Conceptual Study Cost Estimation by Using WBF Method
Year: 2017
Proceedings Title : Proc. Indon. Petrol. Assoc., 41st Ann. Conv., 2017
Oil and gas field development scenario is chosen in the conceptual selection phase. It is a result of an integrated evaluation consisting of studies and analysis. Conceptual selection study is also known as pre-FEED study, feasibility study or other terminology. It is one of the crucial phases in the development of oil and gas fields.
If process of concept selection is considered as a project then work breakdown structure (WBS) is a suitable method to classify and identify the activities needed to support good decision making.
Oil and gas contractors in Indonesia should plan and propose a budget through AFE (Authorization for Expenditure) before they do the conceptual selection study. An amount of man-hours will develop a cost estimation for the study. The man-hours are calculated based on deliverables. This paper describes conceptual selection study deliverables by using WBS approach focusing on the planning of production facilities.
This well defined deliverable will result in an effective, efficient and good quality conceptual selection study. The quality of conceptual selection study is very important since it is the phase where decision making related to high investment value is made.
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