regulatory framework on decommissioning

8/12/2019 Regulatory Framework on Decommissioning

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epartment of Petroleum Resources

Introduction

Legal and regulatory Framework

Factors Considered in Decommissioning andAbandonment

Challenges

Way forward

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Some of our functions include:Regulating the Oil and Gas activities including

Decommissioning, Abandonment andRestoration.

Setting Technical, Safety and Environmentalstandards for the industry.

Enforcing compliance to Petroleum Laws,7/19/2014 2:41:01 PM


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Oil and gas facilities have definite life span

An oil production facility that has outlived its designed lifehas to be appropriately abandoned and decommissioned.

There are factors that are considered for each abandonmentand decommissioning programme

The statutory and legal frame work for managing the7/19/2014 2:41:01 PM


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Oil pipeline ordinance 1956 and its amendments,part v

Petroleum Act 1969 CAP350 LFN

Petroleum (Drilling & Production) Regulations,1969

(Part IV: Sections 32,35, 45 and 46)

REGULATORY AND LEGAL FRAMEWORK


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Environmental Guidelines and Standardsfor the Petroleum Industry in Nigeria(EGASPIN)

(Part VIII, F & G)

Procedure Guide for the Construction andMaintenance of the Fixed Offshore

Platforms 7/19/2014 2:41:01 PM


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Obtainment of DPRs Approval forDecommissioning Strategies

Post Impact Assessment ReportDecommissioning Plan ReportoDegree of Abandonment

oMethods for removal of structures

oDisposal of removed structures7/19/2014 2:41:01 PM


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Technical Feasibility

Environmental Protection

Health and SafetyCost

Public Opinion

Secondary uses of disused facilities

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Licensee / Operator shall:

obtain appropriate permit for well re-entry for restoration, suspensionor abandonment from the Department of Petroleum Resources;

isolate well from surface;

plug and suspend or abandon borehole according to agreed designedplan and permit criteria;

place surface cement plug below cellar, to allow removal of surfacecomponents, the process of removal should avoid any significant

adverse effect on the environment;

Isolate production interval to prevent communication between aquifersof different nature.

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WELL SUSPENSION,RESTORATION & ABANDONMENT

In accordance with Petroleum (Drilling & Production) Regulations, 1969

(Part IV: Sections 32 & 35)


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Decontaminate appropriately;

Dispose of equipment by recycling, sellinge.t.c.;

Demolish structures/buildings whereappropriate.

Minimize conflict with available land use.

Non-compliance is punishable in accordance withMOSR,7/19/2014 2:41:01 PM

PROCESS EQUIPMENT/FACILITIES

In accordance with Petroleum (Drilling & Production) Regulations, 1969(Part IV: Sections 36 & 39)

ANDProcedure Guide for the Construction and Maintenance of the FixedOffshore Platforms (Section IV)


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The Operator is to forward the Decommissioningplan, strategy and schedule to the Director, DPR for

approval

Carry out the decommissioning operation strictlyaccording to DPR approval

Decontaminate, plug and leave on-site, if adequate,otherwise excavate.

All surface components/ancillary facilities shall be

removed.Minimize conflict with available land use.

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PIPELINE/FLOWLINE

In accordance with Oil and Gas Pipeline Regulations 1995AND

Procedure Guide for the Design, Construction and Maintenance ofOil & Gas Pipelines

Non-compliance is punishable in accordance with OilPipelineRegulations,1995


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The operator of any field should notify the DPR Five (5) years prior to the endof the economic life of the field, (as evaluated by the operator and agreed to

by DPR)

The operator shall submit an application to decommission the field whichshall comprise of:

The objectives

A comprehensive decommissioning plan which includes options/strategies intended to be used. (to be approved by the Director,

Petroleum Resources)

DPR approved EIA report/ Baseline/ Sea-bed survey prior to projectimplementation.

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FIELD ABANDONMENT

In accordance with Petroleum (Drilling & Production) Regulations, 1969(Part IV: Sections 45)


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Decommissioning not pre-planned

Decommissioning not integrated in ProjectDesign

Funding Constraints

Safety of Decommissioning Operation

Environmental Impacts

Proliferations of facilitiesLack of ca acities in modern techni ues for


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Decommissioning integrated in EIA for newfacilities

Decommissioning integrated in the FDP / projectdesign to make removal feasible (1/1/2003)

Decommissioning starts at least one year afterabandonment

Emplacement of Synergy in operation.

Capacity development in modern techniques for7/19/2014 2:41:01 PM


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Section 61(1) of the Petroleum (Drilling &Production) Amendment Regulations1996

Imprisonment for a period of 6 months or a fine of N250 000 orboth

MOSR, 1997: Part 1,Section 3Imprisonment for a term not exceeding 5yrs or a fine of N250 000

or bothOil Pipeline Regulations,1995

Imprisonment for a term of 6 months or a fine of N500 000 or both


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"Penalty

61(1) Any person who contravenes the

Provisions of these Regulations is guilty of an offence

and liable on conviction to a fine of two hundred and

fifty thousand naira or to imprisonment for a term of

six months or to both such fine and imprisonment .

(2) In this regulation, "person" includes a

body corporate or unincorporate ."

Section 61(1) of the Petroleum (Drilling & Production)

Amendment Regulations 1996


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Field Development35. 1) No borehole or existing well shall be re-drilled,plugged or abandoned, and no cemented casing or otherpermanent form of casing shall be withdrawn from anyborehole or existing well which it is proposed to abandon,without the written permission of the Director or PetroleumResources .2) Every borehole or existing well which the licensee orlessee intends to abandon shall, unless the Director ofPetroleum Resources otherwise permits in writing, besecurely plugged by the licensee or lessee so as to preventingress and egress of water into and from any portion orportions of the strata bored through and shall be dealt with

regulatory framework on decommissioning

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