Services offered by the Consulting Division of Huddleston Energy for developments and capital projects in the process & energy industries include:
- Screening Economics
- Conceptual Design
- Design Basis Memorandum
- Development Plans
- Business Plans
- Project Economics
- Market Surveys
- Environmental Surveys
- Safety Surveys
- New Technology
- Due Diligence
- Expert Witness
Project Cost Reduction
- Zero-Based Analysis
- Bottom-up Analysis
- Top-down Analysis
- Major Capex Reduction
- Value Engineering
Key Practices for World-Scale Project Execution
- Cost & Weight Estimation
- Availability Analysis
- Supply Chain Management
- Project Management Systems
Huddleston Energy has been involved over the past 32 years on the front-end of developments World-wide, assisting process & energy companies to achieve optimum plans for the profitable development of their natural resources and markets for products. A major proportion of this work has been marginal developments where the application of new, sometimes novel, concepts and engineering has led to significant schedule and Capex savings.
Huddleston Energy has the professional capability, experience, software and databases to produce quality Development Plans, quickly and cheaply. We are able to give an independent assessment, review or audit of an Operator’s or Consultant’s Development Plan, relative to International standards, experience and practices. This work will highlight the incremental development costs for options above the minimum that is safe and legal. These incremental investments are often ones preferred by the Operator or imposed by the culture of the area.
‘Front-End’ is a generalization for all the development planning work carried out after an opportunity is recognized and before engaging a major contractor. It is at this stage that the key decisions determine 80 per cent of the development budget and it is therefore important to ensure that a thorough review of all the options is undertaken, to develop the most economic plan before undertaking large value contracts.
Front-End Activities can be broken down into the following phases and subdivisions:
- Screening Economics
- Feasibility Studies
- Conceptual Design
- Preliminary Engineering
- Front-End Engineering Design
All Front End work requires the application of a clear overview logic by experienced professional engineers, using good cost and technical software and databases to provide high speed, consistent and accurate solutions. Fast software is essential to enable plans to be revised “instantly” when outside factors change, and to permit facilities optimization in a “what if?” alternative situation.
Feasibility Studies determine whether a natural resource or business opportunity can be commercially developed. This is best done through the consideration of all the development options, usually technology and throughput. The options are reviewed in order of increasing development Capex per unit of throughput.
An offshore oil development example is illustrated in the “Seriatim of Major Development Options” below. The same ‘Seriatim’, ‘bottom-up’ or ‘wedding cake’ approach is applied to selection of major cost drivers within each option.
|Seriatim Of Major Development Options|
|o||Host In A Cluster|
|Ext. Well Test/Early Prod Sys.|
|Extended Well Drilling|
This structured “bottom-up” approach leads to the establishment of the optimum overall development approach, and the boundary conditions for specification of the technology and plant throughput required.
Conceptual Design is to reduce the major development options to a single economically optimized case and to establish the project budget for Capital and Operating expenditure, and the overall schedule.
To achieve this, the size of the natural resource, or market for products, needs to be reasonably well bounded. Several of the best options from the Feasibility Studies are studied in more detail with emphasis on optimization of the major cost drivers. Commercial discussions on infrastructure for utilities and transportation to markets continue while facilities work involves the identification and resolution of the larger technical uncertainties.
If you are the owner, partner or creator of an undeveloped energy business opportunity, contact Huddleston Energy immediately for a discussion or review.