LEGAL FRAMEWORK AND LIABILITY OF LEAVING OIL AND GAS FACILITIES IN-SITU OR DEEP SEA DISPOSAL ON AUSTRALIA’S CONTINENTAL SHELF

2004 ◽  
Vol 44 (1) ◽  
pp. 809
Author(s):  
I.V. Stejskal

Australia’s offshore petroleum industry is beginning to mature and many of its offshore oil and gas production facilities are reaching the end of their operational life. These facilities consist of an array of infrastructure including wells, wellheads, platforms and monopods of various construction, pipeline and flowlines, and anchors and risers. Many of these facilities will need to be decommissioned at the end of their operational and economic life in a safe and environmentally responsible manner.The Australian government has the jurisdiction to direct a company to remove all facilities associated with offshore production projects located on Australia’s continental shelf, but there is room for discretion for other decommissioning options. The manner in which facilities are decommissioned must be assessed on a case-by-case basis, taking into account factors such as technical feasibility, commercial risk, safety and social impacts, costs and environmental effects.Two decommissioning options appropriate in some instances are to leave selected facilities in-situ or dispose of a facility to some other location on the continental shelf, preferably in deep water. Residual liability refers to the responsibility and liability associated with leaving facilities on the seabed. If a facility is allowed to remain on the seabed, questions related to residual liability arise:who is responsible for any facility left on the seabed; andwho is liable to pay for compensation in the event that this facility is allowed to remain in place on the seabed and injury or damage is caused to a third person or property?There is no universally accepted practice in relation to residual liability in relation to decommissioning. In some countries, the State assumes responsibility; in other countries the company remains responsible in perpetuity. This issue still needs to be clarified in Australia.

2020 ◽  
Vol 58 (3) ◽  
pp. 397-424
Author(s):  
Jesse Salah Ovadia ◽  
Jasper Abembia Ayelazuno ◽  
James Van Alstine

ABSTRACTWith much fanfare, Ghana's Jubilee Oil Field was discovered in 2007 and began producing oil in 2010. In the six coastal districts nearest the offshore fields, expectations of oil-backed development have been raised. However, there is growing concern over what locals perceive to be negative impacts of oil and gas production. Based on field research conducted in 2010 and 2015 in the same communities in each district, this paper presents a longitudinal study of the impacts (real and perceived) of oil and gas production in Ghana. With few identifiable benefits beyond corporate social responsibility projects often disconnected from local development priorities, communities are growing angrier at their loss of livelihoods, increased social ills and dispossession from land and ocean. Assuming that others must be benefiting from the petroleum resources being extracted near their communities, there is growing frustration. High expectations, real and perceived grievances, and increasing social fragmentation threaten to lead to conflict and underdevelopment.


2019 ◽  
Vol 10 (4) ◽  
pp. 1613-1634 ◽  
Author(s):  
Oladoyin Kolawole ◽  
Ion Ispas

Abstract Hydraulic fracturing treatment is one of the most efficient conventional matrix stimulation techniques currently utilized in the petroleum industry. However, due to the spatiotemporal complex nature of fracture propagation in a naturally- and often times systematically fractured media, the influence of natural fractures (NF) and in situ stresses on hydraulic fracture (HF) initiation and propagation within a reservoir during the hydrofracturing process remains an important issue. Over the past 50 years of advances in the understanding of HF–NF interactions, no comprehensive revision of the state of the knowledge exists. Here, we reviewed over 140 scientific articles on investigations of HF–NF interactions, published over the past 50 years. We highlight the most commonly observed HF–NF interactions and their implications for unconventional oil and gas production. Using observational and quantitative analyses, we find that numerical modeling and simulation is the most prominent method of approach, whereas there are less publications on the experimental approach, and analytical method is the least utilized approach. Further, we suggest how HF–NF interactions can be monitored in real time on the field during a pre-frac test. Lastly, based on the results of our literature review, we recommend promising areas of investigation that may provide more profound insights into HF–NF interactions in such a way that can be directly applied to the optimization of fracture-stimulation field operations.


Author(s):  
Kumarswamy Karpanan ◽  
Craig Hamilton-Smith

Subsea oil and gas production involves assemblies such as trees, manifolds, and pipelines that are installed on sea floor. Each of these components is exposed to severe working conditions throughout its operational life and is difficult and expensive to repair or retrieve installed. During installation and operation, a rig/platform and several supply vessels are stationed on the waterline directly above the well and installed equipment below. If any object is to be dropped overboard, it presents a hazard to the installed equipment. A subsea tree comprises of a number of critical components such as valves and hydraulic actuators, in addition to several electrical components such as the subsea control module and pressure/temperature gauges. Their ability to operate correctly is vital to the safe production of oil and gas. If an object were to impact and damage these components, resulting in their inability to operate as intended, the consequences could be severe. In this paper, a typical subsea tree frame is analyzed to ensure its ability to withstand the impact from an object accidentally dropped overboard. This was accomplished using nonlinear dynamic Finite Element Analysis (FEA). In this study, the framework was struck by a rigid body at terminal velocity, resulting in a given impact energy. Displacements and resultant strain values at critical locations were then compared to allowable limits to ensure compliance to the design requirements.


2020 ◽  
Vol 6 (3) ◽  
Author(s):  
Mark Burghardt ◽  
Gage Hart Zobell

Oil and gas production continues to be an important sector of Utah’s economy. Following a 25% loss in production between 2014 and 2015, Utah’s production continues to slowly rebound. Crude oil production in 2019 appears to be slightly ahead of 2018 production. Monthly production averages slightly over three million barrels, placing Utah among the top ten states in crude oil production. Along with the continuing increase in production, the state’s legal framework governing oil and gas continues to develop. This Article examines recent changes in Utah statutes and regulations along with new case law developments involving the oil and gas industry. In particular, this Article discusses a recent federal bankruptcy decision involving midstream agreements, the revision to a Utah statute that now requires mandatory reporting of unclaimed mineral interests, and recent revisions to Utah’s oil and gas regulations.


2019 ◽  
Vol 59 (3) ◽  
Author(s):  
Nathan Fay

This year marks the golden jubilee of Australia’s offshore petroleum industry after the first gas was produced from Bass Strait by Esso and BHP’s Gippsland Basin Joint Venture. For half a century our industry has been driven by technology – pioneering technical excellence and pushing the envelope in the pursuit of much needed oil and gas production. Today, the landscape in East Australia is changing and gas is at the forefront of the discussion. Declines in East Australia’s historical conventional fields have seen gas supply tighten and prices rise. There is a strong need for additional affordable and reliable gas supply. While continued improvements in technology remain a critically important enabler in developing Australia’s gas resources; global supply and demand, regulatory frameworks, and the commercial arrangements that underpin new developments are becoming more and more important. ExxonMobil Australia’s new Chairman, Nathan Fay, has a wealth of experience working with gas markets around the world. He will explain why it is so important for policymakers to establishment a stable free market environment to encourage these long-term relationships. To view the video, click the link on the right.


2015 ◽  
Vol 55 (2) ◽  
pp. 496
Author(s):  
Venner Bettina ◽  
Wood Chris ◽  
Welsh Kevin ◽  
Mossman Fiona ◽  
Goiak Paul ◽  
...  

Santos, Beach Energy and Senex Energy are collaborating with the SA Government and TAFE SA to set up a hub for onshore oil and gas training in Adelaide. The training facility provides a fully immersive simulated oil and gas production environment, as well as static equipment displays for demonstration and educational purposes. It is used for technical training, including safety, environmental and sustainable operational principles and key maintenance activities. The simulated production environment includes different pump types, gas compressors, a pig launcher and receiver, gas metering skid, field separator and small tanks, as well as associated pressure safety valves, flow valves and other instruments. Water is used to simulate oil and air is used to simulate gas flow. The static equipment display includes various valve types, flanges and a wellhead. Santos, as operator of the SA Cooper Basin joint venture (of which Beach Energy is a member), has committed significant oil and gas production and mechanical equipment, engineering design, transportation and installation of the training facility’s equipment. The SA Government, Senex Energy and Beach Energy have committed funding for fit-out, capital works and the running of the facility for the first two years. Industry partners GPA Engineering, Fyfe Engineering, Logicamms, Veolia Environmental Services, Toll Energy, Transfield Services, Ottoway Engineering, Bureau Veritas, MRC Group, Max Cranes, Whitham Media Australia, Inductabend, Toyota Australia, James Walker Australia, Coventry Fasteners, Centralian Controls and Central Diesel are providing expertise and services. The training facility officially opened on 16 February 2015


2015 ◽  
Vol 55 (2) ◽  
pp. 456
Author(s):  
Paul van der Beeke

Oil and gas production operations occur in widely diverse onshore and offshore contexts. The global industry has a long history of coping with climate variability, extreme climatic conditions and extreme weather events. Climate change, however, is projected to take the new climate beyond the range of historical variability in many places where oil and gas production facilities are located. Oil and gas infrastructure often has an expected operational life of 50 years or more, which would take new operations to 2064 and beyond. This is well inside the timeframe predicted for substantial climate change with consequent risks to longer term operational continuity and supply chain security. In recent years, the realities of climate change beyond pre-industrial age historical variability, and the associated business risks, have become accepted by the major global oil and gas industry players. Other stakeholders, including corporate, institutional and private investors and corporate regulators, are also becoming more assertive in their demands for corporate disclosure of climate change risks, adaptation management plans and evidence of effective implementation of adaptive measures. Industry decision-makers need scientifically sound and robust data applied to their specific operations and business conditions to support business case-based investment decisions for new project feasibility, capital and operational expenditure, and the management of long-term strategic liabilities. This extended abstract provides an overview of the complex and interconnected web of climate change effects that should be considered. It also outlines approaches that could be employed to manage the risks and meet stakeholder expectations.


2013 ◽  
Vol 10 (1) ◽  
pp. 25 ◽  
Author(s):  
FJ Sanchez ◽  
OS Al-Abri

Fossil hydrocarbons are indispensables commodities that motorize the global economy, and oil and gas are two of those conventional fuels that have been extracted and processed for over a century. During last decade, operators face challenges discovering and developing reservoirs commonly found up to several kilometers underground, for which advanced technologies are developed through different research programs. In order to optimize the current processes to drill and construct oil/gas wells, a large number of mechanical technologies discovered centuries ago by diverse sectors are implemented by well engineers. In petroleum industry, the ancient tube forming manufacturing process founds an application once well engineers intend to produce from reservoirs that cannot be reached unless previous and shallower troublesome formations are isolated. Solid expandable tubular is, for instance, one of those technologies developed to mitigate drilling problems and optimize the well delivery process. It consists of in-situ expansion of a steel-based tube that is attained by pushing/pulling a solid mandrel, which permanently enlarge its diameters. This non-linear expansion process is strongly affected by the material properties of the tubular, its geometry, and the pipe/mandrel contact surface. The anticipated force required to deform long sections of the pipe in an uncontrollable expansion environment, might jeopardize mechanical properties of the pipe and the well structural integrity. Scientific-based solutions, that depend on sound theoretical formulation and are validated through experiments, will help to understand possible tubular failure mechanisms during its operational life. This work is aimed to study the effect of different loading/boundary conditions on mechanical/physical properties of the pipe after expansion. First, full-scale experiments were conducted to evaluate the geometrical and behavioral changes. Second, simulation of deformation process was done using finite element method and validated against experimental results to assess the effects on the post-expansion tubular properties. Finally, the authors bring a comparison study where in a semi-analytical model is used to predict the force required for expansion. 


2021 ◽  
Author(s):  
Chetan Laddha ◽  
Lorna Ortiz-Soto ◽  
Leslie Baksmaty ◽  
Juan Dominguez-Olivo

Abstract The O&G industry has been producing hydrocarbons from subsea reservoirs for several decades. However, there is a technological gap in the ability to reliably detect and quantify dissolved gases within the water column. This technological gap has in turn led to a scientific gap in our ability to determine the subsurface origin of subsea fluid emissions. Gas releases are commonly found in the marine environment primarily because of naturally occurring seeps and occasionally due to Oil and Gas production activities. There is a need to be able to identify the gas composition and accurately characterize its source (i.e., ongoing microbial activity or thermogenic derived hydrocarbons). However, building a reliable solution which allows this differentiation between thermal and microbial sources in the underwater environment as well as the inference of their subsurface origin requires a multi-disciplinary subsurface workflow coupled comprehensive high-fidelity measurements at the seabed. As one of the front-end building blocks of any robust multi-disciplinary workflow, there is a need for development of an in-situ sensing and sampling capability which allows real-time assessment and geological characterization of the underwater emissions across the upstream industry, from exploration to abandonment. Such a capability would also be complementary to the geohazard and subsurface assessment practices e.g., by reducing lost rig time during interventions by allowing quick characterization of emissions that arise from natural seeps or LOPC (Loss of Primary Containment) events. This paper describes the maturation of a compact underwater in-situ sensing technology deployed from autonomous or tethered underwater vehicles and which enables measurements of gas constituents and their respective isotopes at the seabed.


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