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Conceptual Engineering
After feasibility has been confirmed and a base field development
plan outlined, the conceptual engineering phase can start. The purpose
of the conceptual engineering phase is to establish an optimum solution
to take forward to the Front End Engineering and Design
(FEED) phase. Conceptual engineering is divided into concept
development and concept selection. Concept development involves
developing ideas, options and alternatives - with the objective
of ensuring that all options/opportunities have been identified
and developed. Concept selection involves studying, screening and
re-analyzing options until it can be justified and demonstrated
which of the concepts should be selected.
The challenge during the conceptual engineering phase is the large
number of conflicting issues which impact on the attractiveness
of an option. Thus, there is a great need for vigorous optimization
during conceptual engineering.
Integrated Optimization Framework
EPCONSULT is expert in Conceptual Engineering
Studies and we have developed an in-house tool for the conceptual
engineering phase named Integrated Optimization Framework
(IOF). IOF was developed with the objective of making the
conceptual engineering phase simpler and more focused. At the end
of a concepts study, the IOF provides an audit trail that demonstrates
and justifies the concepts that were screened out and the concept
that was selected.
The IOF involves the following study features:
Engineering |
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Different engineering disciplines |
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Technology |
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Operations |
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Maintenance |
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Integrity |
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Schedule |
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Resources |
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Risk |
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Technical |
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Economical |
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Commercial |
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Organizational |
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Political |
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Economics |
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Cost Engineering (CAPEX and OPEX) |
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Life Cycle Costing (LCC)/NPV, UTC |
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Benchmarking |
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Inflation, discount rate, hurdle rates, insurance, uncertainties,
etc. |
During the IOF process our highly skilled teams of engineers and
consultants will make use of workshops, work-sessions and desktop
analysis.
Our Approach
A conceptual engineering study that makes use of our IOF approach
takes the following form in an iterative approach:
| 1. |
Initiation: Data gathering and discussions.
Setting objectives and boundaries with client. Establishing
critical success factors (CSF). |
| 2. |
Conceptual Development: Making use of client data and
information and our internal experience this task will develop
the best technological options and alternatives for project
development, taking into account optional drainage scenarios,
production facilities, business risks, etc. |
| 3. |
Facilities Definitions: The objective of this step is
to establish initial sizing of main equipment for the different
concepts and to spot key issues with different concepts. |
| 4. |
Value Engineering: Value engineering workshops are commenced
at an early stage with the objective of stimulating creative
thinking with a 'blue-sky' approach. The value engineering
workshops address functional design, value creation, risk
analysis, cost estimation and options screening. |
| 5. |
Desktop Analysis: Following each workshop, the many issues,
ideas and concerns will be addressed at EPCONSULT's
office. Different types of engineering analyses and risk and
costing analyses will be performed to sum up workshop findings
and draw main conclusions. The workshops, together with the
follow-on analyses, will screen out most of the options, and
only leave a few preferred alternatives open for the next
steps. |
| 6. |
Risk Assessment: Having carried out the value engineering
analysis and eliminated options and alternatives, a comprehensive
risk assessment workshop is carried out for the options still
under consideration (see Business Risk Assessment). |
| 7. |
Desktop Analysis: Treatment and analysis of the outcome
from the risk workshop: The value engineering findings and
the risk assessment findings will start to present a clearer
picture as to the conceptual options still in the 'running'. |
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Economics: The previous phases of value engineering and
risk assessment focused on cost engineering, CAPEX estimation
and financial risks. This phase will use that information
together with operational expenditures for the different options
still in the running and will use other financial indicators
and techniques to calculate the NPV or UTC on the basis of
a life cycle costing (LCC) analysis (see Cost and Economics
Optimization) |
| 9. |
Recommendation: At this stage of the conceptual engineering
phase there will have been enough assessment and analysis
carried out to recommend a conceptual solution to take forward
to Conceptual Design. The Conceptual Design will be completed
with the objective of creating a solid base for FEED. |
A good example of a conceptual engineering study is the integration
of an offshore satellite field into an existing hub.
We would consider a large variety of features of the new satellite
field, including anticipated reserves in place and fluid properties.
Subsequently different conceptual solutions could be analyzed, e.g.
standalone platform with processing only, processing and quarters,
processing and quarters and drilling, unmanned, etc, with infield
pipelines to the hub or to an adjacent export pipeline. Alternatively,
an all-subsea development concept could be considered, with subsea
tie-back to an existing export pipeline or the existing hub, considering
a number of solutions such as injection/controls umbilical, pipe-in-pipe,
bundles etc., and defining required additional processing facilities/capacity
on the existing platform. |
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