B08_-_Attachment_A_-_Statement_of_Work.pdf

Attachment A: Statement of Work 07/16/2025 140E0125Q0053

B08 - Attachment A - Statement of Work(Jul1725-CM)(YF1)

2.1 BACKGROUND & PURPOSE

The Bureau of Safety and Environmental Enforcement (BSEE) has a requirement for decommissioning methodology and cost evaluation for Pacific Outer Continental Shelf (OCS) Region offshore oil and gas facilities. In the Pacific OCS Region, BSEE develops decommissioning cost estimates every five (5) years for the purpose of assessing the ability of the lessees to comply with the decommissioning requirements, and where their financial strength does not meet the standards, assist in BSEE decisions for supplemental bond requirements.

Reliable decommissioning cost information is necessary to accurately determine the amount of supplemental bond to be required by BOEM from a lessee(s) to ensure compliance with decommissioning requirements, to cover the aggregate decommissioning cost of a lessee(s)’s facilities in varying water depths. The most recent previous report, “Decommissioning Cost Update for Pacific OCS Region Facilities,” (Volumes 1 and 2, Rev. 2 – September 2020) can be reviewed at https://www.bsee.gov/2020-decommissioning-cost-update-for-pacific-outer-continental-shelf-region-facilities.

2.2 OBJECTIVES

The objective is to conduct a detailed evaluation of the various decommissioning techniques and methodologies, as well as the preventative maintenance of related facilities no longer useful for operations, applicable to the Pacific OCS Region, determine the associated costs for decommissioning and maintenance, and prepare an update to the current facilities decommissioning cost report. Before decommissioning operations can safely commence, the ongoing maintenance of facilities no longer useful for operations is essential for sustaining safe and integral condition of the facilities and mitigating the risk of pollution to the offshore environment.

2.3 SCOPE OF WORK

The Contractor shall perform the following tasks:

2.3.1 Task 1: The Contractor shall review, revise, and update as appropriate the decommissioning scenarios, planning and engineering costs, and methodologies assumed in the report, “Decommissioning Cost Update for Pacific OCS Region Facilities,” (Volumes 1 and 2, Rev. 2 – September 2020). The Contractor shall review the state-of-the-art of decommissioning technology and update Pacific OCS Region decommissioning cost estimates, taking into consideration standard industry practice, available technology (including heavy lift vessels), current regulations, and market conditions. The Contractor shall include the preventative maintenance cost estimate of facilities no longer useful for operations, e.g., platforms, wells and pipelines, leading up to the start of decommissioning operations.

2.3.2 Task 2: The Contractor shall review, revise, and update as appropriate the costs of each phase of the decommissioning process from the report, “Decommissioning Cost Update for Pacific OCS Region Facilities,” (Volumes 1 and 2, Rev. 2 – September 2020). The Contractor shall collect and synthesize cost information from local vendors, (to the extent they are available), who provide well https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.bsee.gov%2F2020-decommissioning-cost-update-for-pacific-outer-continental-shelf-region-facilities&data=05%7C02%7CYasser.Fahmy%40bsee.gov%7C6be75f857b684d2729f508dce3b606c7%7C0693b5ba4b184d7b9341f32f400a5494%7C0%7C0%7C638635618694046125%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=qv2KgOcAnoJZEVL6RrRuc%2FCgcGuov%2FvvxRGEOP9Ove8%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.bsee.gov%2F2020-decommissioning-cost-update-for-pacific-outer-continental-shelf-region-facilities&data=05%7C02%7CYasser.Fahmy%40bsee.gov%7C6be75f857b684d2729f508dce3b606c7%7C0693b5ba4b184d7b9341f32f400a5494%7C0%7C0%7C638635618694046125%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=qv2KgOcAnoJZEVL6RrRuc%2FCgcGuov%2FvvxRGEOP9Ove8%3D&reserved=0

140E0125Q0053

B08 - Attachment A - Statement of Work(Jul1725-CM)(YF1) plugging and abandonment services and other decommissioning-related services, including pre-decommissioning preventative maintenance services, and develop equipment and labor costs (spread-costs) for conducting these operations. Where local/regional vendors are not available, the Contractor shall provide this same information for the most reasonable market from which to draw.

The Contractor shall also identify services such as abrasive and mechanical cutting services that are not available locally, estimate the mobilization and demobilization cost and day-rate cost of such services, develop spread-costs for the operations, and prepare decommissioning and maintenance cost estimates utilizing this information.

2.3.3 Task 3: The Contractor shall document the findings in an updated report following the general format followed in the report, “Decommissioning Cost Update for Pacific OCS Region Facilities,” (Volumes 1 and 2, Rev. 2 – September 2020).

2.4 DELIVERABLES

2.4.1 Post-Award Orientation Meeting, Agenda, and Summary Report

The Contractor shall hold a Post-Award Orientation Meeting via teleconference with BSEE within two (2) weeks of contract award. At least one (1) week in advance of the meeting, the Contractor shall submit a Post-Award Orientation Meeting Agenda. Within one (1) week following the Post-Award Orientation Meeting, the Contractor shall provide a Post-Award Orientation Meeting Summary Report detailing the discussions and any mutually agreed to decisions. Proposed changes to the contract are only authorized via a modification to the contract signed by the Contracting Officer.

2.4.2 Monthly Progress Reports

The Contractor shall submit a Monthly Progress Report within one week of the end of each month. Monthly Progress Reports shall include details of the work accomplished and overall progress made in each task of the contract. The Report shall include a summary of any significant problems encountered during the preceding month, including an assessment of their probable impact on the Contractor's performance and statements of corrective actions taken or proposed. The Report shall include a list of any significant meetings held or other contacts made in connection with the contract during the preceding month, including a summary outlining the subject, participants, date, location, and outcome of each such contact or meeting. The Report shall include a summary of major work activities scheduled for the next month and any questions or challenges regarding the Contractor’s work requiring discussions or resolution with BSEE.

2.4.3 Draft Report

The Contractor shall submit a Draft Report that includes a catalog of the most appropriate and likely offshore decommissioning scenarios, techniques, methodologies, and preventative maintenance of facilities no longer useful for operations for the platforms in the Pacific OCS Region, with associated cost data within nineteen weeks of contract award. The Draft Report shall include a report of participation to include all work performed during the study. The Contractor shall schedule a meeting with BSEE within one (1) week of the Draft Report

140E0125Q0053

B08 - Attachment A - Statement of Work(Jul1725-CM)(YF1) submittal to present the draft report and solicit feedback and comments. BSEE will review the Draft Report within five (5) weeks of submission and provide comments or edits back to the Contractor for resolution. The Contractor shall format and meet the requirements of the Draft Report as listed under 2.4.4 final report.

2.4.4 Final Report

The Contractor shall revise the Draft Report within two (2) weeks to include the resolution of feedback provided by BSEE on the Draft Report and submit a Pre-Final Report for BSEE review. BSEE will review the Pre-Final Report within two (2) weeks of submission.

The Contractor shall submit the Final Report within thirty (30) weeks of contract award that includes the information detailed in the Pre-Final Report and the resolution of feedback provided by BSEE on the Pre-Final Report. The Contractor shall format and provide the Final Report with the following requirements:

Executive Summary: The Contractor shall describe the purpose of the report and summarize the methodology and procedures followed in conducting the engineering and cost assessment. The text should emphasize that the cost assessment is specific to southern California and highlight that cost information from local vendors was employed where appropriate. The Contractor shall also provide a graph illustrating the approximate distribution of costs among each step in the decommissioning process (e.g., facilities pre-decommissioning maintenance, platform preparation, well plugging and abandonment, site clearance, mobilization and demobilization of heavy lift vessel) as identified through the study.

Section 1: Introduction: The Contractor shall describe the decommissioning resources and types of infrastructure available in the Pacific OCS Region and compare them to those in the Gulf of America. The availability of heavy lift and support vessels should be discussed as well as the availability of explosive, mechanical and abrasive cutting services. The text should also describe the methodology and procedures followed in conducting the engineering and cost assessment including the actions taken to obtain cost information from local/regional vendors who provide decommissioning, and maintenance related services leading up to decommissioning operations.

Section 2: Decommissioning Cost Assumptions and Scenarios: The Contractor shall review, revise and update, where appropriate, the decommissioning cost assumptions and scenarios described in this section. The Contractor shall advise BSEE of any proposed changes and obtain BSEE concurrence for those changes before conducting detailed cost assessments for decommissioning oil and gas facilities. The Contractor shall include a project management and oversight cost component in the revised cost analysis. The Contractor shall include the cost assumptions and scenarios for the preventative maintenance of facilities no longer useful for operations, preceding the start of decommissioning operations.

Section 3: Decommissioning Methodology: The Contractor shall review, revise and update, where appropriate, the decommissioning methodology described in this section.

decommissioning methodology should include the spectrum of methods deemed reasonable. The BSEE policy is to consider conventional methods for decommissioning. If new methods have

140E0125Q0053

B08 - Attachment A - Statement of Work(Jul1725-CM)(YF1) emerged since the 2020 report, these may be included, but only if they have proven to be successful and are conventional (commonly used techniques). For example, if rig-less methods for well plugging and abandonment are appropriate, the Contractor shall develop a spread-cost for this method. The Contractor shall advise BSEE of any additional changes to the methodology it recommends and obtain BSEE concurrence for those changes before conducting detailed cost assessments for decommissioning oil and gas facilities.

Section 4: Engineering and Planning: The Contractor shall review, revise and update, where appropriate, the cost assumptions and cost estimates for engineering and planning. The Contractor shall also develop cost estimates to secure the services of the engineering consulting firm(s) that would manage the overall decommissioning project and the preventative maintenance activities preceding decommissioning. The Contractor will re-title this section “Project Management, Engineering and Planning.”

Section 5: Permitting and Regulatory Compliance: The Contractor shall review, revise and update, where appropriate, the cost assumptions and cost estimates for permitting and regulatory compliance.

Section 6: Platform Preparation and Marine Growth Removal: The Contractor shall review, revise and update, where appropriate, the methodology, cost assumptions and cost estimates for platform preparation and marine growth removal.

Section 7: Well Plugging and Abandonment: The Contractor shall review, revise and update, where appropriate, the methodology, cost assumptions and cost estimates for well plugging and abandonment. The Contractor shall include a separate cost estimate for the abandonment of a sample of sidetrack wells (several sidetrack wells will be provided by BSEE). Sidetrack wells include the portion of the well from Kick-off to Total Depth. The Contractor shall advise BSEE of the range of methods recommended for consideration in developing cost estimates if they are beyond those considered in the 2020 report and obtain BSEE concurrence for those changes before conducting detailed cost assessments for decommissioning oil and gas facilities.

Section 8: Conductor Removal: The Contractor shall review, revise and update, where appropriate, the methodology, cost assumptions and cost estimates for conductor removal. The Contractor shall also evaluate transportation and disposal options for conductors and develop cost estimates for transporting and disposing of conductors, cement and other related materials.

Section 9: Mobilization and Demobilization: The Contractor shall review, revise and update, where appropriate, the methodology, cost assumptions and cost estimates for mobilizing and demobilizing the heavy-lift vessels required to conduct the decommissioning work. The Contractor shall also investigate the availability of heavy-lift vessels stationed on the west coast and consider the capability of these vessels when developing scenarios for decommissioning the offshore platforms.

Section 10: Platform and Structure Removal: The Contractor shall review, revise and update, 140E0125Q0053

B08 - Attachment A - Statement of Work(Jul1725-CM)(YF1) where appropriate, the methodology, cost assumptions and cost estimates for platform and structure removal.

Section 11: Pipeline and Power Cable Decommissioning: The Contractor shall review, revise and update, where appropriate, the methodology, cost assumptions and cost estimates for pipeline and power cable decommissioning.

Section 12: Platform Transportation and Disposal: The Contractor shall review, revise and update, where appropriate, the methodology, cost assumptions and cost estimates for platform transportation and disposal. The Contractor shall also review the offloading and steel processing capacity of the Pacific Coast Recycling Facility (PCRF) in Long Beach, as well as other viable alternative sites, and evaluate the capability of the facilities to accommodate and process the volume of steel in the 23 OCS platforms located offshore California. The Contractor shall identify any prohibitions or restrictions on steel or other metals and materials (conductors, cement, plastics, oil contaminated materials, etc.) that would prevent platform topside and jacket components from being offloaded or processed at the PCRF or other viable alternative sites.

Section 13: Site Clearance: The Contractor shall review, revise and update, where appropriate, the methodology, cost assumptions and cost estimates for site clearance. The decommissioning study is expected to include partial removal and/or decommission-in-place (DIP) methodologies, and the associated cost assumptions and cost estimates.

Appendices A through H: The Contractor shall review, revise and update, where appropriate, the information in the Appendices of the document.

2.4.5 Schedule Summary

The proposed schedule is shown below in Table 1:

Table 1. Schedule for Conducting an Updated Engineering Cost Assessment for Decommissioning OCS Oil and Gas Facilities in the Pacific OCS Region

Task

Estimated Duration (weeks)

Beginning Week

Ending Week

1. Hold kick-off meeting with BSEE to review study objectives

3 1 3

2. Review, revise, and update decommissioning scenarios

4 4 7

3. Review, revise, and update engineering cost assumptions and methodologies

4 4 7

4. Review, revise, and update costs for each phase of the decommissioning process

8 8 15

140E0125Q0053

B08 - Attachment A - Statement of Work(Jul1725-CM)(YF1)

5. Prepare and submit the draft report 4 16 19

6. Hold a meeting with BSEE within one (1) week of the Draft Report submittal to present the draft report and solicit feedback and comments.

BSEE will review the Draft Report within five (5) weeks of submission.

5 20 24

7. Submit the Pre-Final Report within two (2) weeks to include the resolution of feedback and comments provided by BSEE on the Draft Report. BSEE will review the Pre-Final Report within two (2) weeks of submission.

4 25 28

8. Submit the final report 2 29 30

2.5 DELIVERABLE SCHEDULE

Deliverable Distribution Due Date Post-Award Orientation Meeting, Agenda and Summary Report (2.4.1)

COR: via email CO: via email

Post-Award Orientation Meeting shall be held within two (2) weeks of contract award.

Post-Award Orientation Agenda shall be provided at least one (1) week in advance of the Post-Award Orientation Meeting.

Post-Award Orientation Summary Report shall be provided within one (1) week following the Post-Award Orientation Meeting.

Monthly Progress Reports (2.4.2)

COR: via email CO: via email

Within one week of the end of each month

Draft Report (2.4.3)

COR: via email CO: via email

Within nineteen weeks

Final Report (2.4.4)

COR: via email CO: via email

Within thirty weeks of contract award.