ISO 15663-2021 PDF

Full title and description

ISO 15663:2021 — Petroleum, petrochemical and natural gas industries — Life cycle costing. This international standard specifies requirements and provides guidance for applying life cycle costing (LCC) to support decision-making and value creation across development and operational activities in the petroleum, petrochemical and natural gas sectors.

Abstract

This document establishes a consistent life cycle costing process and related management methodology to evaluate competing options that differ by cost or economic value. It covers facilities and associated activities across upstream, midstream, downstream and petrochemical business categories, and provides guidance on identifying cost drivers, applying economic evaluation measures (for example LCC and NPV), and implementing cost-control frameworks over the asset life. The standard is intended to support decisions where whole-life cost comparisons are required rather than assessments of single-option economic performance.

General information

• Status: Published (International Standard; under systematic review as of the ISO record).
• Publication date: 25 February 2021.
• Publisher: International Organization for Standardization (ISO).
• ICS / categories: 75.020 — Extraction and processing of petroleum and natural gas.
• Edition / version: Edition 1 (2021).
• Number of pages: ISO record lists 102 pages. (National adopters and publishers list equivalent page counts in the 110–116 page range depending on formatting.)

Scope

ISO 15663:2021 applies life cycle costing methods to the petroleum, petrochemical and natural gas industries for decisions between competing options differentiated by cost or economic value. It addresses LCC planning, management, data collection, cost-driver identification and control, and economic evaluation across life cycle phases of facilities and associated activities in upstream, midstream, downstream and petrochemical sectors. It does not cover decision-making based on factors other than cost or economic value or the economic performance evaluation of single, non-comparative options.

Key topics and requirements

• Definition and application of life cycle costing (LCC) principles specific to oil, gas and petrochemical facilities.
• Guidance on planning and managing LCC studies proportional to cost magnitude and potential value creation.
• Identification and control of cost drivers across project and operational life-cycle phases.
• Use of economic evaluation measures, including life cycle cost and net present value (NPV), for option comparison.
• Application to upstream, midstream, downstream and petrochemical business categories, and to decisions such as process concept, equipment selection, execution strategy and maintenance/logistic support planning.

Typical use and users

Primary users are oil and gas operators, contractors, vendors, designers, project and asset managers, cost engineers, reliability and maintenance planners, procurement and financial analysts who need to compare whole-life economic outcomes of alternative technical and commercial options. The standard is also used by regulatory bodies, consultants and educators involved in cost management and value-creation practices in the energy sector.

Related standards

ISO 15663:2021 consolidates and replaces earlier parts of the ISO 15663 series (for example ISO 15663-1:2000, ISO 15663-2:2001 and ISO 15663-3:2001, which have been withdrawn). It is intended to be used alongside other ISO and industry standards covering project management, risk assessment, reliability engineering and asset life extension practices in the petroleum and natural gas sectors.

Keywords

life cycle costing; LCC; life cycle cost; net present value (NPV); petroleum industry; petrochemical; natural gas; whole-life cost; cost drivers; asset life; cost management; economic evaluation.

FAQ

Q: What is this standard?

A: ISO 15663:2021 is an international standard that provides requirements and guidance for life cycle costing within the petroleum, petrochemical and natural gas industries, to support economic decision-making and value creation.

Q: What does it cover?

A: It covers the methodology, planning and management of life cycle costing studies, identification and control of cost drivers, and the use of economic measures (such as LCC and NPV) to compare competing options across upstream, midstream, downstream and petrochemical activities. It is focused on decisions differentiated by cost or economic value.

Q: Who typically uses it?

A: Oil and gas operators, contractors, vendors, project and asset managers, cost and financial analysts, reliability and maintenance planners, consultants and educators within the energy sector.

Q: Is it current or superseded?

A: ISO 15663:2021 is the current consolidated edition published on 25 February 2021; earlier part-based editions (ISO 15663-1/2/3) have been withdrawn and the 2021 edition is the active international standard (subject to normal ISO review cycles).

Q: Is it part of a series?

A: Historically ISO 15663 existed as a multipart series (parts 1–3 published around 2000–2001). The 2021 publication consolidates that series into a single International Standard while the older parts have been withdrawn.

Q: What are the key keywords?

A: Life cycle costing (LCC), life cycle cost, net present value (NPV), petroleum, petrochemical, natural gas, cost drivers, whole-life cost, economic evaluation, asset life.