Today’s oil and natural gas producers are facing unprecedented regulatory scrutiny concerning all aspects of asset life-cycles, including asset retirement obligations (ARO).
The decision of when to abandon an asset is complex. Abandonment and remediation costs are significant and knowing which assets to prioritize can be difficult and time consuming, especially if you lack in-house expertise. Dynamic Risk’s asset abandonment intelligence team enables licensees to assess liabilities and plan abandonment activities that meet asset retirement obligations while reducing time, effort and capital spent on abandonment, reclamation and remediation.
Asset abandonment risk can be reduced by predicting actual budget costs, avoiding remediation costs and avoiding incidents. This is an area at which the Dynamic Risk team excels. We utilize practices unique to our industry. We don’t simply audit data from our desks. Team members go to the field to collect data and observations about your wells, pipelines and facilities. This “in the field collection process” results in improved and more up to date information on which you can base your decisions. Of added benefit, while the data is used for abandonment decision making, it is also shared with other lines of business, reducing the need for additional teams to conduct site visits, which in turn lowers operating costs.
The Sequoia Resources bankruptcy has resulted in the Alberta Energy Regulator (AER) issuing a very large and unprecedented Closure Order. The Order affects all Working Interest Participants in wells, pipelines and facilities. Ignoring or improperly responding to the Order could result in an enforcement action. We have prepared this document to help you effectively and efficiently respond in the event you receive a Notice of Closure. Read more.
February 15, 2018, the Alberta Energy Regulator and the Orphan Well Association will meet in the Supreme Court of Canada with the bankruptcy trustee of Redwater Energy Corp., to decide who should pay for the abandonment and remediation of wells. The Court’s decision is expected to usher in a new era for the oil and gas industry. Dynamic Risk’s subject matter expert on asset retirement and liability management will be watching closely. Read more.
Asset retirement service deliverables and benefits include:
- Improved LMR/LLR
- Better insights concerning interrelationships with third parties and working interest partners
- Categorization of pipeline liability and risks associated with inactive pipelines
- Improved decision making as a result of more accurate, real-time information
- Lower operating costs, increased efficiencies and reduced liabilities due to improvements in prioritizing abandonments, workflows, and regulatory compliance
Learn more about our Asset Retirement Services. Contact us today.