Insights

Definition: The acronym “EPC” stands for “Engineering Procurement and Construction”. Sometimes “EPCC” may be used for “Engineering Procurement, Construction and Commissioning”. In both cases, it refers to the execution phase following the “FEED” during which the engineering companies design all the details of the project for execution, proceed to the procurement of all the equipment […]

For 2011, Shell reported $470 billion revenues and $37 billion in free cash flow, well supported by an average price of the barrel over $100 and a shift in the gas market toward countries with higher added value. Today the gas business represents more than 50% of Shell revenues. With a cash flow expected to […]

Definition: This acronym “FEED” stands for the “Front End Engineering and Design” of a project. The “FEED” may also be called “Basic Design” or even “Basic”. This phase follows the “Feasibility Study” to describe in more details the different technical and financial options considered during the feasibility study. The “FEED” will define the process, the […]

 INPEX has established a joint venture with Total, a France-based firm, with the parties holding 76% and 24% shares, respectively. They announced on January 13th 2012 that they have taken the final investment decision for the Ichthys liquefied natural gas (LNG) project in Australia. The project budget jumped by 70%, from US$20 billion dollars to […]

Through the Lagosta III well, located in the gas field Rovuma Basin Area 1, Mozambique, Cove Energy along with Anadarko Petroleum has discovered unexpected quantities of gas. The high quality of this gas and its geographical position fit perfectly with the demand in Asia where gas prices are attractive and sustainable. Since then, Shell and […]

Definition: The “Feasibility study” is the first stage of a project during which the End User generally supported by an engineering company will investigate the most convenient technologies or processes to be used. This “Feasibility study” will also integrate all the corresponding costs aspects. The conclusions of the “Feasibility study” are barely a straight forward […]

Saudi Aramco Asia Company Limited (SAAC), a subsidiary of Saudi Aramco, and PT Pertamina (Persero) signed a Memorandum of Understanding to jointly evaluate the economic feasibility to build an integrated refining and petrochemical project in Tuban in East Java, in the Republic of Indonesia. The proposed refinery and petrochemicals project will be designed to process […]

Last week the North Sea crude quoted in euro exceeded with 93.63 euro a barrel the previous peak of July 2008 at 93.5 euro. We were used to see the barrel price in US dollars on high levels, especially since 2008 with the famous 147 US dollar historical record. But at that time, the economy […]

Definition: An Oil & Gas and Petrochemical Project refers to an investment planned in the future by an End User or an operator. By definition the word “Project” shall be used until this investment turns into a formal order for execution when the “Project” becomes therefore a “Contract”. Comment: Compared with other businesses, the border line […]

Chevron is already the first oil producer in Kazakhstan with interest in the two largest local oil fields, Tengiz and Karachaganak. With the Future Growth Project, Chevron and its affiliate, TengizChevrOil (TCO) intend to expand the Tengiz field in Kazakhstan from 250 000 b/d to 300 000 b/d. At this early stage, the total cost is estimated […]