Level: Basic
TCM Section(s)
7.3. Cost Estimating and Budgeting
Venue: 2024 AACE International Conference & Expo
Abstract: FPSO Decommissioning estimates are very depending on the technical complexity and commercial terms of the contract (Capital/Lease). There are number of challenges that make it difficult to accurately estimate the cost especially on the exposure of hazardous material, environmental conditions at the site, and lack of historical data within the region. The FPSO decommissioning have been estimated in Deepwater Mauritania (2018) and Shallow water Malaysia (2022) are referred for lessons learnt.
Decommissioning process of FPSO can be categorized into two (2) major activities related to pre-execution and offshore execution. The pre-execution includes planning and permitting (engineering, pre shutdown survey, approval of relevant procedures, appointment of subcontractors, etc.). Meanwhile, the offshore execution started from cease of production, pigging & flushing the flow lines and umbilical, securing wells, topside cleaning including contaminated systems, mooring chains disconnection and abandonment till sail away to designated area. It is important to include the activities post decommissioning such as dismantling and scrap, disposal, and post survey to make sure work completion clean and safe. The waste management should be carefully evaluated as part of liability in accordance with Environmental Impact Assessment (EIA). It is found that the unexpected cost may happen due to Naturally Occurring Radioactive Materials (NORMS) appeared and special treatments are required prior to dispose to safe area as per Authority approval. Risks associated with abandonment and decommissioning strategy were anticipated related to interface with Wells P&A, scope demarcation with FPSO owner, delay in approval of permits from government and weather conditions during execution.
TCM Section(s)
7.3. Cost Estimating and Budgeting
Venue: 2024 AACE International Conference & Expo
Abstract: FPSO Decommissioning estimates are very depending on the technical complexity and commercial terms of the contract (Capital/Lease). There are number of challenges that make it difficult to accurately estimate the cost especially on the exposure of hazardous material, environmental conditions at the site, and lack of historical data within the region. The FPSO decommissioning have been estimated in Deepwater Mauritania (2018) and Shallow water Malaysia (2022) are referred for lessons learnt.
Decommissioning process of FPSO can be categorized into two (2) major activities related to pre-execution and offshore execution. The pre-execution includes planning and permitting (engineering, pre shutdown survey, approval of relevant procedures, appointment of subcontractors, etc.). Meanwhile, the offshore execution started from cease of production, pigging & flushing the flow lines and umbilical, securing wells, topside cleaning including contaminated systems, mooring chains disconnection and abandonment till sail away to designated area. It is important to include the activities post decommissioning such as dismantling and scrap, disposal, and post survey to make sure work completion clean and safe. The waste management should be carefully evaluated as part of liability in accordance with Environmental Impact Assessment (EIA). It is found that the unexpected cost may happen due to Naturally Occurring Radioactive Materials (NORMS) appeared and special treatments are required prior to dispose to safe area as per Authority approval. Risks associated with abandonment and decommissioning strategy were anticipated related to interface with Wells P&A, scope demarcation with FPSO owner, delay in approval of permits from government and weather conditions during execution.