ENERGY LAW

Dr Tina HunterReader in Energy Law, University of Aberdeen; andAssociate, Aberdeen University Centre for Energy LawJUS271A Energy LawRegulatory areasSTAGES OF PRODUCTIONACCESS PETROLEUM EXPLOITATIONLCSEXPLORATION AND DEVELOPMENT(L2)or PRODUCTION: SAFETY IN EXPLORATION AND PRODUCTION (L3)PSCPRODUCTION: REGULATING WELLS IN EXPLORATION AND PRODUCTION (L4)(L1)PRODUCTION:ENVIRONMENTAL REGULATION IN EXPLORATION, PRODUCTION DECOMMISSIONING (L5)This lecture will cover...RECAP OF REGULATORY BOW TIEREGULATION OF OPERATIONS - WELL INTEGRITY AND WOMPsWHAT IS WELL INTEGRITYIMPORTANCE OF WELL INTEGRITYCONVENTIONAL WELLSUNCONVENTIONAL WELLS GOP VS ALARPUSE OF STANDARDS IN ONSHORE PETROLEUM ACTIVITIES SPILL RESPONSEWELL CONTROL RESPONSEREGULATORY BOW TIE6

The Regulatory Bow Tie Regulatory Bow Tie Prevention and response both criticalPreventionSafetyEnvironment Well Integrity ResponseCritical response Well control response Environmental clean-up responseIS PREVENTION BETTER THAN RESPONSE? WELL INTEGRITY AND WOMPS

Well integrityDefined by NORSOK as application of technical, operational and organizational solutions to reduce the risk of uncontrolled release of formation fluids throughout the life cycle of a wellVarious facets to well integrity including:Accountability and responsibility, well operating processesWell service processesAnnulus IntegrityWellhead integrity and testing

Montara in AustraliaAugust 2009Well kick Poor barriersCementing of the shoeInexperienced operatorInadequate regulation

Deepwater Horizonhttps://www.youtube.com/watch?v=FCVCOWejlag Also known as the Macondo blowoutcomplex systems almost always fail in complex ways space shuttle Challenger

CausesCementing of shoeLack of barriersDepthTechnology raceRegulation not keep up with technologyMMSProfit before safety?

Response wait and seehairdumping garbagetopkillrobotic armYour perceptions?

Well integrity

Happen again?

DWH was a catastrophic facility integrity failure (CFIF)This could happen any time anywhere, butTheoretically less likely due to method of regulation Individual installation assessmentProblems facing all activitiesDeeper waterDo we really know the issues?Regulation keeping upAgeing installationsGannet Alpha in August 2011North Sea

Regulatory response to MontaraWhy is well integrity important? What prevents groundwater damage or well blowoutNo single HF caused damage is Loss of well control or failure of integrity of the well..Dont want wells to leak when wells leak need environmental response

Well integrity bow tie - How Wells FailWhy is well integrity so important?

Prevention of environmental harm - barriersCement JobCement Bond LogWell integrity test Well monitoring BOPRegulation of wells Norway

Regulation of wells NorwayREGULATIONS RELATING TO HEALTH, SAFETY AND THE ENVIRONMENT IN THE PETROLEUM ACTIVITIES AND AT CERTAIN ONSHORE FACILITIES (THE FRAMEWORK REGULATIONS)

REGULATIONS RELATING TO TECHNICAL AND OPERATIONAL MATTERS AT ONSHORE FACILITIES IN THE PETROLEUM ACTIVITIES, ETC. (TECHNICAL AND OPERATIONAL REGULATIONS)

REGULATIONS RELATING TO CONDUCTING PETROLEUM ACTIVITIES (ACTIVITIES REGULATIONS)CHAPTER XV

Other forms of regulation investigations and orders

Other forms of regulation Risk reductionS11 framework regulationsUse of recognised standards S24 framework regulationsNORSOK D-010 Information and assessment http://www.psa.no/well-integrity-challenges/category1031.htmlAcknowledgement of Compliance Scheme (like SCR) http://www.psa.no/what-is-an-acknowledgement-of-compliance/category952.html Regulations of Wells UK Law General Provision Petroleum Act The offshore installations and wells (design and construction etc) regulationsUK HSE http://www.hse.gov.uk/offshore/wells.htm

Current issues of importance in North SeaMonitoring and maintaining well lifecycle integrityArrangements for examination of well design and construction by independent and competent third parties Verification of well control safety critical equipment by independent and competent third parties Arrangements for ensuring competence for safe working, especially complex well operations (eg HPHT)