Eliminate Surprises From Your Concept Selection Estimates

Industry data shows that the chosen field development concept has a significant impact on project outcomes. In fact, irrespective of how good front-end engineering design (FEED) is, a sub-optimal field concept can lead to poor asset outcomes―cost overruns and/or production shortfalls. Most companies and project teams start with a wide range of concept choices that are progressively narrowed down to either one or two selected concepts that are then chosen for FEED. Concept selection is often done using either a proprietary economic model or commercially available concept selection software. The potential shortfalls of these tools are:

• Internal models and tools are often limited to internal company data and/or some joint venture (JV) project data
• Internal or commercial software may not control for project practices that drive results
• These tools do not address the fundamental root causes that lead to the historically seen outcomes associated with certain concepts (e.g., an IPA study on Floating Concepts proved that FPSOs are associated with an increased frequency of operability problems leading to production shortfalls)

IPA provides Concept Selection services, powered by our extensive project database and supported by our proprietary statistical models, to predict the expected cost of a selected field development concept(s). We then overlay this prediction with historically seen cost overruns, schedule slips, production shortfalls, and operability problems associated with different concepts. Clients can use this information in their economic models to make selections based on robust industry data rather than just contractor-generated estimates. This quick turnaround service has been used effectively by clients in concept selection stages, and in some cases to bid in licensing rounds.