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(EST-1648) Cost Estimating for Offshore Oil & Gas Facility Decommissioning

Primary Author: Dr. Robert C. Byrd PE, Mr. Donald J. Miller and Mr. Steven M. Wiese

Audience Focus: Advanced
Application Type: Application
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA

Abstract: The paper reviews the process of decommissioning a typical offshore facility in the US Gulf of Mexico. This includes all aspects of the process from planning to deck and jacket removal, and site clearance. Well plugging and abandonment (P&A) is discussed but not pursued in detail. The areas of uncertainty with respect to estimating the cost are discussed. An example of an estimate for a typical facility is provided in detail. Comparisons are made between estimated and actual cost outcomes, along with a discussion of the variances and their causes. Conclusions and recommendations for improving the quality of decommissioning cost estimates are provided.