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Thumb Rules For Engineering Costs

Engineering costs for oil and gas projects typically range from 5-15% of total project costs (CAPEX), with the percentage lower for larger projects and higher for smaller ones. An example table shows engineering costs as a percentage of CAPEX decreases from 15% for a $100 million project to 6.7% for a $1 billion project. Costs are broken down by project phase from concept work to follow-on engineering.

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224 views1 page

Thumb Rules For Engineering Costs

Engineering costs for oil and gas projects typically range from 5-15% of total project costs (CAPEX), with the percentage lower for larger projects and higher for smaller ones. An example table shows engineering costs as a percentage of CAPEX decreases from 15% for a $100 million project to 6.7% for a $1 billion project. Costs are broken down by project phase from concept work to follow-on engineering.

Uploaded by

Geetha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Project: XXX Prepared By: VK

Location: XX Date: 18-Feb-17


Rev: 0
For most Oil & Gas projects, Engineering costs generally ranges
between 5-15% of the overall CAPEX, depending on scope, project
Thumb Rules for Engineering Costs size, complexity, brownfield / greenfield etc.
Typical Indicative engineering costs for the various projects
The percentage will be on the lower end for a larger CAPEX and will
tend to be on the higher end for smaller CAPEX projects

Indicative CAPEX for the various projects $100 mil $200 mil $500 mil $600 mil $1,000 mil
Indicative Indicative Indicative Indicative Indicative
% of Project 1 % of Project 2 % of Project 3 % of Project 4 % of Project 5
CAPEX CAPEX CAPEX CAPEX CAPEX
Concept work 0.50% $0.5 mil 0.50% $1.0 mil 0.20% $1.0 mil 0.20% $1.2 mil 0.15% $1.5 mil
Pre-FEED Engineering 1.00% $1.0 mil 1.00% $2.0 mil 0.40% $2.0 mil 0.40% $2.4 mil 0.25% $2.5 mil
FEED Engineering 2.00% $2.0 mil 2.00% $4.0 mil 1.50% $7.5 mil 1.25% $7.5 mil 1.00% $10.0 mil
Detailed Engineering 7.50% $7.5 mil 6.00% $12.0 mil 6.00% $30.0 mil 6.00% $36.0 mil 3.50% $35.0 mil
Procurement services 2.00% $2.0 mil 1.50% $3.0 mil 1.00% $5.0 mil 1.00% $6.0 mil 1.00% $10.0 mil
Follow-on Engineering 1.50% $1.5 mil 1.50% $3.0 mil 1.00% $5.0 mil 1.00% $6.0 mil 0.50% $5.0 mil
Site Survey Works 0.50% $0.5 mil 0.50% $1.0 mil 0.50% $2.5 mil 0.50% $3.0 mil 0.25% $2.5 mil
Expected indicative % (of total CAPEX)
for all scope 15.0% 13.0% 10.6% 10.4% 6.7%
Expected cost for all scope $15.0 mil $26.0 mil $53.0 mil $62.1 mil $66.5 mil

Note:
All values are including any project management, project support and other indirect disciplines as required

402884940.xlsx 11/25/2018

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