Projects OPR

2 June 2016 DECOMMISSIONING

The Case for Metrics

Win Thornton

VP Decommissioning

BP

15 Nov 2016 1

Agenda….the Case for Metrics

• Industry Standards for Guidance

• Types of Metrics for

Decommissioning

• Example Class 5 Cost Metrics

• Example Class 4 Cost Metrics

• Next steps in the use of Metrics in

Decommissioning

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OGUK Work Breakdown Structure WBS

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AACE Estimate Classification (18R-97)

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What type of metrics for Decommissioning?

Performance (like Insight)

• Cost per asset component - £XX/well P&A

• Cost per unit measure - £YY/Te

• Some concern on need for anonymity to protect commercial data

Activity

• Time per well P&A – X.X days

• Cycle time for module removal: rig, lift and backload – Y.Y days

• Limited concern on anonymity, easier to share data, requires more granularity of data

Scope

• Number of B Annuli that need remediation – 1 out of 4

• Number of DPZ requiring barrier – 2 DPZ 80% of well stock

• Number of padeyes existing and suitable for use – 60%of padeyes suitable

Probabilistic vs Deterministic

• Probabilistic data set with P10/P50/P90 to illustrate uncertainty and variability. Identify drivers to

improve performance

• Need to segregate performance/activity from scope metrics to understand drivers 5

Example Class 5 Cost Metrics

OGUK WBS Scope Data Source Basis of Estimate Metric/NORM Estimate % % Insight

Operator Project

Management

Compay Project Team (6% PMT & 1%

Studies)7% £20,000,000 7%

Facility Running/Owner

CostsP&A 50% wells preCOP 80% final year OPEX £40,000,000 14%

Wells Abandonment 20 wells region well inventoryP&A 50% wells preCOP with exisitng

rig. No refurb req'd£4MM/well £80,000,000 29% 29% 31%

Facilities/Pipelines Making

Safe50% prep time SIMOPS with P&A 5% of removal costs £5,500,000 2%

Topsides Preparation50% prep time SIMOPS with P&A;

modules have all lifting aids in place5% of removal costs £5,500,000 2%

Topsides Removalreverse installation of modules and

backload to HLV for transit£3,500/Te £70,000,000 25%

Substructure Removal 18,000 Tederogation of jacket footings and

single lift of top section to shore£4,000/Te £40,000,000 14%

Topsides & Substructure

Onshore Recycling30,000 Te

assumed weight removed

w/derogation

backload to disposal site, demo &

recycle£150/Te £4,500,000 2%

Subsea Infrastructure20" 3rd party gas;

16" 3rd party oilPipeline database Obligation to clean & disconnect £5MM/pipeline £10,000,000 4%

Site Remediation 0 M3 region inventory No drill cuttings or debris £0 0%

Monitoringtwo inspections (1@5 yrs & 1@10yrs)

as part of industry program£1MM/inspection £2,000,000 1%

£277,500,000 100% 100% 100%Totals

22% 36%

50% 33%

20,000 Te

Photo & OSPAR database

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Example Class 5 Cost Metrics

OGUK WBS Scope Data Source Basis of Estimate Metric/NORM Estimate % % Insight

Operator Project

Management

Compay Project Team (6% PMT & 1%

Studies)7% £20,000,000 7%

Facility Running/Owner

CostsP&A 50% wells preCOP 80% final year OPEX £40,000,000 14%

Wells Abandonment 20 wells region well inventoryP&A 50% wells preCOP with exisitng

rig. No refurb req'd£4MM/well £80,000,000 29% 29% 31%

Facilities/Pipelines Making

Safe50% prep time SIMOPS with P&A 5% of removal costs £5,500,000 2%

Topsides Preparation50% prep time SIMOPS with P&A;

modules have all lifting aids in place5% of removal costs £5,500,000 2%

Topsides Removalreverse installation of modules and

backload to HLV for transit£3,500/Te £70,000,000 25%

Substructure Removal 18,000 Tederogation of jacket footings and

single lift of top section to shore£4,000/Te £40,000,000 14%

Topsides & Substructure

Onshore Recycling30,000 Te

assumed weight removed

w/derogation

backload to disposal site, demo &

recycle£150/Te £4,500,000 2%

Subsea Infrastructure20" 3rd party gas;

16" 3rd party oilPipeline database Obligation to clean & disconnect £5MM/pipeline £10,000,000 4%

Site Remediation 0 M3 region inventory No drill cuttings or debris £0 0%

Monitoringtwo inspections (1@5 yrs & 1@10yrs)

as part of industry program£1MM/inspection £2,000,000 1%

£277,500,000 100% 100% 100%Totals

22% 36%

50% 33%

20,000 Te

Photo & OSPAR database

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Example Class 4 Cost Metrics – Topsides Removal

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Original Strucural Analysis & Results at Hand

Structural Integrity Monitored & Suitable for Decom

All Modules Inspected

All Module Seperation & Prepartion Doable for Reverse Installation

All Padeyes Present & Usable

Weight Control Up to Date and Verified

HLV Barge

Mob/Demob HLV 1 6 day £750,000 £/day £4,500,000 6

Charter Barge 3 45 day £15,000 £/day £2,025,000 135

Charter Tug 3 21 day £35,000 £/day £2,205,000 63

Engineering & PM Lump Sum 1 Lump Sum £ £5,000,000

Setup HLV 1 5 day £750,000 £/day £3,750,000 5

Remove Modules HLV 22 2 day £750,000 £/day £33,000,000 44

Backload to CB HLV 22 1 day £750,000 £/day £16,500,000 22

Transit & Offload HLV 1 5 day £750,000 £/day £3,750,000 5

Weather Spread 10% 82 % £830,000 £/day £6,806,000

Contingency Spread 10% 82 % £830,000 £/day £6,806,000

£84,342,000 82 198

Time (days)Task Resource Quanity Duration Unit Costs Unit Total Costs

£84,342,000 £4,217

£70,000,000 £3,500

£14,342,000 21%

Example Class 4 Cost Metrics – Topsides Removal

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Original Strucural Analysis & Results at Hand

Structural Integrity Monitored & Suitable for Decom

All Modules Inspected

All Module Seperation & Prepartion Doable for Reverse Installation

All Padeyes Present & Usable

Weight Control Up to Date and Verified

HLV Barge

Mob/Demob HLV 1 6 day £750,000 £/day £4,500,000 6

Charter Barge 3 45 day £15,000 £/day £2,025,000 135

Charter Tug 3 21 day £35,000 £/day £2,205,000 63

Engineering & PM Lump Sum 1 Lump Sum £ £5,000,000

Setup HLV 1 5 day £750,000 £/day £3,750,000 5

Remove Modules HLV 22 2 day £750,000 £/day £33,000,000 44

Backload to CB HLV 22 1 day £750,000 £/day £16,500,000 22

Transit & Offload HLV 1 5 day £750,000 £/day £3,750,000 5

Weather Spread 10% 82 % £830,000 £/day £6,806,000

Contingency Spread 10% 82 % £830,000 £/day £6,806,000

£84,342,000 82 198

Time (days)Task Resource Quanity Duration Unit Costs Unit Total Costs

£84,342,000 £4,217

£70,000,000 £3,500

£14,342,000 21%

Scope Reduction

What does good look

like?

Next steps for decommissioning metrics

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