Estimation of plugging and abandonment costs based on different EU regulations with application to geothermal wells

Abstract

This paper presents the cost of plugging and abandonment (P&A) of the Horstberg Z1 well and shows how the well history is considered in the P&A planning process together with existing European regulations. Three different design plans are presented, based on innovative ideas and best practices in the oil and gas industry. Horstberg Z1, located in Germany, was originally a gas well, converted to a scientific geothermal well to prove the single well concept. After serving as a geothermal well for several years, the well has been proposed for P&A. The three designs presented in this work fulfill the purposes of well P&A, and meet the BVOT requirements, which are standard requirements for wells in Lower Saxony, Germany. Following a financial analysis of the designs, it is noted that rig costs are the largest element of the total expenditure, contributing over 50% in the design plans considered. As the number of cement plugs and round trips increase per design plan, the implementation period also increases, which impacts on the total cost. Based on the investigations made in this project, a minimum of USD 1,275,500 is required for the plug and abandonment cost of the well, excluding the well site re-cultivation. A rigless solution for pulling heavy casing out of the wellbore, to avoid the use of a conventional workover rig, would significantly reduce the plug and abandonment cost of the Horstberg Z1 well.