Abstract
23-1- Operating Cost Categories
23-2- Labor
23-3- Logistics and Transportation
23-3-1- Marine Vessels
23-3-2- Helicopters
23-4- Materials and Supplies
23-4-1- Chemicals for Water Treatment
23-4-2- Chemicals for Corrosion
23-4-3- Chemicals for Flow Assurance
23-4-4- Fuel, Water and Utilities
23-5- Repairs and Maintenance—Wells and Flowline
23-5-1- Maintenance
23-5-2- Stimulation
23-5-3- Well Failure
23-5-4- Flowline and Export Repairs
23-6- Repairs and Maintenance—Equipment and Structure
23-6-1- Regulatory Requirements
23-6-2- Inspection Schedules
23-6-3- Three Zones
23-6-4- Painting
23-6-5- Underwater Maintenance
References
ABSTRACT
Activity-based cost models apply work decomposition methods and knowledge of engineering and market conditions to estimate cost. The tasks required to be performed are identified, and the time and duration to perform each task are estimated. Activity-based costing is the most detailed and transparent method that can be applied in operating cost estimation and require a higher level of expertise to successfully apply. In this final chapter, work decompositionmethods are described to illustrate how the operating cost components of labor, logistics and transportation, materials and supplies, and repairs and maintenance are estimated. Examples are provided to develop analytic skills and intuition regarding the relative importance of cost components. Regional diving, helicopter, and marine vessel contracts and service markets are reviewed as part of this discussion.
23-1- OPERATING COST CATEGORIES
The primary cost categories for offshore oil and gas operations include the following:
• Salaries of operating personnel
• Transportation of products and people
• Materials and supply services
• Repair and maintenance of wells and flow lines
• Repair, maintenance, and inspection of equipment and structure
Cost may be incurred hourly, daily, monthly, or annually; be volume- or capacity-based; or be per person (Table 23.1). In activity-based costing, the tasks required to be performed are identified, and the time and duration to perform each task are estimated. If only a small number of facilities are evaluated, a detailed approach is feasible, but for more than a few structures, the resources required to complete an activity-based cost study are significant (Kaiser, 2019).