TECHNICAL PAPERS
Oct 15, 2003

Decommissioning Cost Functions in the Gulf of Mexico

Publication: Journal of Waterway, Port, Coastal, and Ocean Engineering
Volume 129, Issue 6

Abstract

The cost to decommission offshore structures in the Gulf of Mexico is examined based on 60 projects managed by Twachtman, Synder, & Byrd, Inc., over the years 1991–2001. Cost functions are established for each stage of decommissioning, including well plugging and abandonment, structure preparation, pipeline abandonment, structure removal, and site clearance and verification. The component cost of decommissioning is analyzed statistically, and regression models are empirically derived using various descriptor variables. A candid discussion of the limitations of analysis is also presented. This paper represents the first empirical study to construct decommissioning cost functions for the Gulf of Mexico region based on actual job data.

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References

Dauterive, L. (2001). “Rigs-to-reefs, policy, progress, and perspective.” MMS OCS Study 2000-073, U.S. Department of the Interior, Minerals Management Service, Gulf of Mexico OCS Region, New Orleans.
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Go to Journal of Waterway, Port, Coastal, and Ocean Engineering
Journal of Waterway, Port, Coastal, and Ocean Engineering
Volume 129Issue 6November 2003
Pages: 286 - 296

History

Received: Jul 31, 2002
Accepted: May 29, 2003
Published online: Oct 15, 2003
Published in print: Nov 2003

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Authors

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Mark J. Kaiser
Center for Energy Studies, Louisiana State Univ., East Coast & Environment Building, Nicholson Executive Dr., Baton Rouge, LA 70803-0301.
Allan G. Pulsipher 
Center for Energy Studies, Louisiana State Univ., East Coast & Environment Building, Nicholson Executive Dr., Baton Rouge, LA 70803-0301.
Robert C. Byrd
Twachtman Synder & Byrd, Inc., 13105 Northwest Freeway, Houston, TX 77040.

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