Obsolescence of Aging Electrical Equipment: Management Program in Oil and Gas Industrial Facilities

This article presents the lessons learned and challenges during the development and implementation of an electrical equipment obsolescence management program at a large oil and gas company. A methodology was developed to identify obsolete equipment by a rational application of obsolescence criteria and ranking mechanisms. Major investments in replacing aging electrical equipment is required for operational continuity and reliability, continued viability, and cost effectiveness of the existing company´s assets. The key strategies for successful strategic planning with capital investment in the existing facilities are outlined. The obsolescence management program helps to minimize capital expenditures by using cost-effective alternatives that will extend the economic life of electrical equipment, while maintaining the required operational safety and availability.