May 04, 2016 14:00 ET

Cutting Well P&A Costs by Using DNV GL's New Recommended Practice

HOUSTON, TX--(Marketwired - May 04, 2016) -  Plugging and abandonment (P&A) of offshore wells represents the highest cost within field decommissioning for operating companies and national authorities. DNV GL has now issued a new, globally applicable Recommended Practice (RP), on risk-based abandonment of offshore wells, which, in combination with optimized project execution and new technology, could potentially reduce P&A costs by 30-50%. The framework outlined in the RP provides the possibility for individualized, fit-for purpose well abandonment designs, a contrast to the prescriptive methodology available in the industry today.

Well abandonment is driven by economic decisions, when the production of an oil or gas reservoir ceases or is no longer profitable. Authorities require that well operators perform safe and environmentally friendly operations by establishing a permanent barrier to prevent release of hydrocarbons to the surface. Traditional P&A methods are time consuming, costly and have remained unchanged, despite technological advances in the industry.

"The costs related to well P&A are enormous. Using current practices, there will be a global fleet of dozens of full-time drilling rigs needed to perform P&A for generations to come. We believe the time has come to tackle this issue head on by assisting regulators and the industry to establish a new methodology for dealing with the decommissioning of wells. By using this method, hazardous wells will get the attention they deserve, and benign wells will avoid excessive rig-time and expenditure. We're looking at potential cost savings of more than USD32bn on the NCS alone, and even more globally," says Per Jahre-Nilsen, Senior Principal Engineer, DNV GL - Oil & Gas.

The DNV GL RP E-103 Risk based abandonment of offshore wells is based on case studies performed by DNV GL in projects dating back to 2011. A thorough process is defined where the key stages in the risk-based methodology assess the well barrier failure modes, well flow potential, valued ecosystem and safety components, dispersion modeling and impact analysis. These steps allow for a consistent method to be applied when assessing risk of the offshore well abandonment designs. The RP methodology provides assurance that selected well abandonment designs are robust, environmentally friendly and economically advantageous.

"DNV GL helps the industry to understand and manage the risks of their operations. Risk-based approaches are widely used in all other offshore disciplines, ensuring appropriate long-term environmental protection and also representing the most efficient method to ensure safety. It is time to apply these principles to P&A," says Elisabeth Tørstad, CEO of DNV GL - Oil & Gas.

The main obstruction to change in this sector has been today's prescriptive approach to regulations, which represents a conservative interpretation of past experience and outdated technologies. Practice also differs from country to country. The new RP uses well-known and accepted risk-based approach methodology, in which both environmental and safety risk aspects are key factors. Through the development of the RP, DNV GL worked with international oil and gas operators to establish an initial set of risk acceptance criteria and cross-checked these using case studies. The criteria and methodology have been further strengthened through dialogue with regulators and industry players.

Download the RP here:

DNV GL issued a technical paper and presentation on the RP held at the Offshore Technology Conference (OTC) in Houston on Monday May 2nd.

For more information about the RP, please visit DNV GL at booth 5155, and see more about our activities at OTC at DNV GL's event page here.

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For further information on the RP contact:
Per Jahre-Nilsen
Business Development Leader, Drilling & Well
DNV GL - Oil & Gas
Tel: +47 909 31 414

About DNV GL
As of 12 September 2013, DNV and GL have merged to form DNV GL. Driven by our purpose of safeguarding life, property and the environment, DNV GL enables organizations to advance the safety and sustainability of their business. We provide classification and technical assurance along with software and independent expert advisory services to the maritime, oil & gas and energy industries. We also provide certification services to customers across a wide range of industries. With our origins stretching back to 1864, our reach today is global. Operating in more than 100 countries, our 15,000 professionals are dedicated to helping our customers make the world safer, smarter and greener.

About DNV GL - Oil & Gas
In the oil and gas industry, GL Noble Denton and DNV's Oil & Gas business have joined forces to enable safe, reliable and enhanced performance in projects and operations. We provide a broad range of services, such as technical assurance; marine assurance and advisory; risk management advisory and offshore classification. Our 3,500 employees combine industry expertise, multidisciplinary skills and innovation to solve complex challenges for our customers. Together with our partners, we drive the industry forward by developing best practices and standards across the asset lifecycle. 

Contact Information

  • For media enquiries or images, please contact:
    Astrid Janbu
    Head of Communication Analysis
    DNV GL - Oil & Gas
    Tel: +47 478 45 860

    Cathrine Torp
    VP Communications Director
    DNV GL Oil & Gas
    Tel: +47 415 60 264