Cost estimatingg

EXERCISE 1 ‐ OFFHORE CONCEPTUAL STUDY « CAMPOS »

EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

Contents
„ 1. Objective of the cost estimate exercise

„ 2. Methodology

„ 3 Structure of the cost estimate result

3.

„ 4. CAMPOS Facilities description

„ 5. Cost estimate data and bases

„ 6. Correction (cost estimate table)

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EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

 Objective of the cost estimate exercise

„ The aim of the exercise is to provide the CAPEX “Class 4” cost

estimate of the development scheme envisaged to run the
economics of the “CAMPOS” satellite field development.

Estimate class 4
A
Accuracy -30%
30% / 50%
Currency US$
Economical conditions Q1-2008

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EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

Methodology

Platform
„ The platform cost estimate shall be done in 3 steps
• Step 1: Analyze the cost data MOD‐2002
• Step 2: Actualize the cost data to MOD‐2008 using the applicable
indexes
• Step 3: Derive the necessary cost ratios (US$/ton or per
per‐cent)
cent)
• Step 4: Apply these ratios to the intended new platform given
weights
Pipelines
„ The pipelines cost shall be estimated on the basis of the
appropriate ratios given in the related Attachment. They have
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been established at MOD Q1‐2008.

EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

 Structure of the cost estimate result
OFFSHORE FACILITY
CAPEX
EPC COST
Technical cost
Direct cost ex-yard
Equipment cost
Main equipment
Non-listed equipment allowance
(Winterization)
Equipment transport
Bulk materials
Bulk
Bulk allowance (cut & waste)
Bulk transport
Construction cost
Construction on Yard
Construction allowance
Indirect construction cost
Offshore installation
Integration
Transport to integration site
Installation
Logistics
H k
Hook-up
Mob-demob marine spreads
EMS costs
Detailed engineering, procurement & construction engineering
Project management team
p
Site supervision
Precommissioning
OWNER (COMPANY) COSTS

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Basic engineering
Surveys
Project management
Insurances
Certification
Commissioning & RFSU
CONTINGENCIES
EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

CAMPOS Facilities description

CAMPOS O&G
Field
ONSHORE
TERMINAL WPH-C
1998 2003

DDP-A
1998

WPH-B
1998
WPH-A
2003

PIPELINE
CASES
1&2
72 km
CAMPOS
Satellite
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WPH-D
FUTURE

EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

 Facilities description ‐ Case #1 (“wet” scheme)

„ Condensate gas is directly exported to the receiving terminal on

the main land via a 24” 72 km longg p
pipeline.
p

„ To prevent the formation of hydrates, MEG is piped from shore

in a 3 inch diameter line. Due to the relative size of the 2 lines,
the 3” line is planned to be installed “piggy back” with the 24”

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line.

EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

Facilities description ‐ Case #1 (“wet” scheme)

PIPELINES
WHP-D
72 km - 24’’ GAS
72 k
km - 3’’ MEG
Deck 826 t

CASE #1
Jacket 1160 t (excl. piles)
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EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

 Facilities description ‐ Case #2 (“dry” scheme)
„ First stage 3 phase
Fi h separator on the
h platform.
l f Th associated
The i d gas
is commingled with the main gas production.

„ 1220 kW gas motor generator

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Schéma

EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

Facilities description ‐ Case #2 (“dry” scheme)
„ Oil and
d gas are being
b i produced
d d and
d sent to shore
h i two separate
in
pipelines:
„ A 20”” gas pipeline with a 3”” diameter piggy‐back MEG line;
„ A 10” oil pipeline.

PIPELINES
WHP-D
72 km - 20’’ GAS
72 km - 10’’ OIL Deck 1335 t
72 km - 3’’ MEG
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CASE #2
Jacket 1350 t (excl. piles)

EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

 Cost estimate data and bases

„ Reference to be made to MS Excel Workbook

„ Summary data for cost estimating WHP‐D platform (Case #1 and

C
Case #2)

„ Summary data for cost estimating the Pipelines (Case #1 and Case
#2)

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EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

Summary data for cost estimating WHP‐D platform 
(Cases #1 and #2)
1‐WHP‐C basis 2002
„ TOPSIDES and JACKET FEEDBACK Existing WHP‐C "as‐built" data US$ 2002 ‐ South American Yard
2‐Index
„ Upstream capital costs index: Global markets index (Source IHS‐CERA) Reference Index 2002 & Q1‐2008
3‐WHP‐C basis act 2008
„ Existing WHP‐C topsides actualized Q1‐2008
„ Ratio US$/ton
4‐WPH‐D cost
„ TOPSIDES Dry weight
„ JACKET Weight
„ Topsides technical cost installed
„ Jacket technical cost installed
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„ Mob‐demob installation spreads

„ EMS costs
„ Owner (COMPANY) costs
EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating
 Summary data for cost estimating the Pipelines 
(Cases #1 and #2)

5‐Pipeline basis
„ TECHNICAL DATA
„ PIPELINES TECHNICAL UNIT COST RATIO (GIVEN)
6‐Pipeline cost
„ CASE 1: Gas and MEG pipelines
„ CASE 2: Oil, gas and MEG pipelines

TECHNICAL COST 72 km PIPELINE to Shore (including marine spread shore approach

and trenching on 13 km), Design pressure 100b, 50mm concrete coating

90

85

80
US$/inch.m (2008)

75

70

65

60

55

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50
8 10 12 14 16 18 20 22 24 26
Diam eter (inch)

EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

Summary data for cost estimating WHP‐D platform 
(Cases #1 and #2)

7‐Summary Case #1 WHP-D Case #1 Pipelines Case #1

„ OFFSHORE FACILITIES PLATFORM & PIPELINES CASE#1 (only) CAPEX : EPC Cost,
COMPANY costs, Contingencies

Type of work Contigencies Class 5 Class 4 Class 3

Onshore p
pipe
p 20 15 10

Offshore pipe 20 15 10

Onshore plant 25 20 15

Fixed platform 25 20 15

Floating platform 25 20 15

Subsea development 25 20 15
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Onshore modification 30 20

Offshore modification 35 25

EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

 Cost estimate table
OFFSHORE FACILITY
CAPEX R f
Ref. WHP D Case
WHP-D C #1 Pi li
Pipelines Case
C #1
EPC COST
Technical cost
Direct cost ex-yard
Equipment cost
Main equipment
Non-listed equipment allowance 5%
(Winterization) N/A
Equipment transport 7%
Bulk materials
Bulk
Bulk allowance 5%
Bulk transport incl.
Construction cost
Fabrication at Yard
Construction allowance 5%
Indirect construction cost 8%
Offshore installation
Integration N/A
Transport to integration site N/A
Installation
Logistics
Hook-up
Mob-demob marine spreads

EMS costs
Detailed & constr. eng., procurement
Project management team 10%
Site supervision
Precommissioning 3% 1%
OWNER (COMPANY) COSTS
Basic engineering 3%
Surveys 1%
Project management 12%
Insurances 2%
Certification 1%

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Commissioning & RFSU 3%
EPC + Owner (Company) costs
CONTINGENCIES Platform 20%
Pi li
Pipelines 15%
CAPEX PLATFORM
CAPEX PIPELINES

EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating

Cost estimate table (Correction)
OFFSHORE FACILITIES
CAPEX Ref. WHP-D Case #1 Pipelines Case #1
EPC COST 96 243 546 120 623 256
Technical cost 84 207 114 108 669 600
Direct cost ex-yard 46 688 070
Equipment cost 12 225 337
Main
M i equipment
i t 10 881 475 10 881 475
Non-listed equipment allowance 5% 544 074
(Winterization) N/A
Equipment transport 7% 799 788
Bulk materials 18 173 427
Bulk 17 308 026 17 308 026
Bulk allowance 5% 865 401
Bulk transport incl
incl.
Construction cost 16 289 306
Fabrication at Yard 15 513 625 15 513 625
Construction allowance 5% 775 681
Indirect construction cost 8% 1 241 090
Offshore installation 36 277 954
Integration N/A
Transport to integration site N/A
Installation
Logistics 19 318 321 19 318 321
Hook-up
Mob-demob marine spreads 16 959 633 16 959 633

EMS costs 12 036 432 11 953 656

Detailed & constr. eng., procurement
Project management team 9 510 219 9 510 219 10% 10 866 960
Site supervision
Precommissioning 3% 2 526 213 1% 1 086 696
OWNER (COMPANY) COSTS 21 173 580 22 820 616
Basic engineering 3% 2 887 306 3 260 088
Surveys 1% 962 435 1 086 696
Project management 12% 11 549 226 13 040 352
Insurances 2% 1 924 871 2 173 392
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Certification 1% 962 435

Commissioning & RFSU 3% 2 887 306 3 260 088
EPC + Owner (Company) costs 117 417 127 143 443 872
CONTINGENCIES Pl tf
Platform 20% 23 483 425
Pipelines 15% 21 516 581
CAPEX PLATFORM 140 900 552
CAPEX PIPELINES 164 960 453
EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating
 Key points to keep in mind

„ Objective: to calculate an order of magnitude of the project cost

(at a conceptual stage)

„ Accuracy: plus
l or minus
i 30%
% to 40‐50%
%

„ Methodology:
gy consecutive steps
p

„ Quick but not accurate

„ Necessity to have reliable data from earlier projects

„ Careful assessment of the data (in particular the cost estimate

structure eg. Company costs)

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EP ‐ 24153_a_A_ppt_01 ‐ Cost Estimating