OFFSHORE STRUCTURE DECOMMISSIONING MODEL: A PROPOSAL BASED ON COSTS AND RISK MANAGEMENT IN BRAZIL

Objective: To develop a business model for the decommissioning of offshore oil and gas units in Brazil, aligned with global best practices, considering our peculiarities. It uses an integrated approach that includes governance, circular economy, social responsibility, innovative technologies, environmental protection and legal compliance for offshore operations in Brazil. Method: The research adopted a qualitative approach, starting with a systematic review of the literature, followed by the identification of the main models and methodologies applicable to decommissioning. The essential steps for decommissioning were identified, and a comparative analysis of the different business models was made. Results and Discussion: The proposed model contemplates legal compliance, environmental safety and social responsibility, promoting transparency, sustainability, the circular economy and collaboration with civil society. The model contains the external contingencies that influence decommissioning and the Key Characteristics that integrate the best practices and technologies that promote operational efficiency. Research Implications: The main practical contribution is the proposal of a use-oriented solution, offering an adapted and adjusted model for the decommissioning of large structures at sea, observing the regulations established in Brazil. For the literature, the research sheds light on an issue that is little debated in academic circles, but much discussed in business circles. Originality/Value: The study


INTRODUCTION
Since the end of World War II, oil exploration and production in maritime environments has assumed greater importance given nations' pursuit of energy sovereignty and in meeting the growing global demand for fossil fuels.In Brazil, this activity gained relevance from the 1960s onwards, driven by an increase in domestic consumption and by dependency on external sources.Currently, more than 90% of the country's oil production takes place in maritime fields, highlighting the strategic importance of offshore operations for the national economy.This shows the need for investments and policies that guarantee the safety and sustainability of this activity (Mendes et. al, 2019).
The decommissioning of offshore platforms, a process composed of activities that close operations in structures with declining productivity or economic imviability (Madi, 2018;Dos Santos et al., 2022).The subject has been the subject of intense research, both at the national and international level (Delgado et al., 2022), reflecting the importance attributed to this critical stage of the oil industry, considering the technical and economic challenges involved and also the associated social and environmental impacts (Almeida et al., 2017).
The study of international experiences is advantageous for the development of effective strategies in such a complex environment (Almeida et al., 2017).In view of this, this study is focused on the investigation of the decommissioning stages and the development of a business model applicable to the Brazilian context where, despite the growing demand for decommissioning services, there is still a lack of knowledge about the specific criteria and models to guide such activity (Madi,2018).Therefore, this study seeks to fill this gap by offering a solid and comprehensive basis for the advancement of knowledge in this area so important for the energy industry.
Thus, this study has as its main objective to develop a comprehensive business model oriented to environmental, social and governance practices (ESG) for the decommissioning of offshore oil and gas production units, based on international practices, but adapted to meet the demands of the national market.In addition, the study establishes recommendations for the implementation of this model, with the aim of improving the sustainability and effectiveness of the decommissioning process.

OFFSHORE DECOMMISSIONING: CONCEPTS
The term "decommissioning" is characterized by involving the safe decommissioning and dismantling of offshore installations.While commissioning focuses on the operational preparation of the platform, decommissioning aims to close operations in a safe and environmentally responsible manner (M'Pusa, 2017).It is a comprehensive process, encompassing complex tasks to deactivate the platform and dismantle its infrastructure, whose multidisciplinary activity (M'Pusa, 2017) integrates the environmental, financial, political and security areas, focusing on restoring the original conditions after the end of the life of the structure.Decommissioning represents not only the end of production, but also entails environmental, logistical and economic responsibilities, requiring efficient waste management and strict compliance with regulations to ensure safety and sustainability at all stages of the process (Almeida et al., 2017).Ekins et al. (2006) adopted a methodology similar to Life Cycle Assessment that integrates material and energy flow analysis, environmental impact assessment and value chain analysis to compare different decommissioning options, with a view of the advantages and disadvantages of decommissioning types.Basile and Vona (2021)

Regulation in the World
The international regulatory and normative framework for the decommissioning of offshore structures is based on conventions and guidelines established by organizations such as the United Nations Convention on the Law of the Sea (UNCLOS III) of 1982 and the International Maritime Organization (IMO).These guidelines, as highlighted by Almeida et al. (2017), serve as a benchmark for best practices adopted by countries, promoting security and responsible management of activities.In the regional context, the  Ferreira (2019) highlights the importance of these global and regional regulations for establishing common standards and practices.Teixeira ( 2013) presents an overview of the different approaches and regulations adopted by countries, helping to understand the gaps and similarities between some international decommissioning standards.
In the global context of decommissioning, some countries stand out for their advanced regulatory frameworks.According to The International Association of Oil & Gas Producers (IOGP), the United Kingdom, Norway, the United States, Australia, Thailand and Brunei are examples to be cited (Almeida et al., 2017).These nations have in common a collaborative approach between operating companies, governments and local communities, reflecting the importance of effective and responsible decommissioning management (M'Pusa et al., 2017).

Regulation in Brazil
Regulation in Brazil involves various entities, such as the National Agency for Petroleum, Natural Gas and Biofuels (ANP), the Brazilian Institute for the Environment (IBAMA) and the Brazilian Navy (MB).Although ANP Resolution No. 817 establishes obligations for operators, IBAMA and MB regulations present significant shortcomings (Almeida et al., 2017).This has been a cause for concern, as reported by different sources, including the Brazilian Institute of Petroleum, Gas and Biofuels (Almeida et al., 2017)   indicate that these regulations do not offer guidance that considers the complexities and risks involved in decommissioning (Delgado et al., 2022).

BUSINESS MODELS AND METHODOLOGIES
Business models, as proposed by Osterwalder & Pigneur (2010), are key to understanding organizational dynamics.Divided into three dimensions, capture, create, and deliver value, these models guide companies in optimizing their operations and formulating distinct value propositions.Sustainable development requires businesses not only to consider economic aspects, but also to incorporate practices that minimize environmental impacts and promote social responsibility, prioritizing sustainable practices and contributing to building a more balanced and responsible business future (Lüdeke-Freund et al., 2018).
Assessing business models requires an approach that goes beyond conventional dimensions, incorporating elements integrated with the circular economy and sustainability.As highlighted by Schaltegger et al. ( 2016), such integration can promote financial efficiency, social and environmental responsibility.Thus, the adoption of these requirements in the development of business models drives organizations to promote responsible and sustainable business practices, fostering a more resilient and ethical future for their business (Agwu & Bessant, 2021).Several studies have addressed the evolution of business models in response to contemporary demands, resulting in new approaches.Table 1 describes some key characteristics and emphases of these models.

Table 1
Description and summary of the elements that make up the business models studied It focuses on identifying key customer segments and defining specific value propositions for each.Maps distribution channels, resources, and activities, identifies key partnerships, assesses cost structure, and analyzes revenue sources.

SBMC
The Sustainable Business Model Canvas-SBMC is an adaptation of the BMC that emphasizes sustainability in all aspects of the model (Lüdeke-Freund et al., 2018).
The same as for the BMC, but giving priority to sustainability, from the planning to the final disposal of the waste.

SCBMC
An even more sustainability-focused version, specific to circular business models, which aim to minimize waste and promote reuse and recycling (Schaltegger et al., 2016).
Similar to SBMC, but with an emphasis on circular practices such as recycling design, use of renewable materials, and efficient resource management.

TLBMC
An advanced approach that integrates BMC with SBMC and SCBMC in three layers to integrate financial, environmental and social aspects of the business model (Agwu & Bessant, 2021).
The emphasis of the model is on the integration of the stages, considering the financial, environmental and social impacts of each decision.

MDVBR
It refers to the specific practices and policies adopted by Petrobras to promote sustainability in its decommissioning operations (Petrobras, 2023).
In accordance with Petrobras's specific practices.It includes life cycle assessment steps, GHG emission reduction, waste management and investments in renewable energy.

MADCA
It refers to the specific practices and policies adopted by BSEE to develop a methodology based on decommissioning costs (Santos et al., 2023).
It includes common offshore industry practices based on cost estimates for the complete removal of the platform and the transport of materials for recycling on land.

METHODOLOGY
Table 2 presents the steps that have been defined for this research, establishing the description, type, methods and procedures applied.

Search Steps
Step Description Lookup Type

Method and Technical
Procedure Used Justification

Conduct of Bibliographic Review
Carrying out a systematic review of the literature, surveying the material available in the main search engines.

Exploratory
Qualitative, through bibliographic research.
Gather information to support the theoretical rationale, which identifies the models and methodologies applied to decommissioning.

Identification of key models and methodologies for decommissioning
Identification of the essential steps for decommissioning of offshore production structures in the studied models.

Exploratory
Qualitative, through bibliographic research.
Gather information to support the theoretical foundation, providing a deeper understanding of the research problem.

Analysis of decommissioning steps based on costs and/or revenues
Analysis focused on the decommissioning steps, highlighting the cost and/or revenue weights.

Description
Quantitative, based on case studies.
Collect data to build the Final Business Model.use of case studies.

Proposition of the Final Model
Preparation and presentation of the definitive version of a business model, considering all analyzes performed.
Proposing a clear, complete, and effective business model in solving the identified challenges is feasible in terms of implementation and practical use.
This research adopted a methodological approach that begins with a systematic review of official documents and scientific articles with the aim of collecting material available in the main search engines, identifying models and methodologies for decommissioning of offshore oil and gas production platforms on a global scale that could be applicable in Brazil.According to Birochi (2015), systematic literature review is a method of investigation that involves detailed exploratory research to gather and analyze the available information in order to deepen the understanding of a problem and generate hypotheses.In Figure 1, the results of the adopted systematic review are shown.All models share customer identification, value propositions, distribution channels, customer relationships, revenue sources, key resources, key activities, key partnerships and cost structure, steps that are essential to building any business model, regardless of its emphasis.
Then, it was verified that the distinctions arose when the additional layers and the exclusive elements of each model were observed, such as the adoption of considerations on environmental and social impacts, sustainable innovation and circular economy, which are responsible business conduct management practices, which aim not only at profit, but also at creating value for society.There are also models that stand out for the inclusion of a technological layer, recognizing the increasing role of technology in the transformation and innovation of offshore business.In addition, there are models that also consider a layer of reputation, highlighting the importance of public perception and trust in building a strong and sustainable brand.

Table 3
Comparison of the elements that make up the studied business models

THE DECOMMISSIONING MODEL OF OFFSHORE OIL AND GAS PRODUCTION STRUCTURES IN BRAZIL (MDOFF-BR)
In evaluating the existing models and the decommissioning trends, the Business Model for Decommissioning of Offshore Oil and Gas Production Structures in Brazil (MDOFF-BR) was developed, presented in Figure 2, which incorporates aspects of governance, circular economy, social, technological, environmental and legal, considered under the layer of "Contingencies External to the Model".In addition, "Key Model Characteristics" and "Phases and Steps of Methodology" were incorporated, which allude to the cost structure, ensuring a more robust and sustainable planning and execution of decommissioning, and being aligned with best market practices.

Figure 2
Business model for decommissioning offshore oil and gas production structures in Brazil (MDOFF-BR)

External Contingencies of the Model
Based on the PESTAL multi-factor analysis, it was adapted to GESTAL, an analysis of external contingencies for the decommissioning of offshore oil and gas structures in Brazil.
GESTAL addresses critical factors such as Governance, Circular Economy, Social, Technology, Environmental and Legal.This analysis feeds the planning and execution of decommissioning, informing strategic needs and, in turn, being continuously fed back by the decommissioning model, promoting improvements both in the factors that make up GESTAL itself and in the proposed business model.This integration between the model and the external factors that influence it allows for a comprehensive and adaptive approach, allowing "to investigate the main factors influencing the complex and multifaceted process related to the sustainable reconversion of offshore infrastructure and its impact on collective well-being" (Capobianco et al., 2021, p.7), enabling an effective response to constantly evolving regulatory, socio-environmental and technological demands.Thus, GESTAL not only facilitates risk management and decision-making, but also drives innovation and sustainability in the oil and gas sector, contributing to safer, more efficient and responsible decommissioning.
Governance is essential to ensure that all activities comply with industry regulations, ethical standards and best practices, establishing clear guidelines for decision making, allocation of responsibilities and monitoring progress, promoting transparency, accountability and risk mitigation (Almeida et al., 2017).The circular economy minimizes waste and maximizes efficiency by encouraging component reuse, material recycling and energy recovery, reducing environmental impacts and generating new revenues (Agwu & Bessant, 2021).In social aspects, it is important to engage local communities and respect human rights, creating job opportunities and training programs to promote sustainable socio-economic development.Innovative technologies and advanced techniques are key to operational efficiency, safety and environmental compliance, while reducing costs and optimizing decommissioning performance (M'Pusa et al., 2017).The environmental criteria focus on effective waste management, continuous monitoring and rehabilitation of affected ecosystems, ensuring the balance between economic needs and environmental preservation.Finally, legal compliance is essential to avoid litigation and protect workers and the environment, requiring constant updating on legislative changes and involvement of legal counsel to ensure all activities comply with existing laws, while maintaining integrity and trust in the project (TCU, 2021).

Key features of MDOFF-BR
The model integrates best practices and technologies, ensuring operational efficiency and commitment to sustainability and governance.It promotes reduced environmental impact, maximized material recovery and risk mitigation, adapting to the specific needs of each project, which optimizes resources and minimizes costs.Strategic partnerships, involving governments, environmental bodies, regulators, recycling associations, cooperatives and universities promote regulatory compliance, innovation and sustainable practices (ANP, 2020).Critical capabilities include skilled suppliers, substantial financial support, adequate licensing, skilled labor, and cutting-edge technology, ensuring safety and efficiency.Key activities include detailed planning, meticulous decommissioning, technical dismantling, safe transportation, recycling and proper disposal of waste, and environmental recovery of affected areas (BSEE, 2016).
Strategic relationships with various organizations expand the range of services and solutions, while contracts regulate responsibilities and financial terms.Distribution channels use industry representative entities to promote services, and customer segments include oil companies, shipowners and shipyards.The cost structure covers infrastructure assessment, equipment removal and regulatory compliance (Santos et al., 2023).Sources of revenue include sale or rental of decommissioned units, marketing of reusable equipment and recyclable materials, and access to financial subsidies, promoting profitability and socio-environmental responsibility (Petrobras, 2023).

Phases and Steps of the Decommissioning Methodology
Phase 1 -Planning -This phase consists of three steps.Step 1 involves investments in project management, engineering and planning to ensure the following activities: perform a review of contractual obligations, perform an engineering analysis, do operational planning and perform contracting (BSEE, 2016).In Step 2, spending is directed towards obtaining permits, environmental and regulatory permits, checking the number of platforms per decommissioning project, and assuming that the platforms will be completely removed and the projects will not generate any significant environmental problems.Step 3 covers platform preparation, adapting the structure for the disassembly and removal phases.The structure is prepared for decommissioning after the wells have been permanently capped and abandoned.Detailed inspections are carried out to determine the conditions of the structure, below and above the waterline, to identify problems that may interfere with removal (BSEE, 2016).Magretta (2002) highlights the importance of properly designed business models.This author defines that the effectiveness of a business model is measured both analytically and numerically.In the specific context of offshore decommissioning, the proposed MDOFF-BR is based on safety-focused operational efficiency factors, which are the basis of the action of offshore companies, which have their strength in risk management.On the other hand, MDOFF-BR also aligns with environmental compliance and personalization of services, which are also emphasized by the offshore industry.
Another relevant issue to validate a model is revenue generation.MDOFF-BR can be used to explore a variety of revenue sources, including expert advice, direct decommissioning execution, sale of innovative technologies, and complementary business opportunities, aiming not only at safe decommissioning of facilities, but also at maximizing economic value and sustainability of operations.
In the validation, it is important that it be able to meet the motivations of several actors (Magretta, 2002, p.5) and, in this case, we can list three of them that are very important in this discussion: Petrobras, the main company in the sector in Brazil, the ANP that is the regulatory body of the sector, and the Society, which may have the good and bad results of decommissioning.But also every model must describe, "how a system, how parts of a business fit together" (Magretta, 2002, p. 9).And, at this point, when compared with other models, the MDOFF-BR emerges as an alternative to conventional approaches, since it integrates the economic, environmental and social dimensions in a balanced manner.Such integration results in transparent and ethical practices, strengthening the acceptance and support of stakeholders, from local communities to regulatory bodies.However, the model must be carefully assessed to ensure that its assumptions meet the needs of the stakeholders involved, such as oil companies, regulators, local communities and environmental groups.

FINAL CONSIDERATIONS
This article offers an analysis of the decommissioning scenario of offshore oil and gas production units in Brazil, proposing a business model that suits local particularities and incorporates global best practices.It highlights the importance of effective strategies to address the complex challenges of this scenario, emphasizing proper governance, the circular economy, social responsibility, the adoption of innovative technologies, environmental preservation and legal compliance.
Compared to the business model feasibility proposal, MDOFF-BR demonstrates achieving its main objective by combining regulatory compliance of Brazil, economic efficiency and socio-environmental responsibility by incorporating international practices adapted to the Brazilian market, focusing on external contingencies of GESTAL analysis.
Systems (SGSS), aiming to ensure their operational safety, by elaborating a "Permanent Decommissioning Program" for the decommissioning of submarine systems.ANP Resolution 46/2016 regulates aspects of decommissioning, such as risk management and well integrity, prioritizing safety and environmental protection.Finally, ANP Resolution 817/2020 introduces important advances, such as anticipating the delivery of the 'Facility Decommissioning Program' and analyzing multiple criteria to determine the best decommissioning solution, thus promoting a more comprehensive and secure approach to this complex process.These regulations aim to ensure safety, sustainability and compliance in decommissioning (ANP, 2020).The regulation made by the Brazilian Navy involves compliance with specific regulations and relevant legislation.It begins with the communication of the intention of decommissioning made to the Captain of the Ports.The descriptive memorial addresses the planning, schedule, stages of dismantling, waste management, final destination of components and possible local impacts.In addition, a towing plan must be submitted to the Navy, specifying the fate of the decommissioned structures(Almeida et al., 2017).___________________________________________________________________________ Rev. Gest.Soc.Ambient.| Miami | v.18.n.8 | p.1-18 | e08531 | 2024.7 The Directorate of Ports and Coasts (DPC) of the Brazilian Navy follows the standards established by the International Maritime Organization (IMO), Law No. 9.537 of 1997, which addresses the safety of navigation in the waters under national jurisdiction, together with the Maritime Authority Standards (NORMAM) and the Standards and Procedures for Port Captaincies (NPCP), which are fundamental for the approval of the projects.However, studies data to build the Final Business Model.___________________________________________________________________________Rev. Gest.Soc.Ambient.| Miami | v.18.n.8 | p.1-18 | e08531 | 2024.

Figure 1 PRISMA
Figure 1 PRISMA Flowchart for presentation of the study selection process Offshore Structure Decommissioning Model: A Proposal Based on Costs And Risk Management in Brazil ___________________________________________________________________________ Rev. Gest.Soc.Ambient.| Miami | v.18.n.8 | p.1-18 | e08531 | 2024.14 Phase 2 -Execution -Step 4, Wells Tamponade and Abandonment, involves technical procedures to safely close wells and is one of the main cost components of a decommissioning project, as wells must be abandoned in order to ensure their isolation, protection of freshwater aquifers, cleaning of sites to avoid conflicts with other uses and prevention of fluid migration to the seabed.Step 5 aims at removing the conductors, covering evaluation, disassembly, transport and proper disposal of waste (BSEE, 2016), as all components of the platform, including the Pipes and wiring are removed from the conductors at a certain depth, depending on the type of structure or the conditions of the seabed.Step 6 removes pipes and power cables, requiring specialized labor and specific equipment, taking into account environmental regulations.Step 7 is made the mobilization and demobilization of the crane ferry, including transport and operation of the ferry and logistical and technical preparation.Finally, in Step 8, which is the most complex and expensive, the platform is removed, requiring specialized vessels and rigorous planning for safe operations on the high seas.Phase 3 -Post Removal -Step 9 involves the destination of the materials, identifying them for transport, which allows the evaluation of logistical costs, influenced by factors such as location, type of material and environmental regulations.These costs can be reduced by recycling the materials.Stage 10, field cleaning, accounts for costs associated with qualified personnel, equipment and environmental requirements.Step 11, related to interim work and climate contingency factors, includes expenditure on labor, equipment and forecasting means related to climate variables, and is crucial to face unforeseen events.Finally, Step 12 involves obtaining regulatory compliance licensing and documentation, essential to demonstrate that all legal requirements have been met.Although not accounted for in the cost structure forecast by the BSEE (2016), this stage requires detailed documentation on all the activities of decommissioning, from planning to execution, with a view to authorizing both the withdrawal from the sea and the recycling.4.2 ANALYSIS OF THE SUITABILITY OF THE MODEL MDOFF-BR Offshore Structure Decommissioning Model: A Proposal Based on Costs And Risk Management in Brazil ___________________________________________________________________________ Rev. Gest.Soc.Ambient.| Miami | v.18.n.8 | p.1-18 | e08531 | 2024.16 is also the incentive to exploit technological and methodological innovations, strengthening cooperation between companies, regulators and local communities.MDOFF-BR emphasizes responsible, secure and cost-effective practices, paving the way for future research on repurposing these decommissioned infrastructure.It is recommended to explore sustainable alternatives, such as artificial reefs, renewable energy and tourism, assessing their technical, economic and environmental feasibility.Finally, this study contributes to the advancement of knowledge about offshore oil and gas decommissioning in Brazil, offering timely recommendations to professionals, academics and decision makers, aiming to achieve a more responsible and sustainable development of the industry.Adaptada para Descomissionamento no Brasil".Relatório de Pesquisa.Programa de Pósgraduação em Engenharia Civil.Universidade Federal Fluminense -UFF.Niterói.Schaltegger, S.; Lüdeke-Freund, F. & Hansen, E.G. (2016)."Business models for sustainability: guidelines to ensure the safety and sustainability of offshore operations in Brazil (M'Pusa et al., 2017).The three regulatory bodies -ANP, IBAMA and MB -have specific responsibilities in the analysis and approval of operators' proposals (TCU, 2021).
significant regulation is ANP Resolution 17/2015, which requires the inclusion of a decommissioning plan in oil and gas field strategies, which should detail the decommissioning process, design criteria, cost estimates and resource allocation.Resolution ANP n° 41/2015 establishes guidelines for Submarine Systems Management