Asset Reference Planning
The Asset Reference Plan (ARP)1 should be the principal management tool by which assets are effectively and efficiently managed throughout their life. The ARP’s objectives are to:
- Optimise asset planning, subsurface studies, facilities design and equipment selection
- Define the boundaries of the asset
- Integrate the various business process strategies
- Assess critical decision points throughout the asset lifecycle.
ARPs reflect the impact on cashflow and profitability of the activities, resources, policies, standards, threats and opportunities that can affect the asset during its operational life by means of the quantification and categorisation of the above with reference to technical integrity, deferment, servicing and support.
The ARP also documents assumptions and uncertainties and summarises the growth and development plans for an asset. The plan commences with the identification of an opportunity (e.g. from the point of acquisition of a licence block) and continues throughout the asset lifecycle until decommissioning or disposal.
During the early phases of development, the evolving ARP will reference key development documents that contain, amongst other things, data relating to the Field Development Plan. This approach allows the ARP structure to be established from the outset whilst avoiding duplication of data. Information and documents referred to during the early stages of development are:
Phase 1-Identify and Assess
- Work Programme (Commitment) and Area Strategy
- Development Strategy Note containing potential development options
- Project Initiation Note and Feasibility Report
- Containing Business Plan, HSE issues, Handover Plan, etc.
Phase 2-Select
• Field Development Plan containing development options, production profiles, etc.
The full ARP for a new development that is to be operated as an independent asset is normally produced during Phase 3, Define, i.e. after the Field Development Plan has been selected and its contents will be as shown in Figure 3.4.1.
The ARP will be updated, revised and added to as the ORP phases progress and, later, as the asset matures and is a key element in the transfer of an asset from one management group to another. (The ARP for a new development that will be tied-back to an existing asset will normally be absorbed in the “host” asset’s ARP).
Responsibility for the preparation and approval of an ARP needs to be carefully defined during the early phases when an Asset Manager is unlikely to be part of the team, but once an Asset Manager has been appointed then he/she becomes accountable for its development and maintenance.
Operations Philosophy
The Operations Philosophy is a series of statements that ensure that:
- The production process will be as simple as possible to allow minimum production facilities, expeditious development and optimised capex, opex and risk,
- all facilities will be “fit for purpose”, recognise the existing infrastructure and the legal, contractual and critical production requirements,
- all facilities will be within operational and maintenance competence of existing staff, given that they are provided with appropriate training, except where an alternative is proved to be more cost effective or of lower risk,
- all production plant will be simple to maintain, easy to monitor and will be self-regulating within the design operating envelope to ensure minimum risk to personnel,
- The process will seek to minimise undesirable environmental impact,
- Operational and maintenance experience is fed back to new opportunity designs.
From the Operations Philosophy, the operations strategy may be developed which describes how the opportunity/project team will implement the opportunity to meet the expectations of the philosophy.