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Decommissioning techniques and costs for facilities after abandonment

Introduction:-

Jordan is amongst the few countries in the world with the largest oil deposits occupying more than 70% of their territories("Jordan, China in $2.5 bn deal for the oil-shale plant", 2013). Oil shale in Jordan is estimated to amount to 31 billion tons. The Jordan Oil Shale Company (JOSCO) is the main source of energy in the country having the mandate to mine oil and other petroleum related products. Usually, after mining decommissioning is necessary to take care of the earth surface. Many firms would use different decommissioning techniques depending on the costs for abandonment and decommission, size and shape of the platforms and jackets, pipelines and other significant factors. Jordan uses various pipeline decommissioning techniques such as removal by reversing S-lay, removal by reversing reeling, leave in situ, and removal by cutting and lifting.

Leave in Situ

Leave in situ is a decommissioning technique used for the subsea lines when certain factors can be easily met such as stability, cleanliness, and safety. It is usually used when the pipelines are buried and trenched. Situ conversion process technology is the primary technique that JOSCO heavily uses(Speight, 2012). However, the leave in Situ method is employed in other parts in three primary forms that include minor intervention, significant intervention, and minimal intervention. Leave in situ is mostly used when umbilical or the piggyback pipeline cannot be easily separated.

Leave in Situ Minor intervention

This technique requires stable buried pipeline due to the potential necessity for remedial burial or removal of short parts of the pipe along its length that might create another hazard for other sea users(Ekins, Vanner, &Firebrace, 2006). Minor intervention applies to the pipeline sections lying on the seabed between the former location of the subsea structure and the trench("Decommissioning of pipelines in the North Sea Region," 2013). Parts of the pipeline that appear to have formed spans or become scoured may be removed. Under the above conditions, other sections can be eliminated by cutting on the subsea and lifting them to surface by an appropriate vessel. The exposed parts can be decommissioned through remedial trenching or rock dumps.

Leave in Situ Major Intervention

A pipeline that was originally trenched or initially installed on the seabed may have some parts requiring interventions over its lifetime. Carrying out major intervention and decommissioning the pipeline in situ may be the most appropriate option instead of removing the entire pipeline. After the removal or cleaning of the end tie-ins, the significant sections of the pipeline can be trenched beyond the seabed level(Ekins, Vanner, &Firebrace, 2006). Another option of removing the significant parts would be the use of reverse installation methods or the use of cut and lift method. In circumstances where a pipeline is entrenched, it is important to determine any possible hazards for other sea users.

Leave in Situ Minimal Intervention

The decommissioning option of the pipelines in situ may only require minimal intervention for pipelines that were buried and rooted during installation, and they are evidence that they shave buried for quite a long time("Decommissioning of pipelines in the North Sea Region," 2013). The ends of the pipe are left open at sea, filled with sea water after their cleaning. Potential dangers at the ends of the pipeline can be removed to have a successful decommissioning plan. The technique presents minimal intervention decommissioning that entails cases where pipelines are anticipated to self-bury over time(Ekins, Vanner, &Firebrace, 2006).

Reverse Reeling

Pipelines with a maximum diameter of 16 inches that lack a solid coat have reverse reeling as their appropriate method which entails the reversal of the installation process. The installation of these pipelines depends on plastic deformation of the walls of the pipe during the installation process to enable the reeled pipelines to lie straight of the seabed(Ekins, Vanner, &Firebrace, 2006). The reversal of the process entails reeling off the pipeline onto specialist reel vessel and plastically deforming the pipelines so that they lie on their recovery vessels("Decommissioning of pipelines in the North Sea Region," 2013). The lengths of the pipes that can be restored are restricted by the capacity and size of the reel. Immediately the pipe sits on the reel it is lifted to shore equipment, and the reversing process is employed for the second time to remove it.

Reverse S-lay

The reverse S-lay technique applies for the concrete coated and large diameter trunk lines that were installed using the S-lay method(Ekins, Vanner, &Firebrace, 2006). The method fits decommissioning pipelines with diameters of more than 16 inches. Reverse S-lay involves recovering a pipeline end to specialist end of S-lay vessel. The vessel moves along the pipeline route, makes stops at the significant points where cuts are made and sections of the pipeline removed from the recovered pipeline string at the vessel decks("Decommissioning of pipelines in the North Sea Region," 2013). Removed sections are then transported to suitable onshore recycling transportation barge. The technique has a potential for recovery of materials in large quantities since it decommissions trunk lines with an excess of 16-inch diameter.

Cut and Lift

Cut and lift is another technique that removes pipeline sections effectively. The method applies to pipes of all the diameters. Pipelines are cut into sections subsea using remotely operated cutting tools, or driver operated cutting tools, and these parts are removed for recovery to the surface vessel with the help of an onboard crane. This method is widely used in the removal of short pipelines or sections of the pipelines or when there is need to remove discrete sections under a decommissioning plan("Decommissioning of pipelines in the North Sea Region," 2013). When it becomes expensive to hire major removal equipment or when it is impractical to remove sections of the pipelines, the method is the most preferred option for short pipelines.

Cost for Abandonment in Jordan

The Jordan oil and gas industry sets strictly regulatory authorities that provide guidelines that companies must follow in the abandonment of oil and gas pipelines in an economical manner, sound, and safe environment.

The costs for abandonment facility are quite significant and largely depend on a broad scope of costs. These include the costs of environmental consequences and the traditional costs involved of the intangible items such as the public image of the company(Speight, 2012). While a company prepares to make abandonment, all these costs are a consideration. The resources required for the abandonment process largely contribute to the expenses of the abandonment. It also depends on the extents of reclamation and remediation work required and more importantly the value of the salvage material(Speight, 2012). Proponents have the role of considering the expenses associated with potential future remediation, monitoring a site, possible consequences of the abandonment and legal issues that may arise later. Dynamics in the environmental regulations may raise the abandonment costs to ensure that the owner or the operator has no responsibility after the prescribed monitoring period.

References

  • Decommissioning of pipelines in the North Sea Region. (2013). Retrieved 13 April 2017, from http://oilandgasuk.co.uk/wp-content/uploads/2015/04/pipelines-pdf.pdf

  • Ekins, P., Vanner, R., &Firebrace, J. (2006). Decommissioning of offshore oil and gas facilities: A comparative assessment of different scenarios. Journal of Environmental Management, 79(4), 420-438. http://dx.doi.org/10.1016/j.jenvman.2005.08.023

  • Jordan, China in $2.5 bndealfor the oil-shale plant. (2017). Fox News. Retrieved 13 April 2017, from http://www.foxnews.com/world/2013/09/19/jordan-china-in-25-bn-deal-for-oil-shale-plant.html

  • Speight, J. (2012). Shale Oil Production Processes (1st ed.). Burlington: Elsevier Science.