Download - 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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
Technical Feasibility
Environmental Protection
Health and SafetyCost
Public Opinion
Secondary uses of disused facilities
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epartment of Petroleum Resources
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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
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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epartment of Petroleum Resources
"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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epartment of Petroleum Resources
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