Cost Analysis of Plug and Abandonment Operations
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Well Abandonment operations are often the most difficult decommissioning activities to predict costs for, and frequently unforeseen overruns cause significant financial challenges.
But it doesn’t have to be this way.
Early, good quality estimation highlights both areas for concern and opportunities to reduce future cost.
Built on significant practitioner experience in this area with several major, and smaller, Oil and Gas Operators, this seminar will introduce cost estimation good practices and highlight how these can be used to manage the uncertainties inherent in abandonment operations on even aging wells with the likelihood of incomplete datasets.
The course is designed to provide attendees with the ability to improve long -term provisioning, to highlight uncertainties and estimate accuracy and to target long-term and short-term activities to reduce uncertainty and minimise actual costs when they are incurred.
The Oxford seminar will provide the attendees with:
- A good understanding of the various classes and types of estimates, including when and how to use them
- The key elements required to build a comprehensive Basis of Estimate
- The ability to build and contrast probabilistic and deterministic estimates
- Understanding of how to compile a Risk Register and to use it to manage cost risk
Combined these will allow attendees to appreciate the strategic importance of good quality, early cost estimation, and how to use the estimate as a tool to control cost.
The Oxford seminar introduces good cost estimation practice, highlighting the various Classes of estimate, how they can be developed, and when they are best applicable. This will include the development of both deterministic and probabilistic estimates and how these can be used to highlight accuracy, uncertainty, and areas of concern worthy of further examination. Particular attention will be paid to the impact of deteriorating well conditions and lack of a complete dataset – the root causes of many major cost overruns.
Illustrate examples and tutorial exercises will be used to allow attendees to acquire and develop key skills, and to bring sharper appreciation of the potential impact of cost estimation practices.
The course will allow participants to knowledgably contribute to delivering effective financial and technical management of future abandonment obligations, including:
- Contributing to the strategic financial planning of future well abandonment liabilities
- Providing timely and effective identification and estimation of future financial liabilities associated with well abandonment
- Providing early identification of cost reduction opportunities allowing their application and impact to be maximized
- Leading the application of good cost estimation practices through the organisation
In addition, attendees will attain a thorough understanding of cost estimation good practices and their application to well abandonment workscopes, allowing them to:
- Better manage future abandonment liabilities and forthcoming projects
- Demonstrate technical competency in cost estimation
- Position themselves for participation and increased responsibility in a growing sector
- Lead the development and implementation of Good Practices within their organisation
Who should attend
- Managers accountable for financial provisioning and budgeting of Well Abandonment Operations
- Well Engineers and Team Leaders responsible for compiling Cost Estimates
- Government Regulators and Industry Stakeholders keen to understand how costs can be predicted and controlled