End-of-life management of oil and gas offshore platforms: challenges and opportunities for sustainable decommissioning

Authors

  • Nunzia Capobianco
  • Vincenzo Basile
  • Francesca Loia
  • Roberto Vona

DOI:

https://doi.org/10.7433/s118.2022.14

Keywords:

sustainable development; circular economy; decommissioning; offshore platforms; end life management

Abstract

Purpose of the paper: The decommissioning of offshore platforms represents a significant and controversial challenge that has gained attention over the years due to its environmental, social, and economic impact. This work aims to investigate stakeholders’ perceptions regarding the future of offshore platforms and to explore dimensions of sustainability related to decommissioning.

Methodology: An analysis was carried out based on two rounds of empirical inquiry, a range of primary data collected through multiple-choice questionnaires and in-depth interviews.

Findings: The analysis shows that stakeholders perceive reuse as an opportunity to minimise the impacts according to an environmental, economic, and social perspective. While the multipurpose platform represents an opportunity for the future, it also presents challenges.

Research limitations: The study relies only on qualitative analysis techniques and on a limited sample and geographical area.

Practical implications: The analysis offers several insights into the decommissioning scenario according to a sustainable and circularity perspective and contributes to the decommissioning debate by providing information about decommissioning programs, stakeholders’ impacts, and future planning considerations.

Originality of the paper: The study contributes knowledge to the field and useful managerial insights, highlighting stakeholders’ perception in the Italian context and exploring dimensions of sustainability and main SDGs related to the issue.

References

ALMEIDA B.F., ARRUDA E.F. (2017), “Evaluating Brazilian Bid Rounds: the impact of a plan to grant licences to optimize demand in the upstream sector”, The Journal of World Energy Law and Business, vol. 10, n. 3, pp. 235-256.

ARTS B., LEROY P. (2006), Institutional dynamics in environmental governance, Springer, Dordrecht. pp. 1-19.

BASILE V., VONA R. (2021), “Sustainable and Circular Business Model for Oil & Gas Offshore Platform Decommissioning”, International Journal of Business and Management, vo. 16, pp. 10.

BASILE V., CAPOBIANCO N., LOIA F., VONA R. (2021), “Sustainable decommissioning of offshore platforms: a proposal of life-cycle cost-benefit analysis in Italian oil and gas industry”, Proceedings IFKAD 2021 Conference, University of Rome Tre, Rome, Italy, 1-3 September 202.

BENTON D. (2015), Circular economy, Scotland, London.

BOSSELMANN K. (2016), The principle of sustainability: transforming law and governance, Routledge.

BRENT A.C., LABUSCHAGNE C. (2004), “Sustainable Life Cycle Management: Indicators to assess the sustainability of engineering projects and technologies” in 2004 IEEE International Engineering Management Conference (IEEE Cat. No. 04CH37574) (Vol. 1, pp. 99-103), IEEE.

BUCK B.H., LANGAN R. (2017), Aquaculture Perspective of Multi-Use Sites in the Open Ocean: The Untapped Potential for Marine Resources in the Anthropocene, Springer Nature.

BUCK B.H., KRAUSE G. (2012), “Integration of aquaculture and renewable energy systems”, In Meyers R.A. (Ed.), Encyclopaedia of sustainability science and technology (Vol. 1), Springer Science+Business Media LLC. Chapter No. 180, pp. 511-533.

BULL A.S., LOVE M.S. (2019), “Worldwide oil and gas platform decommissioning: a review of practices and reefing options”, Ocean and Coastal Management, vol. 168, pp. 274-306.

CAPOBIANCO N., BASILE V., LOIA F., VONA R. (2021), “Toward a Sustainable Decommissioning of Offshore Platforms in the Oil and Gas Industry: A PESTLE Analysis”, Sustainability, vol. 13, n. 11, pp. 6266.

CHAMBERLIN L., JAMSIN E., RAKSIT A. (2013), Wales and the Circular Economy. Favourable System Conditions and Economic Opportunities, Ellen MacArthur Foundation: Cowes, UK.

CHANDLER J., WHITE D., TECHERA E.J., GOURVENEC S., DRAPER S. (2017), “Engineering and legal considerations for decommissioning of offshore oil and gas infrastructure in Australia”, Ocean Engineering, vol. 131, pp. 338-347.

COLGLAZIER W. (2015), “Sustainable development agenda: 2030”, Science, vol. 349, n. 6252, pp.1048-1050.

CRESWELL J.W. (2012), Qualitative Inquiry and Research Design: Choosing Among Five Approaches, Sage, Thousand Oaks.

CRIPPS S.J., AABEL J.P. (2002), “Environmental and socio-economic impact assessment of Ekoreef, a multiple platform rigs-to-reefs development”, ICES Journal of Marine Science, vol. 59 (suppl), pp. 300-S308.

DAY M.D., GUSMITTA A. (2016), “Decommissioning of offshore oil and gas installations”, Environmental Technology in the Oil Industry, pp. 257-283. Springer, Cham.

DEPELLEGRIN D., VENIER C., KYRIAZI Z., VASSILOPOULOU V., CASTELLANI C., RAMIERI E., BARBANTI A. (2019), “Exploring Multi-Use potentials in the Euro-Mediterranean sea space”, Science of the Total Environment, vol. 653, pp. 612-629.

EIA (2018), Offshore Energy Outlook. Technical Report, International Energy Agency, London (2018)

EKINS P., VANNER R., FIREBRACE J. (2005), “Decommissioning of Offshore Oil and Gas Facilities: Decommissioning Scenarios: A Comparative Assessment Using Flow Analysis”, Policy Studies Institute, London, UK.

ELKINGTON J. (1997), “The triple bottom line”, Environmental management: Readings and cases, vol. 2, pp. 49-66.

ELKINGTON J., ROWLANDS I.H. (1999), “Cannibals with forks: The triple bottom line of 21st-century business”, Alternatives Journal, vol. 25, n. 4, pp. 42.

ELLEN MACARTHUR FOUNDATION (2015), Delivering the Circular Economy. A Toolkit for Policymakers, Ellen MacArthur Foundation: Cowes, UK.

ELLEN MACARTHUR FOUNDATION AND MCKINSEY & COMPANY (2014), Towards the Circular Economy: Accelerating the scale-up across global supply chains, Geneva, Switzerland: World Economic Forum.

EUROPEAN COMMISSION (2021), “European Green Deal: Commission proposes transformation of EU economy and society to meet climate ambitions”, Eur. Comm. 14 July 2021.

FAM M.L., KONOVESSIS D., ONG L.S., TAN H.K. (2018), “A review of offshore decommissioning regulations in five countries-Strengths and weaknesses”, Ocean Engineering, vol. 160, pp. 244-263.

FENG Z., YAN N. (2007), “Putting a circular economy into practise in China”, Sustainable Science, vol. 2, n. 1, pp. 95-101.

FOWLER A.M., MACREADIE P.I., JONES D.O.B., BOOTH D.J. (2014), “A multi-criteria decision approach to decommissioning of offshore oil and gas infrastructure”, Ocean and Coastal Management, vol. 87, pp. 20-29.

GEISSDOERFER M., SAVAGET P., BOCKEN N.M., HULTINK E.J. (2017), “The Circular Economy-A new sustainability paradigm?”, Journal of Cleaner Production, vol. 143, pp. 757-768.

GENTER S. (2019), Stakeholder engagement in the decommissioning process. In SPE Symposium: Decommissioning and Abandonment. OnePetro.

GONDAL I.A. (2019), “Offshore renewable energy resources and their potential in a green hydrogen supply chain through power-to-gas”, Sustainable Energy and Fuels, vol. 3, n. 6, pp. 1468-1489.

GORE C. (2015), “The post‐2015 moment: Towards Sustainable Development Goals and a new global development paradigm”, Journal of International Development, vol. 27, n. 6, pp. 717-732.

GUBA E.G., LINCOLN Y.S., (1994), “Competing paradigms in qualitative research” in Denzin N.K., Lincoln Y.S. (Eds.), Handbook of qualitative research (pp. 105-117), Sage Publications, Inc. “Handbook of qualitative research”, California: Sage, pp. 105-117.

HENRION M., BERNSTEIN B., SWAMY S. (2015), “Multi-attribute decision analysis for decommissioning offshore oil and gas platforms”, Integrated environmental assessment and management, vol. 11, n. 4, pp. 594-609.

HOLDREN J.P. (2006), “The energy innovation imperative: Addressing oil dependence, climate change, and other 21st century energy challenges”, Innovations: Technology, Governance, Globalization, vol. 1, n. 2, pp. 3-23.

INTERNATIONAL ATOMIC ENERGY AGENCY, (2009), “An Overview of Stakeholder Involvement in Decommissioning”, IAEA Nuclear Energy Series No. NW-T-2.5, IAEA, Vienna.

INVERNIZZI D.C., LOCATELLI G., BROOKES N.J. (2017), “Managing social challenges in the nuclear decommissioning industry: A responsible approach towards better performance”, International Journal of Project Management, vol. 35, n. 7, pp. 1350-1364.

INVERNIZZI D.C., LOCATELLI G., VELENTURF A., LOVE P.E., PURNELL P., BROOKES N.J. (2020), “Developing policies for the end-of-life of energy infrastructure: Coming to terms with the challenges of decommissioning”, Energy Policy, vol. 144, pp. 111677.

IPIECA, (2017), “Mapping the Oil and Gas Industry to the Sustainable Development Goals: An Atlas”, London: IPIECA, United Nations Development Programme. International Finance Corporation.

JACOBSSON S., JOHNSON A. (2000), “The diffusion of renewable energy technology: an analytical framework and key issues for research”, Energy Policy, vol. 28, n. 9, pp. 625-640.

KATES R.W., CLARK W.C., CORELL R., HALL J.M., JAEGER C.C., LOWE I., SVEDIN U. (2001), “Sustainability science”, Science, vol. 292, n. 5517, pp. 641-642.

KIKER G.A., BRIDGES T.S., VARGHESE A., SEAGER T.P., LINKOV I. (2005), “Application of multicriteria decision analysis in environmental decision making”, Integrated environmental assessment and management: An international journal, vol. 1, n. 2, pp. 95-108.

KIRCHHERR J., REIKE D., HEKKERT M. (2017), “Conceptualizing the circular economy: An analysis of 114 definitions”, Resources, conservation and recycling, vol. 127, pp. 221-232.

KLINGER D.H., EIKESET A.M., DAVÍÐSDÓTTIR B., WINTER A.M., WATSON J.R. (2018), “The mechanics of blue growth: management of oceanic natural resource use with multiple, interacting sectors”, Marine Policy, vol. 87, pp. 356-362.

KNOL M., ARBO P. (2014) “Oil spill response in the Arctic: Norwegian experiences and future perspectives”, Marine Policy, vol. 50, pp. 171-177.

KOMIYAMA H., TAKEUCHI K. (2006), “Sustainability science: building a new discipline”, Sustainability Science, vol. 1, n. 1, pp. 1-6.

KRAAIJENHAGEN C., VAN OPPEN C., BOCKEN N. (2016), “Circular business: collaborate and circulate”, Amersfoort: Circular Collaboration, 2016, p. 175.

LAKHAL S.Y., KHAN M.I., ISLAM M.R. (2009), “An “Olympic” framework for a green decommissioning of an offshore oil platform”, Ocean and Coastal Management, vol. 52, n. 2, pp. 113-123.

LANG D.J., WIEK A., BERGMANN M., STAUFFACHER M., MARTENS P., MOLL P., SWILLING M., THOMAS C.J. (2012), “Transdisciplinary research in sustainability science: practice, principles, and challenges”, Sustainability science, vol. 7, n. 1, pp. 25-43.

LEPORINI M., MARCHETTI B., CORVARO F., POLONARA F. (2019), “Reconversion of offshore oil and gas platforms into renewable energy sites production: Assessment of different scenarios”, Renewable energy, vol. 135, pp. 1121-1132.

LOIA F., BASILE V., CAPOBIANCO N., VONA R. (2021b), “Value Co-Creation Practices in the Decommissioning of Offshore Platforms: A Case Study Approach”, Journal of Creating Value, vol. 7, n. 2, pp. 206-218.

LOIA F., CAPOBIANCO N., VONA R. (2021a), “Towards a resilient perspective for the future of offshore platforms. Insights from a data driven approach”, Transforming Government: People, Process and Policy.

LOVE J. (2012), “Public engagement and stakeholder consultation in nuclear decommissioning projects”, in Nuclear Decommissioning, pp. 170-190. Woodhead Publishing.

MARTINS I.D., MORAES F.F., TÁVORA G., SOARES H.L.F., INFANTE C.E., ARRUDA E.F., LOURENÇO M.I. (2020), “A review of the multicriteria decision analysis applied to oil and gas decommissioning problems”, Ocean and Coastal Management, vol. 184, pp. 105000.

MEYER D. Z., AVERY L. M. (2009), “Excel as a qualitative data analysis tool”, Field methods, vol. 21, n. 1, pp. 91-112.

NA K.L., LEE H.E., LIEW M.S., ZAWAWI N.W.A. (2017), “An expert knowledge-based decommissioning alternative selection system for fixed oil and gas assets in the South China Sea”, Ocean Engineering, vol. 130, pp. 645-658.

NATIONAL MINING OCE FOR HYDROCARBONS AND GEO-RESOURCES (2020), “Dismissione mineraria delle piattaforme marine”, UNMIG, Available on: https://unmig.mise.gov.it/index.php/it/dati/dismissione-mineraria-delle-piattaforme-marine

NOAA (2017), Decommissioning and Rigs-to-Reefs in the Gulf of Mexico frequently asked questions, National Oceanic and Atmospheric Association, 201.

ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, NUCLEAR ENERGY AGENCY - OECD/NEA (2018), Preparing for Decommissioning During Operation and After Final Shutdown, NEA No. 7374.

PARENTE V., FERREIRA D., DOS SANTOS E.M., LUCZYNSKI E. (2006), “Offshore decommissioning issues: Deductibility and transferability”, Energy Policy, vol. 34, n. 15, pp. 1992-2001.

PIMENTEL DA SILVA G.D., BRANCO D.A. C. (2018), “Is floating photovoltaic better than conventional photovoltaic? Assessing environmental impacts”, Impact Assessment and Project Appraisal, vol. 36, n. 5, pp. 390-400.

PURNELL P., VELENTURF A., JENSEN P., CLIFFE N., JOPSON J. (2018), Developing technology, approaches and business models for decommissioning of low-carbon infrastructure. In Workshop proceedings. Low Carbon Infrastructure

ROBERTS J.M., CAIRNS S.D. (2014), “Cold-water corals in a changing ocean”, Current Opinion in Environmental Sustainability, vol. 7, pp.118-126.

SCHNEIDER J., GHETTAS S., MERDACI N., BROWN M., MARTYNIUK J., ALSHEHRI W., TROJAN A. (2013), “Towards sustainability in the oil and gas sector: benchmarking of environmental, health, and safety efforts”, Journal of Environmental Sustainability, vol. 3, n. 3, pp. 6.

SCHOOLMAN E.D., GUEST J.S., BUSH K.F., BELL A.R. (2012), “How interdisciplinary is sustainability research? Analyzing the structure of an emerging scientific field”, Sustainability Science, vol. 7, n. 1, pp. 67-80.

SCHROEDER D.M., LOVE M.S. (2004), “Ecological and political issues surrounding decommissioning of offshore oil facilities in the Southern California Bight”, Ocean and Coastal Management, vol. 47, n. 1-2, pp.21-48.

SCHROEDER P., ANGGRAENI K., WEBER U. (2019), “The relevance of circular economy practices to sustainable development goals”, Journal of Industrial Ecology, vol. 23, n. 1, pp. 77-95.

SIE Y.T., CHÂTEAU P.A., CHANG Y.C., LU S.Y. (2018), “Stakeholders opinions on multi-user deepwater offshore platform in Hsiao-Liu-Chiu, Taiwan”, International Journal of environmental research and public health, vol. 15, n. 2, pp.281.

SMYTH K., CHRISTIE N., BURDON D., ATKINS J.P., BARNES R., ELLIOTT M. (2015), “Renewables-to-reefs? - Decommissioning options for the offshore wind power industry”, Marine pollution bulletin, vol. 90, n. 1-2, pp. 247-258.

SOMMER B., FOWLER A.M., MACREADIE P.I., PALANDRO D.A., AZIZ A.C., BOOTH D.J. (2019), “Decommissioning of offshore oil and gas structures-Environmental opportunities and challenges”, Science of the total environment, vol. 658, pp. 973-981.

STUIVER M., SOMA, K., KOUNDOURI P., VAN DEN BURG S., GERRITSEN A., HARKAMP T., DALSGAARD N., ZAGONARI F., GUANCHE R., SCHOUTEN J.J., HOMMES S., GIANNOULI A., SÖDERQVIST T., ROSEN L., GARÇÃO R., NORRMAN J., RÖCKMANN C., DE BEL M., ZANUTTIGH B., PETERSEN O., MØHLENBERG F. (2016), “The governance of multi-use platforms at sea for energy production and aquaculture: challenges for policy makers in European Seas”, Sustainability, vol. 8, n. 4, pp. 333.

TECHERA E.J., CHANDLER J. (2015), “Offshore installations, decommissioning and artificial reefs: Do current legal frameworks best serve the marine environment?”, Marine Policy, vol. 59, pp. 53-60.

TOPHAM E., MCMILLAN D. (2017), “Sustainable decommissioning of an offshore wind farm”, Renewable energy, vol.102, pp. 470-480.

UNITED NATIONS (2012), The future we want. Resolution adopted by the general assembly on 27 July 2012 (A/RES/66/288), United Nations, New York.

UNITED NATIONS ENVIRONMENT PROGRAMME GENERAL ASSEMBLY (2015), Resolution adopted by the General Assembly on 11 September 2015. A/RES/69/315 15 September 2015, United Nations. New York.

UNITED NATIONS GENERAL ASSEMBLY (2005), Resolution Adopted by the General Assembly on 16 September 2005.

VAN ELDEN S., MEEUWIG J.J., HOBBS R.J., HEMMI J.M. (2019), “Offshore oil and gas platforms as novel ecosystems: A global perspective”, Frontiers in Marine Science, vol. 6, pp. 548.

VANNER R., BICKET M., WITHANA S., TEN BRINK P., RAZZINI P., VAN DIJL E., WATKINS E., HESTIN M., TAN A., GUILCHER S., HUDSON C. (2014), Scoping Study to Identify Potential Circular Economy Actions, Priority Sectors, Material Flows & Value Chain, European Commission: Luxembourg, 2014.

VELENTURF A.P., PURNELL P. (2021), “Principles for a sustainable circular economy”, Sustainable Production and Consumption, vol. 27, pp. 1437-1457

VONA R., BASILE V., CAPOBIANCO N., LOIA F. (2022), “The Role of Oil and Gas Offshore Platform Reconversion in Creating Artificial Reefs: A Multi-Business and Socio-Economic Perspective”, in “Impact of Artificial Reefs on the Environment and Communities” IGI Global, in press. Chapter 12.

VANNER R., BICKET M., WITHANA S., TEN BRINK P., RAZZINI P., VAN DIJL E., WATKINS E., HESTIN M., TAN A., GUILCHER S., HUDSON C. (2014), Scoping Study to Identify Potential Circular Economy Actions, Priority Sectors, Material Flows & Value Chain, European Commission: Luxembourg, 2014.

VELENTURF A.P., PURNELL P. (2021), “Principles for a sustainable circular economy”, Sustainable Production and Consumption, vol. 27, pp. 1437-1457

VONA R., BASILE V., CAPOBIANCO N., LOIA F (2022), “The Role of Oil and Gas Offshore Platform Reconversion in Creating Artificial Reefs: A Multi-Business and Socio-Economic Perspective”, In Impact of Artificial Reefs on the Environment and Communities (pp. 232-256). IGI Global.

YIN R.K. (2013), Case study research: Design and methods, SAGE,

YONG R. (2007), “The circular economy in China”, Journal of Material Cycles Waste Management, vol. 9, n. 2, pp. 121-129.

ZAWAWI N.W.A., LIEW M.S., NA K.L. (2012), “Decommissioning of the offshore platform: A sustainable framework”, In 2012 IEEE Colloquium on Humanities, Science and Engineering (CHUSER) (pp. 26-31), IEEE.

Downloads

Published

2022-08-31