Page 339 - Hydrocarbon Exploration and Production Second Edition

326 Phasing and Organisation

Feasibility Is it viable?

Definition How should it look?
Preliminary How can it be built?
Design What will it cost?

Detailed Prepare the assembly
Design instructions Increasing Costs

Procurement Get the bits

Construction Build it

Commissioning Make sure it works

Post Project Could we have
Review done it better?

Figure 13.1 Project phases.

Also note that an alternative set of nomenclature for the same phased approach is
discussed in Section 15.3, Chapter 15.

13.1.1. Project phasing
The first three phases listed above are sometimes defined collectively as the pre-
project stage. This is the stage in which ideas are developed and tested, but before
large funding commitments are made.
In the feasibility phase the project is tested as a concept. Is it technically feasible
and is it economically viable? There may be a number of ways to perform a
particular task (such as develop an oil field) and these have to be judged against
economic criteria, availability of resources and risk. At this stage, estimates of
cost and income (production) profiles will carry a considerable uncertainty range,
but are used to filter out unrealistic options. Several options may remain under
consideration at the end of a feasibility study.
In the definition phase options are narrowed down and a preferred solution is
proposed. The project becomes better defined in terms of what should be built
and how it should be operated, and an assessment of how the project may be
affected by changes beyond the control of the company (e.g. the oil price) should
be made. Normally a clear statement should be prepared, describing why the option
is preferred and what project specifications must be met, to be used as a basis for
further work.