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Abstract There are numerous hydrocarbon processing facilities worldwide which are at varying stages of their operating lifecycle. In most cases, these debt free assets remain free cash flow generative with positive operating gross margins. However, extending operation beyond design life presents credible safety risks, business risks and operational challenges to the oil and gas industry and requires continued increased investment to keep these assets operational. In parallel, asset owners need to manage the societies’ decarbonisation expectations to continue operation. This paper presents an integrated approach which can help the asset owner to develop a future roadmap for their facilities. The approach presented in the paper covers the assessment procedures for remaining life, pertinent ageing mechanisms which affect the process facilities and proactive surveys to be carried to develop a complete picture of the actual mechanical condition of the assets. Each unit operation is assessed for best practice technology and safety. Various scenarios incorporating end-of-life equipment renewals, technology and safety upgrades are then developed in combination with decarbonisation targets and the additional investment is determined. The visibility of such investment, then, helps to develop long term plan for the asset. Three case studies are presented to illustrate the above approach. A roadmap was developed to meet the decarbonisation expectations with phased selection of minimum investment requirement items followed by higher investment options. The recommendations include but are not limited to eliminating fuel oil firing, flare gas recovery, diverting hydrogen rich gas to fuel gas where possible due to process reasons, reducing high pressure steam consumption, using low pressure steam for purge and other energy optimisation projects. Further optimisations requiring additional investment are utilising higher energy efficient equipment when existing equipment are replaced due to end of life, recovering waste material from loading and unloading facilities and recycle of treated waste water for steam generation. The high investment options include updated energy efficient process technology with major modifications, sourcing green electricity, providing carbon capture facilities at high emitters and development of carbon free energy solutions. With a timeline of all asset expenditure drivers and possible alternatives, the asset owner is most profitably able to prioritise and best time asset renewal, upgrade or decommissioning.
Jain et al. (Mon,) studied this question.