Research facilitation and management for Newfoundland and Labrador's offshore industry

New Brunswick Onshore Oil and Natural Gas Well Abandonment Study

Subject Category: Other

End Date: Sept 2004
Institution / Organization: Petroleum Research Newfoundland and Labrador

Petroleum Research NL was contracted by the New Brunswick Department of Natural Resources to develop a more objective approach for determining well abandonment security deposit requirements for onshore petroleum wells based on well type and other parameters that affect abandonment costs. Abandonment costs for different well situations were derived from industry supplied quotes and other sources taking into account well abandonment regulations throughout Canada and latest industry practices.

The project resulted in an abandonment cost matrix for use as an interim approach until adequate data are available to perform a valid regression analysis to develop a formula for security deposits based on key parameters. This approach will enable the New Brunswick Department of Natural Resources to determine the applicable security requirement for any given well, and enable them to avoid unfunded liabilities associated with well abandonments.


  • Final Report [PDF]

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St. John's, NL, Canada A1C 3Z7

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