More so than ever, decommissioning is on the horizon for the oil and gas industry, accelerated by the sustained low oil price, aging assets and government interventions.
However, it’s not an easy decision or process. There’s the challenge of balancing maximising economic recovery (MER) with decommissioning objectives, as well as effectively managing operations in later life to ensure the cost burden is minimised and safety still maintained prior to Cessation of Production (CoP).
As a growing number of North Sea oil and gas field facilities approach the end of their production lives, late life asset management is crucial to ensure their continued safe and profitable operation.
Late-life assets need to achieve a drastic reduction in costs to remain profitable. It is vital to eliminate activities that do not deliver cash or ensure safety. To create a smooth transition from operation to cessation of production, the following should be considered: Life before decommissioning, reassessing what is required in later life, outsourcing, identifying critical activities and CoP feasibility.
Llyod’s Register has launched new complimentary whitepaper identifying how to create a smooth transition from operation to cessation of production. The paper covers life before decommissioning, reassessing what is required in later life, outsourcing, identifying critical activities and CoP feasibility.
Go here to download your free copy.
Learn more about Lloyd’s Register’s decomm services here.
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