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LED.
Life Extension & Decommisioning

The traditional approach to late life asset management is to reduce costs by reducing maintenance and stopping other activities, with cessation of production (COP) declared when the facility is no longer producing enough income to cover its costs. The wells are plugged and abandoned (P&A) and the facilities are removed.

Each phase is usually managed by a different team within an operator and there is usually a gap of several months, or even years, between each activity. For each day the facility is there, the operator will incur costs.

ADIL’s view is that an alternative approach can be taken. While there are a number of steps to this, the key elements are:

  • Find ways to reduce the costs
  • Engage the offshore team in the cost savings
  • Simplify the process scheme to reduce maintenance
  • Invest to increase production efficiency
  • Identify if wells have the potential for production-enhancing work
  • Prepare wells for decommissioning
  • Start the P&A work while production is ongoing
Our LED Process
Click to enlarge.

If some wells are plugged and abandoned while the installation is still operating, then the overall duration between COP and final removal of facilities can be significantly reduced. The gap between COP and the start of the P&A programme is eliminated and the duration of the P&A programme post-COP is reduced. The number of wells left to be plugged and abandoned will be fewer.

With the ADIL approach, the shorter duration between COP and final removal of the facilities, will result in cost savings.

For further information please contact us