Lakhal_subbed.qxp 26/3/09 05:08 Page 59
Transferring Ownership – An Alternative Approach to Offshore Oil Platform Decommissioning
Figure 1: Crude Oil Prices – 1947 to May 2008 (2007 US$) Figure 2: Life-cycle of an Offshore Oil Platform
100
PDVSA strike
Production begins
OPEC 10% quota increase
Iraq War
Asian economic crisis
Asian growth Production ends
80
Iran/Iraq Weaker US$
War
Iranian
Series of OPEC cuts
60
revolution
4.2 million barrels
Suez
Lease Exploration Development Production Closure Post-closure
crisis
Gulf
2007 US$/barrel
40 Yom Kippur War
War
Oil embargo
0 5 10 15 20 25 30 Years
20
US price Source: Lakhal et al., 2009.
2
controls
9/11
0
47 51 55 59 63 67 71 75 79 83 87 91 95 99 03 07
Decommissioning Project Organisation
1947 – May 2008
The organisation of a decommissioning project may be as illustrated in
US 1st purchase price (wellhead) ‘World price’
Avg. US$24.98 Avg. world US$27.00 Median US and world US$19.04
Figure 3. This method may be adopted if the platform owner decides
to perform the decommissioning under his/her responsibility, even if
OPEC = Organization of Petroleum Exporting Countries.
he/she hires contractors to perform the deconstruction, removal,
Source: WTRG-Economics, Oil Price History and Analysis (Updating), 2009.
recycling and disposal of the platform modules (see Figure 4). A similar
specialising in the deconstruction and disposal of offshore facilities organisation was adopted to decommission the Kittiwake loading buoy
can perform this task efficiently and with low risk. in the North Sea in 2006. If the platform owner decides to transfer
ownership of the rig after the disconnection, he/she will be not
Recycling and disposal should be managed in a facility licensed to responsible for activities post-disconnection (deconstruction, removal,
handle all hazardous waste, which will be removed and isolated in recycling and disposal).
preparation for treatment and safe disposal. Steel materials and other
recyclable metals will be sorted by type and sent to foundries for Conclusion
recycling. Other materials will be processed for recycling or safe disposal. This article briefly discussed the stages of closure and post-closure in the
These activities are very different from the oil extraction process and, if life-cycle of an offshore oil platform once the decision has been made
performed by competent companies, the associated risks are very low. to decommission the facility. This process requires an integrated
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