Estimating Asset Retirement Obligation for an asset package or an entire company is a crucial aspect of scoping A&D deals. ARO has become a key part of risk management, and a disciplined retirement strategy is essential for corporate financial planning. LLR ratios and government calculated liabilities only tell half the story. Those who can navigate these components with accuracy gain a clear advantage.
XI’s ARO Cost Model was developed directly from needs expressed to us by industry. The need to access accurate retirement costs of wells and facilities in the WCSB, as well as the need for an understanding of costs associated with the IWCP program, were frequent themes in our experience with government LLR programs. We have worked with liability professionals to bring you a robust tool which allows users to work out approximate abandonment and reclamation costs for any group of assets, with only a few clicks, before getting into the data room.
If you are involved in M&A, A&D, business evaluations, or liability management, contact us for a demo.