Models for the Multicriteria Selection of Options for Decommissioning Projects for Offshore Oil and Gas Structures

Ibragim Khalidov (), Konstantin Milovidov and Yury Stepin
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Ibragim Khalidov: Department of International Oil and Gas Business, Gubkin Russian State University of Oil and Gas (National Research University), 119991 Moscow, Russia
Konstantin Milovidov: Department of International Oil and Gas Business, Gubkin Russian State University of Oil and Gas (National Research University), 119991 Moscow, Russia
Yury Stepin: Department of Automated Control Systems, Gubkin Russian State University of Oil and Gas (National Research University), 119991 Moscow, Russia

Energies, 2023, vol. 16, issue 5, 1-19

Abstract: Companies are striving to optimize the decommissioning process of oil and gas facilities in order to reduce overall costs. Various options and criteria for making decisions on the liquidation of objects are considered, which are based on a multicriteria approach that allows optimizing this complex process. The most important characteristics of a reliable model for optimizing options for decommissioning oil and gas facilities are defined as follows: the option should take into account qualitative and quantitative criteria. To minimize the subjectivity of human judgment, a systematic poll of skilled performers should be conducted using a well-structured technique. It is shown that multicriteria decision analysis can be considered as an adequate model for choosing options for decommissioning oil and gas assets. Based on a test case that reflects the practice of decommissioning offshore platforms in the state of California (USA), the logic and algorithm of calculations are reproduced when choosing the best options for decommissioning facilities. The presented calculation scheme is quite universal and can be used at other facilities, including Russian ones. In order to determine the optimal choice, three options for the project model for the decommissioning of oil and gas facilities of offshore structures (platforms) were considered: complete liquidation, partial liquidation, and leaving in place.

Keywords: decommissioning; platforms; ranking models; criteria; analytic hierarchy process; multicriteria risk assessment (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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