Cost of Plug and Abandonment Operations in the Gulf of Mexico

Abstract

To explore, delineate, and produce hydrocarbon reserves, holes must be drilled into geologic formations. During the course of production, wells may become inactive because of diminished economic returns or technical problems, and be shut-in or temporarily abandoned. At the end of the life of every well, the well will be permanently plugged and abandoned (P&A). The P&A process is the first stage of a decommissioning program in which a site is returned to its original greenfield status in accord with regulatory requirements. The purpose of this paper is to describe the factors that influence P&A operations and summarize cost statistics from a sample of 118 jobs and 390 wells performed by Tetra Applied Technologies in the Gulf of Mexico from 2002-2003. Descriptive statistics are summarized and the impact of learning and scale economies are examined. Regression models are derived that estimate the cost of P&A activities based on job characteristics.

The impact of the 2005 hurricane season on the Louisiana Artificial Reef Program

“…In a temporary abandonment, the wellheard is removed, the producing formation is isolated with plugs, casing is plugged below the mudline, and a corrosion cap is inserted above the mudline [14]. A temporary abandonment is more secure than a shut-in well but is also more expensive to perform.…”

A Feasibility Assessment of Heat Energy Productivity of Geothermal Wells Converted from Oil/Gas Wells

“…Many thousands of oil/gas wells in the world are approaching their end-of-life stage [1][2][3]. It is costly and wasteful to simply plug and abandon (P&A) them [4,5]. How to use these wells to improve economics is a big issue.…”