Developing Cost-Effective Decommissioning Strategies

Understanding the Full Decommissioning Supply Chain and the Importance of Early Planning

This highly practical and experiential two-day programme will empower you to:

  • Understand the implications of the decommissioning supply chain and management of change
  • Learn how to ensure predictable projections on your decommissioning project
  • Calculate cost estimations through a workshop on optimising CTR
  • Identify key risks, market comparisons and supply chain opportunities
  • Hear advice on how to organise your decommissioning team
  • Get to grips with financial and tax implications of decommissioning worldwide
  • Evaluate the various methodologies for well P&A, platform removal and onshore recycling
  • Compare best practice with peers in the industry worldwide and how regions differ
  • Examine the environmental regimes for handling hazard waste
  • Learn how other oil companies have executed recent projects



What is the programme about?

Oil companies will be liable for major expenditure on decommissioning in the very near future, with estimates for projects in the North Sea alone varying between $20-40 billion with enormous unknowns.  The decommissioning supply chain is still not mature which is an essential fact and risk to oil companies and this course is designed to focus on this supply chain and teach the importance of early planning and will cover vital skills such as how to turn a de-commissioning project into a low risk.  This has never been more important..  The course will be taught by a trainer who has himself many lessons to each following hands-on experience from working on projects in the North Sea, the Gulf of Mexico and Asia.

This training course will address all the factors to be considered in decommissioning – technical, organisational, economical and risk – all taught from hands-on experience from working on projects around the world.  Each half day will put learning into practice through small-group workshops to ensure each delegate is equipped to return to the office with information to be applied to their own project. In these, the delegate will learn how to prepare an overall decommissioning plan; how to develop an organisation and contract strategy; and how to make a cost estimate for a realistic project.



This practical and interactive programme is designed for all those involved in the Oil and Gas Industries:
  • Field Managers
  • Commercial Project Managers and Engineers
  • Supply Chain Managers
  • Explorationists
  • Operational Managers
  • Risk Managers
  • Finance & Tax Managers
  • Environmentalist Managers
  • Health and Safety /QHSE Managers
  • Well Work-over Specialists
  • Business Development Managers





General introduction to platform decommissioning

  • What is the fundamental problem of decommissioning?
  • How to manage CTR and risk
  • Is this an organization problem?
  • How to manage negative cashflow

The importance of the planning phase and decision analysis

  • What are the key milestones in the project
  • How to manage the time line
  • What studies should be done before issuing the decommissioning plan

End of field life strategy

  • How can the COP date be determined
  • When does the cashflow become negative
  • Which departments should be involved
  • What can we do in the last few years of production

Financial and tax implication of decommissioning

  • How to deal with abandonment liability
  • Are there opportunities
  • What effect has a low liability on the tax position
Workshop: Determining the Cessation Of Production Date
Delegates will break out in smaller groups to discuss the financial and operational implication of the COP date for the oil company and feed back to the group


Lessons learned from recent projects

  • What did Frigg, NW Hutton and Ekofisk teach us
  • What differs shallow water from deep water

Implication of Hazardous Waste

  • What is the implication of hazardous waste such as asbestos, mercury and NORM
  • What legislation is applicable to hazardous waste
  • How could hazardous waste influence the supply chain?

Well P&A methods and equipment

  • What are the fundamentals of well P&A design
  • What regulations are applicable
  • What are the major service companies
Workshop: Implication of Risks in the Supply Chain
Delegates will work in smaller groups to discuss the top 10 risks and how to mitigate these into the project execution plan



Topsides cleaning, preparations, removal and transportation

  • What equipment should be used
  • Which contractors have a proven track record in decommissioning
  • What are the main interfaces to be managed

Jacket removal and transportation

  • What is the difference between jacket and topsides removal
  • How can a jacket cut plan be designed
  • What equipment should be used

Onshore recycling and disposal

  • What are the requirements for an onshore recycling yard
  • Which companies have a Waste Management License
  • Which regulations are applicable
Workshop: How to Prepare an Overall Decommissioning Plan
The delegates will work in smaller groups to tackle specific targets, useful to learn when putting together their company's decommissioning plan.


Contract strategy

  • What strategies are possible
  • How to determine the optimum supply chain strategy
  • How does the contract strategy influence the organization

Overall decommissioning schedule

  • What are the key milestones
  • How to determine the duration of the activities
  • How much leverage should be incorporated

High level cost budget

  • What are the main cost line items
  • How to determine the quantities and unit rates
  • What is the implication of financial factors

Workshop: Preparation of high level cost budget
Delegates will be handed an example decommissioning project and work in break out groups to prepare a cost budget to be fed back to the group
Course Categories

Testimonials for our Courses

“Very professional presentation, documentation and useful practical exercises. The occasional bouts of laughter were also welcome.”

Delivered by

Jan Groot is an Independent Decommissioning Consultant for Platform Brokers (PB Consultants).  He

Dates & Locations

This course is only available as a custom course tailored for your business, contact us to discuss your requirements.