Cost Engineering is experienced in working for the offshore industry. As an industry which faces a very broad range of cost risks, the offshore industry benefits greatly from a thorough approach to its cost engineering.
One of the projects Cost Engineering has worked on was a conceptual design and layout for a wellhead and production platform which was defined from a zero base level. It was meant for a field approximately 12 kms offshore which contains 36 API degree oil and associated gas. The export route is through an existing offshore complex located to the northwest of the platform. Because of the requirements for downhole ESPs, dry trees have been selected for all production wells in this field to facilitate access and work over. The water depth at the field is 20 meters (LAT). The designs in this project are for one wellhead and one bridge linked production platform. Due to drilling constraints the wellhead platform is required in 2010 and the production platform is to achieve first oil in 2011.

For this project Cost Engineering was asked to:

  • Establish a weight estimate based on the preliminary info available at the end of the FEED phase.
  • Establish two cost estimates. One with an accuracy of ±30% and a second one with accuracy of ±15% both including construction and installation.
  • Develop the cost estimate for the platforms up to a certain level of reliability in order to make a validated assessment of the total investment cost.

Project_references_Offshore  "Reducing risk along with your cost"

Heerema Group

Recently, Heerema Group has purchased Cleopatra Enterprise to be able to estimate the cost involved in Heerema Group projects better. Cleopatra Enterprise is mainly used for tendering projects for the Heerema Group, which are as diverse as constructing a production platform to laying pipes on the seabed. Besides enabling Heerema Group to estimate their cost far more accurately, Cleopatra Enterprise also gives Heerema Group the ability to run scenarios. These scenarios enable Heerema Group to more accurately assess the most cost effective way to execute projects, as well as assessing the risk involved in the choices that are to be made.

Part of the implementation of Cleopatra Enterprise was the construction of a specific knowledgebase with estimating data for Heerema Group. This task was performed by Cost Engineering’s certified cost engineers, who did an extensive analysis of internal and external data and combined this into a tailor made knowledgebase to be used by Heerema Group for their projects.