:
1. Environment – Environmental Plans referral to
other agencies (DWER, DBCA, etc.)
2. Resources – Well Management Plans and Field
Management Plans
3. Safety – Safety Cases and Safety Management
Systems
Referral and or consultation with other agencies may
be required – Fisheries and Transport for example
Regulation of Decommissioning
DMIRS policy approach to decommissioning
• Science and evidence based
• Environmental and safety risks reduced to as low
as reasonably practical (ALARP)
• Restoration of sites in consideration of future use
• Planning
• Consultation with community and stakeholders
Best Practice
Best practice in decommissioning may include:
• Project planning and budgeting well in advance
of decommissioning.
• Consideration of decommissioning during the
design and construction phase of a project.
• Early and ongoing engagement with regulators
and stakeholders.
Going Forward
• Release of revised DMIRS Petroleum
decommissioning plan for comment.
• Ongoing consultation with industry and research
institutes.
• Close alignment with the Commonwealth.
• Working towards amending regulations to
facilitate decommissioning applications and
approvals.
Government of Western Australia Department of Mines and PetroleumGovernment of Western Australia Department of Mines and PetroleumGovernment of Western Australia Department of Mines and PetroleumGovernment of Western Australia Department of Mines and PetroleumGovernment of Western Australia Department of Mines and Petroleum
Thank You