Obsolescence Management of Rotating Equipment in the Oil and Gas Industry: A Strategic Approach to Minimizing Loss and Downtime

Abstract A critical aspect of asset preservation and life extension in the oil and gas industry is effectively managing the Obsolescence of rotating equipment to minimize operational costs, downtime, and environmental impacts throughout the equipment lifecycle. This paper examines the economic and environmental implications of Obsolescence, highlighting key factors such as reduced efficiency, equipment failures resulting from outdated technology, scarcity of spare parts, and diminished reliability. Traditional reactive maintenance approaches, such as the "run to failure" model, are critically examined, revealing significant limitations, such as increased unplanned downtime, rising long-term costs, and elevated carbon emissions. The study proposes an integrated approach based on proactive planning, risk-based assessment, and strategic alignment with organizational objectives. The primary novelty of this research lies in developing a Multi-Criteria Decision Matrix (MCDM) integrated with expert-derived weightings obtained via structured questionnaires. The MCDM tool allows for practical, systematic evaluation and categorization of rotating equipment based on obsolescence risk. An Excel-based assessment tool incorporating macro automation was created to streamline data entry, score calculations, and result visualization, enhancing usability and reducing manual error. A case study conducted in a Nigerian oil and gas facility validates the model's practical application, demonstrating clear guidance on maintenance prioritization and resource allocation. Findings emphasize that proactive obsolescence management significantly reduces operational risks, improves equipment reliability, lowers lifecycle costs, and mitigates environmental impacts. Ultimately, the framework presented in this research offers a structured and practical solution tailored to industry needs, particularly in resource-constrained environments, and advocates for a shift toward a proactive and strategically informed maintenance practice.