ARO Cost Model
- perform scenario analysis to see the impact of an A&D transaction on corporate position
- analyze scenarios using any combination of properties in XI’s AssetBook
- upload proprietary corporate ARO data for more detailed analysis and tracking
- save your work for future reference and updating
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 cost model within XI’s ARO Manager 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 updated as more and more information becomes available. Users of the ARO Manager can work with the standard XI Cost Model, partially modify it to reflect their real-world costs, or create an entirely custom cost model. Professionals that contributed to the XI Cost Model include:
Abandonment coordinators
Facility engineers
Civil engineers
Professional agrologists
Reclamation managers
Professional biologists
Chemical engineers
Drilling engineers
HSE managers
Accounting auditors