Decommissioning Work Breakdown Structure Handbook

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FORWARD

This handbook has been developed by a working group within the Decommissioning Forum
which is a part of Norsk olje og gass.
The Handbook is owned by Norsk olje og gass.

Norsk olje og gass

Vassbotnen 1, 4313 Sandnes
Postboks 8065
4068 Stavanger
Telefon: + 47 51 84 65 00
Telefaks: + 47 51 84 65 01
Hjemmeside: [Link]
E-post: firmapost@[Link]

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Contents
FORWARD 2
1. Introduction 4
2. Objectives of the Guidelines 5
3. Application of the Guidelines 6
4. Work Breakdown Structure – Scope Definition 7
4.1 Project Management 7
4.2 Post Cessation of Production Running costs 7
4.3 Well Decommissioning 8
4.4 Facilities and Pipelines Permanent Isolation and cleaning 9
4.5 Topsides Preparation 9
4.6 Topsides Removal 9
4.7 Substructure Removal 10
4.8 Topsides and Substructure Onshore Disposal 10
4.9 Subsea Infrastructure 11
4.10 Site Remediation 11
4.10 Post Decommissioning Monitoring 11

5. References 12
Appendix 1 – Abbreviations 13
Appendix 2 – High Level Decommissioning Work Breakdown Structure 14

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1. Introduction
Norwegian Oil & Gas has recognised that decommissioning in the Norway Continental Shelf
(NCS) is becoming a major part of the industry and needs coordination in order to provide timely
advice to the Norwegian Government and provide a consistent voice from the industry on
decommissioning matters.
The Norwegian Oil & Gas Decom Forum (NOGDF) has had several strategic focus areas where
groups have been working on these and one of them covered the requirement for a standard
WBS/CBS structure for estimation of decommissioning.
After a review the group working on the standard WBS/CBS structure decided the most logical
way forward was to implement the Oil and Gas UK (OGUK) guideline for decommissioning work
breakdown structure. One of the major reasons behind this was the aim to have one common
standard for both the UKCS as well as NCS so allowing a better understanding of estimates as
well as a better basis for benchmarking.
The result is that the first issue of this Decommissioning work breakdown structure handbook is
based on the Oil and Gas UK Decommissioning Work Breakdown Structure, October 2019.
As experience in decommissioning develops across operators, it is recommended that these
Guidelines are reviewed periodically. NOGDF will work closely with OGUK in relation to any
reviews of the standard decommissioning work breakdown structure.
Abbreviations used in this document are listed in Appendix 1.

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2. Objectives of the Guidelines

These guidelines are advisory and should not be regarded as prescriptive: they are intended to
outline best practice, based on industry experience. The objectives of the guidance are to
provide:
• A template or framework against which operators can independently develop
comprehensive decommissioning cost estimates with a high degree of consistency
• A common basis for data provided to OGUK as may be required for their Annual
Decommissioning Insight Report
• A basis for establishing greater confidence in decommissioning costs estimates used in
asset valuations for purposes of asset acquisition or disposal (Security Agreements, etc)
• A better means of comparing estimates from different sources (eg third parties such as
operators, partners, contractors, etc)
• A potential framework for future benchmarking

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3. Application of the Guidelines

These guidelines are intended to assist in the development of decommissioning cost estimates
for offshore oil and gas facilities on the NCS.
Decommissioning cost estimates are required throughout the development life cycle for:
• Initial field economics
• Calculation of the decommissioning provision/asset retirement obligation (ARO) during
the field life
• Decommissioning security agreements towards the end of field life
• Planning the cessation of production and the preparation of the decommissioning plan
• Comprehensive decommissioning cost estimation for the decommissioning project

The level of definition will change as the project progresses through the project life cycle.
These guidelines are not intended to provide the specific estimating methodology employed,
although market rates and escalation must be clearly stated for a cost estimate to be properly
understood. Each operator has internal cost estimation procedures that will be applied.
This document aims to provide a high-level overview of the elements that make up the scope of
a decommissioning project, and the activities within each element for which costs should be
allowed. Although the list of items shown within the WBS is comprehensive, every
decommissioning project is unique and there may be other activities required. This WBS is
intended to act as a guide only. It is not intended to be a detailed project management tool and
operators retain the freedom to deviate from the WBS to ensure fitness for purpose for any given
project, or to fit business needs.
The following pages give a brief description of the work items that fall under each element of the
WBS. It should be noted that these categories are not sequential and may not be part of a
continuous process. Some categories may be concurrent, but not all may be required.
It is recognised that the given cost elements will frequently be represented as activities
embedded within a conventional WBS. This document does not attempt to outline the overall
hierarchical structure, standards such as ISO 190081 are a recognised starting point for this.

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4. Work Breakdown Structure – Scope Definition

4.1 Project Management

Throughout the various elements of a decommissioning project, operators will

need a core team to manage the day-to-day activities and as such project
management remains integral to all elements of the WBS. This core team will
fluctuate over time in proportion to workload and when different areas of
specialisation are required.
This element of the WBS includes the preparation of the Comparative Assessment (CA) when
required for derogation to OSPAR, Impact Assessment (IA), and Decommissioning Plan (DP)
as well as any supporting studies required throughout the project. These studies are undertaken
by personnel within operators and practitioners who gather information to make robust decisions
for decommissioning projects from safety, technical, environmental, societal and economic
perspectives.
Decommissioning projects cover a broad range of activities. As a result, there are many
regulations and regulators involved throughout the process to ensure safe and effective
decommissioning. Management of the permits, licences and consents relating to the
decommissioning project is crucial in supporting the schedule. This is covered under this section
of the WBS.
Activities included in this element are establishing the core project management team, partner
and stakeholder interaction, studies to support the DP and scope definition, method
development, any required updates to the QRA, and preparing the DP.
Company overheads related to the project, project insurances, compliance and verification
costs, contributions to any Trust Funds, project tendering and any paid study work should also
be included in this WBS element.
In relation to cross border projects. especially covering UKCS, the following additional types of
costs should also be included in this section:
• Preparation of Comparative Assessment (CA)
• Preparation of any additional decommissioning programmes
• Completion of close out reporting to the regulator
• Fees payable to the regulators regarding review of Decommissioning Programme
• Any other fees payable to various organisation in support of permit applications

The contractors awarded scopes of work throughout a decommissioning project will have project
management with their associated activities. This “contractor project management” should be
included in each respective WBS element as necessary.

4.2 Post Cessation of Production Running costs

When a producing facility has reached the end of its economic life, operators can
apply to the MPE for Cessation of Production (CoP). In this application, operators
are required to satisfy the regulator that all economic development opportunities
relating to a field have been exhausted (including alternative use).
Post-CoP running cost refers to operational expenditure after the termination of production on
the platform. CoP does not mean that all work on an installation is stopped. Activity on a facility

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will continue until all major hazards have been removed, e.g. isolation of wells or removal of
hydrocarbons. Costs associated with his element of the WBS will stop when the topsides are
removed.
Post cessation of production activities and costs will include the platform offshore and onshore
support teams, diesel and other fuels, integrity management, inspection and maintenance
activities and other costs associated with routine operation of the installation such as power,
water, air, etc. Logistics (flights, supply vessels, etc.) and accommodation costs for the
continued operation of the installation should be allocated to this WBS element.
There are occasions where even though native production has terminated an installation may
need to remain operational to provide support to other infrastructure. This may be as a pumping
conduit for hydrocarbons or to maintain important utility systems to support other infrastructure.
Costs for these types of activities would typically be allocated to operational expenditure rather
than the decommissioning project as abandonment expenditure.

4.3 Well Decommissioning

Well decommissioning is the permanent isolation of any rock formations with flow
potential and the restoration of a seabed to its previous status. There are three
phases of well decommissioning:

Well decommissioning is conducted by a team of highly skilled personnel who will engineer
specific activities for each well bore and then carry out the decommissioning work scopes. These
work scopes are normally carried out using one of the following methods:
• Subsea wells: Using a jack-up or semi-submersible drill rig, or in some instances
Lightweight Well Intervention Vessels (LWIV)
• Platform wells: Using a jack-up, the existing drilling rig on an installation (which may
require upgrades to make it fit for purpose); or using purpose-built, modular equipment
installed specifically for well decommissioning
Each well is different and a thorough review of the well records from previous operations is
essential in ensuring a successful well decommissioning campaign. Issue 6 of the OGUK Well

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Decommissioning Guidelines also provides best practice guidance based on recent North Sea
activity.
Activities included are any necessary rig reactivation and upgrades, the completion of studies
to support well programmes, de-risking by conducting well integrity tests, well suspension
(spread rate/duration), and any activities to support phases 1, 2 and 3 of the well
decommissioning. For example: drilling fluids and services, cementing services and products,
logging services, wellhead and tree services, casing milling, casing/tubing retrieval services, rig
placement surveys, fishing services, conductor recovery, cleaning, recycling and associated
waste management, and vessel hire. The onshore and offshore wells project team and any
logistics to support specific well decommissioning activities should also be included in the WBS
element.

4.4 Facilities and Pipelines Permanent Isolation and cleaning

The platform and pipelines used to recover and transport the hydrocarbons must
be isolated and cleaned. This involves ensuring any pressure sources are
neutralised and that the installation is free, as far as reasonably practicable, of
hydrocarbons and contaminants.
Topsides cleaning activities involve the flushing of process equipment from
platform wells and topsides pipework. It may also include entering pressure vessels on the
installation to manually clean or to remove any solid material. The level of cleaning required on
an installation depends on the removal methodology, as there may be opportunities to carry out
much of the cleaning and decontamination as part of the onshore disposal.
In compliance with regulations, pipeline cleaning programmes are designed to ensure the
hydrocarbon content and any deposits within the pipeline are sufficiently cleaned, taking into
account the future DP and without prejudicing any opportunities for potential reuse.
Facilities and pipeline isolation and cleaning activities included in this WBS element are draining,
flushing, purging, venting, physical isolation, cleaning, pipeline pigging, recycling and associated
waste management. The cleaning activities associated with flowlines which are tied into wells is
also to be included in this WBS element.

4.5 Topsides Preparation

Once all sources of energy have been isolated, preparations can be made to a
manage the topsides in its interim status. Activities to upgrade or re-engineer the
facilities on the platform are included in this part of the scope. Such as; power
upgrades to the installation to meet the decommissioning requirements; crane
upgrades; module process/utilities separation; dropped object surveys; and
subsequent remedial actions. Additionally, if a structure is to become a Not
Normally Attended (NNA) for any period of time, navigational aids may be
installed during this phase.

4.6 Topsides Removal

During a decommissioning project, all topsides must be removed. There are three
principal methods for achieving this:

• Single-lift – Using a large lift vessel to remove the topsides as a single unit and
transport onshore
• Reverse installation – Separation of modules on the installation and removed
by the lift vessel one by one

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• Piece-small removal – Breaking the topsides into small pieces offshore and transporting the
waste to shore for disposal

Selection of the removal method will generally be on the basis of the removal contractors’ proposals
although operators should determine a removal strategy for the topsides to eliminate unnecessary work
in other WBS elements. Hybrid options of the above could also be adopted should they be feasible.

Once the methodology for removal is confirmed the topsides can be prepared for lifting. Structural
engineers and lift experts are required for this phase of the work scope. Their activities may entail lift-
point installation or re-instatement and structural strengthening for transportation. Other activities
included are vessel operations, sea-fastening, transportation and load-in.
.

4.7 Substructure Removal

Once the topsides have been removed, the removal of the substructure can take
place. Substructures vary considerably in terms of their shape and size depending on
the water depth and the size of the topsides they were designed to support.

Substructures can be either concrete gravity based (CGB) or steel piled jacket structures (SPJ). CGBs
are large reinforced concrete structures which are constructed in near-shore locations and floated to
site. SPJs are steel structures which consist of a lattice of steel circular hollow sections welded together.
These jackets are fabricated onshore and can be installed from a barge, made buoyant and floated to
site, or installed using a lift vessel.

The removal CGB and SPJ substructures may be subject to CA conducted as part of WBS element 1.
All removal activities relating to these structures should be included in this element of the WBS. CGB
removal activities may include appurtenance removal. Removal of SPJ structures can be conducted
either by single-lift or by cutting the structure into sections and transporting back to shore to for
recycling. Prior to cutting and lifting, tasks such as reinstatement of lift points and strengthening for
transportation will be carried out by contractors. Activities such as pile cutting, and removal of
associated mud mats should be allocated in this WBS element.

Activities included in this WBS element are removal preparation, structure removal, vessel hire and
operations, sea-fastening, transportation and load-in. The removal of FPSO’s including associated
moorings and anchor chains should also be included in this WBS element.

4.8 Topsides and Substructure Onshore Disposal

Once topsides and substructures are transported to shore, they are managed under the
waste hierarchy, considering re-use, recycling or disposal. Owners of oil and gas
infrastructure have a duty of care which enforces the responsible handling of
infrastructure from construction to final disposal.

Due to the nature of oil and gas production, some of the materials and fluids in a facility being
decommissioned may be contaminated (e.g. NORM or LSA). Therefore licences, controls, mitigations,
handling and disposal methods have been established to manage and dispose of such wastes. Once
the infrastructure is onshore, the disassembling and processing takes place on licensed sites in
accordance with an approved waste management system.

Activities included are cleaning and handling of hazardous waste, regulatory approvals for
transboundary shipments of waste, dismantling, re-use, recycling and associated waste management.

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Scrap value credits for re-used or recycled materials are sometimes shared with operators by the
disposal contactors. Any savings associated with scrap value should be considered in this WBS
element.

4.9 Subsea Infrastructure

Included in this element are removal or remediation (i.e. trench and burial or
rock cover) activities for pipelines, cables, bundles, risers, mattresses and
subsea structures. Vessel hire and operations, sea-fastening and
transportation, load-in, recycling and associated waste management must
also be considered. Prior to any removal activities, pipelines may require to
be cleaned. Flushing and cleaning activities are included in WBS element 4.

4.10 Site Remediation

Once the decommissioning of the wells, topsides, substructures, pipelines

and associated subsea infrastructure have been completed, operators are
required to ensure that the seabed is made safe for other users of the sea.
This involves the removal of any debris remaining around the facility as
agreed within the DP.

Activities included are oil field debris clearance around structures and
pipeline corridors, and recycling and associated waste management.

4.10 Post Decommissioning Monitoring

Monitoring programmes are required for any infrastructure that is left in place as
agreed in the DP. Surveys will be conducted to check the status of infrastructure
and assess changes over time to ensure no increased risk to other users of the
sea. The programme requires the first monitoring three years after site remediation
followed by another survey three years later. However, if there are significant drill
cuttings piles there may be requirement for further surveys.

Activities included are the maintenance of any navigation aids that have been installed and establishing
monitoring programme for any facilities or infrastructure that remains.

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5. References
Oil and Gas UK Decommissioning Work Breakdown Structure, published October 2019

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Appendix 1 – Abbreviations

Abbreviation Definition
ARO Asset Retirement Obligation
CA Comparative Assessment
CBS Cost Breakdown Structure
CGB Concrete Gravity Based Structure
CoP Cessation of Production
DP Decommissioning Programme
EA Environmental Assessment
FPSO Floating Production and Offload
LWIV Lightweight Well Intervention Vessel
LSA Low Specific Activity
MPE Ministry of Petroleum & Energy
NCS Norwegian Continental Shelf
NNA Not Normally Attended
NOGDF Norwegian Oil & Gas Decommissioning Forum
NORM Normally Occurring Radioactive Material
OGUK Oil & Gas UK
OPEX Operational Expenditure
SPJ Steel Pile Jacket
QRA Quantitative Risk Assessment
UK United Kingdom
UKCS United Kingdom Continental Shelf
WBS Work Breakdown Structure

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Appendix 2 – High Level Decommissioning Work Breakdown Structure

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