CO2WELLS JIP & Guideline

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1 Status report for IEAGHG, April 2011 Mike Carpenter

2 CO2WELLS Guideline Guidelines and industry standards speed up deployment of new technology 2

3 Risk assessment context CO2WELLS Part A NORSOK D010 ISO Risk Management DNV RP A203 for Qualification of New Technology CO2QUALSTORE CO2WELLS Part B 3

4 Scope of guideline Establish status of existing wells. Provide input to site selection Select engineering concept for wells CO2WELLS scope Verify that planned solution will work prior to FID Detailed design of: new wells conversion of old wells P&A of old wells re-p&a of old wells Drilling and/or workovers Well operation & monitoring - Exploration Permit - Storage Permit - Transfer of Responsibility Plug & abandon according to design 4

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6 Well Qualification Degradation mechanisms Status of the Well: Current service life Technical condition Main capabilities Conformity to current regulations/exemptions Relevant incidents Quality of construction Future functionality required of the well 6

7 Norwegian study 2 offshore P&A wells 4b 3 2 b,c potential CO2 storage site Neither well found to be suitable for exposure to CO2 in present state Two independent barriers inside the storage complex are required 4a 75 m MSL, 115 m RKB 30 cut 5 m below seabed 20 recovered from 10 m below seabed 13 3/8 cut 9 m below seabed 9 5/8 cut 155 m below seabed Bottom of cement 360 m RKB, 245 m below seabed Top of cement plug 45 m below seabed 2a /8 seabed 187 m RKB Utsira m 9 5/ m RKB m RKB Abandonment cement plug m RKB m RKB 7

8 Alberta sour gas operators Risk based vs. presciptive approaches Must have good data on existing wells before you can re-use Re-Abandonment are generally as a result of poor design and/or execution Zonal isolation design and execution is critical Abandonment plans are built into designs In dry CO 2 conventional materials used Low temperatures can be seen Minimise elastomer use and use correct ones Fit downhole valves but think through testing 8

9 Alberta regulators Large database of wells with very few problems on sour/co 2 wells to date Identify sphere of influence at start Follow legislation however the encourage risk analysis to be performed on design Much attention paid to zonal isolation and monitoring plans New legislation being prepared but unlikely to relax the sour gas standard and looking at low temperatures Have taken and continue to take bold legislative steps to make CCS happen Accepts that early project experiences might have problems but the key is to get on to the learning curve soonest Not so concerned about the conduit part of the well focus is on zonal and field isolation and how barrier analysis has been performed 9

10 Conclusions from Alberta study CO2WELLS approach appears to be in alignment with what is being done More emphasis on monitoring Ensure risk ranking is used to build effective measures over the life-cycle of the well Strengthen some of the processes in the guideline Quality conventional cementing operations on CO 2 /sour wells appear to give agreeable results More emphasis on monitoring required in the guidelines Modelling required to identify all wells/areas which could see CO2 before FID 10

11 Looking ahead May: draft guideline available for review and comment June: guideline will be published on DNV and GCCSI websites September: draft RP for CO 2 storage based on: - CO2WELLS guideline - CO2QUALSTORE guideline 11

12 CO 2 storage: CO2QUALSTORE + CO2WELLS Provides project developers with A transparent basis for decision-making to meet internal milestones and decision gates Guide to set performance targets that will enable the granting of relevant permits for individual sites Predictable operating conditions Provides regulators/authorities with: Standardized guide to verify that sites have been selected and assessed as suitable for geological storage of CO2 Basis for development/implementation of national regulations aligned with industry best practice, directives and other national regulations 12

13 Safeguarding life, property and the environment 13