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03/08/2015 OTC: Aging UK wells have structural integrity problems Oil & Gas Journal
http://www.ogj.com/articles/2005/05/otcagingukwellshavestructuralintegrityproblems.html 1/10
DOE technology manager lauds microhole technology |Gaz de France plans major expansions to meet demand growth
05/04/2005
Sam FletcherSenior Writer
HOUSTON, May 4 Some 83% of the operators of more than 6,000 offshore wells on the UKcontinental shelf (UKCS) are experiencing structural integrity problems with aging wells, saidofficials of UWG Ltd., a unit of Acteon Group Ltd., Norwich, UK, at a press conference at theOffshore Technology Conference. The UWG officials said 87% of the operators expectproblems to increase due to sales of offshore properties, extension of well design lives, andgeneral lack of attention to system design and maintenance in the past.
A recent study of that problem by DouglasWestwood Ltd., under commission from UWG, foundthat 10% of UK wells have been shut in at some point during the last 5 years. Although theNorth Sea is a harsh environment, the structural integrity problems encountered there "havewider implications for the global oil and gas industry," UWG reported.
"It has confirmed our belief that, as an industry, more emphasis needs to be given to insuringthe structural integrity of wells during construction and to overcoming any problems that presentthemselves later in a well's life cycle," said Ken Burton, UWG's managing director and vicepresident of Acteon's conductor systems division. Another part of the Acteon group is WellCutDecommissioning Services, a wellabandonment contractor.
According to the report, "Concerns surrounding the structural integrity of the facilities above the
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03/08/2015 OTC: Aging UK wells have structural integrity problems Oil & Gas Journal
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waterline—in many cases now operating beyond their design lives—are generally beingaddressed. But what about the subsea infrastructure, in particular the conductors and thewells?"
Findings by the DouglasWestwood study are based on interviews with representatives from 18operators of 6,137 wells out of the 9,196 wells in the UK North Sea. Additional data from the UKDepartment of Trade and Industry showed that 960 wells were suspended at the time of thereport and that 32% of the wells in those waters are more than 20 years old, some more than 38years old.
Although many oil and gas fields off the UK are in decline, strong prospects remain forsustained activity in the area, the report said. Supported by government initiatives to sustainproduction and maximize economic recovery, the industry is focused on reevaluating andextending the operational lives of existing wells and facilities.
"However, as the region's operational infrastructure moves beyond its intended productive life,concerns are growing over safety, productivity, and environmental standards," the report said."Issues of structural integrity have therefore become increasingly pertinent concerns for industryas exploration and production activity is likely to be sustained into the next decade and beyond.As UKCS decommissioning activity continues to be delayed, and the movement towardextending the life of mature assets and developing previously untapped reserves continues togather momentum, an increasing reliance on existing, aging infrastructure is developing."
The report said, "However, there seems to be no real knowledge of the implications of operatingwells beyond their design lives, and particular concern surrounds safety, environmental andeconomic standards associated with the structural integrity of these offshore wells."
Wells suspendedCurrent safety and environmental regulations have led to a growing number of UKCS wellsbeing suspended, shut in for maintenance, or prematurely plugged and abandoned in recenttimes.
"The most frequently reported structural integrity problems have been found to be centralizationand corrosion within the well conductor system, tubing leaks, and valve failures. Other commonissues include annulus pressure, connector failure, scale, conductor wear, wellhead growth, andchristmas tree leaks," the report said. "However, it must be remembered that these are theareas that operators are able to or chose to test, and there are other factors (such as theinternals of a conductor) which they cannot or do not test. In any case, such problems will rarelycause a well to be shut in long term, especially given current oil and gas prices, unless there isnothing left to produce."
Age is the primary cause of structural integrity problems with UKCS wells. "The combination oferosion, corrosion, and general fatigue failures associated with prolonged field life, particularly
03/08/2015 OTC: Aging UK wells have structural integrity problems Oil & Gas Journal
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within wells exceeding their design lives, together with the poor design, installation, andintegrityassurance standards associated with the aging well stock, is believed to have led to anincreased frequency of problems. These problems can be further exacerbated by increasinglevels of water cut, heat treating, and gas lift later in field life," the report said.
However, it said, "Although age is undoubtedly a significant issue, if it is managed correctly itshould not be a cause of structural integrity problems which may restrict, or indeed cease,production."
Sales of aging assets to new owners mean the potential loss of assetspecific knowledge andcostcutting in the mature phase of production. "It remains to be seen how successful the newoperators will be in producing the associated wells and facilities beyond their intended designlives," said the report.
"While the current expansion of workover and intervention activity—largely being carried out byindependent operators on recently acquired aging assets—may serve to restrict any majorincrease in the impact of structural integrity problems, the question becomes the coverageachieved by these programs and the standards which operators are currently working to meet,"the report said. Furthermore, it said, the "proliferation of subsea technology has createdparticular concerns over operational efficiency, as the high cost of subsea well intervention hasrestricted remedial activity should problems arise, with the value of production gained oftendeemed insufficient to justify the costs of intervention."
Historically, maintenance, intervention, and workover operations on UKCS wells have beenseverely restricted by the substantial costs involved. Operator feedback suggests that whilecurrent technologies deployed within the inspection and remediation of structural integrityproblems are comprehensive, high costs generally restrict their use.
"For while decisions on potential intervention are multidisciplinary, once all risks to safety andthe environment have been addressed, decisions on whether to intervene are predominantlyfinancial," the report said. "Operators therefore place an emphasis on the prevention ofproblems rather than curing them, which in turn precipitates a requirement for a greater focus tobe placed upon a well's design, installation, and integrity assurance."
Effects on independentsThe anticipated increase in structural integrity problems will potentially affect independentoperators buying offshore properties from the majors. "There would seem to be a growing needfor services in preventing such issues arising and identifying and counteracting them shouldthey occur," the report said.
"If intervention is required, replacement rather than remediation is generally preferred, inkeeping with problems created by aging assets and reduced budgets. A general requirement foreasiertorun and more costeffective solutions which avoid the need to incur production
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downtime has been identified," it said. "One technique which is expected to have a key role inproviding such solutions and challenging the prevailing attitude that intervention operations area last resort is rigless intervention."
Of the operators interviewed, 79% believe rigless intervention techniques will increase if therequired cost reductions can be realized.
Contact Sam Fletcher at [email protected]
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