The traditional approach to late life asset management is to reduce costs by reducing maintenance and stopping other activities, with cessation of production (COP) declared when the facility is no longer producing enough income to cover its costs. The wells are plugged and abandoned (P&A) and the facilities are removed.

Each phase is usually managed by a different team within an operator and there is usually a gap of several months, or even years, between each activity. For each day the facility is there, the operator will incur costs.

 

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