Early decommissioning of oil and gas assets is becoming more common due to the uncertainties associated with market volatility, the role of oil and gas in the energy transition process, and the rapidly changing decommissioning plans of other operators. Therefore, proper preparation for cessation of production and associated asset decommissioning before the event is increasingly important.
Correct preparation includes developing a decommissioning strategy and an associated cost estimate (a regulatory requirement in some regions). The completed decommissioning strategy and cost estimate require maintenance throughout the remaining asset operating life to inform financial forecasting and ensure preparedness for the eventual decommissioning.
Important factors to account for include modifications to the asset, regulatory changes, industry expectations and cost norms, and developments in decommissioning technology. While the frequency of review and update will vary typical review periods range between one and three years.
Operators and regulators have come to value a vigorous independent external review and an up-to-date decommissioning strategy and cost estimate. Jee offers this service worldwide, leveraging our experience to suggest appropriate updates based on our understanding and interpretation of factors including:
- current legislation
- industry best practice
- stakeholder attitudes to risk
- new and emerging technologies
Contact Graham to discuss your decommission planning requirements and see how we can help you manage this important part of managing oil and gas assets.