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Context / Scope of project
Our client was in the process of developing the Final Investment Decision (FID) paper for a multi-billion dollar CSG/LNG1 project. PIP was engaged to faciltate a Rapid Optimisation of Capex (ROCX) on the project’s upstream operations as the client believed there were significant upside opportunities not reflected in the initial Capital Estimate. In the first phase (3 ½ weeks) the client team (engineers, commercial staff and managers) identified capital savings opportunities amounting to 28% of the initial budget using PIP’s highly structured approach with help and facilitation from the PIP team. After the first phase, the PIP team continued working with engineers and estimators to integrate these capital reduction opportunities into a revised business case.
Client achieved:
- Identified and compiled 100+ CAPEX reduction ideas with the potential to reduce initial CAPEX by more than 28%
- Achieved more than $ 1.6 bn (15%) reduction of CAPEX in revised FID business case
- Placed a further $1.5bn ideas in the stretch savings list which the client team with PIP support is working on to include into the estimates
- Prioritised and documented details of all value-enhancing ideas suitable for implementation at later project stages.
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What we did:
Phase 1:
- Conducted more than 18 structured workshops and deep dive sessions to identify and detail value enhancing opportunities (predominantly in CAPEX, but also in ramp-up optimisation)
- Documented, prioritised and valued all the generated ideas
Phase 2:
- Worked with the client engineers to identify changes in approach, design and specifications across the upstream value chain including field development plan, drilling and completion, gathering, gas plants, water treatment and pipelines
- Centralised all the improvement ideas into one tracker with standard reporting to drive ideas into conclusion
- Conducted more deep dive sessions into high opportunity areas such as wellhead design, gathering network and electrification options
- Engaged the management team on a regular basis to accelerate decisions on high value ideas.
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