Following is a summary of key points expressed during XI's April 18 Roundtable on Asset Retirement Obligations. Each week, XI Technologies scans their unique combination of enhanced industry data to provide trends and insights that have value for professionals doing business in the WCSB. If you'd like Wednesday Word to the Wise delivered directly
Guest Blog by Mike Newton Are oil and gas companies responsible for the end of life liabilities of assets they divest if the acquiring company goes bankrupt? This question has been reverberating throughout the oil and gas industry since the Redwater case first went to trial and with subsequent high-profile bankruptcies in Alberta. The
The issue of Licensee liability in Alberta's oil and gas sector has been an evolving one for many years. The Alberta Energy Regulator (AER) introduced changes to the Licensee Liability Rating (LLR) from 2013 through 2015, and then again in 2016. Further changes are expected in 2018, as is the ruling on the Redwater
XI Technologies Inc. has published a whitepaper outlining 5 key reasons why Alberta Energy Regulator’s (AER’s) Licensee Liability Rating (LLR) should not be used to estimate long-range Asset Retirement Obligation (ARO) for Alberta operating and non-operating oil and gas companies. Initially created in the early 2000s, LLR was never designed to be used for
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
As the industry leader in A&D and liability analysis software, XI Technologies is excited to announce a second workshop to introduce the latest tool to complement our powerful LLR Analysis Module: ARO Cost Model Workshop: ARO vs. LLR – Getting past common government regulator oversights to understand liability costs Estimating retirement obligation liability
As the industry leader in A&D and liability analysis software, XI Technologies is excited to announce a workshop to introduce the latest tool to compliment our powerful LLR Analysis Module: ARO Cost Model Workshop: ARO vs. LLR – Getting past common government regulator oversights to understand liability costs Estimating retirement obligation liability for a
On Thursday, October 6th XI Technologies and 360ELM offered an exclusive workshop to AssetBook clients. 360ELM discussed how the incorporation of LMR/LLR management prior to acquiring or divesting assets enables licensees to maximize their investment potential and assists in the ongoing liability concern. In the new Alberta market where 534 out of 777 (68.7%) of
The AER has implemented some "temporary" changes regarding liability values in the LMR calculations. There are a number of facilities, based on their type or EDTC code, that have had their liability cost eliminated. XI's LLR module has been updated to reflect these discounts and we have also added a column indicating the EDTC
NOW LIVE: AssetBook now contains 5 new field names to assist with your ARO calculations, making it easier to determine risk when evaluating a group of wells: Inactive Well Risk Class Inactive Well in Compliance Non-Compliance Details Next Inspection Date Last Volumetric Activity (Be sure to check your hidden columns for these new features) Well summary