ARO Cost Model
Why ARO?
Estimating retirement obligation liability for an asset package or an entire company is a crucial, yet difficult to grasp aspect of scoping for A&D deals. LLR ratios and government calculated liabilities only tell half the story. ARO is a key aspect of risk management and a disciplined retirement strategy is essential for corporate financial planning.
Learn More About ARO
The ARO model was developed through a culmination of government resources, expert opinion and industry data. The baseline values were derived from government agency data and this was augmented by professional experience when warranted. The values have been benchmarked against multiple sets of operator records and will continue to be as more and more information becomes available. Professionals that contributed to the model include:
Abandonment coordinators
Facility engineers
Civil engineers
Professional agrologists
Reclamation managers
Professional biologists
Chemical engineers
Drilling engineers
HSE managers
Accounting auditors