The concept of abandonment

Abandonment means that some assets can be told to stop processing fluids and incurring OpEx; in a word, when they are abandoned, they cease to exist in the simulation.

Generally, it is assets that either produce fluids (wells) or handle them (facilities and pipelines & connections) that can be abandoned. They are characterized by having been built or drilled for the project at a given point in time, and by usually having operative expenses associated to them for as long as they exist.

Wells can have a specific abandonment cost defined in the Well Details Tab and computed as OpEx. In contrast, the cost of abandonment defined at the abandonment job level and computed as CapEx, either for wells and for any other asset type.

In addition to the Abandonment job, PetroVR handles abandonment in a variety of other ways, when any of a set of given conditions is met:

Well abandonment due to depletion: When the reserves of a well are exhausted or the well's Economic Limit is reached, PetroVR automatically abandons the well.

(You do not need to explicitly define an Abandonment job for this to happen.) In the In Last Simulation tab (Schedule), this is marked by an "x" red circle on the left of the corresponding drilling job.

Well abandonment due to Shut In: When a facility has defined a Shut In Excess Policy, you can activate the abandonment of the well after the shut in. This appears marked by a currency sign in the In Last Simulation tab (Schedule).

Injection wells abandonment to keep the PI Ratio: When a PI Ratio has been defined in the Injection Tab (Reservoir node), injectors can be optionally abandoned along with producers to keep the ratio.

Facilities ceasing to have incoming production also stop incurring OpEx; this, however, is not equivalent to abandoning that facility, since it still exists and will start operating as soon as it receives fluids again. On the other hand, a facility subject to a Facility Production Rerouting job is abandoned as soon as the job is performed, since it stops receiving fluids completely.

Facility clones are abandoned at the same time as their prototypes. Facility clones scheduled to be built by a Well Cloning or an Automatic Development job are cancelled (not built) when the prototype is abandoned.

Connections and pipelines are automatically abandoned if any of the facilities it connects is abandoned. As in the case of facilities, pipelines also stop incurring OpEx the moment they cease to receive and route fluids.

Abandoning a Pipelines removes not only the operational costs associated to it but also the connection itself, i.e. the facility will no longer be able to route fluids through it.

At the end of the simulation, when the number of periods defined for the project has been reached, the simulation stops even if there are still wells and facilities producing and processing fluids. These are not regarded as abandoned (i.e., well abandonment costs are not incurred for wells still producing at the end of the simulation).

When an Abandonment job is performed it only abandons those assets that have not previously been abandoned. If all assets have already been abandoned, then the Abandonment job will be completed at no cost. However, if at least one asset is abandoned, the Abandonment job will incur the CapEx specified for it. In other words, the cost of an Abandonment job does not depend on how many assets are abandoned, provided that at least one of them is.

It is possible to define a duration for an Abandonment job. In this case, although the object is abandoned immediately, the associated CapEx is prorated for the duration of the jobs. If it is the whole project that is abandoned the job cannot have a duration.