Capital investment is the main cost element for Russian oil and gas upstream companies. It is the size of capital expenditures that determines the choice of one option or another in field facilities and transport infrastructure. As practice shows, key performance indicators for oil and gas development projects are most sensitive to the amount of capital costs. Giprovostokneft JSC has long-term experience in implementation of capital cost optimization system based on specific ‘per unit’ indicators used on the early stages of investment process.
The article reviews the main principles for construction and appliance of ‘per unit’ indicators: monitoring of innovative technologies and changes of resource intensity in order to adjust the resource model, on which the “per unit” indicator is based; availability and constant updating of the objects database; monitoring of precision and reliability of cost estimation based on the “per unit” indicators and their resource models; correct specification of the model and competent selection of significant parameters for each object; decomposition principle; establishing and adjustment of objects’ passports at different stages of investment cycle. The economic effect is demonstrated on specific examples of capital cost optimization in development of Central Khoreyverskoye Upheaval fields cluster.
There are identified further ways of improvement of estimation precision and capital cost optimization in oil and gas projects: 1) permanent filling of ‘per unit’ database with extension of range of objects and classification attributes; 2) recognition of significant parameter set that helps to construct accurate cost models and provide wide opportunities for optimization.References
1. Gilaev G.G., Gladunov O.V., Ismagilov A.F. et al., Monitoring the
quality of design solutions and optimization of the designed structures
of capital construction objects in the oil industry (In Russ.),
Neftyanoe khozyaystvo = Oil Industry, 2015, no. 8, pp. 94–97.
2. Kolan’kov S.V., Application of consolidated indexes of budget
cost of capital construction objects (In Russ.), Izvestiya Peterburgskogo
universiteta putey soobshcheniya, 2013, no. 3,
pp. 134–141.3. Stewart R.D., Cost estimating, New York: John Wiley
& Sons, 1991.
4. Reznichenko V.S., Lenintsev N.N., Sistema udel’nykh pokazateley
v raschetakh stoimosti i planirovanii kapital’nogo stroitel’stva (The
system of specific indicators in the calculation of the cost and
planning of capital construction), Moscow: Geo Publ., 2006, 485 p.
5. Shabaeva E.A., The problem of estimation of the cost of introducing
the innovations in to construction (In Russ.), Neftegazovoe
delo = The electronic scientific journal Oil and Gas Business, 2011,
no. 2, URL: http://ogbus.ru/authors/Shabaeva/Shabaeva_1.pdf.
6. Kudryashov S.I., Belkina E.Yu., Ismagilov A.F. et al., Cost monitoring
in oilfield construction at different stages of the investment
cycle (In Russ.), Neftyanoe khozyaystvo = Oil Industry, 2015, no. 11,
pp. 72–75.
