Premier Oil assign Jee to design decommissioning cost model
To get a clear picture of their decommissioning options and costs of the Balmoral field in the North Sea, Premier Oil contracted subsea engineering specialists, Jee.
Decommissioning can be a daunting business. There are miles of old pipeline and out-of-date assets. Information is scattered across multiple companies and contractors. Just knowing where to begin and how much it will cost is a project in itself.
To get a clear picture of their decommissioning options and costs of the Balmoral field in the North Sea, Premier Oil contracted subsea engineering specialists, Jee. "A cost estimate mechanism existed, but it was complex and tricky to manipulate," said Mik Crosby, Jee Engineer.
"We set about creating a live working document that would generate a cost estimate for the assets associated with the Balmoral FPV. The model has an inbuilt logic based on current legislation and will make an assumption of the likely decommissioning option according to the data in order to develop the cost estimate.
“We were pleased with our result which was a cost model that allows Premier Oil to manipulate the cost estimate based on current market rates and duration of activities,” said Mik. “This gives them an accurate projection of costs.”
Glyn Pritchard, Balmoral Area Projects Manager for Premier Oil said: "The thorough and robust study was conducted in a professional manner by a team of competent engineers. The deliverable and the supporting report met exactly the specification defined in the original scope of work. I look forward to doing other business of a similar nature in future."
As well as developing a cost model for Premier Oil, Jee has been involved in decommissioning projects of the Don, North West Hutton, Miller and SNS fields.