Decommissioning cost update for removing Pacific OCS Region offshore oil and gas facilities. Houston, Texas.

Abstract

From the Executive Summary: “For this study, Proserv conducted a review of state of the art technology for decommissioning POCSR oil and gas facilities and developed benchmark costs for decommissioning the facilities utilizing conventional technology that is commonly used and has proven to be successful. The Proserv cost assessment is specific to Pacific Region operations and included a review of the availability and capability of derrick barges (DB’s) in the region (west coast of U.S.), support vessel services, well plugging and abandonment services, abrasive, mechanical and explosive cutting services, disposal options, and site clearance services. Proserv also collected and evaluated cost information from local vendors, to the extent they were available, that provide well plugging and abandonment services and other decommissioning related services, and developed equipment and labor costs (spread costs) for conducting these operations. In those cases where local/regional decommissioning services are not readily available, Proserv estimated the mobilization and demobilization cost and day-rate cost of the services, developed spread costs for the operations, and prepared decommissioning cost estimates using this information. This Proserv report covers operator compliance with OCS oil and gas regulations (30 CFR 250 and 256) for permanent plugging of wells; removal of well conductors and platform jackets to 15 feet below the mudline; decommissioning and removal of platform decks and jackets; decommissioning and removal of pipelines and power cables; site clearance; and other lease and permit requirements."