A New Approach for Accessing Offshore Decommissioning: A Decision Model for Performance Bonds

Ferreira, David; Suslick, Saul B.

doi:10.2523/61219-ms

Cited by 3 publications

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“…This research is the continuation of the study of Ferreira and Suslick [1,5,[11][12][13] regarding different bonding regimes for offshore decommissioning. Ferreira and his colleagues focused on evaluating the effects of alternative bond options on the operator's net present value (or payoff ) and the government earnings in hypothetical oil-producing projects in the Brazilian Continental Shelf [5].…”

Section: Methodsmentioning

confidence: 99%

“…Liability risks can be decreased by bonding mechanisms in respect of: (i) creating impetus for complying with contract requirements; (ii) indemnifying the government and taxpayers sensibly from failure; and (iii) providing environmental protection against possible damages due to not implementing appropriate closure activities [13]. Bonding mechanisms can be in the form similar to insurance policies (surety bonds), the form of an upfront fund that covers full restoration/ decommissioning costs at the project approval stage (cash collateral bonds), the form of fund paid in annual portions during the project life (decommissioning and abandonment provisions), or the form of an account within a specified period (lease-specific abandonment accounts) [1,5,11,14]. The followings are an overview of these financial assurance instruments.…”

Section: Overview Of Bonding Mechanismsmentioning

confidence: 99%

“…In an oil and gas or a mining project, decommissioning 1 or restoration 2 occurs at the closure phase 3 when extraction or production operations terminate. Since no more revenues are created, financial assurance mechanisms aim to provide adequate funds for such work [2].…”

Section: Introductionmentioning

confidence: 99%

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Comparative analysis of financial assurance instruments for offshore oil decommissioning and mine restoration

Huyen

2021

PVJ

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This paper introduces how different bonding mechanisms for oil and gas decommissioning and mine restoration can ensure operators’ accomplishment of restoration/decommissioning liability and affect their budget. Four mechanisms presented and compared herein include surety bonds, cash collateral bonds, decommissioning and abandonment provisions, and lease-specific abandonment accounts. The author also provides some cautions and recommends amendments for each mechanism to be efficiently applied to oil and gas decommissioning in Vietnam so as to assure operators’ decommissioning duties without discouraging their potential investments.

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Section: Methodsmentioning

confidence: 99%

Section: Overview Of Bonding Mechanismsmentioning

confidence: 99%

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Comparative analysis of financial assurance instruments for offshore oil decommissioning and mine restoration

Huyen

2021

PVJ

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“…Trong dự án khai thác dầu khí hoặc khoáng sản, công tác thu dọn mỏ 1 hoặc phục hồi môi trường 2 đều diễn ra ở giai đoạn đóng mỏ 3 khi chấm dứt hoạt động khai thác. Lúc này, nhà thầu không có thêm doanh thu từ việc khai thác, do vậy cần phải có các cơ chế bảo đảm để nhà thầu có đủ năng lực tài chính thực hiện công tác này [2,3]. Trên thế giới, có rất nhiều trường hợp đóng mỏ sớm hoặc không có kế hoạch đã xảy ra [4] và việc đảm bảo tài chính là đặc biệt cần thiết [5,6].…”

Section: Giới Thiệuunclassified

“…1 Nghiên cứu này sử dụng thuật ngữ "thu dọn mỏ" để chỉ quá trình bao gồm các hoạt động liên quan đến việc thu dọn các công trình cố định, thiết bị và phương tiện phục vụ hoạt động dầu khí không còn sử dụng [2]. 2 Nghiên cứu này sử dụng thuật ngữ "phục hồi môi trường" để ám chỉ các hoạt động cải tạo đất đã bị khai thác mỏ và được thực hiện sau khi hoạt động khai thác chấm dứt như là một phần của dự án khai thác mỏ. 3 Vòng đời của một mỏ khoáng sản bao gồm 8 giai đoạn: thiết kế, thăm dò, cấp phép, xây dựng, khai thác, thu dọn/đóng cửa mỏ, sau khi đóng cửa mỏ và giải phóng khỏi dự án [3].…”

Section: Giới Thiệuunclassified

So sánh các cơ chế bảo đảm tài chính cho công tác thu dọn mỏ dầu khí ngoài khơi và phục hồi môi trường mỏ khoáng sản

Huyen¹

2020

PVJ

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Luật Dầu khí (2018) quy định trong quá trình tiến hành hoạt động dầu khí, sau khi kết thúc từng công đoạn hoặc từng giai đoạn hoặc kết thúc hợp đồng dầu khí, tổ chức, cá nhân tiến hành hoạt động dầu khí phải thu dọn các công trình cố định, thiết bị và phương tiện phục vụ hoạt động dầu khí không còn sử dụng và phục hồi môi trường theo quy định của pháp luật [1]. Bài báo so sánh 4 cơ chế đảm bảo tài chính cho công tác thu dọn mỏ dầu khí ngoài khơi và phục hồi môi trường, gồm: trái phiếu bảo đảm; trái phiếu bảo đảm bằng tiền mặt; dự phòng thu dọn và hủy mỏ; tài khoản hủy mỏ cho 1 hợp đồng dầu khí cụ thể. Trên cơ sở đó, tác giả đề xuất cơ chế đảm bảo tài chính cho hoạt động thu dọn mỏ dầu khí ngoài khơi Việt Nam, đảm bảo sự tuân thủ của nhà thầu/công ty mỏ mà không giảm thu hút đầu tư.

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Decommissioning Offshore Oil and Gas Fields

Ruivo

Morooka

2001

SPE Annual Technical Conference and Exhibition

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Decommissioning offshore oil and gas production systems have been progressively increasing the concern of the industry, government and interest groups through the last years. There are at least two reasons for this sudden regard. First, it is the maturing of several oil and gas fields around the world in recent years. Second, it is the growing impact of environmental concerns in international affairs. Despite several works published address to some techniques and to potential problems and risks related to decommissioning offshore oil and gas production installations, its procedures are in some extent an innovative issue, especially in the case of deep-water fields such as the Brazilian ones. Therefore, the motivation of this paper is the novelty of the subject in Brazil, since the national industry is just beginning to deal with the end-of-leasing obligations, which involve decommissioning operations, and the governmental regulatory agency is filling the current gaps in the official guidelines. The main ambition is to stimulate debate about pertinent issues. Introduction Decommissioning refers to the dismantling, decontamination and removal of process equipment and facility structures. It may be described as the best way to shut down production operation at the end of a field's life [1]. This involves a multidisciplinary process, which requires detailed method balanced on several areas, e.g., environmental, financial, political, health and safety. In the late 90's, this balance was disturbed by a turning point fact on decommissioning history: the experience of UK operator [2] with its spar buoy in Brent (UK sector in North Sea). Although both UK Department of Energy and UK Government were in full agreement and support of the deep sea dumping option proposed, the European consumer opinion forced the operator to seek another solution: cut its ‘Brent Spar’ in pieces and use it in a quay extension in Norway. Despite this solution had been more expensive, less safe to the employed workforce, had consumed a large amount of energy and had entailed risks to coastal navigation routes and environments; it had full European consumer agreement. Since then, every step in a decommissioning process should be informed to the society. That is why communication is so important. Their approval will of course never be fully measured but quite certainly their disapproval will have major economic consequences for any operator who fails in his communication plans [3]. A recent assessment of the decommissioning program in the U.S. Gulf of Mexico has disclosed that, although political pressure may determines what decommissioning options should be taken to the oil industry, a previous design may induce the circumstances of that pressure [4]. International literature contemplates only the U.S. Gulf of the Mexico and the North of Sea regions as the main areas where the decommissioning will face the biggest challenges due to quantity of large platforms. That is truth only in absolute terms. In relative terms, the decommissioning of large platforms is not a problem only of these regions. Brazil, for instance, has relative proportions of large platforms at least three times larger than those presented in U.S. Gulf of Mexico [5]. Besides, Brazil has some offshore fields with more than twenty years of production. The first field, Garoupa, located in the Basin of Fields-RJ, has been producing for 26 years. Therefore, the end of their economic life is getting closer. The decommissioning process starts to occur in briefing. However, it has barely known about final destination of these field's installations. The Brazilian national industry has just initiated studies about this theme [6].

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A New Approach for Accessing Offshore Decommissioning: A Decision Model for Performance Bonds

Cited by 3 publications

References 0 publications

Comparative analysis of financial assurance instruments for offshore oil decommissioning and mine restoration

Comparative analysis of financial assurance instruments for offshore oil decommissioning and mine restoration

So sánh các cơ chế bảo đảm tài chính cho công tác thu dọn mỏ dầu khí ngoài khơi và phục hồi môi trường mỏ khoáng sản

Decommissioning Offshore Oil and Gas Fields

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