COST ANALYSIS OF PLUG & ABANDONMENT OPERATIONS
Enhancing Planning, Budgeting, and Cost Control in P&A Activities for Mature Oil & Gas Assets
Course Schedule
| Date | Venue | Fees |
|---|---|---|
| 26 – 27 Feb 2025 | Kuala Lumpur, Malaysia | USD 1995 per delegate |
Course Introduction
Plug and abandonment (P&A) operations are a critical phase in the life cycle of oil and gas wells, involving complex technical, regulatory, and cost considerations. With increasing industry focus on decommissioning efficiency and environmental responsibility, effective cost analysis of P&A projects is essential for budgeting, risk mitigation, and value preservation.
This 2-day course provides a practical framework for analyzing, estimating, and optimizing the costs associated with P&A operations. It guides participants through key cost drivers, planning methodologies, well abandonment techniques, and cost control strategies. Case studies and real-world data are used to illustrate how better cost analysis can reduce financial exposure and support compliant, safe well decommissioning.
Course Objectives
By the end of this course, participants will be able to:
• Understand the technical and regulatory scope of P&A operations
• Identify key cost components in well abandonment
• Develop and apply cost estimation models for P&A projects
• Evaluate cost variances and apply value engineering techniques
• Enhance budgeting accuracy and reduce cost overruns in decommissioning
Key Benefits of Attending
• Improve your ability to forecast and control P&A project costs
• Learn to identify and manage cost risks early in the planning cycle
• Gain insights into regulatory, logistical, and technical cost impacts
• Strengthen the business case for efficient and compliant abandonment strategies
• Benchmark P&A costs using industry data and best practices
Intended Audience
This program is designed for:
• Cost estimators, engineers, and planners in oil & gas
• Well engineers and decommissioning professionals
• Project managers and contract specialists
• HSE and regulatory compliance officers
• Finance and investment professionals overseeing asset retirement obligations
Individual Benefits
Key competencies that will be developed include:
• Practical cost breakdown and benchmarking for P&A projects
• Ability to link technical plans with cost estimates
• Improved skills in risk-based budgeting and contingency planning
• Knowledge of regulatory cost implications and reporting
• Enhanced understanding of P&A economics and asset retirement
Organization Benefits
Upon completing the training course, participants will demonstrate:
• More accurate budgeting for decommissioning liabilities
• Cost-efficient planning and execution of P&A projects
• Reduced risk of cost overruns and compliance gaps
• Improved collaboration between technical, finance, and regulatory teams
• Stronger alignment between field operations and corporate financial goals
Instructional Methdology
The course follows a blended learning approach combining theory with practice:
• Strategy Briefings – Well abandonment lifecycle, cost drivers, and methodologies
• Case Studies – P&A project reviews from international operators
• Workshops – Cost model building, scenario analysis, and variance reviews
• Peer Exchange – Discussion of regional practices and regulatory impacts
• Tools – Cost estimation templates, work breakdown structures (WBS), and tracking dashboards
Course Outline
DETAILED 2-DAY COURSE OUTLINE
Training Hours: 07:30 AM – 03:30 PM
Daily Format: 3–4 Learning Modules | Coffee breaks: 09:30 & 11:15 | Lunch Buffet: 01:00 – 02:00
Day 1: Technical and Cost Planning of P&A Projects
Module 1: Overview of P&A Operations (07:30 – 09:30)
• Purpose, scope, and stages of well abandonment
• Regulatory frameworks and international standards (e.g., NORSOK, UKOOA, API)
• Technical challenges and safety requirements
Module 2: Key Cost Drivers in P&A (09:45 – 11:15)
• Rig vs. rigless operations
• Subsurface isolation, barrier setting, and cementing
• Logistics, personnel, HSE, and waste management
Module 3: Cost Estimation Methods and Models (11:30 – 01:00)
• Deterministic vs. probabilistic cost modeling
• Building the P&A cost work breakdown structure (WBS)
• CAPEX and OPEX considerations
Module 4: Workshop – Build a P&A Cost Model (02:00 – 03:30)
• Teams estimate cost elements for a sample offshore well
Day 2: Budget Optimization, Risk, and Reporting
Module 1: Risk-Based Budgeting and Contingency Planning (07:30 – 09:30)
• Common risk factors in P&A execution
• Monte Carlo simulation and sensitivity analysis concepts
• Cost contingencies and reserve setting
Module 2: Benchmarking and Value Engineering (09:45 – 11:15)
• P&A cost benchmarks by well type and location
• Strategies for cost reduction and operational efficiency
• Lessons from global operators
Module 3: Financial Reporting and Regulatory Compliance (11:30 – 01:00)
• Internal and external reporting requirements
• Decommissioning liability provisions (ARO)
• Reporting to regulators and investors
Module 4: Final Workshop – Cost Optimization Review (02:00 – 03:30)
• Teams refine their model and present risk-mitigated budgets
Certification
Participants will receive a Certificate of Completion in Cost Analysis of Plug & Abandonment Operations, validating their capability to plan, analyze, and control well decommissioning costs in alignment with technical and regulatory expectations.