Process for insuring and risk managing the decommissioning and/or abandonment of an oil and gas production facility
First Claim
1. A process for insuring and risk managing the decommissioning and/or abandoning of an oil and gas production facility owned by an oil and gas producer, the process steps comprising:
- collecting engineering and production data related to an oil and gas field and its production facility;
building a model predicting a net production value profile of the oil and gas field using the collected engineering and production data;
estimating future cost of decommissioning and abandoning the oil and gas production facility;
building an insurance premium payment curve to be paid by the oil and gas producer based on the net production value profile and the future cost of decommissioning and abandoning the facility;
selling the oil and gas producer a risk management insurance policy based on an estimated premium payment curve and collecting premium payments from the oil and gas producer; and
paying the oil and gas producer at the time of decommissioning and abandoning the facility for the insured cost of abandonment.
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Accused Products
Abstract
A process for insuring and risk managing the decommissioning and/or abandonment of an oil and gas production facility such as an off shore oil and gas production platform. The process includes first collecting data related to an oil and gas field and it'"'"'s production facility from a potential client. Based on the collected data, a model for predicting the production net value profile of the oil and gas field and an estimated time of abandonment is determined. Also, the cost of future decommissioning and abandonment is estimated, the cost of environmental insurance for decommissioning and abandonment is estimated and the cost of transfer of liability insurance is estimated. The three costs are added to estimate a premium to be collected over the life of the oil and gas field. The estimated premium and the field profile model are now used to build a premium payment curve to be paid by the client. At the time of decommissioning and/or abandonment, the insurer pays the oil and gas producer the cost of decommissioning and/or abandonment of the property.
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Citations
15 Claims
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1. A process for insuring and risk managing the decommissioning and/or abandoning of an oil and gas production facility owned by an oil and gas producer, the process steps comprising:
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collecting engineering and production data related to an oil and gas field and its production facility;
building a model predicting a net production value profile of the oil and gas field using the collected engineering and production data;
estimating future cost of decommissioning and abandoning the oil and gas production facility;
building an insurance premium payment curve to be paid by the oil and gas producer based on the net production value profile and the future cost of decommissioning and abandoning the facility;
selling the oil and gas producer a risk management insurance policy based on an estimated premium payment curve and collecting premium payments from the oil and gas producer; and
paying the oil and gas producer at the time of decommissioning and abandoning the facility for the insured cost of abandonment. - View Dependent Claims (2, 3, 4, 5, 6)
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7. A process for insuring and risk managing the decommissioning and/or abandoning of an oil and gas production facility owned by an oil and gas producer, the process steps comprising:
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collecting engineering and production data related to an oil and gas field and its production facility;
building a model predicting a net production value profile of the oil and gas field using the collected engineering and production data;
estimating future cost of decommissioning and abandoning the oil and gas facility, cost of environmental risk insurance and cost of transfer liability insurance;
building an insurance premium payment curve to be paid by the oil and gas producer based on the net production value profile and the future cost of decommissioning and abandoning the facility, the cost of environmental risk insurance and the cost of transfer liability insurance;
selling the oil and gas producer a risk management insurance policy based on an estimated premium payment curve and collecting periodic premium payments from the oil and gas producer, and paying the oil and gas producer at the time of decommissioning and abandoning the facility for the insured cost of abandonment. - View Dependent Claims (8, 9)
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10. A process for insuring and risk managing the decommissioning and/or abandoning of an oil and gas production facility owned by an oil and gas producer, the process steps comprising:
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collecting engineering and production data related to the oil and gas field and its production facility;
building a model predicting a net production value profile of the oil and gas field using the collected engineering and production data;
estimating future cost of decommissioning and abandoning the oil and gas facility;
building an insurance premium payment curve to be paid by the oil and gas producer based on the net production value profile and the future cost of decommissioning and abandoning the facility;
selling the oil and gas producer a risk management insurance policy based on the estimated premium payment curve, and collecting premium payments from the oil and gas producer;
updating and tracking all data related to the oil and gas field and the insured production facility during the life of the insurance policy and periodically adjusting the premium payment curve based on discrepancies between the predicted and actual production profiles; and
paying the oil and gas producer at the time of decommissioning and abandoning the facility for the insured cost of abandonment. - View Dependent Claims (11, 12, 13, 14, 15)
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Specification