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Feasibility study of decommissioning offshore facilities in Indonesia based on North Sea and Gulf of Mexico experience

Proceedings Title : Proc. Indon. Petrol. Assoc., 38th Ann. Conv., 2014

Decommissioning refers to the dismantling, decontamination and removal of equipment and structures. The process may be described as the best way to shut down production operations at the end of a field’s life. This multidisciplinary process requires a balance among HSE, risks and socio-economic considerations. In recent years, the growing concerns for decommissioning of offshore hydrocarbon production installations has increased within the industry, government and other interest groups. There are at least two reasons for this worrying situation, the first is the number of maturing fields around the world, and the second is the growing impact of environmental concerns in international affairs (Ruivo, 2002). The number of offshore facilities in Indonesia has been increasing since 1969 when the first offshore platform was installed. At the moment there are approximately 573 offshore platforms of various types (ESDM, 2013). Additionally, many offshore oil/gas fields in Indonesia are reaching the end of their productive lives. Consequently, the operators are poised to abandon a substantial number of wells and dispose of platforms in the next few years. The future presents unique challenges for operators and offshore service companies in Indonesia because decommissioning operations are relatively new for the country. Petroleum Act 1998 and OSPAR (Oslo-Paris) Decision 98/3 have been used for decommissioning guidance in the North Sea while Bureau of Safety and Environmental Enforcement (BSEE) standards apply in the Gulf of Mexico. In Indonesia, a brief technical guidance of Ministry Regulations of Energy and Mineral Resources (Permen ESDM) 01/2011, has become the guidance for decommissioning process. This paper compares the different approaches used in the North Sea, Gulf of Mexico and Indonesia. This study has confirmed that Indonesia lacks strong regulatory framework and needs standards for decommissioning to cover the future massive obligations for decommissioning of offshore facilities.

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