Maersk Decom has designed an easy-to-use cost calculating tool for benchmarking decommissioning projects in the North Sea.
Maersk Decom’s cost calculator is the first free tool in the industry, enabling stakeholders to estimate project costs by providing a baseline forecast for decommissioning projects in the North Sea.
The aim of the tool is to better qualify and quantify forecasting for operators and regulators.
The online tool calculates based on information provided by the user from a series of questions regarding the wells, potential platform(s), FPSO and subsea equipment that require removal. It gives the user a cost overview of all aspects of a decommissioning project, and the estimated output is to be used solely for benchmarking purposes and further planning.
The cost calculator does not form a sufficiently detailed basis for meeting regulatory standards or requirements. However, Maersk Decom can provide help based on the information the user inputs in the cost calculating tool in order to provide estimates meeting regulatory requirements.
“The benefit of the cost calculator is that users can gain a quick overview of the potential cost range for a given decommissioning project. We hope that Maersk Decom can, in this way, help the industry to more easily take the necessary decision by having a better overview,” says Jens Klit Thomsen, Chief Commercial Officer of Maersk Decom.
Maersk Decom’s vision is to have ‘no resource wasted’ and material and waste management is often a significant bottleneck in decommissioning projects. Maersk Decom seeks to increase transparency within the industry by providing a tool that helps users account for these costs.
It also allows for a more transparent process for the user to report on or demonstrate their compliance with UN Sustainability Development Goals.
“Using a cost calculating tool that looks at the liability of a decommissioning project, including the management of materials and waste, is a new way of planning the project. By enabling a more transparent process, we see this as a step forward for the industry,” says Klit Thomsen.