QUE$TOR Offshore Training Nov 2009

QUE$TORQUE$TORPremier OilJames BlanchardJames BlanchardNovember 18th and 19th 2009

[email protected][email protected]

Contents

1 I t d ti1. Introductions

2. Cost estimation methodology and setting up a QUE$TOR gy g p $project

3 Capital cost component overviews the operating and capital3. Capital cost component overviews, the operating and capital cost reports

4. Modifying QUE$TOR projects using the project editor and viewer

5. Accessing, reviewing and modifying cost and technical databases

Copyright © 2009 IHS Inc. All Rights Reserved.

6. QUE$TOR future developments and wrap-up2

IHS Asia Pacific ENERGY teamMarina MarroncelliMarina MarroncelliRegional Director, Business [email protected]

Cahir O’NeillCahir O NeillAccount Manager, Korea and Indonesiacahir.o’[email protected]

Eil N M S i t K d Fl LiEileen Ng, May Saint Kang and Flora LimSales & Marketing Administration [email protected], [email protected], [email protected]

S kh t Si h R dhSukhwant Singh RandhawaCustomer Support Specialist, [email protected]

Yaxing Wang Technical Support Special, [email protected]


James BlanchardRegional Support [email protected]

3


Breaking the Ice

Wh W ?• Who are We?• Name and Area of Interest/Work

• What do we expect to achieve?• Ideas/process learning and/or confirmation

• How current work/interest could benefit from this Workshop?• Issues/Decisions that could be facilitated• Issues/Decisions that could be facilitated

Copyright © 2009 IHS Inc. All Rights Reserved. 4

IHS IntroductionIHS IntroductionThe source for critical information and insight

5

Who are we?

Th l di id f iti l t h i l i f ti d i i• The leading provider of critical technical information, decision support tools and related services

• Supporting 6 core industries, with expertise in many otherspp g , p y• Provide services to governments, multi national corporations, small

companies and technical professionals• In over 100 countries• In over 100 countries • Over 75,000 customers worldwide

• Maintain comprehensive set of databases, with both proprietary and gathered information, obtained through relationships with content providers worldwideHelps to facilitate decision making support key processes and• Helps to facilitate decision making, support key processes, and improve productivity

• History of serving customers for over 75 years


History of serving customers for over 75 years

6

IHS information domains

ENVIRONMENT ENERGYPRODUCT LIFECYCLE

SECURITY

Specialist in the field of

defense, security,

transport & law enforcement:

Provides information,

decision support tools &

related services to energy

Addresses concerns

related to environmental &

sustainability issues:

Provides technical

standards, codes,

government/military p

• Security Editorial

• Security Research

• Security Consulting

gy

industry:

• Research & Consulting

• Energy Editorial

• Hazardous & material

waste management

• Supply chain greening,

specifications &related

documentation:

• Specifications and


• Lloyd’s Register Fairplay (50%)

• Geologic & Exploration

Data Services

MSDS & chemical

management (dolphin)

Standards information

• Parts Databases

Energy overview: Generic O&G company investment workflow

Leading global provider of CORPORATE g g pcritical information, decision support tools and related services in the energy industry

SMART DATA COLLECTION FIND

OPPORTUNITIES

CORPORATE OBJECTIVES

Worlds most comprehensive global exploration, development and production database

Largest scouting network of Oil and Gas professionals - daily exploration and production is

it d i 180 t i

M&A Activity

monitored in over 180 countries

Industry standard for upstream and downstream intelligence$$

g

Information covers political, fiscal, contractual, geology, production and facilities

EVALUATE OPTIONSEXPLORE,

$$Copyright © 2009 IHS Inc. All Rights Reserved.

production and facilities

8

OPTIONSDEVELOP AND

OPERATE

QUE$TOR IntroductionQUE$TOR Introduction

Overview

QUE$TOR is a front end cost estimation tool• QUE$TOR is a front end cost estimation tool• CAPEX / OPEX / Production Forecast

QUE$TOR i d b i d t ti t f• QUE$TOR is used by engineers and cost estimators for• Prospect evaluation / Feasibility studies• Screening studies / Conceptual studies• Optimisation studies / Asset evaluations• Optimisation studies / Asset evaluations

• Designed to handle green field developmentsOffshore / Onshore / LNG• Offshore / Onshore / LNG

• Reliable, consistent approach to cost estimation• Developed and modified over +20 years

• Regional cost databases


g• Global coverage

Benefits of using QUE$TOR

R t bl th d l• Repeatable methodology• Confirm / enter prospect data• Generates production profiles (oil, gas and water)p p ( , g )• Generates field development plans• Calculates complete project capital and operating costs

Calculates decommissioning costs for all capital cost items• Calculates decommissioning costs for all capital cost items• Generates project schedules• Calculates an Investment and Production Profiles report for economic

analysis


Cost Estimation MethodologyCost Estimation Methodology

Project economics

ProductionForecast

Price

Net Cash Flow

PriceForecast

Fiscal M d lOPEX

ForecastTimeModel

CAPEXForecast


Time

Estimation basis

T ti “Middl f th R d” EPC t t t• Targeting “Middle of the Road” EPC contract cost• Pre-sanction costs excluded (FEED study, Environmental studies etc.)• Owner’s project management costs excludedp j g

• All costs in “Real Terms”• Pre-tax costs• No cost inflation / discounting


Project Cost Estimation“The only sure way to calculate the capital and operating costs of a project

is to add up all the money spent at the completion of the project”


QUE$TOR workflow

Create a Create a S h d lS h d lprojectproject Schedule

CAPEXSchedule

CAPEX

Field development schematic

Field development schematic

Select / confirm prime input

data

Select / confirm prime input

data

Generate investment

profile

Generate investment

profile

Run OPEX algorithmsRun OPEX algorithms

Create Field D l tCreate Field

D l tDevelopment Schematic

Development Schematic


QUE$TOR cost estimation

B tt ti ti i Q tit U it t• Bottom up estimation using Quantity x Unit rate• Equipment • Materials• Fabrication• Installation / Construction

Hook Up and Commissioning (Offshore)• Hook-Up and Commissioning (Offshore)• Design and Project Management• Insurance and Certification• Contingency (Up to P50 level)


Cost DatabasesCost Databases

Cost databases

R i l t d t h i l d t b• Regional cost and technical databases• 17 offshore• 11 onshore• Separate databases for each component, bulk factors and operating costs

• Costs updated twice a yearM l Q1 t• May release – Q1 costs

• November release – Q3 costs • Dedicated cost analysts ensure accuracy and consistency

• Vendors / Suppliers• Contractors / Fabricators• PublicationsPublications• Users


Cost and product update cycle

• 6 Monthly releases• 6 Monthly releases• May / November release cycle

• Database update• May release – Q1 costsMay release Q1 costs• November release – Q3 costs

• Software update• Bug fixesg• Enhancements• New features / components

• Release processCD di t ib t d t• CD distributed to users

• Release notes• Benchmarking study• Licence updateLicence update

• Software Hot fixes• Released for “critical” issues• Downloaded from FTP site


Main QUE$TOR support contact pointsAs part of the continuing licensing agreement for QUE$TOR, IHS offers a full technical support service via our London, H t d Si ffi B th ti d i i t l ti t th ti d d t di f thHouston and Singapore offices. Both computing and engineering support relating to the operation and understanding of the program are available.

Support e-mail address: [email protected] rope CIS Africa Middle East (London)• Europe, CIS, Africa, Middle East (London)

Tel: (+44) 208 6023800Fax: (+44) 208 6023805John Helliwell (Europe, Russia, Africa, Middle East)

il j h h lli ll@ihe-mail: [email protected]

• The Americas (Houston)Tel: (+1) 713 995 1764Fax: (+1) 713 995 8593Jonathan Stephens (North, Central & South America)e-mail: [email protected]

• Asia Pacific (Singapore)Tel: (+65) 6225 4166Fax: (+65) 6225 9694 James Blanchard (Asia, Australia)


e-mail: [email protected]

QUE$TORQUE$TORPremier OilJames BlanchardJames BlanchardNovember 18th and 19th 2009


QUE$TOR MethodologyQUE$TOR MethodologyPrime Input Data

Development tollgates

Exploration Tollgates

Pre-FEEDRegional

AssessmentDesign,

Construct &Commission

O t E it

Exploration & Discovery

Pre-

Appraisal

FEED

Strategic

Concept

OpportunityDefinition

OpportunityIdentification

Strategic

CountryEntry

Pre-

OpportunityCapture,

Finance &Market

Feasibility

ProjectDelivery

OperateAsset

ExitAsset

PreFeasibilityConcept FeasibilityStrategic

Screening

ConceptTollgate

StrategicScreeningTollgate

PreFeasibilityTollgate

FeasibilityTollgate

Access SelectAppraisalDefine/Execute Operate

Many Fields/Prospects ManyScenarios

OptimisePlan

CarryoutPlan


Cost estimate classification


Source: AACE International Recommended Practice No. 18R-97

Generic Process FlowRe-injection

Processing Compression& Metering

Gas

Export

Flare?

Wells Wellhead / Manifolding Separation

Oil

Processing Storage

Oil

WaterExportPumps

& MeteringTreatment

& Metering

Utilities Power Quarters Drilling

Re-injection Disposal

Control


Utilities Power Quarters DrillingSystems

Define project

• Select units set, Imperial, Metric, Oilfield or users own

• Select main product

• Select field location to obtain default typical field data extracted from the extensive IHS IRIS21 E&P database

• Create procurement strategy or select from list of previously defined onesp y

• Select technical database, default is set by the field location


Cost databases – procurement strategy

• Can optionally specify the currency to be used for all costs and the exchange rate to the US$

• Select cost database to• Select cost database to be used for equipment, material, fabrication etc.


Field level details

• Default field data read from IHS Energy database can bedatabase can be overwritten if required

• Input units for any p yselected input value can be changed ‘on the fly’


QUE$TOR – Profile Generation

• Associated gas profile calculated automatically

All l b dit d• All values can be edited

• Automatically generates production profile p pparameters

• Field life affects operating costscosts

• Plateau rate used to size facilities

• Production rates can be edited


Concept selector

• 14 predefined concepts

• Suggests concept based l i fon analysis of

• Water Depth• Reserves• Number of wellsNumber of wells• Distance to

Infrastructure

• Alternative export options

• Development concepts can revised at the Fieldcan revised at the Field development schematic by adding or removing components and links


QUE$TOR MethodologyQUE$TOR MethodologyField Development Schematic - FDS

QUE$TOR – Cost Summary & Field Development Schematic

• Automatically calculates all component costs and populates the


y p p pcost tree using QUE$TOR defaults in seconds

Component Listing - Offshore


Component Listing – Offshore ctd.


QUE$TOR MethodologyQUE$TOR MethodologyDetailed Costing

Capital cost estimation

QUE$TOR l l t it l t f h t i t• QUE$TOR calculates capital costs for each component in terms of:

• Equipment q p• Materials• Fabrication

Installation• Installation• Hook-Up and Commissioning (Offshore)• Insurance• Design and Project Management• Contingency


Example - topsides cost estimation

QUE$TOR calculates a weight for each item of equipment or• QUE$TOR calculates a weight for each item of equipment or system

• This is multiplied by a unit cost to give a cost p y g• QUE$TOR then applies bulk material factors (te/te) to calculate

weights for piping, electrical etcSteel weights calculated using algorithms specific to substructure• Steel weights calculated using algorithms specific to substructure type

• Steel and bulk material costs multiplied by fabrication unit rates • Installation durations multiplied by vessel day rates• Atshore, Inshore, Offshore HUC calculated

D i PM C tifi ti d C ti li d t l t• Design, PM, Certification and Contingency applied to complete cost estimate


Detailed component cost


CAPEX MethodologyCAPEX MethodologyCapital Cost Scheduling

Capital cost scheduling

Built in schedules developed• Built in schedules developed from project analysis

• Start date and duration of h ti it b dj t deach activity can be adjusted

and ‘locked’• Uniform, triangular, down

t & d li dpayment & delivery and user defined cost distribution profiles available

• User can adjust the duration and start date of each activity via the Gantt chart

• Shows 1st oil date• Option to show schedule in

project or calendar months


OPEX MethodologyOPEX MethodologyOperating Expenses

OPEX methodology

QUE$TOR d t i l t OPEX % f CAPEX• QUE$TOR does not simply generate OPEX as % age of CAPEX per year as this is not field specific or accurate

• QUE$TOR splits OPEX into the following categoriesQUE$TOR splits OPEX into the following categories• Operating Personnel (incorporates regional shift patterns)• Inspection and Maintenance (labour/spares/surveys/pigging)• Logistics and Consumables (helicopters/boats/chemicals)• Well Costs (routine/non-routine)• Field and Project OPEX (onshore admin/supply base/support)j ( pp y pp )• Tariffs (paid and received)

• Details of personnel, wells, rates, weights, distances are carried f d f CAPEX f i OPEXforward from CAPEX for use in OPEX


OPEX cost summary

• Yearly operating costs

• Details for each cost centre

• OPEX easily optimised


QUE$TOR MethodologyQUE$TOR MethodologyInvestment and Production Profile

Investment and Production Profile

• Consolidates CAPEX, OPEX and production for economic analysis

• Allows preliminary p yscreening based on cost/boe

• Can be exported directly into AS$ET for economicfor economic analysis


Documents

QUE$TOR Offshore Training Nov 2009