Cost Analysis of Plug and Abandonment Operations
Start Date | End Date | Venue | Fees (US $) | ||
---|---|---|---|---|---|
Cost Analysis of Plug and Abandonment Operations | 16 Nov 2025 | 20 Nov 2025 | Doha, Qatar | $ 4,500 | Register |

Cost Analysis of Plug and Abandonment Operations
Start Date | End Date | Venue | Fees (US $) | |
---|---|---|---|---|
Cost Analysis of Plug and Abandonment Operations | 16 Nov 2025 | 20 Nov 2025 | Doha, Qatar | $ 4,500 |
Introduction
Well Abandonment is commonly the largest area of expenditure in decommissioning oil and gas production assets and is often the area of largest cost overruns. Estimating the abandonment costs at end of well life provides some unique challenges to the engineer and the cost estimator due to the potential step change impact of technical decisions and regulatory requirements. The strategic nature of decommissioning, and particularly abandonment, has only recently been recognized, with the growing impact on Company balance sheets, and the potential for significant cost overruns now in the spotlight in many organisations. Lessons can be learnt from recent industry experience; with good quality estimating practices at the heart of ensuring appropriate strategies can be implemented to minimize the current and future impact on the business.
This training course will highlight:
- The strategic importance of understanding the scale of future abandonment liabilities
- Current Good Estimation Practices and how these should be applied to well abandonment
- The relationship between data quality and accuracy
- Common risks of cost overrun in well abandonment and how to manage them
- How good practices contribute to improved cost control
- The value of Benchmarking
Objectives
- Differentiate between both methods of cost estimation and Classes of Estimate
- Build a comprehensive Basis of Estimate using Good Industry Practice
- Appreciate levels of accuracy and their implications
- Identify common risks of cost overrun in well abandonment and how to manage them
- Build a probabilistic estimate and compare this with a deterministic approach for the same work scope
- Utilize cost estimation as a tool for cost control
By the end of the course, participants will be able to:
Training Methodology
This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.
Who Should Attend?
This training course is suitable for a wide range of professionals but will greatly benefit:
- Well engineers
- Team leaders and managers responsible for abandonment design
- Finance and technical cost estimators responsible for identifying and managing future decommissioning liabilities
- Project execution engineers
- Team leaders and managers responsible for delivering well abandonment work scopes
Course Outline
Day 1: Cost Estimate Methods and their Applicability to Well Abandonment
-
Types of Estimate and their Limitations
-
Classes of Estimate and their Application
-
Understanding Appropriate Accuracy
-
Recent Industry Experience
-
What Drives Abandonment costs?
-
The Ideal Data Set
Day 3: Basis of Estimate Good Practices
-
AACE Basis of Estimate model
-
Data Gathering
-
Benchmarking and Reconciliation
-
Managing Risks with a Risk Register
Day 3: Probabilistic Estimation
-
Methodology and Good Practice
-
Advantages
-
Avoiding the Pitfalls
-
Applicability
Day 4: Cost Control and Applying Lessons Learnt
-
Common Causes of Cost Overrun in Well Abandonment
-
Risk Mitigation
-
Project Maturation
-
Record Keeping
-
Potential Impact of Capturing and Applying Lessons Learnt
Day 5: Consolidation
-
Value and Importance of Good Cost Estimation
-
Methods and their Applicability
-
Key Takeaways