Capital / Operating Costs for Transport in the Closure stage

Objective

To prepare a fully costed Decommissioning Programme (including securing necessary approvals) and to manage the capital and operating cost expenditure during the closure phase

Major Deliverables

• Fully costed & approved decommissioning plan, and management of closure activities within approved budget
• Regular periodic reports on the storage closure capital and manpower expenditure against budget

Tasks

Specific tasks include the following:

• Prepare and have approved a closure expenditure budget.  This will need to take into account the costs associated with:
  • Pipeline decommissioning surveys
  • Development of decommissioning procedures
  • Decommissioning manpower costs
  • Pigging, flushing and plugging of redundant pipelines
  • Removal, partial removal, or abandonment costs
  • Remedial work at pipe-ends and crossings
  • Recycling of pipeline material where possible
  • Clean-up / land-fill disposal of all pipeline sections which cannot be recycled
  • Environmental and social remediation of the pipeline route
• Establish monitoring regime for the closure capital and manpower expenditure against budget on the storage facilities
• Carry out regular periodic updates to the closure risk register and identify the overall cost quantum that the risks account for and how these risk amounts are being addressed within the closure budget and plan for the storage

Examples

• Welland Field Decommissioning Plan; Perenco UK
• Health and Safety Executive; Pipelines Health and Safety 
• An Assessment of Safety, Risks and Costs Associated with Sub-sea Pipeline Disposal, Scandpower Risk Management Inc.
• Oil and Gas UK Knowledge Centre – Pipeline Decommissioning

Key Personnel

• Project Manager and staff
• Cost estimation work-stream lead
• Procurement work-stream lead