Decommissioning offshore platforms is a complex undertaking that requires meticulous planning and accurate cost estimation. In 2016-2017, Newfield entrusted RESL with a critical project: developing a comprehensive Class 5 Decommissioning Cost Estimate and Benchmarking study for their platform in the challenging environment of the South China Sea. Our goal was to provide Newfield with the clarity and financial foresight needed to approach this substantial project confidently.
Decommissioning isn’t simply about removing a platform. It’s a multifaceted process involving various specialised activities, each with cost implications. Our team tackled this complexity head-on, beginning with a crucial step: defining all necessary activities within a detailed Work Breakdown Structure (WBS). This WBS was the foundation for the entire project, ensuring no task was overlooked and providing a clear roadmap for decommissioning.
With the WBS in place, we developed comprehensive method statements. These detailed documents outlined the procedures, equipment, and personnel required for each decommissioning activity. From well plugging and abandonment to platform removal and subsea pipeline decommissioning, our method statements provided a clear, step-by-step guide, ensuring safety and efficiency throughout the project. The heart of the project was the deterministic and probabilistic modelling techniques used to provide Newfield with a comprehensive understanding of potential costs. Deterministic modelling provided a baseline estimate based on known parameters, while probabilistic modelling explored a range of possible scenarios, accounting for uncertainties and risks inherent in such complex projects. This dual approach gave Newfield a nuanced understanding of potential cost variations, enabling them to make informed financial decisions.
Finally, we benchmarked the developed cost estimate against global benchmark data. This crucial step provided context and ensured Newfield’s decommissioning plan aligned with industry best practices and cost-effective strategies. By comparing the South China Sea project with similar projects worldwide, we identified potential areas for optimisation and ensured Newfield could preserve maximum value.
The successful completion of this Class 5 Decommissioning Cost Estimate and Benchmarking project gave Newfield the critical information they needed to move forward with their decommissioning plans.
Our comprehensive approach, from detailed WBS development and method statements to robust cost modelling and benchmarking, delivered clarity, financial foresight, and the confidence to navigate the complexities of decommissioning in the South China Sea. This project exemplifies our commitment to providing clients with the highest quality services and empowering them to make informed decisions in challenging environments.
