Decommissioning: a natural path for the Oil & Gas industry
What is Decommissioning?
- The productive capacity of the fields is reduced, making them economically unfeasible.
- The production facilities reach the end of their useful life.
A Little History
Our offshore journey began in the waters of Sergipe and was consolidated in the Campos Basin.
Exploring new deposits, developing a field, installing a platform and starting oil production. In simple terms, these are the basic stages to start Exploration and Production (E&P) activities.
2018
Signature of Decree No. 9616/2018, of December 2018. This decree brought important guidelines for opening up the market, based on the knowledge consolidated by the “Gás para Crescer” [Gas to Grow] initiative, in particular: the organization of the transport system by entry and exit; third-party negotiated access to distribution, processing and regasification facilities; and guidelines for opening up the market in the states.
2019
New Gas Market – program that established new initiatives to open up the gas market and consolidated existing ones, with emphasis on the enactment, in June 2019, of CNPE Resolution 16/2018, of the National Council for Energy Policy, which brought guidelines and policies to be observed by the sector's agents to open up the market.
2020
We participated in the creation of the Book of Best Practices for Processing and Distribution, together with IBP.
2021
In the legislative sphere, the opening process advanced significantly, with the approval of Law 14,134/2021, of 04/08/2021, which established the new regulatory framework for the natural gas sector in Brazil, establishing essential rules for opening this market, and Decree 10,712/2021, of 06/02/2021, which governs the new law. The approval of the law and the decree gives legal certainty to investors, by allowing the structuring of a legal and regulatory framework in this new scenario.
2018
2019
2020
2021
Like humans, animals and plants, equipment also has a life cycle. It would be no different with oil and gas production systems. When the opportunities for the continued operation of an oil and gas production system end, the work of decommissioning these assets begins.
Memories and longing from those who were part of this journey
The senior engineer officer, Manoel Dutra Vidal, was one of the crew members of the P-32 for many years. At the platform's farewell event, he recounted, with great emotion and longing, a little of the unit's legacy:
P-32, the only FPSO whose name everyone knew: Cairu
All of this was achieved by a spectacular and competent team of professionals who worked there over all these long years. And the atmosphere was so good, it was our second family!
And how important you were to everyone! Many of us saw our children being born and growing up, others, like me, met the women who would become their wives. Unfortunately, along the way we had those who were called by God. Some of them were honored with their names in the control room, in the production plant, in the cafeteria. We still miss them!
Over time, some retired and the oil workers arrived, now veterans who are still there at the end of their cycle. And now I am comforted to know that your final destination will be recycling. As a human being who donates his organs to save other lives, your strong steel will be part of new units and you will remain alive in each one of them. Rest in peace, 'old Cairu'!
Thank you very much for everything!”
Decommissioning is a legal obligation
It is an activity that generates value for the company and for society.
Decommissioning will also occur when projects to revitalize areas are implemented, such as the one being carried out in the Marlim field, in which the old production systems will be replaced by new ones.
In addition to being a requirement established by the Petroleum Law L9478 (planalto.gov.br), decommissioning is a commitment by companies to ensure the closure of operations in a safe, environmentally appropriate manner and in accordance with the industry's best ESG practices (Environmental, Social and Governance).
At the end of their production life cycle, assets leave an important legacy for the regions where they were installed, with a significant socioeconomic contribution and generation of value for society, but they also leave behind stories, memories and longing.
But this story does not end here. The decommissioning activity is just a new beginning. A stage that, although much shorter in duration than the production development phase, can move the production chain, develop technologies and technical skills, and generate employment and income. All of this, with respect for the environment and local populations, in a model that we want to be a benchmark in the global industry: sustainable decommissioning.
Decommissioning projects are summarized in a document called the Installation Decommissioning Program (PDI), which, according to the regulations of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), must be presented five years before the end of operations of a production system.
The PDIs submitted by Petrobras and other operators to the ANP are available (in portuguese) on the Dynamic Panel for Decommissioning Exploration and Production Facilities — National Agency of Petroleum, Natural Gas and Biofuels (www.gov.br) National Agency of Petroleum, Natural Gas and Biofuels (ANP).
The PDI of a maritime production system covers several activities, distributed in three main scopes: (i) platform, (ii) wells and (iii) subsea systems.
Examples of these activities are as follows: cleaning and conditioning of platforms, pipelines and equipment; treatment, final disposal of waste and environmentally appropriate disposal of waste; safe and definitive plugging of wells; disconnection and disposal of subsea systems; and dismantling and recycling of platforms.
- These systems have different levels of information maturity for evaluating decommissioning project alternatives as well as specific timelines for planning and executing operations.
- Separating the decommissioning project for each of these systems into stages allows for mitigating risks and facilitating their implementation by optimizing operations (economies of scale).
Decommissioning: an ocean of opportunities and possibilities
Although decommissioning is part of the life cycle of an oil and gas production system, and several projects have already been executed in Brazil and in areas such as the Gulf of Mexico and the North Sea, the challenges are still huge.
Reflecting the current situation of society and Petrobras, when carrying out decommissioning activities we aim to reduce operational risks, environmental impacts, social impacts and costs, maximizing its sustainability and reinforcing our commitments to Health, Safety and Environment (HSE) and Human Rights.
But this challenge also brings opportunities. The main one is the development of a new production chain, with the potential to generate employment, income and value for society. The qualification of the workforce and the development of the competitiveness of the national market are fundamental to the construction of this new virtuous circle.
Safety and attention and care to people: top values
For years, we have been studying feasible solutions to act safely and responsibly at the end of our operations. This means that after we decide to decommission a production system, we will plan and execute the activities, following strict safety standards.
And that's not all. We will also base ourselves on a vast amount of study material and guidance on the industry's best practices. Since decommissioning projects in Brazil are relatively recent and have particularities that can make them more complex and challenging than those already carried out in the rest of the world, it is essential that we be extremely careful.
In addition to safety, attention and care to the people involved in the process is equally important. Ensuring that all teams are informed, trained and equipped, promoting a work environment where the health, well-being and safety of our employees are non-negotiable priorities is one of our values that contribute to each stage of the decommissioning being conducted with the utmost respect and care for everyone involved.
Best practices
For example, in the decommissioning of the P-32 and P-33 platforms, the disconnection stage of the subsea lines was carried out in a way to optimize operations and increase safety and reliability levels, eliminating the need for diving operations and reducing the operating time of the PLSV (Pipe Laying Support Vessel), a vessel specialized in launching and removing subsea lines.
Circular economy
The current scenario shows that industries are actively adapting to face the challenges, which involve incorporating responsible and sustainable practices into their operations, aiming for a safer, more efficient and environmentally conscious future.
The circular economy plays an important role in this adaptation. Many industries will be able to explore opportunities to reuse and recycle materials from decommissioning, transforming what used to be considered waste into new products.
To this end, we have adopted guidelines for the sustainable disposal of vessels, which include, among other actions:
ESG Requirements
In addition to the initiative involving the decommissioning of the platforms, we are adopting measures to ensure maximum sustainability in the disposal of waste generated during the decommissioning of flexible flowlines and umbilicals, which cannot be reused in other projects. To this end, the company incorporated ESG (Environmental, Social and Governance) requirements into EPRD (Engineering, Preparation, Removal and Disposal) contracts for the decommissioning of subsea systems.
With the increase in demand for decommissioning projects in the coming years, initiatives involving multiple stakeholders are underway to encourage and strengthen routes for the reuse and recycling of materials, especially those related to polymeric materials, among which we highlight:
- Research and implementation of new routes for the reuse of polymeric materials from decommissioned flexible flowlines and umbilicals.
- Creation of incentives or financial benefits for the circular economy and reverse logistics (for example, using recycled material from decommissioned lines in the manufacture of new lines).
- Incorporation of sustainability into new production systems, adopting projects (technologies, structures or models) that favor decommissioning at the end of their useful life.
Big Numbers in Decommissioning
Decommissioning is expected to attract major investments worldwide in the coming years and Brazil has one of the greatest potentials in this activity. The Brazilian offshore industry sees a promising horizon of new opportunities with the decommissioning of offshore production systems.
Check out some figures from our investment in decommissioning:
O Brasil possui condições privilegiadas de assumir uma posição de destaque, desde que construa uma visão estratégica de longo prazo para o setor e promova uma ampla coordenação dos agentes públicos envolvidos, onde lacunas regulatórias sejam suprimidas, promovendo um ambiente de segurança jurídica, previsibilidade e estabilidade, capaz de atrair novos investimentos.
Reduction of waste and reuse of materials
This is because, looking at decommissioning from a sustainability standpoint means redefining this stage of the life cycle of our industry. Strengthening the value networks that decommissioning is capable of generating not only for our industry, but also for our society.
In this movement, we want to invigorate the modernization of the industry, incorporating the best international sustainability practices. In addition to boosting the circular economy, this practice generates opportunities for the use and allocation of labor in national shipyards.
Strengthening the shipbuilding industry
In addition, investments are needed in infrastructure for the construction or adaptation of shipyards for the purpose of receiving, processing and disposing of platforms resulting from decommissioning.
With this integrated effort, there is no doubt that decommissioning has all the potential to open a virtuous cycle of investments and opportunities for the national economy.
Our purpose is to continue contributing to the development and qualification of the national market. To this end, we have adopted a range of initiatives aimed at increasing the predictability of our demand to the market, with broad dissemination of the required sustainability requirements and the number of units to be recycled in the next ten years.
Development of Solutions and Technologies
Brazil has the opportunity to position itself as a global benchmark in the development of new solutions and technologies aimed at decommissioning, invigorating both R&D&I activities and the qualification of the domestic market, through collaboration between industry, academia and government agencies.
It is natural when we are going through the learning curve to have the various stakeholders thinking and building joint solutions. This is very important, because we need to have different perspectives. We need to unite the various ends of this complex ecosystem, which transcends the oil and gas segment.
The Role of our Research Center
Cenpes has encouraged the development of solutions and the training of the national market aimed at the decommissioning of the company's assets. And this is based on the mapping of demands and opportunities from the observation of the regulatory scenario. In addition to the continuous monitoring of initiatives developed in global markets, with decades of experience in the decommissioning of assets, such as the United Kingdom and the Gulf of Mexico.
With an emphasis on four areas of knowledge, the Technological Initiative led by Cenpes focuses on the decommissioning of submarine systems, wells, and the sustainability of related activities, with dozens of R&D&I projects, such as:
- Alternative techniques and materials to the use of cement for plugging wells.
- Alternative techniques for the recovery of pipelines from the seabed.
- Sustainable solutions for the final disposal of materials and waste removed from the marine environment.
Vision of the future
As they are in our DNA, research, development and innovation are key elements in this journey. We will continue to work to overcome challenges and capture existing opportunities, investing in people and building integrated solutions, always in a safe, responsible and sustainable manner, for the success and longevity of our company.
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