Well abandonment is an obligatory work in the Production Sharing Contract. In the midst of low oil prices, this work cannot be postponed to do, especially for wells that have potential hazards. The longer it postponed, the greater risk will be face. It needs to be done with the most efficient way.
Well abandonment of onshore-well in "R" Block of Central Sumatra Basin began in 2015. Reason for abandonment is varied from no more reservoir potential, mechanical problem, bad well integrity, missing part of wellhead, and vandalism. Since the initial start of the well abandonment work, the gold-plated effect appeared. The well abandoned in a very safe method, but not worth the risk.
Discuss the procedures of selecting the well under potential circumstances to be plugged. An adjustment made by optimize it to fit-to-purpose abandonment according to Indonesia national standard while complying with the feasibility and safety operation.
As a result, there is a decrease in average AFE cost during 2015 to 2017 by 29% which equal to US$8.5 million and still has decrease potential until the very fit-to-purpose method obtained. The average realization of AFE cost decrease from 48% to 34%.
This paper shows that there is always a chance for optimization even though abandonment work does not have any gain of production and ignoring it also poses safety and cost risks. To date, this optimization has saved US$2 million.
Number of Pages
Badan Standardisasi Nasional. (2002). SNI 13-6910-2002 Drilling operation for safe conduct of onshore and offshore in Indonesia - Implementation. Jakarta, Indonesia: Author.
Prasetya, A. E., & Herputra, S. A. (2016, October 25). Well Abandonment Project and Recommendation for Applying Activity Based Cost/Earn Value Management. Society of Petroleum Engineers. doi:10.2118/182441-MS
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