WHAT WE DO
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:
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.