Decommissioning planning of offshore oil and gas fields in Vietnam: What can be learnt from mine closure planning in Scotland?
International Journal of Energy Economics and
Policy
ISSN: 2146-4553
International Journal of Energy Economics and Policy, 2021, 11(4), 162-174.
Decommissioning Planning of Offshore Oil and Gas Fields in
Vietnam: What Can be Learnt from Mine Closure Planning in
Scotland?
Huyen Thi Le1*, Janet Xuanli Liao2, Christopher J. Spray3
1PetroVietnam University, Vietnam, 2Centre for Energy, Petroleum and Mineral Law and Policy, University of Dundee, Nethergate,
Dundee, Scotland, 3School of Social Sciences, University of Dundee, Nethergate, Dundee, Scotland. *Email: huyenlt@pvu.edu.vn
Received: 14 February 2021
Accepted: 27 April 2021
ABSTRACT
Due to the lack of necessary requirements in the existing regulations for decommissioning of offshore oil and gas fields in Vietnam, this paper makes policy
recommendations based on the comparison between the decommissioning planning of offshore oil and gas fields in Vietnam and the similar closure planning
of opencast coal mines in Scotland. The comparative analysis shows that there is interplay between the project context and restoration/decommissioning
outcomes in the cases of three opencast coal mines in East Ayrshire, Scotland and X oil field in Vietnam. The influencing contextual factors in both cases
can be categorized as biophysical and material conditions, community attributes, biodiversity’s interest, socioeconomic context and rules. Based on such
analysis, additional issues should be considered while preparing future decommissioning plans and updating relevant laws in Vietnam. Particular challenges
include compliance monitoring, shell mounds, drill cuttings, financial assurance, consultation with local communities and recognition of their interests,
rigs-to-reefs, coastal communities’ socioeconomic development, and investment in research, training and education about oil and gas decommissioning.
Keywords: Offshore Platforms, Opencast Coal Mines, Decommissioning Planning, Closure Planning, Decommissioning Outcomes, Restoration
Outcomes
JEL Classifications: L52, O21, O25
The life cycle of a mine consists of eight phases: design, exploration,
permitting, construction, operations, decommissioning/closure,
1. INTRODUCTION
post-closure and relinquishment (World Bank Multistakeholder
Initiative, 2010). Similarly, six phases are in the cycle of an oil and
gas project: lease, exploration, development, production, closure
and post-closure (Tordo, 2007). There have been cases of mines
and oil and gas fields being abandoned without specific plans or
clarification of liable parties for closure and decommissioning
funding, and this has led to negative perceptions of these industries
(World Bank Multistakeholder Initiative, 2010). In many nations,
the legacy of unplanned closures and unrestored land has become a
burden on the governments (World Bank and International Finance
Corporation, 2002).
The outstanding potential of Vietnam’s ocean economy is
oil and gas resources, with the estimated reserves of about
3.0-4.5 billion m3 oil equivalent, of which 30-35 percent has been
discovered (Ha, 2018). There are hundreds of exploration and
production oil and gas wells in Vietnam’s sea (Ha, 2018); however,
as in other regions, many of these production projects are reaching
an end soon as oil reserves become exhausted (Burdon et al., 2018;
Viet Nam News, 2019). As a result, decommissioning will be a
focused activity of the Vietnam oil industry in the coming years,
with X oil field expected to be the first for decommissioning in
2020 (POC1, 2019; POC2, 2020).
This Journal is licensed under a Creative Commons Attribution 4.0 International License
162
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
Since dealing with closure/decommissioning1 challenges at
the outset of the project is the most efficient way, governments
all over the world are becoming aware of the importance of
perceiving and proactively managing matters relating to closure
and decommissioning as soon as practicable (World Bank
Multistakeholder Initiative, 2010). A closure plan or restoration2
plan is currently required to be an integral part of mining proposals
in most countries (Tordoff et al., 2000; Sassoon, 2009). With
regards to oil and gas decommissioning, theAustralian Government
encourages operators to undertake decommissioning planning at
the early phases of the project as part of the field development plan
(Department of Industry, Innovation and Science, 2018).
and the stakeholders’ interactions during closure planning3
with the cases being opencast coal mines in East Ayrshire,
Scotland. However, this has not been investigated in terms of
the oil and gas industry, that is, how the context of an oil and
gas project influences decommissioning outcomes and the
stakeholders’interactions during decommissioning planning. Due
to the limited material available, this research does not analyse
in detail the stakeholders’ interactions during decommissioning
planning but focuses on analysing the interface between an oil
and gas field’s context and decommissioning outcomes, using X
oil field in Vietnam as the case for investigation.
The influence of the oil and gas project context on decommissioning
outcomes was explored by Bernstein et al. (2010) who examined
how the selection of decommissioning options for offshore oil
and gas platforms in southern California was influenced by legal
and regulatory contexts. Their analysis provides decision makers
and interested parties with knowledge of the alternative choices
available in order to choose a suitable one. In a similar manner, this
research analyses how the preparation of decommissioning options
for X oil field was influenced by contextual factors, including
legal and regulatory ones. However, since the decommissioning
options for X field were already prepared and the tentative choice
among the options was already made, this research does not have
the same aim as Bernstein et al.’s (2010) study. Rather, we look
to develop recommendations covering additional issues to be
considered in developing decommissioning plans for future oil
and gas fields in Vietnam. The literature review shows that this has
not been done so far. Regarding the influence of decommissioning
outcomes on the project context, the authors pay attention to
Ekins et al.’s (2005; 2006) study which assesses non-financial
decommissioning outcomes of different decommissioning
scenarios for offshore oil and gas platforms in the North Sea and
the work of Bernstein et al. (2010) and Pondella et al. (2015)
which analyse the potential impacts of decommissioning options
for offshore oil and gas platforms in southern California.
In Vietnam, oil and gas decommissioning is specified in detail in
Decision 40/2007/QD-TTg from 2007 to 2018 and Decision 49/2017/
QD-TTg since 12 February 2018. Apart from such legislation,
decommissioning plans set out decommissioning options and
methodology, cost estimation, and health, safety and environmental
management, etc. for decommissioning of each field (PVEP POC,
2015). As no offshore oil and gas fields in Vietnam have been
decommissioned yet, the aims of this paper are to examine:
•
How the existing decommissioning legislation in Vietnam and
decommissioning plans for offshore oil and gas fields influence
decommissioning outcomes and in what particular aspects?
Conversely, what and who can be potentially impacted by
decommissioning outcomes and how?
What should be considered during decommissioning planning
of offshore oil and gas fields in Vietnam in order to improve
decommissioning outcomes?
•
•
Given our understanding of mine restoration, the authors
hypothesize that the project context which includes the situation
of marine environment after the field production, decommissioning
cost, financial assurance, coastal communities’ interest,
biodiversity’s interest, socioeconomic context and rules can
influence decommissioning options and hence decommissioning
outcomes. Conversely, decommissioning outcomes can also make
impacts on similar project contextual factors, namely marine
environment, coastal communities’interest, biodiversity’s interest
and socioeconomic development.
In order to provide recommendations for offshore decommissioning
planning in Vietnam, the researchers compare the interplay
between the project context and decommissioning outcomes in
X oil field to that in three opencast coal mines in East Ayrshire,
Scotland. Where the former is unclear, it is predicted based on
global decommissioning practices. Similar research has not been
done in Vietnam, though in the international context McCauley
(2018) makes a comparative analysis of motivational frames of
decommissioning in the Scottish oil and gas industry and the German
nuclear industry. A comparison of the closure process between the
mining industry and the oil and gas industry has also been made by
Snashall (2018) in terms of social and ecconomic impacts.
2. LITERATURE REVIEW
Addressing the gap in the literature, Le (2018) explored the
influence of the context of a mining project on restoration outcomes
1
In this paper, ‘decommissioning’ is defined as ‘the process by which
options for the physical removal, disposal (or modification…) of structures
at the end of their working life are assessed, dismantled and removed’ and
‘closure’ is understood as ‘the period after the end of commercial resource
extraction’ when ‘decommissioning and rehabilitation activities are
conducted’ (World Bank Multistakeholder Initiative, 2010, p. GG-2). The
research focuses on closure in the mining industry and decommissioning in
the oil and gas industry.
3. METHODOLOGY
2
The authors pay attention to post-mining restoration. While recognising
different terms used to refer to activities to repair mined and other degraded
lands such as remediation, rehabilitation, restoration and reclamation
(Finger et al., 2007; The Australian Government, 2016), the authors use the
term ‘restoration’ to replace the associated terms in the original documents
to refer to the activities that repair mined land and are implemented after the
cessation of operations in a mining project.
3.1. Conceptual Framework
Aiming to support the comparative analysis of the interplay
between the project context and restoration/decommissioning
3
Given the association of restoration with mine closure, the term ‘closure
planning’ is used to refer to the activity/process in the mining industry.
163
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
outcomes, the study has developed a conceptual framework
adapted from the Institutional Analysis and Development (IAD)
framework (Ostrom, 2005; 2007). The IAD framework was
applied by Orji (2018) to stakeholder analysis in environmental
management in the Nigerian oil-producing region and by Le
(2018) for analysing the influence of the project context on
restoration outcomes. In this article, the IAD framework will be
employed again to guide the comparative analysis, with minor
amendments of Le’s (2018) framework as shown in Figure 1
below.
Mine restoration and offshore decommissioning are also impacted
by material conditions which include financial assurance.
Restoration and decommissioning are both expensive tasks and
theoretically occur at the end of the productive life of a mine
or an oil field when revenue does not exceed operation and
maintenance costs (Ferreira and Suslick, 2000; Peck and Sinding,
2009). Financial assurance is the available amount of money to
the government for restoring or decommissioning the site when
the operator goes into liquidation, leading to premature closure
or decommissioning, or when the operator carries out the work
incompletely or improperly (Ferreira and Suslick, 2000; Peck
and Sinding, 2009). It is seen as the most efficient “insurance”
mechanism to assure the necessary funding for undertaking
restoration and decommissioning work properly (World Bank
Multistakeholder Initiative, 2010).
The following will explain the interplay between each project
contextual factor (exogenous variable) and restoration/
decommissioning outcomes in mining and petroleum industries.
Such interplay will then be analysed in the context of Scottish
coal mines and X oil field in Section 5.
3.2.1. Community attributes
3.2. Project Context
One of the community attributes in the original IAD framework
is community interests (Ostrom, 2005a). Due to the proximity
of mine sites, mine restoration can make direct impacts on
local communities’living environment and their livelihoods. In
addition, given their understanding of the natural environment
as well as the history and socioeconomic context of the
surrounding area, local communities may provide valuable
ideas for restoration design. Therefore, integrating community
interests into restoration design is important for the success of
a restoration plan (Cherry, 2008, cited in Kuter, 2014. p. 842).
Similarly, offshore oil and gas activities can make positive
and negative effects on nearby coastal communities’ tourism
(Jefferies, 2018), fishing and access to marine resources
(Snashall, 2018), thus those communities may provide insightful
comments on decommissioning options with their knowledge of
the marine environment around the oil fields. Then conversely,
if local communities’ opinions are taken into account while
preparing a restoration/decommissioning plan, restoration/
decommissioning outcomes can be more satisfactory to local
communities’ interest.
3.2.1. Biophysical and material conditions
Mine restoration and offshore decommissioning are both impacted
by the biophysical conditions of the sites. In the mining context,
the establishment of restoration goals is greatly influenced by the
post-mining environment, given the disturbance caused by mining
during operations (The Australian Government, 2016). True
restoration of highly disturbed native ecosystems is a challenging
task worldwide (Gillespie et al., 2015) and is impossible in many
sites (Gardner and Bell, 2007). Similarly, in the oil and gas context,
the situation of the marine environment around an offshore
platform after the production phase may affect decommissioning
options. There are many decommissioning options such as
complete removal of installations which is the default in the North
Sea, “rigs-to-reefs” and other alternatives in the Gulf of Mexico,
Southeast Asia and Australia, etc. (Sommer et al., 2019). Given
their nature, restoration/decommissioning options will have certain
impacts on the site environment.
Figure 1: The adapted IAD framework that reflects the interplay
between the project context and restoration/decommissioning outcomes
Exogenous variables
(Project context)
3.2.2. Biodiversity’s interest
The global extent of mining impacts on biodiversity is smaller
than other industries such as agriculture, aquaculture and logging
(Baillie et al., 2010); however, the magnitude of the impacts can
be locally significant (Salomons, 1995). Restoration provides
the opportunities for rectifying such impacts (ICMM, 2006). In
the oil and gas context, oil platforms can be habitats not only
for settlement but also for growth of reef fishes (Pondella et al.,
2015). Studies have shown that fish larvae are not only attracted
to but also grow at artificial structures, leading to fish production
enhancement (Pondella et al., 2015). Therefore, a suitable
decommissioning option for an oil platform can be beneficial for
marine biodiversity. Given that biodiversity is voiceless (Wood
et al., 2000), the researchers consider biodiversity as an unvoiced
‘stakeholder’ that has its own interest and explores to what
extent its interest is taken into account by observed stakeholders
in closure/decommissioning planning. Biodiversity’s interest
is a new exogenous variable in compared to the original IAD
framework.
Biophysical and material conditions
• Post-mining/Post-production
biophysical environment
• Financial assurance
Community attributes
• Local communities’ interests
Outcomes
Biodiversity’s interest
Socioeconomic context
Rules
• Operational, collective-choice and
constitutional levels
Source: The authors (adapted from Ostrom, 2005; 2007 and Le, 2018)
164
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
3.2.3. Socioeconomic context
3.2.5. Outcomes
Mine restoration with different objectives, for example, creating
new landform, land capability or final land use (The Australian
Government, 2016), can help maintain or even improve the
socioeconomic development of local communities. This is
particularly important for some local communities, for instance,
residential mining communities which are set up to provide
workforce for mining projects, whose socioeconomic development
used to greatly depend on mine extraction (Browne et al., 2011).
Similarly, offshore field decommissioning can lead to economic
improvement in the coastal areas due to its employment and
socioeconomic effects (Snashall, 2018). It can also contribute
to the socioeconomic development of onshore communities
due to direct investment in developing new skills to prepare
for decommissioning work (McCauley, 2018). Therefore, local
communities’ socioeconomic context should be considered
in closure/decommissioning planning. It should be noted that
socioeconomic context is also a new exogenous variable in
compared to the original IAD framework.
In the original IAD framework, ‘outcomes’ refer to the results of
actors’ interactions (Ostrom, 2007). The term can be understood
as restoration outcomes which are the results of restoration
work in the mining industry or as decommissioning outcomes
which are the results of decommissioning work in the oil and gas
industry and can be seen through decommissioning options in a
decommissioning plan if decommissioning work has not been
undertaken yet.
4. MATERIALS AND METHODS
Case study method is used for this research since it is appropriate
for answering a “how” question (Yin, 2014).
Regarding offshore oil and gas fields in Vietnam, the authors chose
X oil field as the case. Although it is impossible to say that X field
represents all the offshore oil and gas fields in Vietnam due to their
unique characteristics, the decommissioning planning process of
all the fields is generally the same (POC1, 2019). In addition, X
field was expected to be decommissioned in 2020 and thus would
be the first field to be decommissioned in Vietnam (POC1, 2019;
POC2, 2020) and its field decommissioning plan can be said to
be the typical example for other fields’ decommissioning plans
(POC2, 2019a).
3.2.4. Rules
Therearesamerulesassociatedwithclosureanddecommissioning
planning processes at different levels. Restoration plans should
specify the restoration outcomes that are achievable and
sustainable through the enforcement of minimum performance
standards (Powell, 1988, cited in Kuter, 2014. p. 839).
Similarly, decommissioning plans normally provide details for
decommissioning work through examination and assessment
of decommissioning alternatives (Osmundsen and Tveterås,
2003; DMIRS, 2017). Then restoration/decommissioning plans
can directly influence operators’ restoration/decommisisoning
work on site and thus can be considered as operational rules
(Polski and Ostrom, 1999; Ostrom, 2007). Since planning
permission for mine extraction defines the decision with
restoration conditions on the planning application (EAC,
2011b) and national laws often provide the legal framework for
decommissioning plans (DMIRS, 2017), they can be considered
as collective-choice rules that are used to change operational
rules (Ostrom, 2007). National mining laws and regulations
inform the decision making of mine restoration (Kuter, 2014).
Whilst, decommissioning practices, despite being substantially
decided by national governments, are influenced by international
regulations (Osmundsen and Tveterås, 2003). For example,
Article 5(5) of the Convention on the Continental Shelf,
1958 requires abandoned or disused installations to be fully
removed (Convention on the Continental Shelf, 1958). OSPAR
Decision 98/3 also probibits “the dumping, and the leaving
wholly or partly in place, of disused offshore installations
within the maritime area” (OSPAR Commission, 1998. p. 16).
These Conventions inform the related national regulations of
the nations ratifying them (United Nations Treaty Collection,
n.d.; EUR-Lex n.d.) or can directly influence a government’s
decision on decommissioning plans (Osmundsen and Tveterås,
2003). Therefore, these Conventions and national mining laws
and regulations can be seen as constitutional rules that are used
to change collective-choice rules (Polski and Ostrom, 1999;
Ostrom, 2007).
Meanwhile, the authors chose three opencast coal sites in East
Ayrshire as the Scottish mining cases. Such sites are Dunstonhill
Surface Mine (Dunstonhill), Duncanziemere Surface Mine
(Duncanziemere) and Netherton Surface Mine (Netherton)
which are the cases in Le’s (2018) study. In this research,
those mines were also chosen for comparing with X oil field
because of the literal replication4 and theoretical replication
among them (Appendix 1).
The research triangulated data from four sources: documentation,
semi-structured interviews, informal conversations and telephone
conversations. The data about X oil field were collected from
February to April 2019. The main source of data during this
period was documentation. In addition, one semi-structured
interview and one informal conversation followed by several
telephone conversations were undertaken with PetroVietnam
Domestic Exploration Production Operating Company Limited
(PVEP POC). Whilst, the data related to three opencast coal
mines in East Ayrshire, Scotland were collected during the
corresponding author’s PhD study, particularly between March
2016 and April 2018. The main sources of data during this
period were documentation and semi-structured interviews.
Regarding semi-structured interviews, apart from 29 face-to-
face interviews, three interviews were conducted electronically
via email and LinkedIn in the form of self-administered semi-
structured questionnaires.
4
Literal replication means the cases have similar characteristics that predict
similar results and theoretical replication means the cases have different
characteristics that predict contrasting results but for anticipatable rationales
(Yin, 2014).
165
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
aftercare bonds to ensure the performance of restoration and
aftercare obligations in case of the operators’default (EAC, 2013;
2015a; 2015b) but even if such bonds were fully secured, they
would not be sufficient for restoring the mines to the original
restoration plans (EAC, 2013). The situation was even worse
because the restoration bond for Duncanziemere could not be
secured whilst those for Dunstonhill and Netherton were secured
with the reduced values (EAC 2015c; 2017). Thus, the sites had
to be restored to the revised restoration plans which are of lower
standards than the original ones (EAC 2014; 2015a; 2015b).
5. OVERVIEW OF X OIL FIELD, VIETNAM
AND THREE OPENCAST COAL MINES IN
EAST AYRSHIRE, SCOTLAND
5.1. X oil field, Vietnam
X oil field is situated in Block Y, about 205 kilometres to the
southwest of Ca Mau Cape (Trung tâm nghiên cứu và phát triển
an toàn và môi trường dầu khí, 2017). The field was developed
since 24 November 2008 (PVEP, 2015; POC2, 2020).
Four alternatives were considered for decommissioning X oil
field in the field decommissioning plan. Alternative 1 refers to
the retainment of the wellhead platform for further development
of Block Y; however, this was considered to be unfeasible (PVEP
POC, 2015). By virtue of its location, the wellhead platform
will be modified to a platform under the management of the
Vietnam People’s Navy/Ministry of Defence under Alternative 2.
Nevertheless, this alternative was not further developed because
the Vietnam People’s Navy/Ministry of Defence would not receive
the handover of the wellhead platform after consideration of the
operation and maintenance cost, manpower and particularly the
2002 Declaration on the Conduct of Parties in the South China Sea5
(PVEP POC, 2015). Following Alternative 3, the wellhead
platform’s jacket will be disposed whereas the topside will be
retained in its entirety, transported to the shore and possibly
altered for other projects. Although this approach is technically
feasible, the probability of reusing the entire topside for other
projects was low and offshore decommissioning work would be
more expensive due to the high cost of hiring Heavy Lift Vessels
(PVEP POC, 2015). Similarly, Alternative 4 is about complete
removal of the wellhead platform but its jacket and topside will
possibly be cut into sections and transported to the shore to be
disposed. Due to being technically feasible and given possibly
simplest and flexible offshore decommissioning work, higher
probability of cost optimisation from utilising smaller lifting
and transportation means, and compliance with national legal
requirements, this approach will be suggested as a basis for more
research and implementation (PVEP POC, 2015).
6. RESULTS
6.1. Interplay Between Biophysical and Material
Conditions and Restoration/Decommissioning
Outcomes
6.1.1. Biophysical conditions
Regarding Scottish coal mines, the site restoration was
constrained by the biophysical conditions of the sites at the time
of the operators’ liquidation, especially large water filled voids
and large overburdens (EAC, 2014; 2015a; 2015b). Given the
limited funding and these major biophysical constraints, large
water filled voids and large overburdens which should have been
removed to fill the voids remained, especially the overburdens
in Duncanziemere still contained exposed rock faces following
the revised restoration plans (EAC, 2014; 2015a; 2015b). These
biophysical constraints imply the importance of compliance
monitoring with the appointment of the Independent Mining
Engineer in enforcing the operator to comply with the rules,
given the requirement of progressive restoration in the planning
permission for the sites (EAC, 2006; 2010a; 2011b).
In contrast, the biophysical environment of X oil field was not
seen as the constraint for the field decommissioning that led
to the preparation of decommissioning options (PVEP POC,
2015). Due to the great remoteness of the development area
which is 205 kilometres offshore south of Ca Mau Cape, most
of the development’s activities would only affect the offshore
environment around the development area. Therefore, components
of such environment including the seawater, the seabed sediment
and marine organisms would be mainly impacted during the project
process (TSJOC, 2007). According to the Environmental Impact
Assessment (EIA) report, during the drilling phase6, there would be
minor effects of the local alterations of benthic community induced
by drilling pollutants at the discharge site on the ecosystems in the
South Vietnam Sea due to the small scale of the real affected area
and its high energy oceanographic features (TSJOC, 2007). During
the production phase, the impacts of produced water discharge,
drainage water and treated domestic sewage on the marine
environment would also be minor or negligible (TSJOC, 2007).
These could be proved through two environmental monitoring
surveys undertaken in January 2016 and August 2018 in order
to prepare for the decommissioning of X field. The microbenthic
community in the development area was recorded to be moderately
diverse and abundant in the former and to be diverse and balanced
in the latter (PVEP POC, 2016; 2018). Both surveys also showed
5.2. Three Opencast Coal Mines In East Ayrshire,
Scotland
The liquidation of the two main operators in Scotland – ATH
Resources plc in December 2012 and Scottish Resources Group
Limited in April 2013 (and their subsidiaries Aardvark TMC
Limited (Aardvark) in May 2013 and Scottish Coal Company
Limited (Scottish Coal) inApril 2013 respectively) led to 32 mines
left abandoned across central Scotland with the estimated funding
shortfall of £200 million for restoring the sites (EAC, 2013; Friends
of the Earth Scotland and RSPB Scotland, 2013; The Sunday
Herald, 2013; RSPB Scotland, 2014). The liquidation made the
greatest impact on EastAyrshire with 22 mines left abandoned and
the estimated funding shortfall of about £132 million (The Sunday
Herald, 2013; RSPB Scotland, 2014). Dunstonhill, Duncanziemere
and Netherton were among those mines and had restoration and
5
2002 Declaration on the Conduct of Parties in the South China Sea. https://
cil.nus.edu.sg/wp-content/uploads/2017/07/2002-Declaration-on-the-
Conduct-of-Parties-in-the-South-China-Sea.pdf (accessed 15 March 2019).
6
Drilling phase belongs to development phase (Tordo, 2007).
166
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
that all chemical and biological parameters of marine water quality
and sediment quality complied with the relevant national technical
standards (PVEPPOC, 2016; 2018). Then compliance monitoring
was not an issue in this case to ensure the operator to comply with
the relevant environmental regulations.
The production within the year
×(Total decommissioning cost
– The paid balance)
Payment level =
(1)
(2)
Remaining recoverable reserves
Large water fill voids left in the Scottish coal sites, especially
those on the Duncanziemere and Netherton sites having some
ungraded sides with steep slopes (EAC, 2014; 2015a; 2015b) could
raise safety issues such as flooding, people falling or jumping
into the voids and drowning, etc. (Le, 2018). Regarding offshore
decommissioning, a safety aspect that should be handled is shell
mounds which are a mixture of drilling mud and shell debris of
species forming over time under offshore structures (Henrion et al.,
2015). Since drilling mud is gradually cleaner, shell mounds are
effectually covered by cleaner and newer sediments; therefore,
dredging to remove shell mounds which only occurs in complete
platform removal will create deeper and more polluted layers
and possibly disperse pollutants in a wider extent in the short
time. Meanwhile, non-removal of shell mounds may lead to the
scattering of pollutants in the long time (Henrion et al., 2015).
Capping shell mounds can be an alternative to removing shell
mounds to isolate pollutants but may result in obstructions on the
seabed (Bernstein et al., 2010), thus may not be accepted following
Vietnam’s legislation due to inducing navigation hazards (Quyết
định 49/2017/QD-TTg năm 2017).
(Quyết định 40/2007/QD-TTg năm 2007)
Or
An ×(Bn − C(n-1) − I(n-1)
)
En =
Dn
in which:
-
-
En: The level of payment in year n, the calculation unit is USD
An: The production in year n, defined by the actual production
in the respective year, the calculation unit is the barrel of
oil equivalent
Bn: The total decommissioning cost updated in year n, Bn =
(b1 - b2), in which:
-
+ b1: The total decommissioning cost estimated in the
decommissioning plan (most recently approved), the
calculation unit is USD
+ b2: The cost estimate defined in the decommissioning plan
(most recently approved) corresponding to the equipment,
property or structure decommissioned up to year (n-1), the
calculation unit is USD.
Also relating to drilling mud, drill cuttings are the primary source
of pollution during the production phase and comprise drilling
mud, speciality chemicals and fragments drilled from the borehole
(Lakhal et al., 2009). Drill cuttings usually contain hydrocarbons
and traces of heavy metals, PCBs and NORM (Naturally Occurring
Radioactive Material) from the formation (Ekins et al., 2006).
Similar to shell mounds, the fate of cuttings piles is not mentioned
in the decommissioning plan for X field as well as Vietnamese laws
(Quyết định 40/2007/QD-TTg năm 2007; PVEPPOC, 2015; Quyết
định 49/2017/QD-TTg năm 2017). Drill cuttings can be dredged
with either onshore or offshore processing; otherwise, they can be
left in situ (Ekins et al., 2006). Regarding the latter, drill cuttings
piles can be covered with a sand layer followed by a gravel filter
layer and an outer protective layer of armour stone to hamper
leaching of hazardous substances to the surrounding environment.
This is considered to be a low-risk approach which does not affect
marine ecosystems negatively (Ekins et al., 2006). Since drill
cuttings piles vary from site to site (Lakhal et al., 2009), if leaving
them uncovered, they would make different impacts on different
sites. In cases where drill cutting piles include many potentially
hazardous chemicals, they can become extremely toxic due to
synergistic effects of various contaminants (Lakhal et al., 2009).
-
C(n-1): The balance of the financial guarantee fund on December
31st of the year (n-1), defined by the total balance of all
the bank accounts to which PetroVietnam (PVN) send
the financial guarantee fund of the respective field, and
certified in writing by the relevant commercial banks,
the calculation unit is USD.
I(n-1): The profit from the savings accounts received by
organisations and individuals after PVN, on behalf of
them, fulfill all the duties with the national budget (if
any) for the year (n-1).
-
-
Dn: The remaining recoverable reserves, Dn = d1-d2, in which:
+ d1: The recoverable reserves defined in the economic
development plan or the early production plan already
approved by authorities up to the end of the year n, the
calculation unit is the barrel of oil equivalent.
+ d2: The total production accumulated from the relevant field(s)
up to the year (n-1), the calculation unit is the barrel of oil
equivalent.
(Quyết định 49/2017/QD-TTg năm 2017)
The methodologies used to calculate the amounts mean that what
the operator pays to the financial guarantee fund during the project
life is just part of the decommissioning cost and thus would not
ensure the total decommissioning cost of the field is fully covered
if premature closure occur in cases of economic downturn or where
the operator goes into liquidation.
6.1.2. Material conditions
Financial assurance for oil and gas decommissioning in Vietnam
is in the form of financial guarantee fund which is paid annually
by the operator during the project life under both the relevant
regulations (Quyết định 40/2007/QD-TTg năm 2007; Quyết định
49/2017/QD-TTg năm 2017). Particularly, annual payments to
the financial guarantee fund were/are calculated according to the
following formulas:
Meanwhile, the financial assurance for the Scottish coal sites prior
to the operators’liquidation was in the form of surety bonds (EAC,
167
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
2010b; 2010c; 2011a) which are similar to insurance policies in
that annual premiums are paid by the operator to maintain the
bond (Ferreira and Suslick, 2000). This form of financial assurance
is more advantageous than the financial guarantee fund under
Vietnam’s law because if the operator is bankrupt at some point of
the project life, the government will be paid by the surety company
for full restoration/decommissioning work providing that surety
bonds are precisely calculated and strictly monitored. However,
in the cases of Scottish coal sites, the local government – East
Ayrshire Council failed to do so at the planning stage and during
the operations phase (Mackinnon et al., 2014). Thus, at the time
of the operators’ liquidation, there were wide gaps between the
bond value as granted and the cost for restoring the sites to the
originally approved restoration plans (EAC, 2013).
but also helps improve the quality of decommissioning outcomes
since they are familiar with the marine environment around the oil
field. These could be proved through the restoration of opencast
coal mines in East Ayrshire, Scotland. For example, consulting
with Skares community made East Ayrshire Council change their
draft restoration plan so that no “water body of any scale” would
be left following the restoration of the Skares void, which would
address the local community’s health and safety concerns and
hence receive their support (EAC, 2016b). Or in the Dunstonhill
case, the Cunninghame Ramblers advised the local government
that the tops of the overburdens should be seeded and grassed since
it would create a more welcoming environment for ramblers at
the end of the journey (EAC, 2016a), which would help enhance
the local tourism prospects.
The liquidation of operators has never happened to the oil and gas
industry in Vietnam and apart from laws, there would be terms
in petroleum contracts that bind operators’ liabilities (POC2,
2019b). Regarding laws, according to Article 20 of Decision
40/2007/QD-TTg, within one year prior to the completion of
the petroleum contract or the expiry of the petroleum production
period as specified in the field development plan, organisations
or individuals must recalculate the financial guarantee fund on
the basis of recalculating the total decommissioning cost, the
production within the petroleum contract and the recoverable
reserves at this time (Quyết định 40/2007/QD-TTg năm 2007).
In the case of X field, before handing over the field in 2013, due
to the early cessation of the Production Sharing Contract, TSJOC
had to reevaluate the financial guarantee fund and add to the fund
to make it sufficient for decommissioning the field following this
article (POC2, 2019b). This means the previous operator of X
field had complied with the legal requirements of the financial
guarantee fund before leaving the project. However, given what
has occurred elsewhere, no one can assure a similar situation will
never occur in Vietnam.
6.3. Interplay Between Biodiversity and Restoration/
Decommissioning Outcomes
Regarding Duncanziemere, Dunstonhill and Netherton, the
biodiversity value of critical sites around the project areas continued
to be of interest to the stakeholders involved during the restoration
process after the previous operators’liquidation, especially Scottish
Natural Heritage (SNH) (Le, 2018), a statutory agency for natural
heritage in Scotland7 (The National Trust for Scotland and Scottish
Natural Heritage, 2008). For example, considering the Low Moss
raised bog as the most significant biodiversity resource adjacent to
Duncanziemere, SNH pushed for restoration funds to be allocated
for backfiling works beside the bog so that it is permanently
supported, which means less funds would be available for other
works, given the constrained restoration funds (Le, 2018).
As previously mentioned, offshore platforms can be beneficial for
fish production enhancement and hence marine biodiversity which,
however, is not indicated in the preparation of decommissioning
options for X oil field.According to relevant studies, there are certain
effects of complete removal of offshore platforms on marine resources.
Since offshore platforms are shown to function as refuges and habitats
for marine species, such efficacy will stop following complete removal
as offshore installations are removed and fishing prohibition in the
safety zone is ended (Ekins et al., 2006). Comparing the benefits
for biodiversity and those for local communities, the decrease of
biological production possibility of particular valuable species as a
result of complete removal can exceed the likely increase in fishable
area (Kruse et al., 2015). This is probably true for X field since the
coastal communities’fishery may not improve substantially following
complete removal of the platform as indicated later. Given this fact,
while “rigs-to-reefs” following which oil platforms are retained as
artificial reefs (Fowler et al., 2014) has not been considered for X
field, this can be a decommissioning option for other future oil fields
in Vietnam. Then ‘rigs-to-reefs’ should be clearly introduced as one
of the rationales for retaining offshore platforms in Vietnam’s future
regulations as it has not been done so in the relevant regulation8
(Quyết định 40/2007/QD-TTg năm 2007; Quyết định 49/2017/
6.2. Interplay Between Community Attributes and
Restoration/Decommissioning Outcomes
As indicated in the EIA report for X field, a detailed field
decommissioning plan was not prepared at the time of EIA
due to changes of environmental regulations and communities’
opinions about field decommissioning over time (TSJOC,
2007). There would be discussions among parties about the field
decommissioning plan and decommissioning options based on the
recommendations and approval of relevant authorities (TSJOC,
2007). In this regard, according to World Bank Multistakeholder
Initiative (2010), before the cessation of the production, a complete
decommissioning plan should be prepared, consulted and reviewed
with authorities, local communities and other related parties. It is
not indicated in the field decommissioning plan for X field that
local communities’ interests had been consulted; however, this is
not compulsory following Decision 40/2007/QD-TTg or Decision
49/2017/QD-TTg (Quyết định 40/2007/QD-TTg năm 2007; Quyết
định 49/2017/QD-TTg năm 2017). Consulting local communities
during the preparation and development of a field decommissioning
plan not only ensures decommissioning outcomes are more
satisfactory to local communities’ interests and thus ensures
equality and avoids any possible conflicts (Fowler et al., 2014)
7
Since SNH is a Scottish statutory agency, their requirements can be
considered as constitutional rules following the definition of constitutional
rules in Section 3.
8
In Decision 49/2017/QD-TTg (Article 23, Item 1(g)), ‘rigs-to-reefs’ can be
understood as offshore structures that prove to be beneficial when being
retained (Quyết định 49/2017/QD-TTg năm 2017).
168
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
QD-TTg năm 2017). Because offshore installations usually offer
settlement for large amounts of exploited fish species, they can become
aggregation devices if fishing is encouraged around them (Schroeder
and Love, 2004). Therefore, for the benefit of marine biodiversity
as well as the concern of fishing hazards, if rigs-to-reefs is chosen
for decommissioning deep-sea fields like X field, clearly-notified
exclusion zones that prohibit fishing must be set up surrounding the
offshore installations (Macreadie et al., 2011). In addition, evaluation
of potential pollution risks and ultimate liabilities of maintaining the
offshore installations should be undertaken (DMIRS, 2017).
Given the complete removal of X oil field after decommissioning
(PVEP POC, 2015), the ocean surface and water column will
be unobstructed (Kruse et al., 2015). Fishing boats will enjoy
an enhancement in accessible area since such prohibition will
be lifted. However, due to the small scale of the affected area in
compared to the whole fishing ground in the coastal region, there
would be no outstanding loss in the coastal communities’ fishery
during the drilling and production phases (TSJOC, 2007) and hence
no outstanding growth after the project decommissioning. This was
probably the reason why coastal communities’ fishery was not
indicated as the rationale for selecting the final decommissioning
option for X oil field. However, other decommissioning options
can help boost coastal communities’socioeconomic development.
For example, partial removal of the platform may strengthen the
growth of coastal tourism during a long period if nonconsumptive
users or recreational fishing is allowed to access the platform
(Kruse et al., 2015). Although marine recreational fishing in
Vietnam is underdeveloped (Teh et al., 2014), this can be an
attractive tourism service in the future.
Some particular approaches of rigs-to-reefs are leaving the rig in
situ, toppling the whole installation in its existing location, partially
removing the rig in its existing location, and moving the rig to
a different location (Macreadie et al., 2011). These approaches
imply that offshore installations are left on the seabed, which
may impede marine transportation and lead to navigation hazards
(Techera and Chandler, 2015). This issue has been addressed
by many international laws. Apart from the Convention on the
Continental Shelf, 1958 and OSPAR Decision 98/3 mentioned
earlier, the United Nations Convention on the Law of the Sea, 1982
(UNCLOS) in its Article 60(3) specifically indicates that disused
installations or structures must be removed to ensure “safety of
navigation” and those whose depth, position and dimensions are
partially removed must be made public suitably (United Nations
Convention on the Law of the Sea, 1982). This is also reflected in
Vietnamese law, particularly, Decision 49/2017/QD-TTg requires
that all the piles, pipes and structures installed down to the seabed
must be cut naturally under the seabed to ensure no emergence of
any parts and no interference with navigation and other marine
activities (Quyết định 49/2017/QD-TTg năm 2017). Therefore,
navigation hazards should be considered if rigs-to-reefs is chosen
for decommissioning other oil fields in Vietnam.
In relation to the impacts of decommissioning on the economy of
the broader regions or the nation, removing the platform completely
will encourage economic development in the short time due to the
multiplier effects (Kruse et al., 2015) in terms of, for example,
job creation. Decommissioning of oil and gas platforms requires
mobilisation of engineers and relevant experts, which thus needs
direct investment in local businesses, national universities and centres
of expertise to ensure the availability of the proper skills (McCauley,
2018). While this is not mentioned in the decommissioning plan
for X field, PVN has been investing in universities and centres of
expertise in Vietnam to provide researchers, engineers and skilled
workers for the oil and gas industry, including Vietnam Petroleum
Institute, PetroVietnam University and PetroVietnam Manpower
Training College (PVMTC) (PVMTC, n.d.a; PVU, n.d.; VPI, n.d.).
Especially, PVMTC has been the best diving contractor in Vietnam
that provides many underwater services, including underwater
decommissioning work (PVMTC, n.d.b).
Nevertheless, complete removal can also bring ecosystem value
in terms of creating a marine zone which is essential for recruiting
particular species and offering crucial chances for larvae to settle
prior to being swept out to sea and dying (Kruse et al., 2015).
In addition, it can contribute to restoring soft bottom habitats,
especially in cases of removing shell mounds (NOAA, 2003, cited
in Kruse et al., 2015. p. 580). Therefore, since complete removal
of the wellhead platform may be selected for future oil fields in
Vietnam, such ecosystem value needs to be further investigated
and compared to other options before making the final decision.
7. CONCLUSIONS
The research analysis shows that there is interplay between
contextual factors (biophysical and material conditions,
community attributes, biodiversity’s interest, socioeconomic
context and rules9) and restoration/decommissioning outcomes in
Scottish coal sites and X oil field in Vietnam. It also shows that
there should be consideration of additional important issues in the
preparation of future field decommissioning plans and the update of
the related regulations in Vietnam, following the lessons from the
closure planning of opencast coal mines in Scotland and researches
on decommissioning planning of offshore platforms worldwide.
6.4. Interplay Between the Socioeconomic Context and
Restoration/Decommissioning Outcomes
The local communities’ socioeconomic context was addressed in
the form of employment provision during the restoration of Scottish
coal sites (Le, 2018). It is not indicated in the field decommissioning
plan for X oil field how coastal communities’ socioeconomic
context influenced the preparation of decommissioning options.
However, the impact of X oil field decommissioning on coastal
communities’ socioeconomic development can be predicted.
•
While compliance monitoring was a serious problem in
East Ayrshire Council to ensure the operator’s compliance
with the planning permissions’ requirements, this has not
been the issue in X case. Nevertheless, given its occurrence
elsewhere, it is better to apply the precautionary approach, that
is, compliance monitoring during the life cycle of an offshore
During the drilling and production phases of X oil field, fishing
activities within the 500-m safety zone around the platform were
prohibited like many other countries’ legislation (TSJOC, 2007).
9
The influence of rules is integrated in the analysis of other variables.
169
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
oil field should be specified in relevant Vietnam regulations,
particularly Decree 95/2015/ND-CP as it currently only
requires compliance monitoring for wells (Nghị định 95/2015/
NĐ-CP, Article 77, Item 6)
TTg. Although mobilising engineers and relevant experts is
not indicated in the decommissioning plan for X field, given
the necessity of this human resource for decommissioning
Vietnam’s oil and gas platforms in the future, there should
be continued investment of PVN in research, training and
education
•
Following the studies of decommissioning options for
offshore structures around the world, removing or capping
shell mounds can be considered for decommissioning of
future oil and gas fields in Vietnam. In addition, given the
potential impacts of drill cuttings, they should be dredged or
covered following a low-risk approach. These can be added
to Article 10, Item 2 of Decision 49/2017/QD-TTg with a
note that potential obstructions from capping shell mounds
and covering drill cuttings piles should be consulted with the
relevant authority to avoid navigation hazards
As can be drawn from the lesson of the opencast mining
industry in Scotland, a more powerful financial assurance
instrument should be applied to Vietnam’s oil and gas industry
to ensure the financial guarantee fund is sufficiently available
for decommissioning throughout the project process, which
can be updated to Article 28 of Decision 49/2017/QD-
TTg. This will help prevent the burden of any remaining
decommissioning liability on the Government and potential
negative impacts of low-quality decommissioning outcomes
on local communities and marine biodiversity
World Bank Multistakeholder Initiative’s (2010) guideline and
experience from the restoration of opencast coal mines in East
Ayrshire, Scotland point out that local communities’interests
should be consulted during the preparation and development
of a field decommissioning plan. Given its benefits,
consulting local communities’interests should be encouraged
if not compulsory in Vietnam’s amended regulations on
decommissioning of petroleum fields, particularly Article 6,
Item 3 of Decision 49/2017/QD-TTg
With the above-mentioned policy recommendations, this research
will contribute to the improvement of decommissioning planning
of offshore oil and gas fields in Vietnam. In addition, the conceptual
framework developed in this research as adapted from Le’s (2018)
modified IAD framework can be used for analysing any mines
or oil and gas fields in the world. However, one limitation of
the study is that it does not analyse the influence of the project
context on the stakeholders’interactions during decommissioning
planning due to the limited data available. This can be the focus
of a future study, whether in the case of X field or other offshore
oil fields in Vietnam, in order to investigate: (1) how compliance
monitoring was undertaken during the project process, particularly
prior to decommissioning; (2) how the stakeholders involved
interacted to ensure the financial guarantee fund was sufficient for
full decommissioning as required in the field decommissioning
plan throughout the project life; (3) how local communities were
consulted during the preparation and development of the field
decommissioning plan; and (4) how the relevant stakeholders
interacted to integrate biodiversity’s interest into the field
decommissioning plan.
•
•
•
FUNDING
This work was funded by PetroVietnam University under grant
code GV1903.
Due to the outbalance of the reduced biological production
possibility over the potential increase in fishable area following
complete removal of an offshore platform, rigs-to-reefs options
should be considered for future decommissioned platforms
in Vietnam. However, since complete removal of offshore
structures can also bring ecosystem value, there should
be comparison of potential ecosystem value brought from
rigs-to-reefs and complete removal options before making
the final selection. These require the interest in conserving
and enhancing marine biodiversity of the stakeholders
involved, which should be encouraged in the relevant laws on
decommissioning of offshore oil and gas fields. In addition,
issues related to installing a clearly-notified exclusion zone
and evaluating potential pollution risks and ultimate liabilities
should be clarified in the related laws. Furthermore, navigation
hazards should be addressed if rigs-to-reefs is applied to
decommissioned structures in Vietnam given the relevant
requirements in the national and international laws. All of
these issues and rigs-to-reefs approach can be supplemented
to Article 23, Item 1 of Decision 49/2017/QD-TTg
ACKNOWLEDGMENTS
The authors are grateful to the representatives of PetroVietnam
Domestic Exploration Production Operating Company Limited
for participating in the research and providing useful information
during the research process. Many thanks are also given to
PetroVietnam lecturers for valuable comments and suggestions. In
addition, the authors would like to express sincere gratitude to all
the participants in Le’s (2018) study for kindly providing data and
clarifying questions relating to the Scottish opencast coal industry.
REFERENCES
Baillie, J.E.M., Griffiths, J., Turvey, S.T., Loh, J., Collen, B. (2010),
Evolution Lost: Status and Trends of the World’s Vertebrates.
London: Zoological Society of London.
Bernstein, B.B., Bressler,A., Cantle, P., Henrion, M., John, D., Kruse, S.,
Pondella, D., Scholz,A., Setnicka, T., Swamy, S. (2010), Evaluating
Alternatives for Decommissioning California’s Offshore Oil and Gas
Platforms: A Technical Analysis to Inform State Policy. Oakland,
California: California Ocean Science Trust.
Browne,A.L., Stehlik, D., Buckley,A. (2011), Social licences to operate:
For better not for worse; for richer not for poorer? The impacts of
unplanned mining closure for “fence line” residential communities.
Local Environment, 16(7), 707-725.
•
Owing to the potential growth of coastal tourism associated
with decommissioned structures such as recreational fishing,
coastal communities’socioeconomic development should be
considered while designing decommissioning options, which
can be updated to Article 6, Item 3 of Decision 49/2017/QD-
170
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
Burdon, D., Barnard, S., Boyes, S.J., Elliott, M. (2018), Oil and gas
infrastructure decommissioning in marine protected areas: system
complexity, analysis and challenges. Marine Pollution Bulletin,
135, 739-758.
Cherry, J. (2008), Case study of successful reclamation and sustainable
development at Kennecott mining sites. In: Berger, A., editor.
Designing the Reclaimed Landscape. London, New York: Taylor
and Francis Group.
Officer to the Cabinet. East Ayrshire Council.
EAC. (2016a), Minutes of Dunstonhill Technical Working Group
meeting dated 15 June 2016. Planning Application Ref. 08/0783/
east-ayrshire.gov.uk/online/applicationDetails.do?activeTab=docum
ents&keyVal=K7YN1XGF01S00. [Last accessed on 2016 Jul 21].
EAC. (2016b), Minutes of SkaresArea D public Meeting Dated 29 March
2016. PlanningApplication Ref. 08/0752/FL. EastAyrshire Council.
EAC. (2017), Report on Opencast Coal Site Restoration and Aftercare
Bonds Report by the Chief Governance Officer to the Cabinet.
Confidential Document, East Ayrshire Council.
legal.un.org/ilc/texts/instruments/english/conventions/8_1_1958_
continental_shelf.pdf. [Last accessed on 2019 Mar 16].
Declaration on the Conduct of Parties in the South China Sea.
uploads/2017/07/2002-Declaration-on-the-Conduct-of-Parties-in-
the-South-China-Sea.pdf. [Last accessed on 2019 Mar 15].
Department of Industry, Innovation and Science. (2018), Offshore
Petroleum Decommissioning Guideline. National Offshore
Petroleum Titles Administrator.
Ekins, P., Vanner, R., Firebrace, J. (2005), Decommissioning Scenarios:
A Comparative Assessment Using Flow Analysis. Policy Studies
decommissioning-working%20paper.pdf. [Last accessed 2018 Mar 29].
Ekins, P., Vanner, R., Firebrace, J. (2006), Decommissioning of offshore
oil and gas facilities:Acomparative assessment of different scenarios.
Journal of Environmental Management, 79, 420-438.
DMIRS. (2017), Petroleum Decommissioning Guideline. Department
of Mines, Industry Regulation and Safety, Government of Western
Australia.
lex.europa.eu/legal-content/EN/TXT/?uri=LEGISSUM%3Al28061.
[Last accessed on 2020 Apr 22].
EAC. (2006), Planning Permission for Application Ref.: 05/0232/FL.
Planning Application Ref. 05/0232/FL. East Ayrshire Council.
EAC. (2010a), Planning Permission for Application Ref. 09/0891/PP.
Planning Application Ref. 09/0891/PP. East Ayrshire Council.
EAC. (2010b), Minute of Agreement among East Ayrshire Council, the
Scottish Coal Company Limited, SRG Estates Limited, the Scottish
Ministers, and Diana Mary Wheeker. Planning Application Ref.
eplanning.east-ayrshire.gov.uk/online/applicationDetails.do?activ
eTab=documents&keyVal=K7YN1XGF01S00. [Last accessed on
2017 Feb 01].
Ferreira, D.F., Suslick, S.B. (2000), A new Approach for Accessing
Offshore Decommissioning: A Decision Model for Performance
Bonds. Stavanger: Paper Prepared for Presentation at the SPE
International Conference on Health, Safety, and the Environment in
Oil and Gas Exploration and Production, 26-28 June 2000.
Finger, S., Church, S., von Guerard, P. (2007), Potential for successful
ecological remediation, restoration, and monitoring. In: Church,
S.E., von Guerard, P., Finger, S.E., editors. Integrated Investigations
of Environmental Effects of Historical Mining in the Animas River
Watershed, San Juan County, Colorado. Chapter F, US Geological
Survey.
EAC. (2010c), Minute of Variation of Minutes of Agreement among
East Ayrshire Council, Aardvark TMC Limited, The Partners of
and Trustees for the Firm of Young Brothers, The Dumfries Estate
Trustees and The Scottish Ministers. Planning Application Ref.
09/0891/PP. East Ayrshire Council.
EAC. (2011a), Minute of Variation among East Ayrshire Council, ATH
Resources Plc, Aardvark TMC Limited, and Denise Tait Chambers.
Planning Application Ref. 09/0511/PP, East Ayrshire Council.
applicationDetails.do?activeTab=documents&keyVal=KMPQAYG
F01B00. [Last accessed on 2017 Feb 01].
EAC. (2011b), Planning Permission for Application Ref. 09/0511/PP.
Planning Application Ref. 09/0511/PP. East Ayrshire Council.
EAC. (2013), Steps to Recovery Report, EastAyrshire Council.Available
agendas/council/19%20september%202013/Open%20Cast%20
Mining%20Report.pdf. [Last accessed on 2016 Mar 15].
EAC. (2014), Application Ref. 13/0865/PP at Duncanziemere Surface
Coal Mine, Lugar by OCCW (Duncanziemere) Limited Report
by Head of Planning and Economic Development to the Planning
Committee. Planning Application Ref. 13/0865/PP. East Ayrshire
Council.
EAC. (2015a), Planning Enforcement Notice for Dunstonhill Site
Opencast Coal Mine, near Patna Report byActing Head of Planning
and Economic Development to the Planning Committee. East
Ayrshire Council.
EAC. (2015b), Planning Enforcement Notice for Netherton Opencast
Coal Mine, Skares Report byActing Head of Planning and Economic
Development to the Planning Committee. East Ayrshire Council.
EAC. (2015c), Update Report Dunstonhill and Netherton Opencast Coal
Sites Revised Restoration Schemes Report by the Chief Governance
Fowler, A.M., Macreadie, P.I., Jones, D.O.B., Booth, D.J. (2014), A
multi-criteria decision approach to decommissioning of offshore oil
and gas infrastructure. Ocean and Coastal Management, 87, 20-29.
Friends of the Earth Scotland, RSPB Scotland. (2013), Opencast Coal
Mining: Liability for Restoration Works. The Royal Society for
Images/opencast-coal-mining_tcm9-353523.pdf. [Last accessed on
2016 Apr 16].
Gardner, J.H., Bell, D.T. (2007), Bauxite mining restoration by Alcoa
World Alumina Australia in Western Australia: Social, political,
historical, and environmental contexts. Restoration Ecology, 15,
S3-S10.
Gillespie, M., Glenn, V., Doley, D. (2015), Reconciling waste rock
rehabilitation goals and practice for a phosphate mine in a semi-arid
environment. Ecological Engineering, 85, 1-12.
Ha, B.T. (2018), Phát Triển Kinh tế Biển Bền Vững: Tiềm Năng, Thách
net/2018/03/21/phat-trien-kinh-te-bien-ben-vung-tiem-nang-thach-
thuc-va-dinh-huong. [Last accessed on 2019 Mar 17].
Henrion1, M., Bernstein, B., Swamy, S. (2015),Amulti-attribute decision
analysis for decommissioning offshore oil and gas platforms.
Integrated Environmental Assessment and Management, 11(4),
594-609.
ICMM. (2006), Good Practice Guidance for Mining and Biodiversity.
London, United Kingdom: International Council on Mining and
practice-guidance-for-mining-and-biodiversity. [Last accessed on
2015 Jun 15].
Jefferies, C. (2018), Exploration Drilling within Block ER236, Offshore
of the East Coast of Southern Africa. South Durban Community
171
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
co.za/2018/03/27/comments-from-sdcea-on-offshore-oil-and-gas-
exploration-drilling-within-block-er2369-of-the-east-coast-of-kzn.
[Last accessed on 2019 Jun 02].
11(4), 584-593.
Powell, J.L. (1988), Revegetation Options. In: Hossner, L.R., editor.
Reclamation of Surface-Mined Lands. Florida: CRC Press.
PVEP POC. (2015), Field Abandonment Plan, Confidential Document.
Vietnam: PetroVietnam Domestic Exploration Production Operating
Company Limited.
PVEP POC. (2016), Report on Environmental Monitoring Survey before
Abandonment of X field, BlockY. Vietnam: Confidential Document,
PetroVietnam Domestic Exploration Production Operating Company
Limited.
Kruse, S.A., Bernstein, B., Scholz, A.J. (2015), Considerations in
evaluating potential socioeconomic impacts of offshore platform
decommissioning in California. Integrated Environmental
Assessment and Management, 11(4), 572-583.
Kuter, N. (2014), Reclamation of degraded landscapes due to opencast
mining. In: Özyavuz, M., editor.Advances in LandscapeArchitecture.
Ch. 33. London: InTech.
Lakhal, S.Y., Khan, M.I., Islam, M.R. (2009), An “Olympic” framework
for a green decommissioning of an offshore oil platform. Ocean and
Coastal Management, 52, 113-123.
Le, H.T. (2018), Exploring the Governance of Post-mining Restoration in
Scotland in the Demise of the Opencast Coal Industry and Finding
the Way Forward. Scotland: PhD Thesis, University of Dundee.
Mackinnon, J., Norman, C., Fowlie, J. (2014), Report of Independent
Review of regulation of opencast coal operations in East Ayrshire.
East Ayrshire Council.
Macreadie, P.I., Fowler,A.M., Booth, D.J. (2011), Rigs-to-reefs: Will the
deep sea benefit from artificial habitat? Frontiers in Ecology and the
Environment, 9(8), 455-461.
McCauley, D. (2018), Reframing decommissioning as energy
infrastructural investment: A comparative analysis of motivational
frames in Scotland and Germany. Energy Research and Social
Science, 41, 32-38.
PVEP POC. (2018), Report on Environmental Monitoring Survey for X
Field. Vietnam: Confidential Document, PetroVietnam Domestic
Exploration Production Operating Company Limited.
PVEP. (2015), Biện Pháp Phòng Ngừa và Ứng Phó sự cố Hóa Chất
Công Trình mỏ X. Confidential Document. Vietnam: PetroVietnam
Exploration Production Corporation.
PVMTC. (n.d.a.), College Profile, About us, Introduction. PetroVietnam
com.vn/index.php/en/about-us/introduction. [Last accessed on 2019
Apr 21].
PVMTC. (n.d.b.), Introduction, Subsea Services Division. Vietnam:
PetroVietnam Manpower Training College. Available from: http://
PVU. (n.d.), About PVU. Vietnam: PetroVietnam University. Available
on 2019 Apr 21].
Nghị định 95/2015/NĐ-CP. (2015), (Nghị Định quy Định Chi Tiết Một
bocongthuong/Pages/vbpq-van-ban-goc.aspx?ItemID=91806. [Last
accessed on 2021 Jan 20].
Orji, F.M. (2018), Management of Environmental Issues in the Nigerian
Oil-producing Region:AFramework for Stakeholders’Collaboration.
England: PhD Thesis, University of Central Lancashire.
Osmundsen, P., Tveterås, R. (2003), Decommissioning of petroleum
installations major policy issues. Energy Policy, 31(5), 1579-1588.
OSPAR Commission. (1998), Ministerial Meeting of the OSPAR
Commission, Sintra, 22-23 July 1998 Programmes and Measures.
accessed on 2020 Apr 22].
Ostrom, E. (2005), Understanding the diversity of structured human
interactions. In: Ostrom, E., editor. Understanding Institutional
Diversity. Ch. 1. Princeton: Princeton University Press.
Ostrom, E. (2007), Institutional rational choice: An assessment of the
institutional analysis and development framework. In: Sabatier,
P.A., editor. Theories of the Policy Process. Boulder, Colorado:
Westview Press.
Peck, P., Sinding, K. (2009), Financial assurance and mine closure:
Stakeholder expectations and effects on operating decisions.
Resources Policy, 34, 227-233.
POC1. (2019), Personal Interview, 14 February 2019. Professional and
Owner Certification.
POC2. (2019a), Informal Conversations with the CorrespondingAuthor,
8 March 2019. Professional and Owner Certification.
POC2. (2019b), Telephone Conversations with the CorrespondingAuthor,
22 April 2019. Professional and Owner Certification.
POC2. (2020), Telephone Conversations with the CorrespondingAuthor,
8 May 2020. Professional and Owner Certification.
Polski, M.M., Ostrom, E. (1999), An Institutional Framework for Policy
Analysis and Design. Workshop in Political Theory and Policy
Analysis. Bloomington: Indiana University.
Pondella, D.J., Zahn, L.A., Love, M.S., Siegel, D., Bernstein, B.B.
(2015), Modeling fish production for southern California’s petroleum
platforms. Integrated Environmental Assessment and Management,
Quyết định 40/2007/QD-TTg năm. (2007), (Quyết Định về Việc Thu
Dọn Các Công Trình cố Định, Thiết bị và Phương Tiện Phục
chinhphu.vn/portal/page/portal/chinhphu/hethongvanban?class_
id=1&mode=detail&document_id=21315. [Last accessed on 2019
Feb 16].
Quyết định 49/2017/QD-TTg năm. (2017), (Quyết Định về Việc Thu dọn
các Công Trình, Thiết bị và Phương Tiện Phục vụ Hoạt Động Dầu
nguyen-Moi-truong/Quyet-dinh-49-2017-QD-TTg-thu-don-cong-
trinh-thiet-bi-phuong-tien-phuc-vu-hoat-dong-dau-khi-370298.aspx.
[Last accessed on 2020 Feb 19].
RSPB Scotland. (2014), Opencast Coal Mining: Moving towards More
Effective Regulation. The Royal Society for the Protection of Birds.
tcm9-365075.PDF. [Last accessed on 2016 Apr 16].
Salomons, W. (1995), Environmental impact of metals derived from
mining activities: Process, predications, prevention. Journal of
Geochemical Exploration, 52, 5-23.
Sassoon, M. (2009), Financial Surety: Guidelines for the Implementation
of Financial Surety for Mine Closure. World Banks’s Oil, Gas, and
worldbank.org/INTOGMC/Resources/7_eifd_financial_surety.pdf.
[Last accessed on 2015 Jun 05].
Schroeder, D.M., Love, M.S. (2004), Ecological and political issues
surrounding decommissioning of offshore oil facilities in the
Southern California Bight. Ocean and Coastal Management,
47(1, 2), 21-48.
Snashall, D. (2018), Assessing the Social and Economic Impacts of
Oilfield Closure and Decommissioning. Kuala Lumpur: Paper
Prepared for Presentation at the SPE Symposium: Decommissioning
and Abandonment, 3-4 December 2018.
Sommer, B., Fowler, A.M., Macreadie, P.I., Palandro, D.A., Aziz, A.C.,
Booth, D.J. (2019), Decommissioning of offshore oil and gas
structures environmental opportunities and challenges. Science of
the Total Environment, 658, 973-981.
Techera, EJ, Chandler, J. (2015), Offshore installations, decommissioning
172
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
and artificial reefs: Do current legal frameworks best serve the marine
environment? Marine Policy, 59, 53-60.
Teh, L., Zeller, D., Zylich, K., Nguyen, G., Harper, S. (2014),
Reconstructing Vietnam’s Marine Fisheries Catch, 1950-2010,
Working Paper No. 2014-17. Canada: The University of British
Columbia.
Tordo, S. (2007), Fiscal Systems for Hydrocarbons: Design Issues.
World Bank Working Paper No. 123. Washington, DC: The World
INTOGMC/Resources/fiscal_systems_for_hydrocarbons.pdf. [Last
accessed on 2019 Apr 18].
Tordoff, G.M., Baker, A.J.M., Willis, A.J. (2000), Current approaches
to the revegetation and reclamation of metalliferous mine wastes.
Chemosphere, 41(1, 2), 219-228.
TSJOC. (2007), Environmental Impact Assessment Report for the Z
Complex Early Production Project in Block Y Offshore South
Vietnam. Vietnam: Confidential Document, PetroVietnam Domestic
Exploration Production Operating Company Limited.
The Australian Government. (2016), Mine Rehabilitation, Department
of Industry, Innovation and Science. Available from: https://
rehabilitation-handbook-english.pdf. [Last accessed on 2021 Feb 14].
The National Trust for Scotland and Scottish Natural Heritage. (2008),
Concordat between the National Trust for Scotland and Scottish
Natural Heritage 2008. Scottish Natural Heritage. Available from:
May 26].
to_clean_up_opencast_mines. [Last accessed on 2017 Mar 11].
Trung tâm Nghiên Cứu và Phát triển an Toàn và Môi Trường dầu khí.
(2017), Chương Trình Quản lý an Toàn Dự án Vận Hành mỏ X.
Vietnam: PetroVietnam Domestic Exploration Production Operating
Company Limited, Confidential Document.
United Nations Convention on the Law of the Sea. (1982), Available
unclos/unclos_e.pdf. [Last accessed on 2019 Mar 16].
United Nations Treaty Collection. (n.d.), Convention on the Continental
Shelf. United Nations Treaty Collection. Available from: https://
Chapter%20XXI/XXI-4.en.pdf. [Last accessed on 2019 Mar 16].
Viet Nam News. (2019), PVN Sets Target of Adding up to 30m Tonnes
to Oil Reserves. Viet Nam News (Online Edition), 15 March.
pvn-sets-target-of-adding-up-to-30m-tonnes-to-oil-reserves.html.
[Last accessed on 2019 May 24].
VPI. (n.d.), Ngày 22-5-1978, Lịch sử Hình Thành và Phát Triển. Vietnam:
vn/lich-su-hinh-thanh-va-phat-trien. [Last accessed on 2019Apr 21].
Wood, A., Stedman-Edwards, P., Mang, J., editors. (2000), The Root
Causes of Biodiversity Loss. London: Earthscan Publications.
World Bank, International Finance Corporation. (2002), It’s Not Over
When It’s Over: Mine Closure Around the World. Washington, DC:
Resources/notoverwhenover.pdf. [Last accessed on 2018 Aug 31].
World Bank, Multistakeholder Initiative. (2010), Towards Sustainable
Decommissioning and Closure of Oil Fields and Mines: A Toolkit to
Assist GovernmentAgencies. Washington, DC:TheWorld Bank Group.
Yin, R.K. (2014), Case Study Research: Design and Methods. London:
Sage Publication.
The Sunday Herald. (2013), Councils Left with £200m Shortfall in Funds
to Clean up Opencast Mines. The Sunday Herald (Online Edition),
news/13135416.Councils_left_with___200m_shortfall_in_funds_
173
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
Le, et al.: Decommissioning Planning of Offshore Oil and Gas Fields in Vietnam: What Can be Learnt from Mine Closure Planning in Scotland?
APPENDIX
Appendix 1: Literal and theoretical replication between
Scottish coal mines and X oil field
Variables
Dunstonhill,
X oil field
Duncanziemere
and Netherton
Biophysical and material conditions
Post-mining/
post-production
A constraint on Not a constraint on
mine restoration decommissioning
biophysical environment
Financial assurance
Insufficient for
Sufficient for
mine restoration decommissioning
Community attributes
Local communities’
interests
Consulted for
the revised
Not consulted for the
decommissioning
restoration plans plan
Biodiversity’s interest
Integrated in
the revised
Not integrated in the
decommissioning
restoration plans plan
Socioeconomic context
Considered
in the revised
Not considered in
the decommissioning
restoration plans plan
Rules
Operational,
Influenced mine Will influence
collective-choice and
constitutional levels
restoration
decommissioning
Source: The authors
174
International Journal of Energy Economics and Policy | Vol 11 • Issue 4 • 2021
13 trang
19/04/2022
1420
Bạn đang xem tài liệu "Decommissioning planning of offshore oil and gas fields in Vietnam: What can be learnt from mine closure planning in Scotland?", để tải tài liệu gốc về máy hãy click vào nút Download ở trên
File đính kèm:
- decommissioning_planning_of_offshore_oil_and_gas_fields_in_v.pdf
