The decommissioning of oil and natural gas fields has become an increasingly important activity in Brazil in recent years.

The activity is contractually obligatory for the companies responsible for exploration, development and production of oil and natural gas, being part of the life cycle of the fields. Although more than BRL 40 billion in investments are expected by 2026, the country still needs to make progress on the decommissioning agenda, in terms of adopted practices and regulation. A Petrobras will be a key player in this process.

What is the decommissioning of oil and natural gas fields?

O decommissioning of oil and gas exploration facilities is the process by which platforms, wells and other offshore equipment (located at sea) or onshore (on land) are taken out of operation and their structures are dismantled and removed or abandoned in a safe and environmentally responsible manner. This process is carried out by the field operator after 20 to 30 years, on average, from field exploration, when operations have already reached the end of their useful life.

Regulation of activity in Brazil

A National Agency of Petroleum, Natural Gas and Biofuels (ANP) is the main regulator of the activity in Brazil. In order to conduct the activity safely and with low environmental impact, the agency prepared ANP Resolution 817/2020, which establishes the Technical Regulation for Decommissioning Exploration and Production Facilities necessary for its execution. The measure requires the submission of the Facilities Decommissioning Program (PDI) to the ANP in order to anticipate the premises established for carrying out the activity.

Investments in decommissioning in Brazil

Currently, the ANP already registers 101 processes with PDI in progress, 44 of which refer to offshore platforms, while the other 55 are onshore. In total, 81 processes have already been approved, evidencing the need for significant investments by operators to carry out decommissioning in the coming years. According to the agency, from 2023 to 2026, up to BRL 45,49 billion of Brazilian investments will be transferred with the aim of decommissioning 9.757 wells throughout the national territory.

Challenges and possibilities of decommissioning in Brazil

There is a lack of knowledge of the main aspects involved in the decommissioning operation, such as when and why it is carried out and which are the main regulatory bodies responsible for this activity. The lack of information can represent a great challenge for the removal of fossil fuel exploration and production facilities in the country, given the growing national demand in the coming years.
It is important, therefore, that there be more debates and clarifications about decommissioning, to ensure that the activity is carried out in a safe and sustainable way. In addition, it is necessary to define more clearly the roles and responsibilities of those involved in the activity, technical norms regarding the removal of equipment and installations, waste management, restoration of affected areas and environmental monitoring.

Social dialogue is key, as the practice can affect local communities and the environment. It is also essential to train the regulatory body to monitor and supervise decommissioning, strengthening the supply chain and investing in R&D to increase the operational safety of this activity.

Among the possibilities of decommissioning is the promotion of more sustainable practices in the country, not only through more efficient waste management, but also by driving the implementation of initiatives aimed at carbon capture, use and storage (CCUS). This possibility is directly related to environmental actions capable of accelerating the energy transition in Brazil.

Petrobras' role in decommissioning in Brazil

A Petrobras is one of the largest Brazilian operators in the sector and should take a more active position on the topic of decommissioning oil and natural gas fields. There is a movement towards forming partnerships with other companies in the E&P sector to qualify its decommissioning practices, but it is not clear what role the state-owned company has been playing in these relationships. The company cannot yet be considered a reference in this segment and the current scenario reinforces the importance of a greater role for the state-owned company in equally relevant sectors for the oil and gas industry, in addition to exploration and production.