Avoid Crisis, Plan Your Decommissioning Project Now

Asset Retirement Obligation Series

The Importance Of Planning Your Decommissioning Project Now


Planning’s role in decommissioning cannot be overstated. It takes time upfront, but yields a much more efficient project in the end. Expect to spend 3 months to 1.5 years planning – depending on the size of your project.
Why plan?
  • Avoid unexpected costs later by getting a full picture of the decommissioning scope now.
  • Reduce permitting time from an infinite wait to as little as 2 months.

4 Steps To Planning

Step 1: Review, Review, Review
This is not the most exciting part of decommissioning, but it is the most necessary. The first step is a review of all project files. Details on wells, structures, pipelines, regulatory records, construction – if it’s at all related, it needs to be reviewed.
The goal in this step is to gather as complete a picture as possible of the offshore project. Be on the lookout for any issues that might affect the decommissioning operation.
Step 2: Go Check It Out
After you’vewaded through the files, it’s time to go offshore. If upon arrival on location everything is as expected after the file review, you can go on to step 3. Unfortunately, it’s more the norm to find significant differences between an asset’s paper trail and the siteitself.
Pay special attention to safety conditions and maintenance needs during your trip – the passage of time often leads to more degradation than is reflected in the paperwork.
Step 3: Prepare Cost Estimates & AFEs
Critical to a solid decommissioning plan is an accurate expectation of the costs. Stayin touch with contractors and suppliers on rates, technology, best practices and availability as youplan.
Step 4: Submit Permit Applications
If you’vespent the time required in steps 1 through 3, permitting should be a formality, simply gather and submit the correct drawings and information. If not, you can be  faced with several rounds of questions, requests for additional information and along wait to start your project.
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