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PART VII. – DRILLING, COMPLETION, RECOMPLETION, SIDETRACK, MAJOR REPAIR, SUSPENSION AND ABANDONMENT OF WELLS.|
101. Notification before Drilling a Well.
(1) Subject to Subsection (2) and Section 104, the Person-in-Charge shall not commence to drill a well before–
(a) he has submitted to the Director a proposed well program for that well; and
(b) he has received written approval of the proposed well program from the Director.
(a) the Person-in-Charge has submitted a proposed well program to the Director under Subsection (1); and
(b) the Director has failed to reply concerning the proposed well program to the Person-in-Charge within 15 working days of the receipt by the Director of the proposed well program,
the Person-in-Charge may carry out the proposed well program without approval.
102. Notification before Deepening, Redrilling, etc.
(1) Subject to Subsections (2) and (3) and Section 103, the Person-in-Charge shall not commence to deepen, sidetrack, complete, re-complete, workover, plug back or materially alter an existing approved well program or suspend or abandon, before–
(a) he has given a proposed program of operations to the Director; and
(b) he has received written approval from the Director to carry out the program.
(a) the Person-in-Charge has given a program to the Director under Subsection (1); and
(b) the Director has failed to reply concerning the program of operations within 72 hours of the receipt of the program of operations,
the Person-in-Charge may carry out the work specified in the program of operations without approval.
(3) Where, for any unforeseen reason, minor changes in the approved well program are required to be made to reach the well objective, approval for such changes is not required, but a notice of intention to carry out the necessary work shall be sent to the Director at the earliest opportunity.
103. Emergency Action.
The site person-in-charge shall, in the case of emergency, take such immediate action as is necessary to protect a well, personnel and/or the environment under the prevailing conditions, and shall, as soon as possible thereafter, notify the Director of the action taken.
104. Proposed Well Program.
A Proposed Well Program shall include the following information as applicable:–
(1) Drilling Program:–
(a) licence area;
(d) well name and number;
(e) location coordinates and graticular block number;
(f) elevation, ground and KB or DF;
(e) water depth (if applicable);
(g) total depth;
(h) estimated spud-in date;
(j) estimated completion date;
(k) geologic prognosis (accompanied by appropriate maps and cross-sections);
(l) drilling contractor;
(m) drilling rig designation;
(n) hole sizes and depths, complete with directional drilling program and well trajectory plot;
(o) casing sizes, weights, grades, coupling types and setting depths complete with design parameter assumptions, rationale and calculations based on Section 122 requirements;
(p) cementing program;
(q) mud program;
(r) sampling and mud logging program;
(s) coring program;
(t) logging program;
(u) testing program including surface equipment descriptions and its working pressure, placement of equipment relative to hazardous areas;
(w) service companies to be employed together with a brief description of the equipment to be provided;
(x) communication facilities;
(y) transportation facilities;
(z) medical facilities, including provisions made for evacuating sick or injured persons;
(aa) estimated costs;
(ab) a well control program and details of financial cover for regaining lost control and the clean up of any oil spills or damage caused;
(ac) names of well site supervisors and copies of current well control certification;
(ad) copy of water use permit;
(ae) plans for any potential flaring;
(2) A Rig Supported Completion/Workover Program shall include the following information as applicable:–
(a) licence area;
(d) well name and number;
(e) location coordinates;
(f) elevation, ground and KB or DF;
(g) water depth (if applicable);
(h) total depth;
(i) estimated spud date;
(j) estimated completion date;
(k) current and/or proposed perforation details, measured depth and depth SS;
(l) existing top of cement behind casing and details on how determined;
(m) well deviation data over zones of interest;
(n) well completion diagrams of existing status and proposed completion/workover status;
(o) details of planned operations and equipment to be used;
(p) listing of contractors and services;
(q) estimated well cost;
(r) details of procedure to kill the well prior to workover;
(s) details for venting/flaring of vapors;
(t) well history, present producing status and workover justification with emphasis on maximization of recovery of hydrocarbons;
(u) for each reservoir to be worked over-petroleum in place, estimated ultimate recovery from workover, estimated cumulative recovery from zone, original and current pressures, original and present fluid contacts;
(3) Non Rig Supported Workover Program shall include such items as listed in Subsection (2) as may be applicable to the operation.
105. Notice of Intention to Abandon.
A notice of intention to abandon a well shall give full details of the method of abandonment, withdrawal of casing, placement and confirmation of quality and position of plugs and capping, and a copy of electric or other type of log, not previously supplied to the Director, shall be supplied with the notice of the intention to abandon a well.
106. Location Survey.
(1) As soon as practicable after the location of any well has been established, either on or offshore, and not later than three months after the well has been spudded, the location and elevation of the well shall be determined by a person and method that meets current Papua New Guinea legislation requirements and is approved by the Director.
(2) As soon as practicable, and not later than one month after completion of the survey for the location and elevation of a well, the licensee shall submit to the Director a plan certified as to accuracy by the person who made the survey.
(3) A plan under Subsection (2) shall, as applicable–
(a) show the location of the well relative to the control point; and
(b) show the well name and number; and
(c) show the control point and bench mark together with particulars thereof; and
(d) show any other wells, roads, public utilities and any substantial structures or buildings within 300m of the well; and
(e) indicate the coordinates of the well in the Papua New Guinea Map Grid and the latitude and longitude of the well computed within the accuracy limits of the survey previously specified, the direction of true north, the elevation of the natural surface and any permanent reference marks established in accordance with this Regulation; and
(f) shall be accompanied by a copy of the field notes and other data pertinent to the survey, unless the Director otherwise approves.
107. Suspension of Operations.
(1) A Person-in-Charge, who has commenced drilling, completing or working over a well, shall not suspend operations nor move major drilling items from the well without first having completed operations as approved by the Director.
(2) A program detailing the suspension operations and justification for the suspension shall be forwarded to the Director for his approval if prior approved well programs cannot be completed due to mitigating circumstances.
(3) All wells that have previously been active producers and/or injection wells–
(a) may be shut-in/suspended for a period of time not exceeding six months upon approval of the suspension program and justification forwarded to the Director; and
(b) applications for extension to the suspension period, including justification, shall be forwarded to the Director, by the Person-in-Charge, prior to the expiry date of the previous period.
(4) The Person-in-Charge shall forward a list of all shut-in and/or suspended wells to the Director on a yearly basis and include the reason for well status, suspension period dates for each well and forward plans for each well.
(5) The Person-in-Charge shall be responsible for ensuring the safety and integrity of all shut-in or suspended wells and shall abide by Section 139(1) of the Act.
108. Failure to Fulfill Conditions.
Where a program of operations is not carried out as approved by the Director, he may cause the program to be carried out in accordance with his requirements.
109. Restoration of Site.
On the completion, suspension or abandonment of a well, the Person-in-Charge shall, as soon as possible, restore the well site and any surrounding area or areas giving access, as near to the original state as can reasonably be done, unless he has already reached a mutually acceptable agreement in writing with the owner or occupier of the land affected (a copy of which must be forwarded to the Director), in accordance with the provisions of the Act and of this Regulation.
110. Oil or Gas Lost or Used During Well Operations.
Unless otherwise approved by the Director, the quantities of all oil or gas lost by burning, venting to atmosphere, flaring or admixture with other circulating fluids in the course of any well completion, recompletion, or workover operations, shall be reported forthwith to the Director.
111. Well Records.
Careful and accurate records, relative to the drilling, completing, workover, re-completing, stimulating, suspending or abandoning of every well, shall be kept.
112. Daily Reports.
(1) The site person-in-charge shall prepare an accurate daily report on each well being drilled, suspended, completed, repaired, tested, stimulated, recompleted or abandoned and dispatch a copy of each report to the Director as soon as practicable after its preparation.
(2) A report under Subsection (1) shall include those items as indicated in Section 239.
113. Reports Originating at the Well site.
(1) Typed copies of the operator’s daily drilling reports, leak off test reports, BOP test reports and casing pressure test reports shall be forwarded to the Director weekly to reach the Director within one week of the period covered.
(2) Tour reports in a form as specified by the International Association of Drilling Contractors (IADC) shall be retained by the operator or licensee and submitted to the Director upon request or upon expiration, relinquishment or other termination of the licence in which the well was drilled and/or worked over.
114. Well Completion Report.
(1) Within two months from the date of rig release of a well, there shall be forwarded to the Director–
(a) a completion report, or end of well report, in duplicate; and
(b) an electronic copy of that report on computer disc in a format agreed to by the Director.
(2) A completion report under Subsection (1) shall include, where applicable, but not be limited to, items listed in Section 240, but where those items involve third party analysis and final preparation they can be submitted under separate cover within three months.
(3) In the case of a well repair, recompletion or other operation in which the previous completion of the well is in any way modified, a revised down hole drawing detailing the final well and well equipment status shall be delivered to the Director within one month of the completion of the operation.
(4) On completion or recompletion of a well, transparent and/or computer retrievable (in a format approved by the Director)copies of all logs obtained from the well shall be delivered to the Director as soon as possible.
115. Special Studies.
A report of technical studies on samples and cores obtained from wells including, but not limited to, paleontology, permeability, porosity, fluid saturation, relative permeability, capillary pressure, fluid analysis and well test analysis shall, where for any reason not included in the completion report, be delivered to the Director as soon as they are available.
116. Prohibited Drilling Areas.
(1) A well shall not be drilled within 75m of any road, pipeline or flowline, high voltage power line, or other right of way, dwelling, industrial plant, aerodrome, building, school or church, unless otherwise approved in writing by the Director.
(2) A licensee who drills near an aerodrome shall comply with the requirements of the Department responsible for civil aviation matters.
(3) A well shall not be drilled within 3 km of known subsurface mine workings without the prior approval of the Director and then only under the conditions determined by the Director.
117. Operations Close to Communities.
(1) Where drilling operations are to be carried out close to communities, the Person-in-Charge shall advise the Local-level Government, in whose area such operations are to be carried out or whose area is likely to be affected by such operation, of his intention to carry out such work.
(2) In the case of a serious blowout occurring during drilling operations in an area referred to in Subsection (1), the Person-in-Charge shall advise the police in that area so that proper measures can be taken to safeguard the general public.
118. Deviation Survey.
(1) Unless otherwise approved by the Director, surveys on a well being drilled shall be taken in sufficient number and at appropriate intervals to provide an accurate deviation profile of the wellbore from surface to total depth.
(2) Where the vertical projection to the surface of the point at which a well intersects a producing zone is nearer to a licence area boundary than 300m, the well shall not be brought into production without the prior approval of the Director.
119. Equipment to Comply with Certain Standards.
(1) Unless otherwise authorized by the Director, materials and equipment used in the drilling or rig assisted workover operations in a licence area shall conform to such current standards as are listed in this section.
(2) Masts and sub-structures shall be in accordance with the relevant requirements of API Specifications for Drilling and Well Service Structures, Spec. 4E.
(3) Rotary drilling equipment shall be in accordance with the relevant requirements of API Specification for Rotary Drilling Equipment, Spec. 7.
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