7 NOV 2020
Reuse of Offshore Platform in
Decommissioning Concepts:
Rig to Reef and Rig to Fish Farm
Petrocamp 2020: Driving The Sustainable
Technology Developments in Digital
Revolution
ANWAR RIZAL, 7 NOV 2020
Outline
• Offshore Platform Distribution in Indonesia and
their status
• Decommissioning Plan in Indonesia and the
situation
• The Challenge of Offshore Platform
Decommissioning in Indonesia
• Offshore Platform Utilization Options
• Rig to Reef
• Rig to Fish Farm
Offshore Platform and Marine Conservation Areas
Source: KKP-DG Spatial Management
Indonesia has more than 600 offshore oil and gas platforms and around 80 percent of them
are more than 20 years old, therefore needs to be planned the decommissioning roadmap
Stakeholders seek ways (both technical and administrative) to reduce the costs while at the
same time find a multiplier effect solution
Decommissioning Plan in Indonesia
• Coordinating Ministry stated that nearly 100 platforms
are need to be decommission
• The estimated cost to decom 1 platform is 7,000,000
USD
• Liability on decom cost of USD 700 Mil will be decided
soon;
• 10 platforms will be decommissioned as a pilot project
within one year due to obstructing ALKI 1 & 2 Lanes;
• Indonesian governments are assessing the possibility of
reusing the platform as an artificial reef, aquaculture,
tourist attraction, navy station etc.
D n-m
D0
EXISTING REGULATIONS
SAFETY ASPECT: PP NO 17/1974, UU NO 17/1985, IMO INTL GUIDELINE 1989,, UU NO POSTPONING PLATFORM
17/20008, PERMENKESDM NO. 01/2011, PM NO. 68/2011, PM NO. 71/2013, SNI 13- REMOVAL (PPR)
6910-2002, MEMR NO 15/2018. ENVIRONMENTAL ASPECT: UU NO. 32/2009, PP NO.
27/2012, PP NO. 21/2010. ASSET ASPECT: PP NO. 38/2008, FMR NO. 135/
PMK.06/2009
1. Removal method
2. Reefing site
3. Well P&A
1. Approval for Removal 4. Pipeline Abandonment
2. Project Execution Plan 5. Government and Local Authorities approvals
6. EIA
Pre-Asset Asset Project Dismantle
Planning Permitting Bidding
Write Off Write Off PASCA
PEMBONGKARA
Post Decommissioning
N
PERIOD BEFORE DECOMMISSIONING POST
DECOMMISSIONING
TAX COST, MAINTANANCE COST, IDLE, ABANDONED
1. Identify/Grouping of 1. Project Execution Plan 1. Prepare Scope of Work
the Platforms 2. Project Schedule 2. Terms and Conditions
2. P/F Data Collection 3. Cost Estimation 3. Other Contract Document
3. Site Survey & P/F 4. Project supporting team 4. Project Specifications
Inspection 5. Decommissioning FEED 5. Prepare RFQ’s
Engineering 6. TBE/CBE
7. Award Project
PRINCIPAL ACTORS SUPPORTING ACTORS
MINISTRY OF ENERGY AND MINERAL RESOURCES, MINISTRY OF FINANCE, MINISTRY OF TRANSPORTATION, MINISTRY OF MARINE AFFAIRS AND FISHERIES
MINISTRY OF ENVIRONMENT AND FORESTRY, SKK MIGAS, OPERATORS AND OTHER STATE INSTITUTION
01 NO CLEAR LAW ENFORCEMENT
02 ASSET STATUS
Post Decommissioning
Issues on
Post Re-utilization
Decommissioning Options 03 LACK OF FINANCIAL SUPPORT
04 NO NATIONAL ACTION PLAN FOR
Artificial Reefs
05 RESTRICTED & PROHIBITED
Oil and Gas Areas / Spatial Zones
REGULATORY CHANGED
06
Required to use P/F for non petroleum operations
Scientific Evidence in the surrounding areas of P/F is compulsory to find an answers for
the policy debate over R2R [foster abundant marine life populations or not, generate
revenue for marine conservation/community/state or not, reasonable liability for
company or not, the environmental condition support or not, etc.] as well as R2F
Offshore Platform Utilization Options
Offshore Platform Utilization Options
RIGS-TO- SEA FISHERY RENEWABLE RESEARCH MILITARY
NO OPTIONS FISH FARM
REEFS ADVENTURE COLDSTORAGE ENERGY HUB STATION BASE
Topside/ Topside/ Topside/ Topside/
1 Parts that can be utilized Jacket Jacket Jacket
Jacket Jacket Jacket Jacket
2 Safety factors Good Not good Not good Not good Not good Not good Not good
High High Yes Yes Yes
Capital Investment Yes
3 No (Cage, automatic (infrastructure (electricity, (turbine, generator, (military
(facilities required) (sensors)
feeder, seed, etc.) etc.) refrigerator etc.) etc.) facilities)
Yes Yes Yes Yes
Operational and Yes Yes
4 No (food, man hour (electricity, man (electricity, man hour, (man hour,
Maintanance Cost (man hour) (man hour)
etc.) hour, etc.) etc.) corosion, etc.)
Environment & Case by case Case by case Case by case
Benefits Case by case Case by case Case by case
5 coastal (visible (tourism/moderat (sea
(Environment/Economy) (fish stock/moderate) (electricity/low) (data/low)
community business/high) e) security/low)
6 BEP (year after.min) 10 2 or 3 Case by case Case by case N/A N/A N/A
7 Risks (Failure/malfunction) Low High High High High Moderate High
8 Ownerships Clear Unclear Unclear Unclear Unclear Unclear Unclear
Decommissioning
9 Clear Unclear Unclear Unclear Unclear Unclear Unclear
responsibility
GOALS:
• To reduce the cost of decommissioning;
• To added value for marine and fishery sectors.
LOW COSTS* HIGH BENEFITS**
01 ✔
Rigs-to-Reefs [R2R]
Post
Decommissioning HIGH COSTS HIGH BENEFITS
Post
[7 P/F Decommissioning
PHKT & 14 P/F ONWJ]
02 ✔
Rigs-to-Farm [R2F]
1. Collect, Identify & group of the
platforms
2. P/F data assessment Added Value:
3. Site survey & P/F inspection Re-utilization
4. Feasibility study Options
5. Preliminary cost estimation and
approvals
HIGH COSTS LOW BENEFITS
03
Sea Adventure, Renewable Energy Hub and Fish Cold
Storage
LOW COSTS LOW BENEFITS
04
Low cost alternatif Research Station, Military Base
Cost Reduction
* Cost after decommissioning [i.e. monitoring R2R, modification top side cost etc.]
** ECONOMIC BENEFITS after decommissioning [environmental and stakeholders]
• R2R: The practice of converting decommissioned oil and gas rigs
Rig-to-Reef into artificial reefs;
• A method used to reduce the cost of decommissioning as well as
promoting the fisheries resources in surrounding areas as coral
and coral reef habitat;
• Several countries have implemented this method such as US
(Louisiana, Texas, Mississippi, California). They have donated and
converted more than 420 rigs [+10% of total offshore rigs];
• Its reported that 10,000-30,000 adult fish reside in an area about
half the size of a football field;
• Korea has been investing in artificial reef technology and
implementation since 1970 with USD 2 billions budget;
Lesson learned from Gulf of Mexico
1. Operators race to donate the abandoned asset for artificial reefs [more than 400 rigs
since 80s];
2. Fish biomass and density and around the standing oil and gas platform are higher
than the artificial reefs or natural reefs
3. Potential benefits:
• For the environment, enriches the marine life in the area by providing them
habitat, shelter, food and other necessary elements for biodiversity and
productivities ocean as well as the population connectivity;
• For oil and gas companies, save the costs of removing, transporting and disposing
them onshore;
• For government (both central and local), attract marine life that enhances fisheries
and contribute to the economy and enlarge the conservation areas
Cutting and Placement Method
PREPARINNG RIG TO REEF (BAARGE & CRANE) UPPER JACKET LIFT ING & DOWN TO SEABED
UPPER JACKET RIG TO REEF FINISHED TOPPLING UPPER JACKET
Adopted from GOM case, the criteria for suitable reefing areas are:
• Suitable depth clearance [30-40 m];
• Slope [less than 1-3 deg.];
• Seabed substrate [hard substrate];
• Distance from shore [< 12 nmil]
• Fit with the zonation plan [exclusion map];
• Influence by the natural source [coral & coral fish];
• Good sea water parameters.
NORTH JAVA SEA
Ex-situ R2R
• Due to the existing regulation, the structures will be cut and towed
outside the oil and gas field and placed in a conservation area;
• The placement is by design and how make it differentiate with
dumping activity
Potential location for Rig to Reef
North Java Sea (Subang and Indramayu)
EAST KALIMANTAN
2
Karang segajah
Candidate reefing sites
KKPD BONTANG
Offshore Fish Farm Introduction and Background
• President Jokowi has high interest in Offshore Aquaculture
• Topside can be modified to install supporting facilities and Jacket can
be used as a mooring point for fish cages
Considerations
• Experience pilot project with Norway using floating cages – Need to
consider Submergible Cages
• Weather and marine environments are different, thus uncertainties
when adopting Korean aquaculture model
• Using the Offshore Platforms as a
mooring point, aquaculture facilities can
be installed on the surrounding area of
the platform;
• Compared with 50~60% survival rate of
onshore aquaculture, offshore
aquaculture shows around 95% survival
rate which is highly economical;
• Accessibility to the platform is the key
factor
• We have developed three different scenarios and their economic calculations [1 cage,
4 cages and 10 cages] with cultivated species tiger grouper, snapper or tuna;
• Each scenario has different economic gain in the period of 10 years to reach the Break
even Point [BEP];
22 miles off coast of Mississippi in the GOM
The University of New Hampshire’s offshore installation design
10,000 m3 double ring HDPE 30 m diameter net pen moored between two
platforms off of the central Texas coast in 1990
Submersible cage [Aquatec-Indonesia]
Sea Station
Type (Model) Cultured Fish Diameter Height (Spar) Volume Cultured Remark
Sea-Station 3000 Tiger-Grouper 25.20 m 15.30 m 3000 m2 120 ton
Sea-Station 5400 Tiger-Grouper 33.45 m 20.70 m 5400 m2 200 ton Recommended
Sea-Station 6800 Tiger-Grouper 34.00 m 24.00 m 6800 m2 250 ton
Sea-Station 20000 Bluefin-Tuna 39.60 m 24.00 m 20,000 m2 225 ton Recommended
Spar
Rim
Harvest cone
Ballast weight
Feasibility Study on Decommissioning and Re-Utilization of 7 Abandoned Platforms in
East Kalimantan (PHKT)
Platform
Attaka I Attaka EB Attaka UA
Topside 545.0 Topside 263.0 Topside 263.0
Weight
Jacket 841.0 Weight
Jacket 95.0 Weight
Jacket 95.0
(Ton) (Ton) (Ton)
Total 1,386.0 Total 358.0 Total 358.0
Esti. Lifting 1,465.0 Esti. Lifting 368.0 Esti. Lifting 368.0
Water Depth (MSL) 67m Water Depth (MSL) 56m Water Depth (MSL) 55m
Yakin 7 Yakin 8 Yakin 12
Topside 59.2 Topside 95.3 Topside 28.5
Weight
Jacket 12.2 Weight
Jacket 52.2 Weight
Jacket 12.2
(Ton) (Ton) (Ton)
Total 71.4 Total 147.5 Total 40.7
Esti. Lifting 72.4 Esti. Lifting 148.5 Esti. Lifting 41.7
Water Depth (MSL) 7m Water Depth (MSL) 6m Water Depth (MSL) 5m
Yakin 13
Topside -
Weight
Jacket 9.5 Goals: Offering alternative solutions that are effective and
(Ton)
Total 9.5 efficient while still considering environmental conditions and
at the same time enhancing coastal communities' welfares
Esti. Lifting 10.5
Water Depth (MSL) 6m
Feasibility Study on Decommissioning and Re-Utilization of 3 Abandoned Platforms in
North Java Sea (PHE-ONWJ)
Thank You
Email: [email protected]
