The segmentation patterns are generally around size, expertise and geography, and could be divided as follows: Large, global, integrated and multi-discipline engineering companies Niche companies who specialize in a particular geographic market and may have multi-discipline capabilities Small engineering companies who specialize in a particular set of disciplines, e.
Key Players. Prices Prices for engineering services experienced a significant growth between and Total Cost of Ownership. So paying slightly more for an outcome that could be game-changing is worth to consider and evaluate The calibre of engineers offered during tender submission may not be available when the actual job is executed. This means whatever assumptions have been made in anticipation of the level of engineering expertise may not work anymore, which in turn may have affected the initial assumption and cost normalization during the commercial evaluation Key areas to evaluate and look at, during the selection process for upstream engineering services: Professional credentials and certification Experience in similar projects Knowledge of local specifics where a project is performed Previous records and performance levels Professional integrity to ensure quality work is produced at all times.
Category objectives: Access to various levels of engineering expertise for a range of disciplines Ability to ramp up and scale down in engineering headcount, as required Rapid and quick access to highly specialized engineering expertise on the as-and-when-required basis Strategy If your organization has a full engineering expertise in-house, then there is limited scope going to the market, except occasional requirements of niche expertise or 3rd party opinions.
Maintaining a long-term relationship with an engineering company who has the best knowledge of your asset and has built up the significant expertise of it. This could apply to pipeline integrity, asset integrity and alike. Reason being, a new company might have to go through a large learning curve to get up to the speed, which ultimately costs money to an oil company. Look at options of lump sums per job scope, when applicable generally smaller scopes.
This would result in 1 best-value-for-money for an oil company, 2 provide required competition levels and 3 ensure that the engineering company is incentivized to give realistic estimates of timing required to complete a job.
- The oil and gas Engineering Guide - 3rd edition.
- Greenmantle (2th book of Richard Hannay).
- Principles of computerized tomographic imaging!
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Bookmarks Bookmarks Digg del. The time now is PM. All rights reserved. Discussion forum and a library of videos and photographs related to the petroleum industry. If there are any problem or complaints with one of the topics, please contact us Cookies help us deliver our services. The contractor had interest in the project proceeding as it had a good chance to execute it. We strived, challenged the design, and, jointly with the owner, reviewed and optimized each design criteria, challenged onerous requirements of the common engineering practices or owner specs and proposed alternatives.
We managed to get into the budget. Note that the project functional requirements and plant performance were not affected by the cost savings. Most of the cost savings we made could be applied on every project. I am convinced that there is considerable room for cost savings by applying such approach systematically.
Herve Baron - Oil and Gas Engineering Guide (2015, Technip).pdf
These cost reductions come from justified deviations from the owner specifications. There is much room for cost reductions as owner specifications have become very numerous and onerous. They were developed during the years when cost was no issue. First of all, at EPC tender stage, the EPC tender has no time to assess the full cost impact of these specifications, let alone propose alternatives.
Such reviews cannot take place during the tendering phase due to the effort required and lack of time. The Owner and contractor agreed a fixed price on the basis of the owner specs. Why would the owner relax the requirements of its specs? We must find a set-up that aligns the interests of the owner and the contractor towards cost reduction. The scheme does not incentivize the contractor to work hard on cost savings.
It neither offers the Client a price certainty. In such a scheme the contractor discloses the costs to the Owner. These costs are progressively firmed up as the project progresses. The owner is in a position to influence the costs by, e.
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The owner may also have the option to convert a portion of the job, such as main equipment supply, bulk materials supply and construction, to lump sums, at different times of the project. Purchase orders and sub-contracts would then be placed by the contractor who would bear the cost, schedule and quality risk. The key aspect to make such a scheme incentivize contractor to minimize costs is the type of compensation it receives.