Abstract
This paper presents use cases of the ISO 15663:2021 standard for industry cost management and business value crea-tion. The standard contains requirements and guidance on how to implement and apply the life cycle costing methodology, to provide decision support for selection between alternative competing options. The objective of the paper is to show recent indus-try applications and how value can be created by application of life cycle costing in oil & gas, particularly focusing on new technology development and lower carbon energy solutions.
ISO 15663:2021 provides a framework for value optimization over the entire life of an asset. It promulgates a manage-ment methodology and application of life cycle costing across all life cycle phases. The purpose is to provide decision support for selecting between alternative options for relevant life cycle costing subject matters.
The life cycle costing applicability to new technology innovation that can replace conventional technology will specifically be addressed based on recent operator and supplier studies.
The use case concerning the deployment of subsea drones in subsea field development is presented. Subsea drone deployment is one of most challenging improvement for the oil and gas industries, being a game changer for the carbon footprint and cost reduction of operations. The ISO 15663:2021 has been applied in order to guide the decision maker throughout a proper selection of different competing options and enabling a fully representative life cycle cost analysis.
The paper also presents an example of use of life cycle costing to compare and evaluate differences in business performance, as well as opportunities, between conventional topsides and Subsea Chemical Storage and Injection System (SCSIS) for subsea wells. The methodology served as a comprehensive tool for comparing the life cycle cost of two alternative options.
Oil & Gas Operators as well as Contractors and Vendors are the main users of ISO 15663:2021. Besides the use cases presented in this paper, the ultimate goal of the authors is to demonstrate that by using a proper life cycle costing methodology, the decision making can be ultimately rigorous and coherent.
