Cost Analysis of Plug and Abandonment Operations

Cost Estimation Good Practices for Liability Provisioning, Project Planning and Effective Cost Control ofWell Abandonment

Decommissioning, Plugging & Abandonment
Downstream Oil & Gas
Finance, Budgeting & Accounting
International Oil & Gas Supply, Trading & Pricing
Project & Construction Management
Upstream Oil & Gas
Well Drilling & Completion Technology

Well Abandonment is commonly the largest area of expenditure in decommissioning oil and gas production assets and is often the area of largest cost overruns. Estimating the abandonment costs at end of well life provides some unique challenges to the engineer and the cost estimator due to the potential step change impact of technical decisions and regulatory requirements. The strategic nature of decommissioning, and particularly abandonment, has only recently been recognized, with the growing impact on Company balance sheets, and the potential for significant cost overruns now in the spotlight in many organisations. Lessons can be learnt from recent industry experience, with good quality estimating practices at the heart of ensuring appropriate strategies can be implemented to minimize the current and future impact on the business. This PetroDeep training course will highlight: • The strategic importance of understanding the scale of future abandonment liabilities • Current Good Estimation Practices and how these should be applied to well abandonment • The relationship between data quality and accuracy • Common risks of cost overrun in well abandonment and how to manage them • How good practices contribute to improved cost control • The value of Benchmarking WHO IS THIS TRAINING COURSE This PetroDeep training course provides a comprehensive grounding in cost estimation good practices, how these apply to well abandonment, and why adoption is of strategic importance in financial planning and cost control. By the end of this PetroDeep training course, participants will learn to: • Differentiate between both methods of cost estimation and Classes of estimate • Build a comprehensive Basis of Estimate using Good Industry Practice • Appreciate levels of accuracy and their implications • Identify common risks of cost overrun in well abandonment and how to manage them • Build a probabilistic estimate and compare this with a deterministic approach for the same work scope • Utilize cost estimation as a tool for cost control

Code Venue Fees ($) Dates
LO003 Dubai, U.A.E 4500 March 24, 2019 – March 28, 2019
LO003 Toronto, Canada 6500 June 16, 2019 – June 20, 2019
LO003 Muscat, Oman 4500 September 1, 2019 – September 5, 2019

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