Knowing and managing financial liabilities of Assets are of key importance to a sound and sustainable business. We prepare cost estimates of liabilities for all wells in an Asset, region or country. We also provide value assurance for such estimates and expert assessment to help settle dispute between parties such as buyer/seller, and for venture partners, governments.
Preparation of liability cost estimates
Well P&A Expertise prepares cost estimates for all wells in an Asset, like a field, platform, production unit, region or country. These can be used to establish financial provisions, asset retirement obligations (ARO), security bonds, divestments, acquisition and end-of-field life decisions. We have initiated and guided the (only) industry guidance in this area (through Oil & Gas UK), as well as the associated benchmarking (through IHS Rushmore).
Expert assessment of cost estimates
Next to preparing liability cost estimates we can also provide an expert assessment of cost estimates for transferred assets, in case seller and buyer disagree on each other’s estimates. Joint venture partners and governments have also a key interest in a quality assessment of the cost estimates of liabilities and assumptions used.
