PETRONAS TECHNICAL STANDARDS

PROJECT MANAGEMENT

MANUAL (SM)

COST ENGINEERING MANUAL

PTS 10.009
JANUARY 1995

PREFACE

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CONTENTS
INTRODUCTION
SECTION A - ONSHORE PRODUCTION FACILITIES AND TERMINALS
SECTION B - OFFSHORE FACILITIES
SECTION C - OFFSHORE SUBSTRUCTURES
SECTION D - SUBSEA PIPELINES
SECTION E - MINOR PROJECTS (FUTURE)
SECTION F - PROJECT LEAD TIMES
SECTION H - WORKED EXAMPLES

Sections 5. graphs have been provided with a secondary axis indicating units such as barrels per day and millions of standard cubic feet per day where appropriate. The user guides outline the procedures to be followed from definition of the project and obtaining the minimum basic data required for the estimate through to the preparation of the final cost estimate and phased capital expenditure summary. pressure is in bar and pipeline diameter is in inches. SSB/SSPC inhouse data. by requiring more project specific input data. Generally the manual employs SI unites modified for 'oil field' use. For example. . further guidance and step by step procedures are provided within each of the various individual Hardware Category estimating methods. June and December updates. EGP • Feed back from current and newly completed projects • SIPM revised Cost Engineering Manual Volume II 1. and by using more detailed algorithms to determine the engineering quantities for each building blocks. installation and the duration norms and cost rates have been incorporated to customise the module for local applications.1 COST ENGINEERING MANUAL USER GUIDE The manual contains Type II cost estimating method having an accuracy within ±25%.2 contain the descriptions and definitions of the Hardware Item and Project Function building blocks for the Type II methods. It provides type methods for preparing Type II cost (CAPEX) estimates for the following Hardware elements • Onshore Facilities and Terminals • Offshore Topside Facilities • Offshore Fixed Substructures • Sub-sea Pipelines Purpose of This Document This document is intended to be used for preparing type II cost estimates (accuracy range ±25%). Unit cost rates and costs are in Ringgit Malaysia throughout.1. with cost st st reference dates of 1 July and 1 January of each year respectively. It is therefore suitable for projects that are in the Study/Optimisation and Conceptual design phases. The improved accuracy of the Type II method is achieved by breaking projects into a larger number of smaller building blocks. For reference purposes. and by using more detailed algorithms to determine the engineering quantities for each building block. The update will be based upon the following sources of data • Feed back from EDV/1/2/3/4. A detailed user guide for the Type II estimating method is provided in Section 5. Method of Update This document will be updated by EDV/14 twice a year.e. fabrication cost rates. like design manhour norms and cost rates. ETS/1 /2/3. The method may also be suitable for preparing Company estimates for fabrication costs. i.INTRODUCTION This document is a modified version of the SIPM E & P Cost Engineering Manual (CEM) Volume II. EPO/2/4/5/6. by requiring more project specific input data.

2. input data requirements. • Users in E&P Operating Companies should contact their cost engineering focal point to obtain data which is particular to their Operating Company. descriptions of the various Hardware Items and Project Functions are found in Section 5. When using the manual it is important that the estimator be familiar with section 2 . CALM Catenary Anchored Leg Mooring. the selection of Hardware Items and the preparation of field development scenarios for prospect evaluation for Type II estimating methods. ACTIVITY An item of work performed on (a part of) a Project. and the terminology associated with cost engineering as used throughout this manual. It can be represented as an Intersection on a Hardware Item/Project Function matrix. 1. In addition to the list below. This section outlines the principles and practices of cost engineering as adopted in this manual.3 DEFINITIONS AND TERMINOLOGY The following list of definitions and terminology is intended to provide the user with an overview of the most commonly used terms in the Cost Engineering Manual. the user's attention is drawn to the following: • This manual is confidential and all methods and data contained herein must be treated as such. the cost estimating process will normally start in this section. expressed as +X%/-Y% relative to the 50/50 value of an estimate. and descriptions of the numerous System Groups and Systems are provided within the sections of the manual in which the individual 'System Group or System is identified. A chain and buoy based vessel mooring system or product loading terminal.e. and explains how a Project is broken down into building blocks. . The user is also cautioned against using the manual for purposes for which it is not intended such as using individual engineering quantities or unit rates in isolation. Before proceeding. the relationships between the building blocks. • The manual 'is for the preparation cost estimates and should not be used for design purposes. ACCURACY The band width. Cost estimates prepared in these circumstances may not have the degree of accuracy normally associated with a Type II estimate for a complete Hardware Item. ACTIVITY ALLOWANCE An allowance added in the course of preparing a base estimated for an activity to cover identified but yet unquantified elements In this manual the activity allowances are built into the algorithms for deriving quantities and are not identified separately.Section 5. In the manual this corresponds to the sum of all Project Function costs for a Hardware Item. For the user familiar with the rest of the manual.3 contain guidance on project definition. BASE ESTIMATE Comprises the activity estimate plus the activity allowances (i. those uncertainties which are known historically will occur).Cost Engineering. outside which the probabilities of overrun and underrun are each less than 10%.

4 to 5. floating substructures or offshore production facilities.base estimate (which includes activity allowance) plus contingency. CONTINGENCY Funds added to the Hardware item base estimate in order to take into account the degree of uncertainty in estimating and thus to provide an acceptable level of confidence in the total estimate. DSV Diving Support Vessel. For example a jacket. CONSTANT VALUE MONEY (CVM) Costs or revenue expressed on the basis of the value (purchasing power) or money at a stated point in time. Reference should also be made to Section 5. manageable and controllable elements on the basis of Hardware Items and Project Functions. Basis for economics/sensitivity analysis. For example onshore pipelines. . A separate cost estimating method is provided for each of 10 Hardware Categories (Sections 5. HARDWARE A physical component of a Project. ESTIMATOR The person using the CEM to obtain a cost estimate for a particular project. HARDWARE CATEGORY A heading for 'functionally similar hardware Items. which has defined physical and organisational interfaces with other Hardware Items. CRM The SIPM E&P Cost Reporting Manual (Report EP-90-3030). a gathering station or a pipeline.2.13). FPU Floating Production Unit. 50/50 ESTIMATE An estimate with an equal probability or overrun as underrun. Comprises . HARDWARE ITEM/PROJECT FUNCTION MATRIX A technique for breaking down a Project into logical. HLV Heavy Lift Vessel or crane barge.CEM Cost Engineering Manual. FSU Floating Storage Unit. FPSU Floating Production and Storage Unit.

Africa • 3. a Project is defined as being an exploration or development prospect. Far East • 5. PROJECT FUNCTION A discrete element of work performed on a Hardware Item such as design. (North. and onshore commissioning manhours are the direct manhours only. Western Hemisphere. . PMG The SIPM E&P Project Management Guideline (Report EP 86-0500). a feasibility or screening study. using a CALM buoy to provide an in field or at shore product loading facility for shuttle tankers. inspection or construction activities. RM Ringgit Malaysia ROV A remotely Operated Vehicle used to support underwater maintenance.6. OLU Offshore Loading Unit. Middle East • 4. construction or a discrete cost element related to the Hardware Item such as insurance and certification. for the purpose of the manual are defined as • 1. South and Central America) Reference should also be made to Section 3. a detailed engineering study. fabrication. MONEY OF THE DAY (MOD) Costs or revenue expressed on the basis of the value (purchasing power) or money at the time when each cost or revenue element is expected to occur. OPCO A Shell Group E&P Operating Company. or any other activity related to oil or gas field development. procurement. Europe • 2. PROJECT For the purposes of this manual. a field development project. indirect and nonproductive. Offshore hook-up and commissioning manhours are direct.2. Reference should also be made to Section 5. REGION Geographical areas which. Construction.MANHOURS Engineering manhours are the total engineering manhours including engineering contractors project management manhours.

1. Each Hardware Category has a fixed set of System Groups. USER The Person using the CEM to obtain a cost estimate for a particular project. piles and anodes as its three System Groups. and can be noted on the User's Feedback Form 1. A record of revisions will be maintained. some or all of which may be selected by the Estimator to make up a particular Hardware Item.SYSTEM GROUP A physical component of a Hardware Item and the smallest building block for a Type I estimate. Each System Group has a fixed set of Systems. Proposed changes should therefore be submitted to EDV/14 using a copy of Form 1.1. Updated sections and pages will be issued to all registered holders of the Cost Engineering Manual and will be identifiable from the revision number and date printed at the bottom of each page. heating. additions. Type II cost estimates have smaller blocks that Type 1. the fixed substructures category has jacket steel. Individual sections. 1. some or all of which may be selected by the Estimator to make up a particular System Group. For example.. Type I cost estimates are defined as having an accuracy within ±40%. to incorporate estimating methods for new technology and to include corrections. A method to drill platform wells using a platform mounted derrick equipment set.and consequently the platform topside facilities and jacket weights. TYPE II The level below Type I for estimating a Project. dehydration and water treatment as its four Systems.4 REVISIONS AND CHANGES The Cost Engineering Manual will be revised biannually. . Proposals for corrections. a copy of the marked-up pages should be attached to Form 1. suggestions from users. and are defined as having an accuracy within ±25%. TYPE I The highest estimating level of a Project. The entire manual will be reissued periodically. and a tender support vessel moored alongside the platform on which additional drilling equipment and accommodation is located and from which drilling support services are provided.1. If the proposal involves amendments to existing pages of the manual. figures and forms will be updated to reflect changes in the technical and cost data. etc. dependent upon the extent of interim revisions and updates. additions and other changes to the manual should be made to EDV/14. Feedback from users regarding this update or the entire CEM would be appreciated. TAD Tender Assisted Drilling. All proposed changes will be reviewed by. and Will be recorded on Figure 1. SYSTEM A physical component of a System Group and the smallest building block for a Type II estimate. The use of Tender Assisted Drilling reduces the amount of drilling related equipment on the platform . and be subject to the approval of the appropriate discipline engineering section within SSB/SSPC before being incorporated.1. For example the oil processing System Group has separation.

SIPM EP87-0879.S. November 1990. June 1991 • Engineering Benchmarks.20.6 June 1982. December l990 • Production Handbook.1. August 1982. Page.5 BIBLIOGRAPHY The following list of references may be used in conjunction with this Manual. November 1991 • Introduction to Cost Engineering for E&P Projects. Forest Clark and A. SIPM EP 91 -1190. November l990 • Capital Budget Manual SIPM EP 60-791. SIPM EP90-4000. by Production Division. SIPM EP 90-3030. • Programme data books (Procedure for the presentation of Programme and Budget Data) SIPM EP 89-000. March 1987 . SIP EP/-23. Houston BUDGETS AND COST DATA • SIPM E&P Cost Reporting Manual.S.00. • Cost Engineering System Feasibility and Analysis Report. (Revised March 1985) • Guidelines for preparation of Field Development Plans. Houston • Estimator's piping man-hour manual. Marcel Bakker Inc. SIPM EP-91-0975. Gulf Publishing Company. SIPM EP 91-0320. New York • Cost estimating manual for pipelines and marine structures. J. SIPM EP55420 (now superseded by this Manual) • Applied Cost Engineering. SIPM (updated June 1987) • The use of S1 Units. March 1987 COST ENGINEERING • Spreadsheet version of the Cost Engineering manual User's Guide. PTS 00. Page.6. GENERAL • SIPM E&P Project Management Guideline.10. Page and Nation. March 1991. Lorenzoni. Gulf Publishing Company. Gulf Publishing Company. Houston • Estimator's equipment installation man-hour manual. SIPM -EP/23. SIPM EP56233 (now superseded by this Manual) • Standard formats for Cost Engineering for E&P Projects. J.

Fig. 1.Form EDV14: (Revisions Number / Cost Ref / Reasons for Revision) .1 .

Form EDV14 (Ref Indicator / Page Number / Comments etc.) .1.Form 1.

Costs Estimate(s) / Type(s) used / Completed Evaluations .Form EDV14 .

Each estimate must correspond to the recommended level of accuracy for the particular phase in the life of an exploration prospect or field development project.4000). • Estimation of the cost of each building block. the degree of definition of the scope of the project. to ensure that cost estimates are both consistent and reliable. (EP 87-0879). and the method used to estimate the cost of each individual block all impact on the overall accuracy of the estimate. and provide the basis for economics analysis. . • Summation of the individual costs to obtain the total cost estimate. but is of course also relevant to all other project phases. (EP 59-000). 2. which would be called a 50/50 estimate.2 .3 . The basic general principles of cost engineering are described in Section 2.2 COST ENGINEERING 2. and SIPM E&P Programme and Budget Documentation. Cost engineering covers the entire process by which a cost estimate is determined and includes the following key steps: • Definition of the project for which the estimate is required. The need to formalise the estimating methods and to define the individual building blocks is therefore crucial. as a cost model. 2.Principles of Cost Engineering.Cost Engineering in Practice.2. The CEM is designed to produce cost estimates for the screening and feasibility studies normally associated with the identification phase of prospective field development projects.2 Uncertainty. 'This probability is also referred to as the level of confidence in the estimate and increases as a function of the value of the allowances and contingencies included. The application of these principles in the CEM is explained in detail in Section 2. As estimate with a 90% chance of the final cost not exceeding the estimate (and therefore only a 10% chance of overrun) is referred to as a 90/10 estimate to identify it's level of confidence. These additions increase the probability of the final actual project cost not overrunning the estimated cost. (EP 90. Contingency and Accuracy Estimates are usually predictions of future events and therefore provision must be made for uncertainties. SIPM E&P Guidelines for the Preparation of Field Development Plans. with an accuracy commensurate with the purpose for which the estimate is performed.2.1 Key Steps in Cost Estimating Cost estimates are required to predict the final cost of a project at any point in time and play an essential role in the economic appraisal or. reference should be made to Group literature such as the SIPM E&P Project Management Guideline. as well as local Operating Company practices. in the Optimisation of design. the number and nature of the building blocks. In such an estimate. The availability of project specific data. budgets and cost control. management decisions. The manual therefore relates primary" to the identification phase. For specific guidance on cost engineering during the definition and execution phases of a project. allowances and contingencies will be greater than for an estimate to the same project with an equal chance of overrun and underrun.2 PRINCIPLES OF COST ENGINEERING 2. • Division of the project into building blocks. execution or operation of a project.1 INTRODUCTION Cost estimates of progressively increasing accuracy are required at every stage of prospect appraisal and project planning. This is done by adding allowances and contingencies to the estimated cost of either individual building blocks or the project as a Whole.

then the estimated discounted unit technical cost of the project may also be derived. if in addition to the phased capital expenditure profile. Furthermore. To put practical limits on the accuracy range. In Section 2. Field development economics for instance are usually based on 50/50 estimates. these boundaries coincide with the 90/10 and 10/90 values of the estimate. The key steps in the preparation of a capital cost estimate for a project are : • To define the nature and key parameters of 'scope' of the project or development scenario being considered. . • To further breakdown each Hardware Item into discrete activities or "Project Functions'. This is the accuracy of the estimate and is usually express a ±X%. Unnecessarily high contingencies and allowances in cost estimates for prospect appraisal. the extent to which final actual project cost may over or underrun this estimate must be specified.2 and demonstrates how these principles have been incorporated into the cost engineering practice adopted in this manual.3.2. 2.3. As a consequence.1 Cost Estimating The section of the manual expands the basic general principles outlined in Section 2. 2. • To estimate the cost of each Project Function by application of unit cost rates to the derived engineering quantities for each Hardware Item. as contingency provides a measure of protection against uncertainties and the unforeseen.The purpose of a particular estimate will decide which confidence level is required. for instance. The process by which a cost estimate is determined is further detailed below. may lead to good business opportunities being missed. • To add appropriate allowances and contingencies to the individual estimates at Hardware Item or Project Function level. insufficient levels of contingency in such a case may lead to overly optimistic expectations of profitability. respectively. this approach is discussed in more detail. be used to test the feasibility of the selected development scenario. Care should be taken in selecting contingency values. a production profile and an estimate of the annual operating expenditure are available. • To breakdown the project into building blocks or 'Hardware Items'. On the other hand. and to a level of details appropriate for the type of estimate required.3 COST ENGINEERING IN PRACTICE 2. This introduces the time factor in the estimate and is an essential exercise if the estimate is to be used for the analysis of field development economics on the basis of discounting. its upper and lower boundaries are defined as having a probability of less than 10% of overrun or underrun.3 Cost Phasing Cost estimates may be phased over time in order to obtain a project expenditure profile based on the project schedule and the individual duration's associated with the completion of each of the project building blocks. Having established the value of the estimate with an equal chance of overrun and underrun (50/50 estimate). in this form. for instance ±25% for a feasibility study estimate. • To derive the engineering or physical quantities of each Hardware Item using a method which takes account of key parameters of the project. This is a useful preliminary indicator of profit ability when compared to the projected oil or gas price and may. Cost Engineering Practice.

3. budget or control estimates (also referred to as Type I to IV) to give an indication of the accuracy which may be assigned to the cost figures. Breakdown structure. In other words an estimate with a value of 200 and an expected accuracy of ±25% would have a probability of 10% that actual cost will exceed 250 or be less than 150. their application and expected accuracy.3. Estimates produced from this manual are expected to have an accuracy within ±25% for Type 11 estimate. The above can be summarised in the following cost estimating elements which are addressed in the subsequent sections : 1. 2.purpose of the estimate and the accuracy required.5 . The upper and lower boundaries of the accuracy range are defined as having a probability of less than 10% of overrun and underrun respectively.• To phase the components of the total cost estimate to obtain an expenditure profile which reflects the project schedule. 5. rates to the final estimated cost of the project. The expected accuracy of an estimate is expressed as ± X%. Contingencies and allowances. 2. • To summate and record the complete estimate from the definition of scope. 3. 3.1) plays a role in the definition to the confidence level of the estimates.1 gives a summarised description to estimate types.Contingencies and Allowances. .2 Estimate Types and Accuracy Estimates are classified as screening. These steps are required in all estimates. To follow a consistent estimating method across the complete breakdown structure. study. Cost phasing. To select and estimate type based on the . the accuracy range as determined by the estimator (possibly with the aid of Figure 2. through the derivation of quantities and the application of unit cost. however the reason for the estimate and the accuracy required will determine the degree of definition and the extent to which the project need be broken down into building blocks. The type of estimate performed should therefore be commensurate with the purpose for which it was prepared. It is also a function of the variance in both the derived engineering quantities and the unit cost rates selected for the estimate. To adopt a pre-determined breakdown structure for the selected estimate type. Estimate types and accuracy 2. Estimating method. Figure 2. The practice adopted in the Cost Engineering Manual is therefore 1. 4. for instance ± 25% for a study estimate. As will be exploited in Section 2. The detail of engineering effort required to estimate cost within these levels of accuracy is indicated in this figure through reference to the "Technical data required for cost estimate'. The accuracy is a function of the engineering effort permitted by the scope definition.

a central jacket and a satellite jacket). a Hardware Item is a physical building block of a 'Project. either onshore or offshore. It this important that the boundaries of these building blocks are clearly defined. production facilities. The Project facilities cover drilling of development wells.g. a gathering station and a production station are two Hardware Items in the onshore production facilities category.Cost Engineering System) is a Hardware Item/Project Function matrix. from engineering through to commissioning. the wells drilled from the platform. The breakdown structure adopted for the cost engineering system of which this manual forms part (see also Section 2.3 Breakdown Structure The selection of building blocks from which to compose the hardware required for the particular development scenario under study is the second step in the estimating process. an onshore storage terminal.2. The Project is the provision. For the estimating methods contained in this manual. similar Hardware Items are grouped together into Hardware Categories. as this determines the estimating methods to be used. the topsides production facilities.offshore • Substructures . whereby Hardware Items form the physical building blocks of a project and Project Functions are the discrete elements of work performed on the Hardware Items (these definitions are further explained below).fixed • Pipelines .4 . oil export terminals and new permanent infrastructure. the boundaries are specified in the relevant chapters. of the facilities necessary to produce a field and deliver the products to the point of sale or to an existing transportation system.onshore • Production facilities . . For example.3.offshore • Terminals The purpose of grouping items into Categories is that there is one estimating method for each Category. In this manual. This points to an important distinction between the terms Hardware Item and 'Hardware Category. in field and export pipelines. Hardware Category Hardware Items are chosen and described by the Estimator in order to fully define the Project. The structure of the Hardware Item/Project Function matrix is described in more detail in the following. applicable to all Hardware Items in that Category. a marine facility for supply vessels and a heliport. It is quite possible that a Project will have more than one Hardware Item in a particular Hardware Category (e. These are components with clearly defined physical and organisation boundaries. whereas a Hardware Category is a subdivision of the estimating methods within this manual. For 'Type II estimates a more detailed breakdown of hardware is used to obtain more accurate estimates. the export oil and gas pipelines. Project The cast engineering methods in this manual are applicable to oil and gas field development Projects. Examples of possible Hardware Items for an offshore oil field are a steel jacket substructure. To date a total of 5 Hardware Categories have been included in this manual as follows • Production facilities . Hardware Item The first breakdown of a Project is into Hardware Items.

procurement. Each Hardware Category has a fixed set of System Groups. dehydration and water treatment as its four Systems. These equipment/materials group further broken down into • Equipment list of all tagged equipment • Piping broken down by size and specification • Cabling broken down by size and specification • Etc. The pre-defined System Groups and Systems are identified for each of the Hardware Categories. This triangle. which are beyond the scope of this manual.g. the oil processing System Group separation.).5. some or all or which may be selected by the Estimator to make up a particular Hardware Item. For example. to 2.g. For example. piping.2. heating. These breakdown levels are used for Types III and IV estimates. There are two further breakdowns shown in Figure 2. and are defined in more detail within the relevant Hardware Category sections. each level of breakdown giving an estimate of greater accuracy. The Hardware Category breakdown structures are presented in Figures 2. e. or a discrete cost/budget element related to that item. System The final breakdown used in this manual is that of System Groups into Systems. which are the smallest building blocks for a Type I cost estimate. piles and anodes as its three System Groups.System Group Hardware Items are broken down into System Groups. shown in Figure 2. etc. electrical. The Project Functions are as follows: Onshore : • Procurement • Construction • Commissioning • Engineering and design • Project Management • Insurance and certification • Drilling . Project Functions Project Functions are discrete elements of work performed on a Hardware Item. insurance.2 depicts the manner in which a Project is broken down into successively smaller components.4. It is helpful to conceive the breakdown described so far as a triangle. some or all of which may be selected by the Estimator to make up a particular System Group. The first is to break Systems into tagged equipment of the same type (e. e. the fixed substructures category has jacket steel.g. Each system Group has a fixed set of one or more Systems. These are the smallest building blocks for a Type 11 estimate.

design time for production facilities in mandays etc.3. The hardware selected for the development under study can be defined in terms of engineering quantities. These quantities include weight of substructure steel in tonnes. A cost estimate of a particular development is therefore produced by translating the scope of the development into engineering quantities which are then multiplied by unit cost rates per Project Function to arrive at cost. When these have been determined. Each of the parameters defining the scope of the development will have an impact on one or more of the engineering quantities. Each Project Function executed to realise the project will incur a cost depending on the quantities involved. For instance. It is stressed that the cost of any development is decided to a large extent at this stage on scope definition and hardware selection. These rates are specific to both the Hardware Item and the Project Function in question. This involves the definition of a minimum number of parameters. Optimisation of a development scenario and the selection of the most suitable and cost effective arrangement of hardware often have more impact on cost than the application of new. a selection can be made of Hardware Items and System Groups/System in order to compose an engineering development scheme.Offshore : • Procurement • Fabrication • Transportation and installation • Hook-up and commissioning • Engineering and design • Project management • Insurance and certification • Drilling Note that not all Hardware Items have all Project Functions. such as the user requires). 2. production plateau etc. cost saving technology. the next step in the cost estimating process can be taken. water depth will impact an substructure weight and so forth. In summary : SCOPE --> QUANTITIES x RATES = COST This manual guides the user through this process by : • Requesting the necessary information in to define the scope of a development (or part thereof.4 Estimating Method Once the estimate type and associated breakdown structure are selected on the basis of the desired accuracy of the estimate. drilling time for wells in days. which together describe the scope of the development scenario in question. as described in the previous two sections. which in practice may involve the production of a number of estimates for different development scenarios in order to identify the optimum solution. reservoir depth. These parameters include location. for example infrastructure has only construction and project management. Sufficient time should therefore be allowed for these front end activities. These costs can be expressed as unit cost rates such as fabrication cost for substructures in RM $/tonne or drilling cost for wells in RM $/day etc. . This will be more detailed for Type II estimates than for Type I estimates.

• Providing methods to translate scope into quantities for a large variety of Hardware items and System Groups/Systems form which onshore and offshore engineering development schemes can be composed. Overrun Allowance An allowance is added to the 50/50 estimate to allow for the risk of overrunning this estimate. an estimate is obtained of development cost associated with the particular scope defined for the estimate. the accuracy range could be taken as the monetary "exposure" of the project. The resulting estimate is named '50/50 estimate'. as the target for project expenditure.To cater for this growth of scope. Thus. that is the base estimate (see also below). is to add what is considered reasonable at the discretion for the estimator. however. to grow. and estimate is arrived at with 10% probability of being exceeded by the actual cost. Contingency should never be used as comprehensive cover for each and every uncertainty. A project estimated to cost for instance 200 with and accuracy of ±25% may require an actual expenditure of 250. Therefore. in many cases. Contingency Contingency is added to the base estimate to allow for incomplete project definition (but riot for major scope changes.5 Contingencies and Allowances Through the process described in the previous chapters. The estimate thus derived could be considered the "most likely" estimate and should therefore be used as the basis for the analysis of development economics and. Obviously. which have a high probability of occurring. weight growth and to the such known uncertainties. Activity allowances are added to the various cost items at the discretion to the estimator.• Offering guidance in the composition of a suitable engineering development scheme. By definition of this estimate the project has an equal chance of overrunning the 50/50 estimate within its accuracy range. contingencies and allowances are added at various points in the estimating process. a more detailed definition of scope not only improves the accuracy of the estimate but also reduces the levels of contingency to be applied. Contingencies are assigned at three stages in the estimating process : Activity Allowances Activity allowances are added by the estimator to the various cost Items to account for cut and waste.3. or as insurance against all conceivable disasters since this would lead to 'padded' estimates and inflated budgets. Current practice. albeit for 'unspecified' scope and are thus related mainly to quantities. The resulting estimate is named "base estimate'. typically greater quantities are required than estimated in a first approach. When using this manual it may be assumed that activity allowances are included in the estimates so that these would quality as "base estimates". This estimate is named a "90/10 estimate" and could be considered a 'minimum risk' estimate. As a consequence. weather downtime. to cover the unknown uncertainties. for the scope of the unique type of projects executed by E & P . in later stages. • Providing unit cost rates per Project Function for the spectrum of Hardware Items covered in the manual. . each of which would require a new project estimate). It may be sued for the setting of budget levels or the sensitivity analysis of field development economics. by adding a value representative of the accuracy range (and named the overrun allowance) to the 50/50 estimate. 2. The contingencies are therefore real cost elements. There is a tendency.

Accuracy levels mentioned in Figure 2. are added for reference. The estimator should guard against the tendency. This expenditure profile should reflect not only the durations associated with design. summed and then divided by the Base estimate to get an indication of the overall contingency in the form of a weighted percentage for the total cost estimate. which estimates the future combined effect of general inflation and market conditions specific to the project. For instance. A further refinement could be applied by assigning individual contingencies to Project Functions for each Hardware Item. gathering the maximum amount for input data. only a certain amount of time and resources will be available for any estimate. The CEM provides estimates in terms of CVM with a reference date. the expenditure of cost over time can be determined. sufficient well stream data may be available to allow the use of a modest contingency level to the cost of production facilities while uncertainties on the routing of the associated export pipeline may require a much higher percentage. In choosing the later approach the estimator has the possibility to assign different contingency percentages to different cost elements. and this should form the basis for the cost phasing. When a large number of similar wells forms part of a development scheme then it may be considered mot to assign contingency at all to well cost in view of the repetitive nature of the drilling operation. for instance 10% to design and 30% to hook up and commissioning. Cost estimates should be prepared initially in constant value money (CVM). referenced to a base reference date.1. This should be assigned evenly to each step in the estimating process. The individual contingency percentages must be converted to absolute cost values. thus neglecting the important areas of optimising the development scheme. procurement. . etc. allowances and contingencies are real cost elements in an estimate and therefore deserve proper attention. is necessary if the phased cost estimate is to be used for economics analysis. etc. The manual contains methods which help to establish a profile which reflects these considerations. of the individual Hardware Items but also the various lead-times as dictated by the overall project schedule. The phase cost estimate may then be presented in either CVM with a specified reference date.Contingency may be assigned to the complete estimate to development cost or to the individual Hardware Items.3. however. Escalation. or escalated to Money of the Day. sometimes observed. In practice. construction etc. 2. Table of Typical Overall Contigency Levels As stated before.6 Cost Phasing and Escalation Once the project estimate of the required confidence level has been established. The table below indicates typical overall contingency levels expected at the various stages of the project definition to which the estimator may compare the results of this exercise. (MOD). etc. to devote a disproportionate amount of effort in the area of contingency.

g. The majority of data will be obtained from the Operating Companies. a significant sample of technical and cost data must be available and be maintained for each to the building blocks addressed in the system. the recording of project estimates and actuals. together with any other reliable data which may contribute to the derivation for methods and rates. a Cost Engineering Data Base (CEDB). new engineering technology. To reach the stage of development. fabrication. design codes. escalation. drilling practice and equipment. the database will also contain information on expenditure phasing to support the phasing method given in this manual. Some effort may be required initially to make available project data fit the structure but in time if is expected that the breakdown structure will be used by all Operating Companies to estimate. An integral part of the cost engineering system is. • An assessment of the time scale within Which this technology may be assumed to be available for application in the field. provided that the technology will be available at the time of prospect development. (Cost Engineering System Feasibility and Analysis SIPM Report EP91 . A computerised Cost Engineering system is being developed which will cover all aspects of the Cost Engineering scope providing user friendly facilities for the production of a prospect estimate. once it becomes available for use in the field. technical and cost data of completed and ongoing projects will be stored.2. In this way. All aspects of design and project execution are being reviewed. every year an up-to-date CEM can be available to users. the associated cost engineering should incorporate these techniques.) for a variety of Hardware Items which can be combined to reflect any onshore or offshore development. In addition to cost and technical information. Consequently there has been considerable effort spent to reduce the cost of developments. ect. e. inflation. In this data base. The definition of a cost breakdown structure is a very important step in the development of a cost engineering system as it determines not only the structure on the database and the manual but also of the data gathering process required to obtain the necessary information for the CEDB. contracting strategy etc. To meet the potential expected from the application of cost saving techniques. etc.5 NEW TECHNOLOGY AND COST REDUCTION For several years the oil industry has been faced with uncertain world oil market and increasing cost of recovery.09 75) 2. record and report cost. and the considerable benefits to be obtained form a consistent approach to cost engineering throughout SIPM and E & P Operating Companies will be realised. As a result of these studies considerable potential has been identified to save development cost by the application of new engineering and drilling technology. • Guidance on the limitations to application of the new technology. Via the Cost Reporting Manual (CRM). The CEDB will be equipped with facilities which will allow manipulation of the cost data (such as adjustment for exchange rates.4 COST ENGINEERING SYSTEM The manual provides methods for the translation of scope into quantities together with unit rates per Project Function (procurement. therefore. . Data gathering will then become a matter of routine. The following will be required therefore to integrate new technology into the cost engineering system • development of cost estimating methods for new technology. the maintenance of reference and conversion data and the flexible analysis of all information held. To be able to generate the various methods and rates. each prospect will have to go through the various stages of exploration and appraisal with the screening of economics at the major decision points.) and updating and analysis of the technical data.

optimal use of satellite platforms. a comparison is required of original development plans and associated budget estimates with as built facilities and cost data for a significant number of projects. optimised platform topside facilities etc. 2. The development of the estimating methods remains therefore as urgent a requirement as the development of the technology itself. provide a basis for consistent use of estimating terminology and definitions and thus for the future validation of current practice with regard to accuracy and contingency.6 OTHER CONSIDERATIONS As explained in the previous chapters. that is the conventional (also referred to as deterministic) and the probabilistic method. Particular attention has been drawn to areas like offshore tender assisted drilling. reduced offshore manning levels. Allowances and contingencies are cost elements included in these estimates to arrive at certain levels of confidence. In anticipation of this the concept of confidence level and associated terminology such as 50/50 and 90/10 estimates were introduced. A few practical but fundamental problems have hindered the advancement of the technique however. proven technology. The contents of the current revision of the manual will allow the user to take the recommendation with regard to these areas into full account. The approach taken in the Cost Engineering Manual is to utilise mainstream. and are therefore best avoided. The intention of the latter is to produce a probability curve on the basis of a detailed probabilistic investigation for a conventionally derived base estimate. This data will be fed into the CEDB which will assist in determining if the correct values for accuracy and contingency are being applied. Base. in the absence of such methods the envisaged cost saving potential will not be used to its full extent. Such a curve also indicates the basis for the current definition of the conventional contingencies. It does. The studies mentioned in the foregoing also re-emphasised the need to carefully consider already available technology and to spend sufficient effort in identifying the optimal development scheme as early as possible in the life of a project. study. and it has not yet met the potential expected of it initially. even though in certain cases such as for an estimate for an optimised topsides. estimates are classified as screening. that is technology not yet available for application in field development. Strictly speaking these terms refer to two different methods of estimating. The CRM contains cost reporting methods for this purpose. Changes in these areas will be incorporated into the CEM as soon as the particular technology becomes accepted for field application and data becomes available. and provide a common understanding of the cost basis. More conventional terms such as "most likely' or 'minimum rusk" probably confusion. the purpose of the definition given to confidence level indicators or the boundaries of the accuracy range is somewhat limited. . began to receive increasing attention and was expected to rapidly replace conventional methods to estimating.The development of new estimating methods will necessarily follow or run in parallel with the development of the associated technology. however. in the required level of detail may make it necessary to use Type II. or cost risk analysis. Until such time it is recommended that the cost engineering practice described in this manual be adhered to. The new technology discussed above includes such techniques as multiphase pumping and automated drilling. Inevitably. It is recognised that in the absence of reliable cost estimating probabilistic. 50/50 and 90/10 estimates are terms used to specify the level of confidence to be assigned to an estimate. Current practices and design codes. probabilistic cost estimating. Meanwhile terms like 50/50 and 90/10 have become household words in E&P. In order to validate currently applied contingencies and expected accuracy ranges. budget or control estimates to indicate the expected accuracy of the estimate. A few years ago. This in turn will require the collection of data on past and current projects in terms of scope and cost.

1 : PROJECT PHASE / IDENTIFICATION .FIGURE 2.

FIGURE 2.2 : PROJECTS & ETC.

FIGURE 2.3 : PRODUCTION FACILITIES OFFSHORE

FIGURE 2.4 : STRUCTURES

Other Hardware Items / Group Combinations

SECTION A - ONSHORE PRODUCTION FACILITIES AND TERMINALS
5.5 PRODUCTION AND TERMINAL FACILITIES - ONSHORE
5.5.1 Introduction
This section contains the methods and cost data to be used in preparation of Type II cost estimates
for onshore production facilities and terminals. The System Groups available as building blocks for a
Hardward Item in this category are shown below in the form of a System Group/Hardware Item matrix.
Possible combinations of System Groups for common Hardware Items are shown as examples. Other
Hardware Item/System Group combinations can be considered at the user's discretion.

For a Type II estimate many System Groups are broken down into Systems. The breakdown of
Systems is given below, and guidelines for System selection are given in Section 5.5.2.2.
System Group

System
Separation
Heating

Oil processing
Dehydration
Water treatment
Export pumping
Liquid export
Metering
Separation
Heating
Gas processing

Dehydration
Dewpoint control
Condensate stabilisation

Gas sweetening

Gas sweetening
Power generation

Power generation & distribution
Power distribution
Process and personnel support
Utilities
Safety
Atmospheric storage
Storage tanks
storage
Control/ES D/F & G

Control/ESD/F & G

Telecommunications & telemetry

Telecommunications & telemetry

Bulks

Bulks

Civils

Civils

Jetty

Jetty

An example is when a separator and associated piping and instrumentation are fabricated into a small module with some structural steel framing.5.5.1 Hardware Item Excel Spreadsheet Eform-6 Working Form Use the attached Excel spreadsheet. GOR will influence separator system maximum capacity etc.1 lists the System Groups and Systems within those groups which are available to the user for the Hardware Item being estimated.2. Notes are provided only for those Systems where guidance is needed either for the selection of the System itself. e. Similarly. For example a production facility and a terminal share common power generation. 5.g. Some notes are provided here to aid the user in selection of Systems.2. should the required capacity of a system exceed the ranges given in this manual. then transported to the site for erection. The user is required to estimate the percentage of the total equipment weight that might be prefabricated in this 5. It should be noted that these limits are national only and in reality they will be influenced by a number of design parameter.2 System Selection Section 5. . It is then transported to site and hooked-up-to the piperack. power distribution.5. or for the selection of a choice of processing equipment within the System. care must be exercised when selecting System Groups for developments With both gathering and production stations. In addition to this. safety. When a Project contains both production facilities and a terminal the user must exercise care in the allocation of Systems. control ESD/F & G. Use this table to dictate the required number of trains. and telecommunications and telemetry systems. when preparing cost estimates for onshore production facilities and terminal.The method allows for the possibility of some of the equipment and associated bulks to be prefabricated at a yard remote from the site. Eform 6.2 Method 5. The spring philosophy of the project will dictate the requirement for multiple trains.5. The following table shows national system capacity per train. multiple trains will be required. process and personnel support.

.

This System should be provided at remote gathering or production stations where heat is required by a single process user only. • A water bath type System comprising a water/glycol filled tank fitted with heat exchange tubes. If electrostatic dehydration is a part of oil processing then this System should be included. circulating pumps and associated bulks. Crude oil heating is often required upstream of electrostatic desalters to help break oil/water emulsions. fire tubes and associated bulks. Depending on the salt content of the produced water and the required salt specification of he export oil. It is also usually required when processing waxy crude. .e. • Dehydration based on the use of electrostatic coalescers. • Dehydration using a continuous wash tank type of system. For developments that include 'both oil processing and gas processing the oil separation System should always be selected in favour of the gas separation System . Such a System should be provided for a production facility that has a number of process heat consumers. required water in oil specifications O. fired heater. There are : • A heating medium System comprising a process heat exchanger. Methods for two types of heating System are provided. • Avoid corrosion problems downstream caused by H2S or CO2 in the reservoir fluid.Oil Heating Oil heating is sometimes required to effect stabilisation and/or dehydration to the required export specification. i. This form of dehydration/desalting is used generally where land is less readily available.S. An atmospheric storage tank with a long residence time (24 hours based on gross liquids throughput) is utilised to effect oil/water separation. Gas Separation This System is required for gas and gas/condensate developments. expansion vessel. two stages of desalting may be required. Gas Dehydration Gas dehydration is required where it is necessary to • Meet export gas specifications. Oil dehydration/desalting onshore may be effected in one of two ways: • Dehydration using a wash tank type of system. An atmospheric storage tank system is utilised on a continuous basis to effect oil/water separation. B.& W and salt specification is 25 pounds per thousand barrels. This form of dehydration is used generally where land is readily available with few environmental restrictions and when the oil specific gravity is high. Oil Dehydration Most onshore production facilities are required to produce crude oil suitable for tanker loading. If neither condensate recovery nor gas export is included in the development then this System is not required.5%. • Recover condensate from the gas by refrigeration. • Prior to NGL extraction to produce LPG from the gas Dew Point Control Gas dew point control onshore is generally required for condensate recovery and to meet export gas specifications.

4 to determine the loading pump power.5 to determine the pump equipment weight.4 Calculated Quantities Proceed systematically through the Excel Spreadsheet Eform-6 as follows.5.7 using the net oil flowrate.5 6.2 (for bulks calculation) and the storage tank table.5. Oil Heating Select the type of heating System required and determine the duty from Figure 5.2.5.5.5. Gas Sweet Gas sweetening is required for oil. if a wash tank type of System is required then determine tankage volume from Figure 5.2 indicate on Eform 1A the selected System Groups and Systems by ticking the relevant boxes. Complete Eform-1A by entering the data required for the selected systems.5. 5. Gas Separation From the sum of gas export and gas injection flowrates (as appropriate) determine the gas separation System equipment weight from Figure 5.12.5. using the net oil flowrate and record the storage volume on the equipment/bulks weight table of Form 5. .4 From duty obtain equipment weight from Figure 5.3 and record on the Eform-6. Gas Dehydration From the sum of gas export flowrate determine the weight of the gas dehydration equipment using Figure 5.5.2. From the required loading rate use Figure 5. From tile required loading pump power use figure 5.5.17.19 sheet 1.5.19 sheet 2 and record on power summary table in Eform-6. Determine the number and capacity of dehydration tanks from Figure 5. This System required to meet export specifications for gas.42. gas and gas/condensate developments where the reservoir fluid contains H2S or CO2 . Obtain the dehydration power from figure 5. Condensate stabilisation would typically be required for gas/condensate developments and for oil development featuring a large amount of associated gas.e.12. Note the pump power on Eform-6.3 Input Data With reference to Section 5.Condensate Stabilisation Condensate stabilisation is generally required Where associated gas contains sufficient recoverable condensate to justify the inclusion of this System. 5. Water Treatment From the produced water flowrate and the required effluent specification for oil in water determine the equipment weight from Figure 5.5. 5.5. Liquid Export Metering From the liquid product flowrate determine the metering System equipment weight from Figure 5.2.12.16. If electrostatic dehydrators are to be used then determine the equipment weight from Figure 5.8.5. Pumping Select the export method (i. Oil Dehydration Select the type of dehydration System required. by rail or road or sea) Determine the loading rate using Fig.5.

20.26 or Figure 5.24 or Figure 5.5. Condensate Stabilisation From the condensate flowrate determine the condensate stabilisation equipment weight from Figure 5.34.23 and hence the compression power from Figure 5.5.5. and the equipment weight from figure 5.5.5. compression power (Figure 5.22 sheet 1.5.5.21. Gas Metering From the gas flowrate determine the metering equipment weight from Figure 5. sheet 5. Record the compression ratio and compression power on Form 5. If the final compression to the injection pressure utilises electric motor drivers then the required compression power (i.22 sheet 2 and enter in the power summary table of Eform-6.5. This weight is then added to the equipment weight for compression from 135 bara to the injection pressure which is determined again by means of compression ration (Figure 5.2 in the gas compression table and in the power summary table (with reference to Figure 5.2.25 and record this on Form 5.5. This involves calculating the compression ratio from Figure 5.Obtain the dehydration power from figure 5.5.5.23).5.28).2 in the gas compression table.25.2. Sheet 5.5.25) and equipment weight (Figure5. Gas Sweetening From acid content of inlet gas.41).27.5.23 and record on Form 5.24 or Figure 5.25) and finally equipment weight.5.5.5.2. Record the compression ratio and compression power on Form 5.e. sheet 1. If the development incorporate gas export compression in additon to gas lift then gas lift compression is covered in the gas export system weight. sweet gas specification and gas export flowrate determine the gas sweetening equipment weight from Figure 5. The export compression requirements must be calculated first (see below) to determine the export pressure.28.5. Record the number of trains/items in the civils table on Form 5.20 sheet 2 and record on power summary table in Eform-6. .5.5. Record the compression ratio and compression power on Form 5.5. For a development with both gas injection and gas export the injection gas is compressed from the export gas pressure to the injection pressure.5.5.24 or Figure 5.2.5. Gas lnjection If the development has gas injection without gas export then first determine compression requirements from the first stage separation pressure minus 4 bar to a typical intermediate pressure of 135 bara. Record the weight in the weights table and the number of trains/items in the civils table on Form 5.5.Dewpoint Control From the gas export and/or injection flowrate determine the weight of the dewpoint control equipment from Figure 5. If the development excludes gas export then the gas lift equipment weight is estimated as follows. Then the injection equipment weight is determined by means of compression ratio (Figure 5.5.24 or from Figure 5. compression power (figure 5.5. Record the number of trains/iitemss in the civils table on Form 5.23). this time from Figure 5.5.5. Determine the overall compression ratio from Figure 5.5.2 sheet 3.2. Obtain the power demand from Figure 5.5. un-derated power) should be entered in the electrical consumers column of the power summary table. From the compression ratio and the gas lift flowrate determine the required compression power either from Figure 5.

6 Power Generation Determine the power generation requirements for each system as determined by Figure 5.41 sheet 2. From subtotal A determine the process and personnel support System equipment weight from Figure 5.38 and enter on Eform-6 according to whether the system is electrically powered or turbine driven.44. From Figure 5. the area for clearance and the equivalent area for civils bulks.5. the number of tanks and capacity per tank from Figure 5.5.5. Power Distribution From the sum of the Required power and the Exported power determine the power distribution equipment weight from Figure 5. The storage capacity should be recorded on the equipment/bulks weight table of the Eform-6 (for bulks calculation) as well as the storage tank table.1 2.5.5.5.42 and record these values on Eform-6. Process and Personnel Support (Utilities) The sum of system equipment weights obtained thus far give subtotal A on Eform-6. These values are entered on Eform 6. add the Electrical Design Factor and enter as the Required Power. Calculated the Generated Power by subtracting the Imported Power and adding the Exported Power to the Required Power.5.43.39 to obtain the Power Generation equipment weight and enter on Eform-6. . Pressurised Storage Determine the required pressurised storage capacity from Figure 5.40 and enter on Eform-6. determine the derating factor for gas turbines and enter on Eform-6. In this case determine the metering equipment weight from the loading rate using figure 5. The cost derivations for cabling for imported and exported power are not included in the methodology. Use the Turbine Power and Figure 5. an electrical design factor is included.5. From Figure 5.5. Total the electrical consumers.5.. Derate by dividing by each of these factors and enter as the Turbine Power.41 Sheet 1. From Figure 5. To allow for intermittent/standby loads and unidentified Systems. Atmospheric Storage Determine the required atmospheric storage capacity. Where drives are turbine an allowance for parasitic loads is included.45 determine the area for grading. Enter the values for Imported and Exported Power onto Eform-6.Liquid Metering If product is to be loaded into a tanker either via a jetty or via a pipeline and an offshore loading unit then only fiscal metering is required. and sum these to obtain foundation and paving area subtotal G.42 and the pressurised storage equipment weight from Figure 5. Civils Determine the foundation area for each System from Figure 5. then transfer the value for Required Power to the Imported Power.5.31. If all the power is to be imported. Eform-6 allows the user to enter a drive as either turbine driven or electrically driven to enable a power balance to be carried out. obtain the power demand and enter in power summary table of Eform-6.

The manhour rate for erection of prefabricated units from Figure 5. sheet 1.5. instruments and others. Use the larger of these two weights as the safety System equipment weight.46.piping.13. electrical.5. respectively. sheet 1 and the prefabrication labour rates from Figure 5. In addition determine the safety System equipment weight from Figure 5. Bulks weight Obtain the bulks factor for each System from Figure 5.5. If the development includes product storage then determine the foundation area.5. 5. Sum the weights for each bulks category to obtain the total weight for piping.50. Multiply the equipment weight by each bulk factor to obtain the bulks weights for piping.49 have been incorporated and will be applied automatically to give the total procurement cost. subtotal G.47. sheet 4 and the site construction labour rate from Figure 5. instruments. . Structural Steel Determine the structural steel requirements for both prefabrication and site construction from Figure 5.46.50. Jetty Determine the jetty Length using Figure 5. electrical. Apply this percentage to the equipment weight total B to determine the equipment weights for prefabrication and for site construction.5. sheet have been incorporated into the Eform-6. and should be entered directly into the cost column. The prefabrication manhour rates from Figure 5.12. instruments and others.5.46. Construction Cost Apply the percentage of prefabricated equipment weight to the total bulks weights (totals C. others and steelwork prefabrication weights give the total weight for prefabrication. sheet 1. instruments and other. electrical. sheet 2 have been incorporated in the Eform-6. and use this to determine the safety System equipment weight from Figure 5.5. piping. less the atmospheric and pressurised storage foundation areas.50.5 Cost Estimate Procurement Cost The individual equipment and total bulks dry weights are transferred automatically to the procurement section of the Eform-6 where procurement cast rate of figure 5. The prefabrication costs is given by subtotal D.5.5.5.48.50. The procurement costs for contrived/F & G and for telecommunications and telemetry are lump sum costs. using the sum of the installed storage capacities for both atmospheric and pressurised storage. Prefabrication/Site Construction Determine the percentage of equipment to be prefabricated and enter this value on Eform-6. Eform-6 multiplies the total weight for prefabrication by the manhour rate and by the labour rate to obtain subtotal E.2. The sum of equipment. electrical. sheet 2. the erection cost of prefabricated units. E and F on Eform-6) to obtain the prefabrication weights for .5.Safety If the development excluded product storage then from the total foundation area (subtotal G on Eform6) determine the safety system equipment weight from Figure 5. D.

3. If the development incorporates both oil and gas production then determine the engineering and design manhours by summing the manhours obtained form both sheets 1 and 2 of Figure 5. Insurance and Certification Insurance and certification is taken as a percentage of the costs for procurement. The sum of costs for procurement. construction. commissioning. sheet 1 to determine the manhours for engineering and design. .5. sheet 3 has been incorporated in the Eform-6.52.5. Commissioning Cost The commissioning cost is a percentage of the mechanical construction cost. Similarly enter the clearing factor from Figure 5. sheet 4 and the construction labour rates from Figure 5. subtotal G. 'The percentage is given in Figure 5.5. The total of mechanical and civils construction cost subtotals G and H give the construction cost total. sheet 5 against "Area for clearance'. Eform-6 calculates the cost from the total manhours and the labour rate. Hardwater Item Cost Summary The Eform-6 summarises the total cost and cost by Project Function into the Project Function into the Project Cost Summary.5. sheet 5 and the labour rates from 'Figure 5.51.5. engineering and design. Eform-6 multiplies are by factor (if applicable).5.5.5.5.50.5.50. The percentage is given in Figure 5.50. Enter the engineering and design manhours on Eform-6 from Figure 5. The erection rate for a single tank from Figure 5. If the development incorporates gas production only then from the gas flowrate use Figure 5. The manhour rates from Figure 5.5.50.The site fabrication weights for piping electrical.53.5. subtotal G. D E and F on Eform-6.52. construction and commissioning. Obtain the grading factor from Figure 5. sheet 2 have been incorporated in Eform-6.50.5. sheet 2 have been incorporated into the Eform-6 which will be used to determine the site construction cost. The costs in summed to obtain site mechanical construction cost subtotal F. sheet 2 to determine the manhours for engineering and design. 'by manhour irate and by the labour rate to obtain cost.52. sheet 5 and enter It on Eform-6 against 'Area for grading'. erection and site construction costs to obtain the mechanical construction cost. The labour rates from Figure 5. project management and insurance and certification give the total Hardware Item cost. The sum of costs give the civils construction cost subtotal H. Engineering and Design If the development incorporates oil production only then from the gas flowrate use Figure 5. sheet 5 which has been incorporated into the Eform-6.50.50. instruments and others are derived automatically by taking the appropriate percentage of totals C.52. will be multiplied by the installed tank capacity and the number of tanks to obtain the cost. The sum of prefabrication. The manhour rates from Figure 5.5.

5. sheet 3 has been incorporated in the Eform-6. commissioning. electrical. subtotal G.50. The sum of prefabrication. sheet 2 to determine the manhours for engineering and design. Engineering and Design If the development incorporates oil production only then from the gas flowrate use Figure 5. erection and site construction costs to obtain the mechanical construction cost.50. E and F on Eform-6) to obtain the prefabrication weights for .5.5. The total of mechanical and civils construction cost subtotals G and H give the construction cost total. sheet 1 to determine the manhours for engineering and design. .50. Enter the engineering and design manhours on Eform-6 from Figure 5. project management and insurance and certification give the total Hardware Item cost. sheet 5 against "Area for clearance'.52.50.piping. subtotal G. Eform-6 calculates the cost from the total manhours and the labour rate. will be multiplied by the installed tank capacity and the number of tanks to obtain the cost. others and steelwork prefabrication weights give the total weight for prefabrication.5. instruments. The percentage is given in Figure 5.50. 'by manhour irate and by the labour rate to obtain cost. The sum of costs give the civils construction cost subtotal H. construction and commissioning.5. 'The percentage is given in Figure 5. sheet 4 and the construction labour rates from Figure 5. Similarly enter the clearing factor from Figure 5. The sum of costs for procurement. The sum of equipment. The prefabrication manhour rates from Figure 5.Construction Cost Apply the percentage of prefabricated equipment weight to the total bulks weights (totals C. sheet 5 and enter It on Eform-6 against 'Area for grading'. sheet 5 and the labour rates from 'Figure 5.5. the erection cost of prefabricated units.5. engineering and design.50.51. If the development incorporates gas production only then from the gas flowrate use Figure 5. sheet 4 and the site construction labour rate from Figure 5.50.50.52. Eform-6 multiplies the total weight for prefabrication by the manhour rate and by the labour rate to obtain subtotal E. The costs in summed to obtain site mechanical construction cost subtotal F. The manhour rates from Figure 5.53. sheet 1 and the prefabrication labour rates from Figure 5. sheet 2 have been incorporated in the Eform-6. The prefabrication costs is given by subtotal D.52. Insurance and Certification Insurance and certification is taken as a percentage of the costs for procurement. D.5.5. instruments and others.5.50. sheet 2 have been incorporated in Eform-6. The erection rate for a single tank from Figure 5. Commissioning Cost The commissioning cost is a percentage of the mechanical construction cost.5.50. The labour rates from Figure 5.5. The manhour rate for erection of prefabricated units from Figure 5. Hardwater Item Cost Summary The Eform-6 summarises the total cost and cost by Project Function into the Project Function into the Project Cost Summary. instruments and others are derived automatically by taking the appropriate percentage of totals C. sheet 2 have been incorporated into the Eform-6 which will be used to determine the site construction cost. The manhour rates from Figure 5. Obtain the grading factor from Figure 5.5. Eform-6 multiplies are by factor (if applicable).5. piping.5. The site fabrication weights for piping electrical. D E and F on Eform-6. sheet 5 which has been incorporated into the Eform-6.5. construction.5. sheet have been incorporated into the Eform-6.50.3.52. If the development incorporates both oil and gas production then determine the engineering and design manhours by summing the manhours obtained form both sheets 1 and 2 of Figure 5. electrical.5.

5.FIGURE 5.2 NUMBER OF SEPARATIONS STAGES .

FIGURE 5.3 OIL SEPARATION EQUIPMENT WEIGHT .5.

FIGURE 5.4 OIL HEATING WEIGHT .5.

FIGURE 5.5.5 HEATING EQUIPMENT WEIGHT .

FIGURE 5.6 OIL DEHYDRATION TANKAGE VOLUME (SHEET 1) .5.

6 OIL DEHYDRATION TANKEGE VOLUME (SHEET 2) .5.FIGURE 5.

5.FIGURE 5.7 OIL DEHYDRATION EQUIPMENT WEIGHT (SHEET 1) .

7 OIL DEHYDRATION EQUIPMENT POWER (SHEET 2) .5.FIGURE 5.

5.8 WATER TREATMENT EQUIPMENT WEIGHT .FIGURE 5.

5.FIGURE 5.9 LIQUID EXPORT PUMPING .

5.10 OIL EXPORT PIPELINE SIZING .FIGURE 5.

5.FIGURE 5.11 OIL EXPORT PIPELINE SIZING .

12 CONDENSATE/LPG EXPORT PIPELINE SIZING .FIGURE 5.5.

13 CONDENSATE/LPG EXPORT PIPELINE SIZING .5.FIGURE 5.

5.FIGURE 5.14 LIQUID EXPORT PUMPING POWER .

FIGURE 5.5.15 LIQUID EXPORT EQUIPMENT WEIGHT .

FIGURE 5.16 LIQUID EXPORT EQUIPMENT WEIGHT I .5.

FIGURE 5.17 GAS SEPARATION EQUIPMENT WEIGHT .5.

19 GAS DEHYDRATION EQUIPMENT WEIGHT (SHEET 1) .5.FIGURE 5.

FIGURE 5.19 GAS DEHYDRATION POWER REQUIREMENT (SHEET 2) .5.

5.20 DEWPOINT CONTROL EQUIPMENT WEIGHT (SHEET 1) .FIGURE 5.

20 DEWPOINT CONTROL ELECTRICAL POWER REQUIREMENT (SHEET 2) .FIGURE 5.5.

21 CONDENSATE STABILISATION EQUIPMENT WEIGHT .FIGURE 5.5.

FIGURE 5.5.22 GAS SWEETENING EQUIPMENT WEIGHT (SHEET 1) .

FIGURE 5.22 GAS SWEETENING ELECTRICAL POWER REQUIREMENT (SHEET 2) .5.

5.23 GAS LIFTING AND INJECTION COMPRESSION RATIOS .FIGURE 5.

24 GAS COMPRESSION POWER .FIGURE 5.5.

FIGURE 5.5.25 GAS COMPRESSION POWER .

26 GAS COMPRESSION EQUIPMENT WEIGHT .FIGURE 5.5.

FIGURE 5.27 GAS COMPRESSION EQUIPMENT WEIGHT .5.

5.FIGURE 5.28 GAS INJECTION COMPRESSION EQUIPMENT WEIGHT .

31 TEMPERATURE DERATING FACTOR FOR GAS TURBINE .FIGURE 5.5.

5.FIGURE 5.32 ALTITUDE DERATING FACTOR .

FIGURE 5.34 GAS METERING EQUIPMENT WEIGHT .5.

5.38 POWER GENERATION SYSTEM REQUIREMENTS .FIGURE 5.

39 POWER GENERATION EQUIPMENT WEIGHT .5.FIGURE 5.

40 POWER DISTRIBUTION EQUIPMENT WEIGHT .5.FIGURE 5.

FIGURE 5.5.41 PROCESS AND PERSONNEL SUPPORT EQUIPMENT WEIGHT .

5.42 PRODUCT STORAGE REQUIREMENT .FIGURE 5.

43 PRESSURISED STORAGE EQUIPMENT WEIGHT .FIGURE 5.5.

FIGURE 5.5.44 CIVILS FOUNDATION AREA (SHEET 1) .

5.44 CIVILS FOUNDATION AREA (SHEET 2) .FIGURE 5.

FIGURE 5.5.44 CIVILS FOUNDATION AREA (SHEET 3) .

FIGURE 5.5.44 CIVILS FOUNDATION AREA (SHEET 4) .

FIGURE 5.5.44 CIVILS FOUNDATION AREA (SHEET 5) .

45 CIVILS AREAS FOR GRADING AND CLEARANCE .FIGURE 5.5.

46 SAFETY EQUIPMENT WEIGHT (SHEET 1) .5.FIGURE 5.

46 SAFETY EQUIPMENT WEIGHT (SHEET 2) .FIGURE 5.5.

FIGURE 5.5.47 BULKS FACTORS

FIGURE 5.5.48 STRUCTURAL STEEL

FIGURE 5.12.3 PRODUCT LOADING RATE

FIGURE 5.12.4 PUMPING POWER

FIGURE 5.12.5 PUMPING EQUIPMENT WEIGHT

FIGURE 5.12.6 METERING EQUIPMENT WEIGHT

12.FIGURE 5.13 MARINE LOADING JETTY .

FIGURE 5.5.49 PROCUREMENT RATES (SHEET 1) .

5.FIGURE 5.49 PROCUREMENT RATES (SHEET 2) .

FIGURE 5.5.49 PROCUREMENT RATES (SHEET 3) .

5.49 PROCUREMENT RATES (SHEET 4) .FIGURE 5.

50 CONSTRUCTION RATES (SHEET 1) .FIGURE 5.5.

5.50 CONTRUCTION RATES (SHEET 2) .FIGURE 5.

FIGURE 5.5.50 CONTRUCTION RATES (SHEET 3) .

FIGURE 5.5.50 CONTRUCTION RATES (SHEET 4) .

FIGURE 5.5.50 CONSTRUCTION RATES (SHEET 5) .

51 COMMISSIONING RATES .FIGURE 5.5.

FIGURE 5.5.52 ENGINEERING AND DESIGN AND RATES (SHEET 1) .

5.FIGURE 5.52 ENGINEERING AND DESIGN AND RATES (SHEET 2) .

FIGURE 5.5.52 ENGINEERING AND DESIGN AND RATES (SHEET 3) .

5.FIGURE 5.53 CERTIFICATION RATES .

.

SECTION B .OFFSHORE FACILITIES 5.OFFSHORE 5. HARDWARE ITEM / SYSTEM GROUP COMBINATIONS .6 PRODUCTION FACILITIES . Possible combinations of System Groups for common Hardware Items are shown as examples. Other Hardware Item/System Group combinations can be considered at the user's discretion.6. The System Groups available as building blocks for a Hardware Item in this Category are shown below in the form of a System Group/Hardware Item matrix.1 Introduction This section contains the methods and cost data required for the preparation of Type II cost estimates for offshore topsides facilities.

structural steel for either an integrated deck or for modules and a module support frame (MSF) is included in this production facilities category rather than in the fixed substructure category. and guidelines for System selection are given in Section 5. System Group System Wellhead facilities Wellheads Separation Heating Oil processing Dehydration Water treatment Export pumping Oil export Metering Separation Heating Gas processing Dehydration Dewpoint control Gas lift Gas lift Gas injection Gas injection Gas export compression Gas export Metering Water injection Water injection Power generation Power gen & dist Power distribution Process and personnel support Utilities Safety Material handling Quarters Quarters Drilling facilities Drilling facilities Control/ESD/F & G Control/ESD/F & G Telecommunications & telemetry Telecommunications & telemetry Bulks Bulks Interplatform bridges Interplatform bridges Structural steel Structural steel For fixed platforms.2.2.6. . The breakdown of Systems is given below.For a Type II estimate many System Groups are broken down into Systems.

all of which share common power generation and distribution. • Input Data . existing facilities. Use this table to dictate the required number of trains.Eform-1 B • Quantities and Cost . The method will be extended to include these items in the future when proven estimating methods and data are available. Similarly. .2.2. New technology such as membranes multiphase pumps etc.Eform-2 • Hardware Item Cost Summary . compression and quarters. In addition to this should the required capacity of a system exceed the ranges given in the manual multiple trains will be required. fabrication manhours norms and cost rates and HUC and installation spread day rates.6. The method also excludes the retrofit of new equipment to.2 Method 5. GOR will influenced separator system maximum capacity etc.. 5.6. bridge linked platforms for Wellhead. Notes are provided only for those Systems where guidance is needed either for the selection of a choice of processing equipment within the System.SUMM Eform-2 has incorporated the material cost rates. production. The following table shows national system capacities per train.The offshore production facilities category does not included acid gas removal as this is not normally carried out offshore. are not included. and not covered twice.6.g. For example a shallow water gas development may have separate. 5. utilities.1 Hardware Item Excel Working Spreadsheet The following Excel Spreadsheets will be used when preparing type II cost estimate for offshore topside facilities.2 System Group and System Selection Some notes are provided in this Section to aid the user in selection of Systems. the interplatform bridges should be allocated to only one Hardware Item. The sparing philosophy of the project will dictate the requirement for multiple trains. When a Project contains several platforms with distinct functions the user must exercise care in the allocation of System Groups. or modification of . and care should be taken to include these only once. control/ESD/F & G and telecommunications and telemetry System Groups. It should be noted that this limits are national only in reality they will be influenced by a number of design parameters e.

.

. If the required export oil specification is not known the user needs to select the oil separation equipment based on either dead crude export or live crude export. There are : • Dead crude .0 bara at 25°C. It may also be required for oil development featuring a large amount of associated gas. If some gas processing is also required then the gas separation System should not be selected in addition to the oil separation System.having a TVP of approximately 0. Condensate Stabilisation Condesate stabilisation is generally required where a gas field sufficient recoverable condensate to justify inclusion of the system. • Live crude . Crude oil exported from offshore production facilities is generally required to meet one of two vapour pressure specifications.97 bara at 25°C. Generally the oil separation System required for dead crude export requires more separation stages and different operating pressures to the oil separation System required for live crude export. If the oil is transferred by pipeline to an onshore complex where further oil and gas processing takes place then live crude processing is adequate.having a TVP of approximately 7.Oil Separation This System is required for all oil producing facilities. If the crude oil is to be loaded directly into a tanker or is transferred to atmospheric storage at a terminal then dead crude processing is required.

determine the wellheads System weight from Figure 5. This is covered under gas lift. 5. If both gas lift and gas export are required for the development the use the gas export system Group only. with the combined flowrate for the gas export compression System.2. then use the gas injection System Group to achieve the final pressure. The water injection System required for seawater is this heavier than that required for produced water. If both gas injection and gas export are required for the development then both System Groups must be used. then both filtration and deaeration is required prior to water injection.3 Input Data Complete Eform-1 B by entering the data required for the selected System Groups. If produced water is used then filtration equipment only is required prior to water injection.6. gas injection and gas export.6. 5.2. Dewpoint Control Gas dewpoint control is generally required to meet export gas specifications for both oil and gas/condensate developments. then use the gas export System Group for the first level of compression to an intermediate pressure.1. Water Injection If the produced water profile of the reservoir is such that the produced water rate is in excess of the water injection rate then the produced water may be used for water injection. If there is only gas injection.Gas Separation This System is required for gas and gas/condensate developments. . Wellstream Cooling Wellstream cooling is required for gas/condensate developments. Compression Gas processing does not include compression.6. Gas Dehydration Gas dehydration is required where it is necessary to • Meet export gas specifications • Recover condensate from the gas by refrigeration • Avoid corrosion problems caused by H2S or CO2 in the reservoir fluid. For developments that include both oil and gas processing the oil separation System should always be selected in favour of the gas separation System. with the combined flowrate for the gas export compression System.4 Calculated Quantities Proceed systematically through Eform-2 as follows Wellheads From the number of wells and the flowing wellhead pressure indicated on Excel Spreadsheet Eform-1. If seawater is used however. This System is not required if gas export is excluded from the field development.

6.3 Should only are required.21 or from Figure 5.6.13.6.3.6. Gas Lift If the development incorporates gas lift but excludes gas export then from the gas lift flowrate determine the gaslift compression ratio from Figure 5. then determined the equipment weight from Figure 5. An allowance for the test separator weight is included in Figure 5.19 or Figure 5.17. Sheet 1.3.2 (sheet 1 for live crude export and sheet 2 for dead crude export).3 using the gross (oil plus water) flowrate.16.6.22. gas lift and gas injection flowrates as appropriate determine the weight of the gas dehydration equipment using Figure 5.6. If no glycol information is available. sheet 1 or 2 according to whether there is glycol injection upstream or not.Oil Separation Determine the number of separation stages and the separation stage pressures from Figure 5. Figure 5. Record these on Eform-2.6.6.6. Gas Dehydration From the sum of gas export. then determined the equipment weight from Figure 5.6. If multiply trains are required. Dew Point Control From the gas export and/or injection flowrate determine the weight of gas dewpoint control equipment from Figure 5. If the development incorporates both gas lift and gas export then the gas lift equipment weights not required as it is covered by the gas export System.6. Gas Separation From the sum of gas export and gas injection flowrates as appropriate determine the gas separation equipment weight from Figure 5. multiply by the number of trains and delete the weight of the multiple test separators. use sheet 1.6.6 Oil Export Pumping Standard pumps are used in SSB/SSPC's operation.6.12 gives the pump operating philosophies with respect to the production and the pump size and weight.18 and the compression power form either Figure 5.5 sheet 1. Gas Cooling From the sum of gas export and gas injection flowrates (as appropriate) detetrmine the gas cooling duty and equipment dry weight from Figures 5. From the power requirement obtain the equipment weight either form Figure 5.20.6. Oil Metering From oil flowrate determine metering System equipment weight using Figure 5. .6.14. Condensate Stabilisation From the condensate flowrate determine the condensate stabilasition equipment weight from Figure 5. From the appropriate separation pressure determine the weight of each separator from Figure 5. Use sheet 2 to obtain the electrical power requirement.6.6. sheet 1 and the electrical power requirement sheet 2.

6.6. SJK-A and TKK-A.6.19 or Figure 5.6. The export compression requirements must be calculated first (see below) to determine the export pressure. For a development with both gas injection export.e.6.6. compression power (Figure 5. the injection gas is compressed from the export gas pressure to the injection pressure.6.6.18.27 using the procedure specified in Figure 5. Then the injection equipment weight is determined by means of compression ratio (Figure 5.19 or Figure 5. This involves calculating the compression ratio from Figure 5.23 sheet 2 gives standard compression equipment weight for gaslift compression using reciprocating compressors i.6.19 or Figure 5.6.6 20) and finally equipment weight this time from Figure 5.23).6.21 or 5. compression power (Figure 5. TEK-A.22.20. and the equipment weight from Figure 5.18).6.6.6.6.21 or 5. hence the compression power from Figure 5.24 to Figure 5. . If the final compression to the injection pressure utilises electric motor drivers then the compression power requirement should be entered on Eform-2.20) and equipment weight (Figure 5.19 or Figure 5. This weight is then added to the equipment weight compression ratio (Figure 5.6.23. hence the compression power from Figure 5. Figure 5.6. This weight is then added to the equipment weight It the development has gas injection without gas export then first determine compression requirements from the first stage separation pressure minus 4 bar to a typical intermediate pressure of 135 bara .6.6.18.22.6. Export Gas Compression If gas injection or gas lift is incorporated in the development then add the gas lift or injection flowrate to the gas export flowrate and use the combined flowrate to determine the weight of the export gas compression equipment from Figure 5. and the equipment weight from Figure 5.18).Gas Injection If the development has gas injection without gas export then first determine compression requirements from the first stage separator to 135 bara .24.20. This involves calculating the compression ratio from Figure 5.6.

6. From water injection flowrate use Figure 5. From Figure 5. Power Generation Determine the power generation requirements for each system as determined by Figure 5. Determine the subsea power cable length from Figure 5.30. If all the power is to be Imported then transfer the value for Required Power to the Imported Power.28. Determine the injection pump power from Figure 5.33 to obtain the Pwer generation equipment weight. sum the totals on Eform 2.6.6. To allow intermittent/standby loads and unidentified systems. Calculate the Generated Power by subtracting the Imported Power and adding the Exported Power to the Required Power. Power Distribution From the sum of the Required power and the Exported power. determine the derating factor for gas turbines and enter on Form 5.6.6. Water Injection Determine whether produced water or seawater is to be used for water injection. Where drives are turbine. determine the power distribution equipment weight from Figure 5.6. Use the Turbine Power and Figure 5.6.Gas Metering From the export gas flowrate determine the metering System equipment weight from Figure 5.6. Use the injection pump power to determine the pump weight from Figure 5. Derate by dividing by the factor and enger as the Turbine Power. Eform 2 allows the user to enter a drive as either turbine driven or electrically powered or turbine driven to enable a power balance to be carried out.6.31 and enter the combined treatment and pump weight on Eform-2.6.6. . Enter the values for Imported and Exported Power. an electrical design factor in included.2.32 and enter on Eform 2 according to whether the system is electrically powered or turbine driven. If electric motors are used then record the pump power on Eform-2. Add the Electrical Design Factor and enter as the Required Power. an allowance for parasitic loads is included.27.34.29 to determine the water injection treatment equipment weight.34 and record on Form 5.2.

and enter the total weight in Eform-2.6.Process and Personnel Support Eform-2 calculates the System equipment weights to obtain subtotal A.6. Sheet 2 of 2. determine the safety System equipment weight from Figure 5.42. instruments and others.6. For standard topsides. Material/Handling From the equipment dry weight (subtotal B) determine the material handling equipment weight from Figure 5.36. Sum the combined weights for all Systems to arrive at subtotal D.6.41 (for facilities an fixed substructures).42. . Drilling Select the type of drilling facility required and determine the drilling equipment weight from Figure 5. If the drilling equipment is not installed permanently the equipment weight given in Figure 5.6. interplatform bridges and structural steel dry weight (total E on Eform-2). Bulks Weight Eform 2 has been incorporated with the bulks factors for each System from Figure 5.37. sheet 1 of 2.39. electrical.38 sheet 1 to 3 of 4. Sum the weights for each of piping.38 sheet 3 of 4 should only be used to determine the overall bulk structural steel weight. multiply by the number of bridges. sheet 2 of 2.6. determine the topsides structural steel weight using Figure 5. Add the equipment weight to the bulks weights for each System to obtain the equipment and bulks weight by System. Helideck weight is obtained from Figure 5. bulks. Safety From the total of equipment dry weight determined so far. Eform-2 multiplies the equipment weight by each bulks factor to obtain the bulks weight for piping.6. (subtotal B).6. Establish which platform will carry the whole bridge load and then do not include bridge weight for the other bridge sharing platform. deck weights are given in Figure 5.42.6.42. instruments and others.35.6. Interplatform Bridges Obtain the weight for interplatform bridges from Figure 5. From subtotal A determine the process and personnel support equipment weight from Figure 5. Total Topsides Weight (Dry) Eform-2 calculates the total equipment. electrical. Quarters From the total number of beds determine the accommodation module weight from Figure 5.6. Structural Steel From subtotal D equipment and bulks dry weight and the TAD drilling equipment weight (if platform associated with more than 15 wellheads or non-standard topsides). quarters.

6.19 or Figure 5-6.6. compression power (Figure 5. compression ratio (Figure 5. .6.6. This total is used in estimating the cost of the substructure for water depth in excess of 90 m (see Sections 5.49.6. Number of Major Lifts From the total topsides dry weight (total E) and the lift strategy determine the number of major lifts for both modules and integrated decks form Figure 5.23. interplatform bridges and structural steel to give the System operating weights.8).20) and equipment weight. this time from Figure 5. Transportation and Installation Durations From the total topside weight determine the total transportation and installation durations using Figure 5. The Sum of the System operating weights gives the total topsides operating weight (total F).Total Topsides Weight (Operating) Eform-2 applies operating factors to the equipment and bulks weights for each System together with the System weights for quarters.49.18).

51.47 and fabrication cost rates (M$/manhour) from Figure 5.46 to the individual equipment and total bulks dry weights to give the total procurement cost for each System.6.6.6. fabrication.50 has been incorporated in Eform-2. This completes the estimate for the Hardware Item. . The percentage factor is given in Figure 5. Certification Cost The certification cost is taken as a percentage of the procurement. installation. 6 JTS.2. standard installation durations are given in Figure 5. Barge/workboat spread day rates from Figure 5.6.6. 15 DPS. Hardware Item Cost Summary Transfer the total cost and the cost by Project Function from Eform-2 to the Project Cast Summary Spreadsheet SUMM.6.51 to the total Engineering and Design Manhours. Loadout and sea-fastening cost is taken as 5% of fabrication cost.6. • Modules up to 2000 tonnes • Modules up to 6000 tonnes • Integrated decks • Wellhead platforms Determine the hook-up and commissioning manhour rates for one of the above configurations from Figure 5. Hook-up and Commissioning Cost The hook-up and commissioning rate depends on the topsides configuration. Choose which one of the following configurations characterises the topsides under consideration. Fabrication Cost Eform-2 calculates the total fabrication cost by applying the fabrication norms (manhour/tonne) from Figure 5. Multiply weight by rate to obtain the hook-up and commissioning cost total. hook-up and commissioning cost.48 to the derived weight. Mini-Production station and 60.6.e. It calculates the Engineering and Design Cost by applying the manhour cost rates (M$ per manhour) from Figure 5. For simple standard platforms i. Eform-2 derives the engineering and design manhours from Figure 5.6. For modular configurations the rate depends on the size of the heaviest module.51. transportation.6. If an additional hardware item is required within the offshore production facilities Category the user should return to the beginning of Section 5.6. Engineering and Design Cost From the total topsides facilities dry weight (total E on Eform-2). 9 JTS. sheet 1 and the labour rate form Figure 5.50. sheet 2.5.000 bpd oil capacity production facilities.50.50.6.2.5 Cost Estimate Complete Eform-2 as follows: Procurement Cost Eform-2 automatically applies the procurement cost unit rates from Figure 5.

6.Figure 5.1 WELLHEADS EQUIPMENT WEIGHT .

6.FIGURE 5.2 NUMBER OF SEPARATIONS STAGES (SHEET 1) .

2 NUMBER OF SEPARATIONS STAGES (SHEET 2) .FIGURE 5.6.

6.FIGURE 5.3 OIL SEPARATION EQUIPMENT WEIGHT (SHEET 1) .

FIGURE 5.6.3 OIL SEPARATION EQUIPMENT WT (SHEET 2) .

FIGURE 5.6.5 GAS COOLING EQUIPMENT WEIGHT (SHEET 1) .

6.FIGURE 5.5 GAS COOLING ELECTRICAL POWER REQUIREMENT (SHEET 2) .

FIGURE 5.6.6 CONDENSATE STABILISATION EQUIPMENT WEIGHT .

6.7 OIL DEHYDRATION EQUIPMENT WEIGHT (SHEET 1) .FIGURE 5.

FIGURE 5.7 OIL DEHYDRATION EQUIPMENT POWER (SHEET 2) .6.

FIGURE 5.8 CRUDE OIL EXPORT-PIPELINE SIZING .6.

9 CRUDE OIL EXPORT .PIPELINE SIZING .FIGURE 5.6.

FIGURE 5.6.10 OIL EXPORT PUMPING .

FIGURE 5.6.11 EXPORT PUMPING POWER

FIGURE 5.6.12 EXPORT PUMPING EQUIPMENT WEIGHT

FIGURE 5.6.13 OIL METERING SYSTEM

FIGURE 5.6.14 GAS SEPARATION EQUIPMENT WEIGHT (SHEET 1)

FIGURE 5.6.14 GAS SEPARATION EQUIPMENT WEIGHT (SHEET 2)

FIGURE 5.6.15 GAS HEATING SYSTEM DUTY

6.16 GAS DEHYDRATION ELECTRICAL POWER REQUIREMENT (SHEET 1) .FIGURE 5.

FIGURE 5.16 GAS DEHYDRATION ELECTRICAL POWER REQUIREMENT (SHEET 2) .6.

17 DEWPOINT CONTROL EQUIPMENT WEIGHT (SHEET 1) .FIGURE 5.6.

FIGURE 5.17 DEWPOINT CONTROL ELECTRICAL POWER REQUIREMENT (SHEET 2) .6.

6.FIGURE 5.18 GAS LIFT AND INJECTION COMPRESSION RATIOS .

6.FIGURE 5.19 GAS COMPRESSION POWER .

FIGURE 5.20 GAS COMPRESSION POWER .6.

21 GAS COMPRESSION EQUIPMENT WEIGHT .6.FIGURE 5.

22 GAS COMPRESSION EQUIPMENT WEIGHT .FIGURE 5.6.

FIGURE 5.23 GAS INJECTION COMPRESSION EQUIPMENT WEIGHT (SHEET 1) .6.

23 GASLIFT COMPRESSION EQUIPMENT WEIGHT (SHEET 2) .6.FIGURE 5.

FIGURE 5.24 GAS EXPORT COMPRESSION (SHEET 1) .6.

FIGURE 5.24 GAS EXPORT COMPRESSION (SHEET 2) .6.

25 GAS EXPORT PIPELINE SIZING .6.FIGURE 5.

FIGURE 5.26 GAS TURBINE ISO RATINGS .6.

6.27 TEMPERATURE DERATING FACTOR FOR GAS TURBINE .FIGURE 5.

28 GAS METERING EQUIPMENT WEIGHT .FIGURE 5.6.

29 WATER INJECTION EQUIPMENT WEIGHT .FIGURE 5.6.

FIGURE 5.6.30 WATER INJECTION PUMP POWER .

FIGURE 5.6.31 WATER INJECTION PUMP EQUIPMENT WEIGHT .

32 POWER GENERATION AND DISTRIBUTION .FIGURE 5.6.

33 POWER GENERATION EQUIPMENT WEIGHT .6.FIGURE 5.

FIGURE 5.34 POWER DISTRIBUTION EQUIPMENT WEIGHT .6.

FIGURE 5.6.35 PROCESS AND PERSONNEL SUPPORT EQUIPMENT WEIGHT (SHEET 1) .

35 PROCESS AND PERSONNEL SUPPORT (SHEET 2) .FIGURE 5.6.

36 SAFETY EQUIPMENT WEIGHT .FIGURE 5.6.

37 MATERIAL HANDLING EQUIPMENT WEIGHT .6.FIGURE 5.

FIGURE 5.38 DRILLING FACILITIES EQUIPMENT WEIGHT (SHEET 1) .6.

6.FIGURE 5.38 DRILLING FACILITIES EQUIPMENT WEIGHT (SHEET 2) .

FIGURE 5.38 DRILLING FACILITIES EQUIPMENT WEIGHT (SHEET 3) .6.

6.38 DRILLING FACILITIES EQUIPMENT WEIGHT (SHEET 4) .FIGURE 5.

39 BULKS FACTORS .6.FIGURE 5.

41 ACCOMODATION .6.FIGURE 5.

42 DECK STRUCTURAL STEEL (SHEET 1) .6.FIGURE 5.

6.42 DECK STRUCTURAL STEEL (SHEET 2) .FIGURE 5.

FIGURE 5.43 OPERATING FACTORS .6.

FIGURE 5.45 .6.

46 PROCUREMENT RATES (SHEET 1) .6.FIGURE 5.

46 PROCUREMENT RATES (SHEET 2) .6.FIGURE 5.

FIGURE 5.6.46 PROCUREMENT RATES (SHEET 3) .

46 PROCUREMENT RATES (SHEET 4) .6.FIGURE 5.

6.FIGURE 5.47 FABRICATION MANHOURS (SHEET 1) .

47 PROJECT MANAGEMENT (SHEET 2) .6.FIGURE 5.

6.47 FABRICATION COST RATES (SHEET 3) .FIGURE 5.

6.FIGURE 5.47 PROCUREMENTS RATES (SHEET 4) .

49 TRANSPORTATION AND INSTALLATION DURATION (SHEET 1) .FIGURE 5.6.

49 TRANSPORTATION AND INSTALLATION DURATION (SHEET 2) .FIGURE 5.6.

50 HOOK-UP AND COMMISSIONING DURATION (SHEET 1) .FIGURE 5.6.

50 HOOK-UP AND COMMISSIONING DURATION (SHEET 2) .FIGURE 5.6.

FIGURE 5.6.50 HOOK-UP AND COMMISSIONING DURATION (SHEET 3) .

51 ENGINEERING AND DESIGN MANHOURS (SHEET 1) .6.FIGURE 5.

51 ENGINEERING AND DESIGN MANHOURS (SHEET 2) .6.FIGURE 5.

6.FIGURE 5.51 ENGINEERING AND DESIGN MANHOURS (SHEET 3) .

FIGURE .

The method will be extended to include these items in the future when proven estimating methods and data are available. fabrication.1 Introduction This section contains the methods and cost data to be used in the preparation of Type II cost estimates (accuracy ± 25%) for fixed substructures. and does not consider gravity based structures.FIXED 5 8.Offshore The method covers only fixed steel piled jackets. 5. multileg jacket.6 Production Facilities . The System Groups available as building blocks for a Hardware Item in this category are listed below. • • • Input Data .8.OFFSHORE SUBSTRUCTURES 5.2.Eform-1C Quantities and Costs . THE SYSTEMS GROUPS For a Type II estimate the System Groups are normally broken down into Systems. or jack-up type substructures.8 SUBSTRUCTURES .1 Hardware Item Excel Working Spreadsheet The following Excel Spreadsheets will be used for the preparation of Type II cost estimates for substructures.11 Pipelines -Offshore Module support frame Section 5. There is a single Hardware item.2 Method 5. which requires all three System Groups.SECTION C . .SUMM Eform-3 calculates conductor weight automatically and it has been incorporated with cost rates for material.8. For Type II fixed substructures the Systems are the same as the System groups. installation and HUC Spreads.Eform-3 Hardware Cost Summary . tripod tower platforms. Aspects associated with fixed substructures which are not included in this method but are covered elsewhere in this manual are: Item Reference Risers Section 5.

"level-2") may be readily available.g. In the Type II estimate it is necessary to differentiate between various environmental conditions to establish the System Group weights. in East Malaysia. Since environmental criteria vary considerably. The level of metocean criteria given in the tables below are intended to indicate the stage of field development for which the data should be used. the environmental conditions are defined as follows. etc. it is normal practice to make as much use as possible of any data from climatically similar areas as well as any archive data available in reference publications. For initial cost estimates.3 ENVIRONMENTAL DATA The fixed and floating substructures cost estimating methods require the environmental condition of the site as input. The resulting criteria are known as "level-1" metocean criteria. In certain well established areas where the Company has been operating for many years. However.3 (attached) and the description is reproduced here for reference purposes.5.8. as an aid to the user who has no other information available.g. It should be noted that the reliability of the 100 year estimates of the wind and wave criteria sensitive to the quality and quantity of field data available. UK) higher level criteria (e.. no only by region but also by country and distance from land. These environmental conditions are described in SIPM CEM Section 3. an overview of the type of criteria presently available and an indication of the Environmental Conditions found in various locations is provided below. For the purposes of the Cost Engineering Manual.depth. as follows : . In case of any queries regarding actual design values.2 Input Data Complete Eform-1C by entering the data indicated. water . (e. the reader is advised to contact in the first instance their local metocean focal point or secondly the SIPM Metocean-Services section (EPD/55). 5. Brunei.2.8. it is considered prudent not to provide detailed data in this Manual.

windcast study criteria Mid-term field developments 3 .Level of Metocean Criteria Typical Applications 4 .field data criteria Initial field development plans 1 .desk study criteria New areas .joint probability criteria Significant field extensions(comprehensive databases needed) 3 .

1 INPUT DATA .8.Form 5.

Form 5.2 QUANTITIES (SHEET 1) .8.

8.Form 5.3 COSTS (SHEET 1) .

.8. which are normally installed in less than 90m of water. Refer to Figure 5.8.2. Determine the jacket type using the tabulation in Figure 5.Environmental Condition 3 (Typical for SSB/SSPC Jackets) The milder environmental parameters assigned to condition 3 are often associated with leg piled structures. incorporate platform type and number of conductors into the Eform-3.FORM 5.3.3 COSTS (SHEET 2) 5. hence the determination fo numbers of legs is relatively important in defining the weight of the structure. The jacket curves of Fig.3 are only good for water depth not exceeding 90m because these curves are derived based on data from existing jackets.6. Determine the jacket steel weight from the appropriate curve on sheets 2 to 9 of Figure 5.8.2 sheet 1 and 2 of 2 for water depth in excess of 90m.8. 5.4 Calculated Quantities Proceed systematically through Eform-3 as follows Jacket Weight .8. sheet 2.8.

Transportation and Installation Durations Determine the transportation and installation durations using Figure 5.9 in Eform-3 if soil investigation is required (refer to Figure 5.3 as follows Procurement Cost Eform-3 applies procurement rates for each system and bulk from Figure 5. fabrication.8. . 5.7.8.6 sheet 1 of 2. This completes the estimate for the Hardware Item.5 Cost Estimate Complete Form 5. sheet 3 of 3 and insert it in Eform-3.2. to obtain the total fabrication manhours. sheet 1 and 2 of 3 Boat Fender Determine the boat fender weights from Figure 5.9 to the quantities derived. sheet 1 of 3.Piles Weight Determine the piles weight/jacket weight ratio from Figure 5.7. Engineering and Design Cost Based on the jacket tonnage.2.8.8. It applies the design manhours to obtain the design cost. Certification Cost The insurance and certification cost is taken as a percentage of the procurement. Anode's Weight Eform-3 determine the anodes weight using the factor given by Figure 5.8.8. to obtain the procurement cost. SUMM.the total cost and the cost by Project Functions from Eform-3 to the project Cost Summary Spreadsheet.1 1. Fabrication cost rate (cost/manhour) is applied to the total manhours to obtain the fabrication cost. Eform-3 derives the total design manhours. Eform-3 derives the total design manhours.8. This spreadsheet determined the conductor weight form the Correlation in Figure 5.8 and insert them in Eform-3. If an additional Hardware Item is required within the fixed substructure category the user should return to the beginning of Section 5.8. Conductor Weight Enter the number of conductors in Eform-3.7. Pre design (Soil Investigation) Enter the lump sum cost form Figure 5.12). It applies the design cost rate to the total design manhours to obtain the design cost. The later calculate the pile weight using the correlations given in Figure 5.6 sheet 2 of 2 and insert in Eform-3. Hardware Item Cost Summary Transfer .8. Transportation and Installation Cost Based on the jacket tonnage.8.8.8. Fabrication Cost Eform-3 applies the fabrication norms (manhours/tonne) to the quantities derived. transportation and installation cost and the percentage is given in Figure 5.8.

sheet 2 of 2.4.75 B: Water Depth > 90 m To arrived at weights for launched jackets in SSB/SSPC waters (environment 2).8. in addition to the adjustment factor. the weights obtained from the above curves are to be multiplied by the following factor: Adjustment factor = 1. .FIGURE 5.40 The above weights (from A & B) are to be multiplied by the conductor correction factor (if applicable) as given in Figure 5. the weight obtained from the above curves are to be multiplied by the following factor: Environment 2-3 adjustment factor = 0.8.2 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 DEEPER WATER SUBSTRUCTURES (SHEET 1) A: Water Depth < 90m To arrive at weight for lift/launched jackets with topside > 2500 MT in SSB/SSPC waters (environment 3).

FIGURE 5.2 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 DEEPER WATER SUBSTRUCTURES (SHEET 2) .8.

d = Water depth (metres). sheets 2 to 12. Basis of Curve : EDV/2 weight estimating system. .FIGURE 5. The equivalent mathematical expression for each curve is given in the figure.8.8.3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 1) The jacket steel weight for SSB/SSPC environmental condition (condition 3) can be determined from EDV/2 generated jacket curves in Figure 5.3. These curves are to be used for standard SSB/SSPC configuration in water depths less than 90 m. In these expressions : W = jacket steel weights [metric tonnes].

FIGURE 5.3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 2) .8.

8.FIGURE 5.3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 3) .

4 and 6 Pile (DP) Drilling Platforms (Water Depth < 90 m) Jacket steel weights of 4 and 6 pile drilling platforms in water depths < 90 meter are derived by multiplying the weights obtained form Figure 5.8.65 (Conductor > 20) . Hence. These factors covers topside weight reduction and launch-to-lift conversion.6 (12 < Conductor < 20) = 0.3. sheet 3 of 11 need to be multiplied by 1. sheet 5 of 11 (8 pile DP) with the following adjustment factors.8. weights derived form Figure 5.3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 4) 4 Pile (JT) Drilling Jacket (MWD) If the 4 pile drilling jacket (JT) is a multi-waterdepth (WMD) design.3.15 for multi-waterdepth designs.5 (Conductor < 12) = 0. a typical weight penalty of 15% applies as a result of using a standard inventory of materials in a non-optimized design.8.FIGURE 5. Adjustment factor = 0.

3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 5) .FIGURE 5.8.

8.FIGURE 5.3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 6) .

FIGURE 5.3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 7) .8.

8.FIGURE 5.3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 8) .

3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 9) .FIGURE 5.8.

FIGURE 5.8.3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 10) .

8.FIGURE 5.3 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 11) .

8.4 JACKET WEIGHT ENVIRONMENTAL CONDITION 3 DEEPER WATER SUBSTRUCTURES .FIGURE 5.

FIGURE 5.6 PILE WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 1) .8.

FIGURE 5.6 PILE/JACKET WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 2) .8.

8.7 ANODES WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 1) .FIGURE 5.

FIGURE 5.8.7 CONDUCTOR STEEL WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 2) .

FIGURE 5.7 FENDER WEIGHT ENVIRONMENTAL CONDITION 3 (SHEET 3) .8.

FIGURE 5.8 PROCUREMENT AND FABRICATION RATES (SHEET 1) .8.

FIGURE 5.8.8 PROCUREMENT AND FABRICATION RATES (SHEET 2) .

FIGURE 5.9 TRANSPORTATION AND INSTALLATION DURATION ENVIRONMENTAL CONDITION 3 .8.

8.10 TRANSPORTATION AND INSTALLATION RATES .FIGURE 5.

11 ENGINEERING AND DESIGN MANHOURS ENVIRONMENTAL CONDITION 3 (SHEET 1) .FIGURE 5.8.

11 ENGINEERING AND DESIGN MANHOURS ENVIRONMENTAL CONDITION 3 (SHEET 2) .FIGURE 5.8.

FIGURE 5.11 ENGINEERING AND DESIGN MANHOURS ENVIRONMENTAL CONDITION 3 (SHEET 3) .8.

DURATION ENVIRONMENTAL CONDITION 3 (SHEET 1) .FIGURE 5.12 PRE-DESIGN .8.

FIGURE 5.12 PRE-DESIGN (SIDE INVESTIGATION) LUMP SUMP COST (SHEET 2) .8.

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The method contains data for pipelines in a variety of services. water and flowlines (oil or gas).SUBSEA PIPELINES 5.SECTION D .1 Introduction This section contains the methods and cost data to be used in the preparation of Type II cost estimates for offshore pipelines. The forms are • Input Data . For each pipeline a separate cost estimate should be prepared. and cost impact of . design and Cat I spread. gas. System Group System Linepipe Linepipe Flexible pipe Special alloys Cathodic protection Coating External/anti-corrosion Insulation Concrete Risers Fixed Flexible Special alloys Further included are pipeline crossings and tie-ins.11. The sub-sea pipelines method does not include rock dumping. A typical pipeline hardware element can be broken down into the following components. 5. .Eform-1 • Quantities and Costs . these being oil.SUMM Eform-4 already incorporates the lay rate [day/km].1 Hardware Item Excel Working Spreadsheet The following Excel Spreadsheet will be used for the preparation of Subsea pipeline type II cost estimates.11 SUB-SEA PIPELINES 5.2 Method 5.Eform-4 • Hardware Item Cost Summary . as the requirement for. cost rates for material. this Item can only be assessed when details of the pipeline route has been established.11.11.2.

injection lines etc. diameters up to 24" are available. particularly for line 10" diameter and larger. according to the service. A nominal thickness of 6 mm of asphalt coating or 400 micron of fusion bonded epoxy coating is normally sufficient. high wax content) or where the downstream processing unit required temperature maintenance. The rate of corrosion dependent on the environmental conditions and also on product temperature. If so. • Special alloy materials have application where internal corrosion rates of carbon steel pipe are expected to be high unless chemical injection or fluid treatment is incorporated upstream of the Pipeline. . Internal coating of pipe is not considered in this Type II method. • Concrete coating may be required to provide on-bottom stability of the line. Lines transporting wet gas or 2 phase mixtures should be maintained above 25 °C for pressures above 1 00 bar to prevent hydrate formation. for corrosive services selection of special alloy materials is recommended (see above). • Cathodic protection is provided to reduce corrosion rates.11.2.5. 5. For low pressure loading lines.. Where such pretreatment/injection is difficult to achieve then use of duplex stainless steel or inconel clad carbon steel pipe should be considered for wet gas transportation service where the partial pressure of carbon dioxide exceeds 2 bar.3 Calculated Quantities Proceed systematically through Eform-4 as follows: Pipeline Length Enter the pipeline length in Eform-4. • Special alloy materials are used for the riser when chosen for the pipeline. but these are not covered as separate items in this manual. • Tie-in refers to subsea tie-in existing pipelines only and does not encompass tie-in of pipelines to risers. Pipeline Diameter Determine the pipeline diameter from one of the following figures. • Use of flexible pipe could be considered for short length field lines in corrosive service where either low installation cost or redeployment within the field are development parameters. This will apply to oil lines where the fluid exhibits high viscosity or high pour point (e.g. otherwise hydrate inhibitors will be required. • External coating of pipe is generally required as an anti-corrosion barrier between the environment and the pipe. Offshore pipelines are generally protected cathodically by a system of sacrificial anodes. The following notes are provided as a guide. Oil and gas export pipelines may have already been sized while estimating the offshore production facility. Flexible risers normally find application in water depths greater than 60m and for line diameters fo 2" to 16". • Flexible risers are used with floating production facilities.2. • Fixed risers are used with a fixed substructures.2 Input Data Complete Eform-1D by entering the pipeline data. enter the size directly on Eform-4. • For flowlines. This is covered in the riser System Group. • Insulation should be considered when heat conservation is required. to/from wells enter the sum of all the individual line lengths.11.

also gas injection and gas lift) 5. There is an option to choose between DSV and Cat I vessel. Assumed one rectification required per 50 km length of pipeline. Enter the number of mob/demobs.1 Sheet 1 Oil pipeline (to terminal facility) 5. Trenching The pipeline may require to be trenched if it is less than 16" diameter and in a region where there is considerable fishing activity (or where it is known that existing pipelines are trenched). where it will be multiplied by their respective unit durations. If trenching is required. whichever is assumed.5. whichever is assumed.11.11. start.6 and multiply length by rate to obtain the duration. Free Span Rectification Obtain the Cat I duration for free span rectification.4 Sheet 1 Flowline (high GOR oil and gas.11.11.11.4 Sheet 2 Pipeline Weight Eform-4 calculates the linepipe steel weight based on the linepipe length and wall thickness using the procedure given in Figure 5. as appropriate.11. Riser Installation and Subsea Tie-ins Duration Eform-4 calculates the installation duration by applying the installation rate [day/riser] form Figure 5. Eform-4 sums the durations to obtain the unfactored laybarge duration.11. start-up/terminations and pipeline crossings in Eform-4. Pipeline Construction Eform-4 uses the appropriate pipelay rate for rigid pipelines from Figure 5. to the number of risers. Subsea Tie-in to Existing Pipeline Eform-4 will use either DSV or Cat I duration norms. .1 Sheet 2 Gas pipeline 5. Obtain the unit durations for mob/demob.6.up/terminations and pipeline crossing from Figure 5.6 or Figure 5.11. obtain the trenching rate from Figure 5. to obtain the total laybarge duration. There is an option to choose between DSV and Cat I.6 will be added. The material factor from Figure 5.11.6 and 5. 5.11.11.2 Sheet 1 Water pipeline 5.7.11.3 Sheet 1 Flowline (low GOR oil) 5.7 respectively to calculate the tie-ins duration. Assume one crossing per 50 km length of linepipe.6. Pipe Crossing Obtain Cat I duration from Fig.11.6.11.11. multiply by the pipeline length and by the same regional factor as used for construction to obtain the total trenching duration.11. from Figure 5.Pipeline Service Figure Number Oil pipeline (to existing trunkline) 5.

11. Engineering and Design Cost Obtain the engineering and design manhours form Figure 5.8 Sheet Number Anti-corrosion coating 1 Concrete coating 1 Cathodic Protection 2 Insulation 3 For fixed riser.11.11 and enter on Eform-4.5 Cost Estimate Complete Excel Spreadsheet Eform-4 as follows Procurement Cost The Spreadsheet calculates the procurement cost by applying the unit cost form Figure 5. The Spreadsheet also calculates the following pre-fabrication cost by applying unit cost rates form Figure 5. the Eform-4 applies the unit cost rates for the riser and fittings from Figure 5. Pre-design (Seismic and route Survey) Eform-4 calculates the pre-design cost based on the expression in Figure 5.11.11. Construction Cost The Eform-4 applies Cat I or DSV spread day rates form Figure 5. This completes the estimate for the pipeline. Eform-4 applies the design cost rate to the total design manhours to obtain the design cost.2. construction and commissioning cost and the percentage is given in Figure 5.11-3 to the derived quantities.8.2.10 to the derived installation durations. prefabrication cost and riser cost to obtain the procurement cost total.1 1. etc. If an additional pipeline estimate is required for offshore pipelines category the user should return to the beginning of Section 5. number of risers.9 to the number of risers. Prefabrication Item Figure 5.1 1.11.11.5.11.12. line pipe tonnage. i. Certification Cost The insurance and certification cost is taken as a percentage of the procurement. . Eform-4 finally adds together the linepipe cost. Cost Summary Transfer the total cost and the cost by Project Function form Eform-4 to the Hardware Item Cost Summary Spreadsheet SUMM.e.11.

11.FIGURE 5.1 OIL PIPELINE DIAMETER (SHEET 1) .

FIGURE 5.1 OIL PIPELINE DIAMETER (SHEET 2) .11.

FIGURE 5.2 GAS PIPELINE DIAMETER .11.

3 WATER PIPELINE DIAMETER .11.FIGURE 5.

FIGURE 5.4 FLOWLINE DIAMETER (SHEET 1) .11.

FIGURE 5.11.4 FLOWLINE DIAMETER (SHEET 2) .

5 PIPELINE WEIGHT (SHEET 1) .FIGURE 5.11.

FIGURE 5.11.5 PIPELINE WEIGHT (SHEET 2) .

11.FIGURE 5.6 RIGID PIPELINE INSTALLATION DURATION .

7 RISER INSTALLATION AND PIPELINE TIE-IN DURATION .11.FIGURE 5.

8 PROCUREMENT RATES (SHEET 1) .FIGURE 5.11.

FIGURE 5.8 PROCUREMENT RATES (SHEET 2) .11.

8 PROCUREMENT RATES (SHEET 3) .FIGURE 5.11.

9 RISER PROCUREMENT RATES .11.FIGURE 5.

11.10 INSTALLATION AND COMMISSIONING RATES (SHEET 1) .FIGURE 5.

FIGURE 5.10 PRE-DESIGN SEISMIC AND ROUTE SURVEY (SHEET 2) .11.

11 ENGINEERING.11. DESIGN AND SUPERVISION (SHEET 1) .FIGURE 5.

FIGURE 5.11.11 ENGINEERING AND DESIGN. AND INSURANCE AND CERTIFICATION RATES (SHEET 2) .

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SECTION E MINOR PROJECT FUTURE .

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SECTION F STANDARD PROJECT LEAD TIMES

ATTACHMENT 1

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EFORM 2 .

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EFORM 3 .

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EFORM 4 .

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SECTION H WORKED EXAMPLE .