Published in 16/06/2017 -
Author Mauricio Almeida
Decommissioning – Sigma Consulting Thinking about the thousands of professionals who, in one way or another, have been affected by the crisis plaguing the country, we decided to start a discussion on the topic of "Decommissioning," which, in our understanding, could enable a new cycle of development in the Oil & Gas market.
Therefore, in the coming months, we will be publishing several articles on this subject, aiming to broaden the knowledge of professionals in the oil & gas industry, and to enrich this debate, we will also be inviting industry experts to assist us in this endeavor.
We are open to receiving suggestions from interested professionals who have knowledge of the subject and wish to contribute to the discussion. contact@sigmaconsultoriarj.com.br
We will begin this work with an "Introduction" to the subject, the purpose of which will be to broaden the general overview of Decommissioning.
In the following monthly sections, we will address the following items:
1. Introduction;
2. Regulation;
3. Environment;
4. Market and Opportunities;
5. Oil Field Assessment;
6. Decommissioning Planning;
7. Equipment Recovery;
8. Transportation to Land;
9. Processing;
10. Recycling;
I. Introduction.
To begin addressing this subject, we must go back in time and recall the events of the 1980s, when the naval and oil and gas markets suffered a drastic decline caused by the SUNAMAN scandals, and the only remaining alternative was naval repair.
The current situation, perhaps even more so, has once again severely impacted the shipbuilding industry, and we believe that one viable path to resuming a growth cycle will be through work focused on the decommissioning of platforms.
At that time, the entire industry stagnated and had to adapt to survive, enabling the ship repair market. Currently, unfortunately, this specific service sector is overcrowded with offers, making the area increasingly undervalued and lacking opportunities that generate added value for this naval sector.
Thus, a market opportunity arises that, according to estimates by Decom North Sea – UK, will generate more than US$500 billion in the global market over the next 40 years. During this period, Brazil will see a large number of platforms that will need to be decommissioned, which will certainly generate high demand for specialized services in the sector.
To give an idea of ??the market size, it is estimated that there are currently approximately 7,900 platforms in operation worldwide, spread across at least 60 countries
. But what exactly is decommissioning?
This topic, already well-known in the North Sea and the Gulf of Mexico, but still in its early stages in Brazil, concerns the procedure imposed by regulatory and oversight bodies, as stipulated in the concession contract, for the decommissioning, demobilization, or abandonment of platforms at the end of the commercial lifespan of an oil field. This activity is multidisciplinary and complex, always aiming to avoid harming the environment. We can predict that these are operations with high costs and a high potential for generating environmental impacts.
Recently, we met with the Decommissioning Management area at Petrobras, where we were informed that this issue is being discussed among the company's technicians, with the aim of finding a balance between the best environmental protection, the lowest operational risk, and the technical and economic viability of the projects. Regarding the market, it has been reported that several Brazilian companies in the Oil and Gas sector are eager for information on the subject and are rapidly preparing to enter this segment strongly. International companies are also seeking a position to gain a share of this market.
On the same subject, we contacted the Brazilian Navy through the Directorate of Ports and Coasts, where we obtained information that there are currently 196 platforms – 155 operational and 41 idle.
However, not everything is going smoothly, and the market is awaiting guidelines from the entities involved, such as ANP (National Agency of Petroleum, Natural Gas and Biofuels), PETROBRAS, the Brazilian Navy, and IBAMA (Brazilian Institute of Environment and Renewable Natural Resources), who have been promoting discussions to find viable solutions for dismantling, without forgetting the environmental risks.
Among the options that should be discussed for the decommissioning of fixed platform substructures, the following can be highlighted:
1. Leave in place;
2. Partial removal;
3. Tilt in place;
4. Complete removal;
5. Destruction with explosives;
6. Reuse.
In our view, alongside the definitions by public entities regarding the best methodologies to be employed in these projects, the market must position itself, as there is a pressing business opportunity that goes beyond the dismantling service itself. This opportunity lies in the need for shipyard adaptation, with adequate licensing and capacity to store, process, and recycle the equipment and pipelines that will be removed, as well as the treatment of polluting waste generated during decommissioning.
It is evident from this brief overview of the subject that we will have to do very detailed homework, as well as have an adequate onshore infrastructure to receive all the materials and equipment; perhaps it is time to create a Brazilian Decommissioning Center for this purpose.
Beyond this, we can foresee that subsea companies, support navigation, and heavy cargo handling companies will also have a fertile market to dedicate themselves to.
Finally, as a threat, it is evident that we will soon have international companies specializing in this type of activity, coming from international markets such as the North Sea and the Gulf of Mexico, which are the two main poles with the most experience in this matter.
Rio de Janeiro, May 16, 2017.
Mauricio Almeida Fernando Sarian Altounian
Executive Director Sigma Executive Director Sigma
President ABECOON Director ABECOON
Contacts:
mauricio@pinheiroalmeida.com
(21) 99963-3303
References:
PETROBRAS; http://www.petrobras.com.br/pt/
ANP; http://www.anp.gov.br/wwwanp/
IBAMA; http://www.ibama.gov.br
BRAZILIAN NAVY; https://www.marinha.mil.br
DECOM NORTH SEA. http://decomnorthsea.com