Level: Intermediate
TCM Section(s)
7.3. Cost Estimating and Budgeting
3.2. Asset Planning
Venue: 2024 AACE International Conference & Expo
Abstract: Cost estimate classification systems are a practical approach to improve communications among all the stakeholders involved with planning, preparing, evaluating, and using cost estimates. AACE International published many cost estimate classification systems for several industries and asset stages, but no specific recommended practice (RP) for decommissioning cost estimates was issued. Considering the current situation of cost estimates for decommissioning fixed platforms as a case study, this paper analyses the workarounds performed by the industry that can lead to misinterpretation of the RPs – mainly 18R-97 – adopted to perform decommissioning cost estimates. The paper proposes an innovative view identifying three key phases and intermediate transition stages to develop an RP-oriented classification system matrix draft with five estimate classes. The draft can provide a starting point or go-by for any organization’s internal procedures or industry debate. This proposal represents a mindset shift towards an RP-oriented approach, which is applicable in other industry sectors to help eliminate the decommissioning RP gap workarounds.
TCM Section(s)
7.3. Cost Estimating and Budgeting
3.2. Asset Planning
Venue: 2024 AACE International Conference & Expo
Abstract: Cost estimate classification systems are a practical approach to improve communications among all the stakeholders involved with planning, preparing, evaluating, and using cost estimates. AACE International published many cost estimate classification systems for several industries and asset stages, but no specific recommended practice (RP) for decommissioning cost estimates was issued. Considering the current situation of cost estimates for decommissioning fixed platforms as a case study, this paper analyses the workarounds performed by the industry that can lead to misinterpretation of the RPs – mainly 18R-97 – adopted to perform decommissioning cost estimates. The paper proposes an innovative view identifying three key phases and intermediate transition stages to develop an RP-oriented classification system matrix draft with five estimate classes. The draft can provide a starting point or go-by for any organization’s internal procedures or industry debate. This proposal represents a mindset shift towards an RP-oriented approach, which is applicable in other industry sectors to help eliminate the decommissioning RP gap workarounds.