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Department of Petroleum Resources

Introduction
Legal and regulatory Framework
Factors Considered in Decommissioning and
Abandonment
Challenges
Way forward
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Department of Petroleum Resources
Some of our functions include:
Regulating the Oil and Gas activities including
Decommissioning, Abandonment and
Restoration.
Setting Technical, Safety and Environmental
standards for the industry.
Enforcing compliance to Petroleum Laws,
Regulations, Standards and Guidelines.
etc

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Department of Petroleum Resources
Oil and gas facilities have definite life span

An oil production facility that has outlived its designed life
has to be appropriately abandoned and decommissioned.

There are factors that are considered for each abandonment
and decommissioning programme

The statutory and legal frame work for managing the
abandonment and decommissioning of Oil and gas facilities
is the focus of this presentation
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Department of Petroleum Resources

Oil pipeline ordinance 1956 and its amendments,
part v

Petroleum Act 1969 CAP350 LFN

Petroleum (Drilling & Production) Regulations,
1969
(Part IV: Sections 32,35, 45 and 46)

Oil and Gas Pipeline Regulations 1995

Mineral Oils (Safety) Regulations (MOSR),1997

REGULATORY AND LEGAL FRAMEWORK
Department of Petroleum Resources
Environmental Guidelines and Standards
for the Petroleum Industry in Nigeria
(EGASPIN)
(Part VIII, F & G)

Procedure Guide for the Construction and
Maintenance of the Fixed Offshore
Platforms

Procedure Guide for the Design,
Construction and Maintenance of Oil & Gas
Pipelines

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Department of Petroleum Resources
Obtainment of DPR’s Approval for
Decommissioning Strategies
Post Impact Assessment Report
Decommissioning Plan Report
oDegree of Abandonment
oMethods for removal of structures
oDisposal of removed structures
Remediation Plan
Restoration Plan




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Department of Petroleum Resources
Technical Feasibility
Environmental Protection
Health and Safety
Cost
Public Opinion
Secondary uses of disused facilities
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Department of Petroleum Resources

Licensee / Operator shall:
obtain appropriate permit for well re-entry for restoration, suspension
or abandonment from the Department of Petroleum Resources;
isolate well from surface;
plug and suspend or abandon borehole according to agreed designed
plan and permit criteria;
place surface cement plug below cellar, to allow removal of surface
components, the process of removal should avoid any significant
adverse effect on the environment;
Isolate production interval to prevent communication between aquifers
of different nature.
Close pit appropriately.
Satisfy other conditions as in API RP 57.
Non-compliance is punishable in accordance with Section 61(1) of the
Petroleum (Drilling & Production) Amendment Regulations1996
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WELL SUSPENSION,RESTORATION & ABANDONMENT
In accordance with Petroleum (Drilling & Production) Regulations, 1969
(Part IV: Sections 32 & 35)
Department of Petroleum Resources
Decontaminate appropriately;
Dispose of equipment by recycling, selling
e.t.c.;
Demolish structures/buildings where
appropriate.
Minimize conflict with available land use.

Non-compliance is punishable in accordance with MOSR,
1997: Part 1,Section 3
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PROCESS EQUIPMENT/FACILITIES
In accordance with Petroleum (Drilling & Production) Regulations, 1969
(Part IV: Sections 36 & 39)
AND
Procedure Guide for the Construction and Maintenance of the Fixed
Offshore Platforms (Section IV)

Department of Petroleum Resources
The Operator is to forward the Decommissioning
plan, strategy and schedule to the Director, DPR for
approval
Carry out the decommissioning operation strictly
according to DPR approval
Decontaminate, plug and leave on-site, if adequate,
otherwise excavate.
All surface components/ancillary facilities shall be
removed.
Minimize conflict with available land use.
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PIPELINE/FLOWLINE
In accordance with Oil and Gas Pipeline Regulations 1995
AND
Procedure Guide for the Design, Construction and Maintenance of
Oil & Gas Pipelines
Non-compliance is punishable in accordance with Oil
PipelineRegulations,1995

Department of Petroleum Resources

The operator of any field should notify the DPR Five (5) years prior to the end
of the economic life of the field, (as evaluated by the operator and agreed to
by DPR)
The operator shall submit an application to decommission the field which
shall comprise of:
The objectives
A comprehensive decommissioning plan which includes options/
strategies intended to be used. (to be approved by the Director,
Petroleum Resources)
DPR approved EIA report/ Baseline/ Sea-bed survey prior to project
implementation.
An Environmental Evaluation (post –impact) Report specific to the
activity. (To be approved by Director, Petroleum Resources).
The decommissioning schedule.
The Operator shall be fully responsible for implementing the approved
disposal plan which shall be carried out to the satisfaction of the Director
Petroleum Resources.
Non-compliance is punishable in accordance with Section 61(1) of the
Petroleum (Drilling & Production) Amendment Regulations1996





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FIELD ABANDONMENT
In accordance with Petroleum (Drilling & Production) Regulations, 1969
(Part IV: Sections 45)

Department of Petroleum Resources
Decommissioning not pre-planned
Decommissioning not integrated in Project
Design
Funding Constraints
Safety of Decommissioning Operation
Environmental Impacts
Proliferations of facilities
Lack of capacities in modern techniques for
effective monitoring of abandonment and
decommissioning operations

Department of Petroleum Resources
Decommissioning integrated in EIA for new
facilities
Decommissioning integrated in the FDP / project
design to make removal feasible (1/1/2003)
Decommissioning starts at least one year after
abandonment
Emplacement of Synergy in operation.
Capacity development in modern techniques for
effective monitoring of abandonment and
decommissioning operations



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Department of Petroleum Resources
Section 61(1) of the Petroleum (Drilling &
Production) Amendment Regulations1996
Imprisonment for a period of 6 months or a fine of N250,000 or
both
MOSR, 1997: Part 1,Section 3
Imprisonment for a term not exceeding 5yrs or a fine of N250,000
or both
Oil Pipeline Regulations,1995
Imprisonment for a term of 6 months or a fine of N500,000 or both

Department of Petroleum Resources
"Penalty”
61(1) Any person who contravenes the
Provisions of these Regulations is guilty of an offence
and liable on conviction to a fine of two hundred and
fifty thousand naira or to imprisonment for a term of
six months or to both such fine and imprisonment .
(2) In this regulation, "person" includes a
body corporate or unincorporate ."

Section 61(1) of the Petroleum (Drilling & Production)
Amendment Regulations 1996
Department of Petroleum Resources
Field Development

35. (1) No borehole or existing well shall be re-drilled,
plugged or abandoned, and no cemented casing or other
permanent form of casing shall be withdrawn from any
borehole or existing well which it is proposed to abandon,
without the written permission of the Director or Petroleum
Resources .
(2) Every borehole or existing well which the licensee or
lessee intends to abandon shall, unless the Director of
Petroleum Resources otherwise permits in writing, be
securely plugged by the licensee or lessee so as to prevent
ingress and egress of water into and from any portion or
portions of the strata bored through and shall be dealt with
in strict accordance with an abandonment programme
approved or agreed to by the Director of Petroleum
Resources .
(3) Except in an emergency, the Director of Petroleum
Resources may, in any case direct that no borehole or well
may be plugged, or no works be executed, save in the
presence of an officer of the Minister of Mines, Power and
Steel designated by him .