Control: 3.S.8 Full Life Cycle Trade-offs Considered | Integrated Project Management System (IPMS)

Title	Description
Context	The lowest cost scope does not always deliver the greatest value. Consideration should be given to concepts which realise more value over their lifetime even though they might be initially more costly. Capex/Opex trade-offs should be explicit in the value/cost/risk trade-off staircases to allow quality concept decisions to be made. Likewise, there are likely to be trade-offs between economic and Greenhouse Gas performance that should be made explicit. Concepts have moved into the Define and Execute phases ignoring the impact of operational and Greenhouse Gas trade-offs on the asset’s ability to meet the production promise and to generate expected cash flows. This control is needed to ensure that at Concept Select, value/cost/risk trade-offs are agreed with (future) asset owner representatives and are challenged in the context of the Production Promise.
Activity	Clearly identify Capex/Opex trade-offs and agree value/cost/risk assessment with operations teams and asset owner representatives (OR&A and Asset Manager) and include these in the value/cost/risk trade-off staircase, which are used to make concept decisions. Likewise, trade-offs between economic and Greenhouse Gas performance should be included in the staircase and considered in the decisions.
Purpose	To ensure scope choices are made that deliver the agreed value over the full lifetime of the asset in accordance with the production promise.
Requirements from other Standards	None
Evidence recorded in	Field Development Plan (Concept Select Report for projects without subsurface and reservoir scope).
Accountability for meeting Control Intent	Front End Development Manager
Phase	Select