Higher operating costs invariably arise as production revenues decline.
Operating costs associated with maintaining and repairing an oil and gas production facility can be divided into scheduled and unscheduled activities.
An important element of full life asset management economics is a forecast of these costs to an acceptable degree of confidence.
As facilities age, and move into a period beyond their original design life, many risks and uncertainties conspire to impact the degree of predictability and thus, confidence in long term cost forecasting.
OPEX optimisation studies challenge existing maintenance management and integrity management activities.
Methods applied for full life OPEX optimisation comprise:
- Analysis of high and critical expenditure areas
- Relationships between budget and actual costs, planned and actual activities
- Significant deviations between budget and actual costs, and
- Cost performance improvement opportunities.