Asset Life Management Plan

The purpose of an Asset Life Management Plan (ALMP) is to set out the strategic objectives, aspirations, and associated data, estimates and assumptions for the full expected life of the oil and gas producing assets.
Sufficient detail is required to allow decisions to be made. Where information presented is uncertain, assumptions can be made clear, and levels of confidence assigned by means of probability estimates.
Prior to issue, the risks and criticalities of the ALMP should be analysed by risk management processes.
The premises document thus created provides an asset management model against which detailed investment proposals (OPEX and CAPEX) and associated planning, can be tested and validated.
All functions and disciplines must be included in the ALMP, in order to be able to represent the interaction and interfaces between these functions.
For each year of remaining life expectancy, data estimates and assumptions are required from the following areas:
  • Reservoir management data
  • Oil and gas production technology
  • Gas export technology
  • Well construction
  • Processing, stabilization and export capacities
  • Utilities capacity requirements
  • Operating and maintenance
  • Legislation and certification
  • Opex
  • Capex
  • Decommissioning costs
  • Cash flow, LCC analysis, unit cost of production and NPV of production