Cost Analysis of Plug and Abandonment Operations

This Gulf Rowad Cost Analysis of Plug and Abandonment Operations training course will be taught using short introductory lectures followed by classroom discussion and debate to draw out key learning points and ensure the application of fundamentals is well understood. The tutor will use a number of real and imaginary examples to illustrate the key points and the potential impact of both good and poor management. Coverage of each area will include a tutorial exercise which may be undertaken individually or in small groups. The answers and conclusions drawn will be discussed and compared to illustrate the impact of varying approaches.

This Gulf Rowad Cost Analysis of Plug and Abandonment Operations 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 Gulf Rowad 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 workscope
• Utilize cost estimation as a tool for cost control

All individuals involved in abandonment planning, cost provisioning or execution management who wish to improve or optimize their contribution to the well abandonment process will benefit from this course.

This Gulf Rowad training course is suitable to a wide range of professionals but will greatly benefit: 

• Well Engineers
• Team Leaders and Managers responsible for abandonment design
• Finance and Technical Cost Estimators responsible for identifying and managing future decommissioning liabilities
• Project Execution Engineers
• Team Leaders and Managers responsible for delivering well abandonment workscopes

Organisational Impact

The strategic importance for oil and gas asset operators of managing future decommissioning and well abandonment liabilities is often overlooked. Participants will be able to knowledgeably contribute to delivering effective financial and technical management of future abandonment obligations.

• Contribute to the strategic financial planning of future well abandonment liabilities
• Provide timely and effective identification and estimation of future financial liabilities associated with well abandonment
• Provide early identification of cost reduction opportunities allowing their application and impact to be maximized
• Lead the application of good cost estimation practices through the organisation

Personal Impact

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