Cost Premise - 2011

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BP11 PROGRAMME PREPARATION
COST PREMISES
FOR
SURFACE FACILITIES
March 2011
Costs herein are much more than contracts costs. Contact the central cost estimating team for assistance with Company estimates.
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CONTENTS
1. Objective ........................................................................................................................................ 4
2. Basis and Assumptions for Premises ............................................................................................. 4
2.1. Basis for the Estimation of Projects Costs and Costs Phasing............................................... 4
2.2. General Assumptions ............................................................................................................. 4
2.3. Application ............................................................................................................................. 4
2.4. Definition of terms ................................................................................................................. 5
3. Facilities Cost Guidelines .............................................................................................................. 6
3.1. Flowstations ........................................................................................................................... 6
3.2. Temporary Oil and Gas Production Facilities (TPF) ............................................................. 7
3.3. Multiphase Pumps (MPP) ...................................................................................................... 7
3.4. Major Flowstation modifications/extensions ......................................................................... 7
3.5. Gas facilities:.......................................................................................................................... 8
3.5.1. Gas Processing ............................................................................................................... 8
3.5.2. Surge Vessel (SV), Low Pressure (LP) and Export Gas Compression .......................... 9
3.5.3. Compressor Rentals ....................................................................................................... 9
3.6. Water Injection Plant ............................................................................................................. 9
3.7. Power Systems ..................................................................................................................... 10
3.7.1. Power Generation & Utilities ....................................................................................... 10
3.7.2. Power Transmission by Submarine Cables/Overhead Pylons ..................................... 11
3.8. Pipelines ............................................................................................................................... 11
3.9. Flowlines .............................................................................................................................. 12
3.10. Other Oil & Gas Infrastructure Projects .............................................................................. 12
3.11. Non Oil/Gas and Common Infrastructure Projects (Including Drilling Locations)............. 13
3.12. SCD Projects: General Guidelines ....................................................................................... 16
3.13. Abandonment ....................................................................................................................... 16
3.14. Land Acquisition .................................................................................................................. 16
4. Inflation Factors ........................................................................................................................... 16
5. Appendices ................................................................................................................................... 16
5.1. Power Formular For Calculating Facility Costs .................................................................. 16
5.2. Reference Projects/Contracts ............................................................................................... 16
5.3. Abbreviations ....................................................................................................................... 16
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COST PREMISES FOR SURFACE FACILITIES
(BP11 PROGRAMME PREPARATION)
1. Objective
To provide a consistent and transparent basis for estimating the costs and phasing of oil & gas facilities for the
BP11 Programme. Document also gives quick cost information for Screening (Type 1) Capital Expenditure
(CAPEX) estimates.
2. Basis and Assumptions for Premises
2.1. Basis for the Estimation of Projects Costs and Costs Phasing
The cost data provided herein are 50/50 estimates (i.e. inclusive of contingencies) suitable for Type 1 cost
estimates, with an accuracy of +40%/-25%. Costs are in Estimate Date Money (EDM) with a reference date of
1/7/2010. They are to be used as basis for input to the SPEED Project Proposal Sheet (SPPS) for project
economics. The estimates are majorly for Onshore (land/swamp) developments, valid for the East and the West
unless specifically noted otherwise. For offshore development cost estimates, the CES should be used.
The estimates are in line with the Shell Group 2011 Capital Cost Outlook for Projects and also reflect the impact
of current security situation in the Niger Delta.
It should be noted that unless otherwise stated, the cost estimates contained herein are deemed to cover all phases
necessary for the completion of the full scope of the project as presented in the SPPS including the cost of studies,
design, project management, procurement, construction and commissioning up to project hand over and project
close-out as appropriate, with exclusions as noted in 2.2 below. Owners costs, customs duty, VAT and EPC
Premium are included in line with Group guidelines.
These costs are for the specific purpose of producing estimates for economic analysis, business planning
and portfolio analyses and reflect the current market within the oil and gas capital project industry. They
are not targets for contract negotiation nor should they be used in discussions with contractors or suppliers.
Indeed it should be the aim in awarding any new contracts, to achieve lower costs than indicated here.
Project timing is calculated from the approval of the Basis for Design to the facility on stream date (post
commissioning).
2.2. General Assumptions

The costs contained herein assume:
a) in house development of concepts up to completion of Basis for Design
b) prompt payment of contractors and timely project cashflow
c) no major scope changes as compared to previous projects.
2.3. Application
This document aims to cover the most repetitive projects; engineers can apply the figures from this document
directly in the SPPS sheet. For facilities not contained in this document, advice can be sought from the SPDC
Central Cost Estimating Team.
This document does not replace the cost estimating tools available, it only pools together high level estimates for
elements commonly encountered during selection of evaluation options, including oil & gas infrastructure and
location preparation, at Screening and Study project phases. Its purpose is to facilitate consistency and
transparency of cost estimating for the SPPS for the BP11 programme.
Projects which make the Screening criteria will need to have the facilities estimates revised to Types 2 & 3
estimates for study and budget purposes. For brownfield projects (typically from Asset Engineering) which are
normally planned and executed within one full planning cycle, it is advised that a detailed estimate (+ 10%/-5%
accuracy) be prepared for input into the SPPS.
In case an estimate prepared using one of the Shell recommended cost estimating tools is available, such estimate
should be used in the SPPS.
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2.4. Definition of terms
Common terms encountered during the portfolio generation stage are defined as follows for clarity and
understanding.
a) CAPEX project - Capital expenditure

These are project expenditure which result in an increase in the asset base of the company, and upon completion,
need to be capitalised for tax purposes.
b) OPEX project (or EOM) - Extra-Ordinary Maintenance expenditure

These are project expenditure, which necessarily have to be incurred on a one-off basis to maintain existing
facilities. These expenditure may not be capitalised; in case of doubt, please clarify with the focal points in the
BSUs.
c) OPEX recurrent
These are recurring expenditure necessary to operate and maintain existing facilities.
d) OG - Oil and Gas Generating project

These are new Capex projects that directly increase the company's oil and gas reserves and production capacity.
e) OGI - Oil and Gas Infrastructure

These are new Capex projects that are directly necessary for the successful operation of existing or new oil and
gas generating facilities. Examples of this category include Trunk lines, oil field accommodation facilities,
Terminals, civil, process and utility projects.
f) NOGI – Non Oil and Gas Infrastructure

These are new Capex projects which have no direct relationship with oil and gas production such as welfare
projects, main office type projects, non oil field residential accommodation, etc.
g) Type 1 Estimates (Screening – DG2)

An estimate type based on scope derivation comprising a system group of hardware items i.e. flowstation,
compressor station, gas plant, etc. It is used for Screening purposes with an accuracy of +40%/-25%. It should be
used for projects that will be realised in the later years of the five year planning period.
h) Type 2 Estimates (Study – DG3)

An estimate type based on scope derivation comprising systems of hardware within a system group i.e. gas
dehydration, export pumping, etc. It is used for Study type estimates with an accuracy Level of +25%/-15%.
Therefore, when an option has been selected from the several scenarios based on project economics, the cost
estimate for the selected option should be updated to Type 2. It should be used for projects with execution
commencing later than the first year of the five year planning period.
i) Type 3 Estimates (Budget – DG4)

These are estimates developed for a given project at the end of the front-end engineering design (FEED) usually
based on equipment & materials breakdown e.g. pumps, vessels, piping, etc. It is used for budget purposes with an
accuracy of +15%/-10%. Therefore, at the end of the front end engineering design, the cost estimate for the
selected option should be updated to Type 3 for inclusion in the budget. Type 3 Estimates should be used for
projects intended to be executed in the first year of the five year planning period.
j) Type 4 Estimates (Control – Execute)

Type 4 estimates are developed in the Execute phase (detailed design and post) and are utilised for budget
revisions/changes and cost control during execution.
k) 50/50 Estimate
A cost estimate which includes all the known and predictable costs, including estimating allowances and
contingency. It has a 50% confidence level (i.e. an equal chance of the built cost of the project being exceeded or
being lower).
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l) 90/10 Estimate
The term 90/10 estimate is the 50/50 estimate onto which an allowance has been included to allow for the risk of
overrunning this estimate (overrun allowance). The overrun allowance caters for exceptional factors, which can
affect project costs e.g. major exchange rate movements, political factors, technological innovation, etc. This
estimate has a 10% chance of final expenditure being greater than the estimate.
Estimate Accuracy vs Type

Phase Phase 2 Phase 3 Phase 4
1 & Assess
Identify Select Define Execute
Type 1 Type 2 Type 3 Type 4
Screening Study Budget Control
90/10 40% (FID)
25%
15% 90/10
10%
50/50 50/50
40% 28% 15% 10%
Base
-5% 10/90
-10%
Base
-15%
10/90 -25%
Figure 1: Estimating Types/Accuracy (see note on contingency in m below)
m) Contingency
Contingency is added to the base estimate to allow for incomplete project definition and specific project risks to
bring the estimate to a 50/50 level. It generally decreases over the project phases as the scope definition and
execution strategies mature.
Note that the contingency Types (40%, 28%, etc.) indicated for Types 1 to 4 estimates in above figure are
representative levels derived in SPDC using the deterministic method for assessing contingency, which takes into
account the generic risk profile of the project based on the TECOP aspects.
For general cost estimating guidelines please visit the Project Guide 03 (Capital Cost Estimating).
3. Facilities Cost Guidelines
3.1. Flowstations
The cost estimates presented are for flowstations with and without integrated associated gas (AG) booster (3.5 to
12Barg) compressor. They were derived from the CES.
Table 3.1
FACILITIES – Land Flowstation, USD Flowstation with AG Remarks
Million Booster, USD Million
30Mb/d with 5MMscf/d AG 60 85
30Mb/d with 10 MMscf/d AG 60 90
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90Mb/d with 30 MMscf/d AG 100 170 Two trains as basis
Costs are typically phased in a four year period as follows: 2:13:45:40. Above costs should be assumed for an
equivalent concrete barge flowstation.
3.2. Temporary Oil and Gas Production Facilities (TPF)

These costs are based on quotations received from equipment lease contractors and experience on recent similar
projects.
Table 3.2
Total Cost, USD Million
CAPEX: 22
Site Preparation/Installation
OPEX: Lease rate/mth (30MBD/10MMscf/d – suction/discharge of 1.0
3.5/12barg)
OPEX: Lease rate/mth (45MBD/10MMscf/d suction/discharge of 1.2
3.5/12barg)
These costs are for concrete barge mounted facilities and same costs should be assumed for installation on land.
For rental periods in excess of four years 50% of monthly lease rate should be applied from end of the fourth year.
Apply a single year cost phasing for the site preparation and installation.
3.3. Multiphase Pumps (MPP)

Estimates presented are based on Contractors budget quotes for different capacities. They are on the basis of gas
with a GVF of 97% (GOR 1000 scf/bbl).
Table 3.3 – Multiphase pumps (Swamp)
At least $4mln. of above costs is for site preparation/piling which can be discounted for installation on land.
Number of MPP units required is less with higher suction pressure i.e. 6 barg or reduced GOR. Please note that
electric driven pumps can be deployed as larger pump units and hence less number of pumps. There may however
not be a big cost difference from gas engine if cost of power generation is included in the consideration. Cost
phasing is 10:50:40.
3.4. Major Flowstation modifications/extensions

There are no straightforward estimates for undefined brown field activities such as capacity upgrades, extensions,
etc. It is suggested that the scope of work for brown field modifications be prepared by listing hardware items and
piping required and the scope estimated using recent similar credible contracts as basis. Where such data is
unavailable the cost estimating team should be contacted for assistance.
The under listed procurement estimates (please note these costs are ex-works Lagos except where indicated as
FOB) are derived for common equipment/hardware encountered in flowstation modification. Vessels prices
shown are based on skidded vessel with all valves and instruments.
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Table 3.4
EQUIPMENT COST, USD Million
6 x 4" Inlet manifold skid (600#); 6 x 4" Ligaments, 3 x 10" Headers 1.6
6 x 4" Inlet manifold skid (1500#); 6 x 4" Ligaments, 3 x 10" Headers 2.3
Standard 30MBD HP/LP separator 1.4
Standard 30MBD Test/XHP separator 1.7
Standard 30 MBD Surge Vessel 1.5
Flare Knockout Vessel Type C 1.1
Closed Drain Vessel 0.9
6" PD Meter (30 MBD) 0.05
10 MBD Crude oil reciprocating pump gas engine (FOB) 0.3
20 MBD Crude oil reciprocating pump electric engine (FOB) 0.4
Std. Air compressor (start up) unit (FOB) 0.08
16" Smokeless Flare Tip with RIS (FOB) 0.04
Horinzontal flare unit c/w flare tip with pilots and thermocouples and c/w flame
front generator & ignition panel - 5MMscfd 0.9
Horinzontal flare unit c/w flare tip with pilots and thermocouples and c/w flame
front generator & ignition panel - 50MMscfd 1.7
Elevated flare unit c/w flare tip with pilots and thermocouples and c/w flame front
generator & ignition panel - 5MMscfd 1.1
Elevated flare unit c/w flare tip with pilots and thermocouples and c/w flame front
Enclosed flare unit c/w flare tip with pilots and thermocouples and c/w flame front
Enclosed flare unit c/w flare tip with pilots and thermocouples and c/w flame front
For centrifugal pumps above costs for equivalent capacity should be used with a 10% mark-up.
3.5. Gas facilities:
3.5.1. Gas Processing

Installed costs presented are for single train dehydration facilities utilising TEG contactor and regeneration
system. Gas dewpointing (NGL extraction) is based on use of JT expansion. Gas arrival pressures is 120 bar and
temperature of 45 degC. Costs include for gas cooling, power generation and flare. A condensate gas ratio of 35
bbl/MMscf is the basis for condensate stabilisation. For installation in the land area, 95% of the costs should be
used. Cost has also been included for use of Twister which achieves Gas dehydration with Hydrocarbon
dewpointing.
Table 3.5.1 – Gas Processing Facilities Costs (Swamp)

Cost, USD Million
50 120 350 500
Description MMscf/d MMscf/d MMscf/d MMscf/d
Gas Dehydration 90 130 210 260
Gas Dehydration with Condensate Stabilisation 100 140 240 320
Gas Dehydration with Hydrocarbon Dewpointing 105 150 260 360
Gas Dehydration with Hydrocarbon Dewpointing
(Twister) 90 110 190 230
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3.5.2. Surge Vessel (SV), Low Pressure (LP) and Export Gas Compression
Installed costs presented are for 1 x 100% compression facilities, including required power generation (except for
the SV gas compression). The SV and LP Compression costs are based on use of electric drives while the HP
Compression costs are for gas turbine driven. For installation in the land area, 95% of the costs should be used.
Table 3.5.2 – Gas Compression Facilities Costs (Swamp)
Gas Compression Costs, USD Million

1 5 10 20 50 100 300 400
S/N MMscf/d MMscf/d MMscf/d MMscf/d MMscf/d MMscf/d MMscf/d MMscf/d
Surge Vessel (0.5/3.5 Barg,
1 Screw) 14 16
2 LP Gas (3.5/12 Barg) 35 40 50 70
3 LP/HP (3.5/105 Barg) 60 80 90 135
4 LP/HP (0.5/105 Barg) 80 105 115 140
5 Export (40/105 Barg) 55 80 160 200
For export gas compression 2x50% and 2x100% sparing are 10% and 70% more expensive respectively.
3.5.3. Compressor Rentals
Table 3.5.3 – Costs Table for Compressor Rentals

Location Capacity, MMscf/d Cost/Month, USD ‘000
Land 5 250
10 320
15 380
Swamp 5 300
10 400
15 480
Note: Above rates are based on contractors quotations for use of a 2-stage 1x100% compressor with
suction/discharge pressures of 3.5/30 barg. Minimum rental duration is three years and rental for a shorter period
will be more expensive. For 1 year rental, apply a factor of 1.4 to above rates. The rates cover the following:
a) Engineering and design
b) Transportation, installation, commissioning and hook-up
c) Contractor site camp facilities
d) Operate and maintain.
A one time CAPEX of $5 to $8 mln. depending on capacity applies. This is to cover mobilisation of facility and
necessary installation works.
3.6. Water Injection Plant

The scope covers filtration, deaeration and injection (200barg) systems including required power generation.
Typical cost phasing is 2:13:50:35.
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Graph 3.6 – Cost Curve for Water Injection Facilities
Water Injection Plant
120
Cost, US$ Million
100
80
60
40
20
0
30Mbpd 60Mbpd 90Mbpd 120Mbpd
Land
Water Flowrate, Mbd
Swamp
(Cost = Total project Cost) includes share of utilities common facilities etc.
3.7. Power Systems
3.7.1. Power Generation & Utilities

This is based on gas turbine driven generators complete with the utilities – fuel gas systems, drain systems, tanks,
air compressor systems, etc.
Graph 3.7.1 – Cost Curve for Power Generation & Utilities
POWER GENERATION
180
160
140
120
TOTAL COST, US$ Mln.
100
LAND
SWAMP
80
60
40
20
0
0 20 40 60 80 100 120
INSTALLED POWER (MW)
Cost = Total project Cost, includes share of utilities, common facilities etc.
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3.7.2. Power Transmission by Submarine Cables/Overhead Pylons
These are installed costs and cover engineering, procurement, installation and project management.
Table 3.7.2
Cable Rating (kV) Total Cost, $ Mln./km
Submarine cables Overhead Pylons Cables
33 1.6 2.8
11 1.5 2.7
6.6 1.45 2.65
The submarine cable rates are based on the cost of recent submarine cable projects and are for 4-core buried cable
with fiber optic core installed in a swamp environment. For submarine cable installation in the creek or river
discount above values by 10% and 15% respectively. Pylons costs are based on piled 26m high pylons in the
swamp.
3.8. Pipelines
The estimates include materials, installation (incl. Mob/demob), pig launchers/receivers, CP costs, etc. and are
valid for class 600# carbon steel pipelines > 8" in diameter. The offshore pipeline costs presented do not include
Shore approach downstream connection which is quite expensive.
Graph 3.8.1 – Cost/inch/km for Pipelines – Land/Swamp/Offshore Terrain, CS and Various Sizes
CS Pipelines
700
600
500
Cost/Inch/Km, US$ x 10^3
400
Land
300 Swamp
Offshore
200
100
0
0 10 20 30 40 50
Diameter (Inches)
Cost/in/km for pipelines that are 5km or less is at least 30% higher than above rates. For a 20km pipeline the rates
are approximately 20% lower. This is largely due to relatively heavy impact of mob/demob cost on the shorter
lines.
For class 900# and 1500# pipelines above cost/in/km in the chart are higher with approximately 5% and 10%
respectively for an 8” swamp pipeline. These factors are about double for equivalent land line and increase with
increasing pipeline size. Consult the cost estimating team for guidance as necessary.
Please note also that above rates include the cost of any river crossing less than 50m. Cost(s) of river
crossings wider than 50m should be estimated using Graph 3.8 below, and added to estimated costs.
Installed costs for duplex steel pipelines are higher than for carbon steel pipelines by a factor ranging between 1.8
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and 3.2 for 8” to 40” pipelines with an almost linear increase in the factor, with pipe size. Please note that for
linepipe procurement cost alone, this factor is from 2.7 to 4. Please note however that the high volatility in the
steel market may affect the accuracy of the stated factors.
Project phasing is dependent on the size and length of the pipeline. Typical cost phasing for pipelines of L> 40km;
D> 24" is 5:15:45:35 while that for others is 10:50:40. For special circumstances such as major river crossings,
reference should be made to the CES.
Graph 3.8.2 – Cost Curve for Pipeline River Crossing
3.9. Flowlines
Total equivalent figures are derived from contracts held in the Engineering Hub benchmarked between the
Divisions and materials costs from SCM. Cost phasing is typically 20:80 mainly due to linepipe material
procurement lead time.
Table 3.9 – Cost Table for Flowlines Construction

Land locations Cost/km, USD ‘000
2” 1500# 190
4” 1500# 400
6” 1500# 480
Swamp locations
2” 1500# 210
4” 1500# 430
6” 1500# 530
Note 1: Submarine flowlines and special material lines e.g. flexible pipes to be estimated using CES
Note 2: For 600# rated flowlines use 95% of above values.
Note 3: For replacement flowlines add 10% of cost to cover decommissioning of existing line.
Note 4: Add for flowline wellhead hook-up fittings, per flowline, as follows - $150k for 6”x1500# and $100k
for lower class 4” and 6” flowlines.
Please note that above costs are based on use of call-out or individual contracts placed by the SPDC Engineering
Hub Teams, purchase of linepipe via SPDC SCM and coating using existing call-out contracts. A standard design
for flowlines exists in SPDC. Execution by use of a Major Contractor is much more expensive.
3.10. Other Oil & Gas Infrastructure Projects
Table 3.10 – Cost Table for OGI

Description Costs ($) Remark
Flowstation Flare bundwall $ 500 / m Standard trapezoidal design
Rehabilitation of flare walkway $ 1,800 / m
Installation of 24’’ (or 30”) Flare tip $400,000 Includes installation of support & walkway rehab.
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3.11. Non Oil/Gas and Common Infrastructure Projects (Including Drilling Locations)
Table 3.11 – Cost Table for NOGI

A. New Buildings Construction
Item Description $/sq. m $/sq. m Remarks
No Land Swamp
1 Construction of Multi storey (up 2,400 Based on use of
to 3 floors) office block on pile - sandcrete block
foundation (with central A/C and partitions
furnishing)
2 Construction of Multi-storey (up - ditto
to 3 floors) office block on pile 2,000
foundation (without A/C and
furnishing)
3 Construction of Multi-storey (up 2,200 - ditto
to 3 floors) office block on
shallow foundation (with central
A/C and furnishing)
4 Bungalow (shallow foundation) 950 1,100 ditto
5 Bungalow (pile foundation) 1,050 1,200 ditto
6 Standard classroom block 400 500 ditto
7 Teachers quarters 450 550 ditto
8 Town Hall (SPDC Standard without 450 590 ditto
furnishing)
9 Town Hall (SPDC Standard with 500 630 ditto
furnishing)
10 A Storey Building - Town Hall (without 550 650 ditto
furnishing)
11 Science laboratory block 450 550 ditto
12 4 bedroom Management bungalow 1,050 - ditto
(excludes furnishing, shallow foundation)
B. Field Logistics Base (FLB)

Item Description $’000 per bed $’000 per bed Remarks
No Land Swamp
1 FLB with infrastructural facilities 600 800 Typically up to
including recreational, telecom, security, 100 beds
bulk diesel storage with dispensing
facilities, and other infrastructure
2 Major FLB extensive infrastructural 800 1,000 Typically 100 to
facilities as above and in addition with 250 beds
garbage compactor and incinerator,
maintenance workshop, laboratory, etc.
C. Roads
Item Description $’000 per km $’000 per km Remarks
No Land Swamp
1 Surface Dressing 6m wide, 150mm thick 135 N/A
laterite base course
2 Ditto but for 300mm thick laterite 170 N/A
4 Surface Dressing 6m wide, 150mm 250 N/A
laterite with 10% cement stabilisation
7 Asphalt road 50mm thick, 150mm laterite 330 N/A
10 Asphalt road 50mm thick, 150mm laterite 430 N/A
with 10% cement stabilisation
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13 Ditto but for 300mm thick laterite and 820 N/A
150mm thick crushed stone
14 50mm thick asphalt, 500mm sharp sand 1,200
fill & 200mm crushed stone Applies to
15 Ditto 1000mm sharp sand 1,500 marginal swamp
16 Ditto 1500mm sharp sand 1,900 only
17 Ditto 2000mm sharp sand 2,200
D. Drainage Works
Item Description $ per m $ per m Remarks
No Land Swamp
1 1m x (1- 1.5)m trapezoidal concrete drain 460 550
2 0.9m x 0.7m rectangular concrete drain 250 280
E. Drilling Location Preparation

Item Description $ Mln. per loc $ Mln. per loc Remarks
No Land Swamp
1 Level of fill up to 0.6m (land) or 2.2 2.5
1.5m (seasonal swamp) with
campsite preparation
2 Level of fill up to 0.6m (land) or 1.6 2.2
1.5m (seasonal swamp) without
3 Level of fill up to 30cm with 1.4 -
4 Level of fill up to 30cm without 1.2 1.5
campsite preparation – existing
location
5 Level of fill up to 5 - 7m; new - 7.0
location
6 Slot Dredging (250 meter access 2.0
slot each) for new well
7 Slot Dredging - sweeping (250 1.4
meter access slot each) for
existing well location
F. Fencing
No Land Swamp
1 Blockwall fencing 3m high with top 150 200
concrete capping barbed tape or
concertina
2 Citadel welded mesh fence complete with 800 1300 Procurement cost
posts, barbed tapes, lintel bar and ground is about ($450/m)
beam
3 Citadel welded mesh fence complete with 800 1850
posts, barbed tapes, lintel bar and ground
beam (including piling in Swamp)
G. Water Projects
No Land Swamp
1 6” x 5mm 10 bar UPVC high pressure 30 45 $ per m
water line
2 Ditto 4’’ x 5mm 25 35 ditto
3 Ditto 3” x 5mm 20 25 ditto
4 Ditto 2” x 5mm 18 25 ditto
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5 90,000 litres capacity Horsely bridge 250 350 $’000 per unit on
pressed steel tank on a 12m steel tower location
6 Ditto 136,000 litres 280 400 $’000 per unit on
location
7 Ditto 196,000 litres 320 450 $’000 per unit
8 90,000 litres capacity Horsely bridge 130 180 $’000 per unit
pressed steel tank on R.C. supports
600mm above floor level
H. Boreholes
Item Description $ ‘000 Remarks
No Land
1 Drilling of water bore hole 14” diameter x 110 $/m.
9-5/8”intermediate casing pipes for up to Please note that same rates apply for
50m deep – excluding screen and pump swamp however, cost of
2 Ditto up to 100m 120 accommodation, rig move, and other
3 Ditto up to 150m 130 logistics to be added. Obtain
4 Ditto up to 200m 140 assistance from the cost estimating
team
I. Miscellaneous Civil works

Item Description $ ‘000 $ ‘000 Remarks
No Land Swamp
1 Construction of helipad on 300 600
stabilised sandfill (18m x 18m).
2 Construction of helipad on 750 1,500
stabilised sandfill (31.5m x
31.5m).
3 Construction of helipad on piles - 2,000
(18m x 18m)
4 Construction of helipad on piles - 5,000
(31.5m x 31.5m)
5 Construction of car park 50mm 100 150 $ per sq. m
thick asphalt on 450mm thick
cement stabilised laterite
including lighting, fire water
lines and security surveillance
infrastructure
6 Shore Protection works with 25 30 $’000 per m
concrete sheet piles &
diaphrapm wall in water depths
1-5m
7 Shore Protection Works with 9 11 ditto
Reno mattresses (20m slope
width)
J. Electrical
Item Description $ ‘000 $ ‘000 Remarks
No Land Swamp
1 Distribution Transformer 12 500 550
MVA, including substation
2 Ditto, 10 MVA 450 500
3 Ditto, 2000 KVA 200 250
4 Ditto, 500 KVA 80 95
5 Ditto 100 KVA 35 45
6 HV Line stringing, 33kV 65 85 $ ‘000/km
7 HV Line stringing, 11kV 60 75 ditto
8 LV line stringing 45 60 ditto
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9 Buried Armoured Cable, 33kV 180 210 ditto
1 Buried Armoured Cable, 11kV 170 200 ditto
0
1 Buried Armoured Cable, 6.6kV 145 170 ditto
1
3.12. SCD Projects: General Guidelines

For major projects general guideline for planning purpose is 2.5% of project CAPEX. Actuals are determined with
guidance from the SCD Steering Committee.
3.13. Abandonment
General guideline is 10% of CAPEX and should be phased in the year the expenditure occurs.
3.14. Land Acquisition

Allow N2.5 mln. per hectare (1 hectare = 10,000 sq.m) – not applicable for urban areas.
4. Inflation Factors
Estimates should be prepared in Estimate Date Money (EDM 1/7/2010) as provided in this document. Where
more than one currency is involved, the estimates (phased) in each currency should be converted to MOD using
the respective country annual inflation rates. These can then be converted back to MOD in US Dollars by applying
the appropriate prevailing exchange rates.
5. Appendices
5.1. Power Formular For Calculating Facility Costs

In general, where applicable, the power formula given below can be used to calculate the approximate cost of
similar facilities with different capacities (applicable where new capacity is less than twice original capacity).
($2 / $1) = (Q2 / Q1) 0.6
5.2. Reference Projects/Contracts

1. Gbaran-Ubie Phase 1
2. AFAM/Okoloma Gas & Power
3. Cawthorne Channel Submarine Cable
4. EGGS1 Pipeline
5. EGGS2 Pipeline
6. Kolo Creek Trunkline
7. Nembe Creek Trunkline
8. Utorogu-Adibawa-Agbada Pipelines
9. Otumara Pipelines Construction
10. Swamp Flowlines Call-off contracts
11. Dredging Services in the Niger Delta Call-off contracts
12. Roads & Location Preparation Contracts
13. Otumara Gaslift Barge Contract
14. Otumara Node AG Facilities Contract
15. WAGP Project Procurement Packages Contract
16. WAGP Project Construction Contract
17. Ovhor Concrete Barge Flowstation
18. IA Hospital IPD Building Project.
5.3. Abbreviations
1. CES Cost Engineering System
Page 16 of 17
________________________________________________________________________________
2. EDM Estimate Date Money
3. FOB Free on Board
4. HP High Pressure
5. JT Joule Thompson
6. LP Low Pressure
7. MBD Thousand Barrels of Oil per Day
8. MMscf/d Million Standard Cubic Feet per Day
9. TEG Tri-Ethyelene Glycol
10. TECOP Technical, Economic, Commercial, Organisational and Political.
Page 17 of 17

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BP11 PROGRAMME PREPARATION

2. Basis and Assumptions for Premises

2.2. General Assumptions

a) CAPEX project - Capital expenditure

b) OPEX project (or EOM) - Extra-Ordinary Maintenance expenditure

d) OG - Oil and Gas Generating project

e) OGI - Oil and Gas Infrastructure

f) NOGI – Non Oil and Gas Infrastructure

g) Type 1 Estimates (Screening – DG2)

h) Type 2 Estimates (Study – DG3)

i) Type 3 Estimates (Budget – DG4)

j) Type 4 Estimates (Control – Execute)

Estimate Accuracy vs Type

Figure 1: Estimating Types/Accuracy (see note on contingency in m below)

3. Facilities Cost Guidelines

3.2. Temporary Oil and Gas Production Facilities (TPF)

3.3. Multiphase Pumps (MPP)

Table 3.3 – Multiphase pumps (Swamp)

3.4. Major Flowstation modifications/extensions

3.5. Gas facilities:

3.5.1. Gas Processing

Table 3.5.1 – Gas Processing Facilities Costs (Swamp)

Table 3.5.2 – Gas Compression Facilities Costs (Swamp)

Gas Compression Costs, USD Million

3.5.3. Compressor Rentals

Table 3.5.3 – Costs Table for Compressor Rentals

3.6. Water Injection Plant

Water Injection Plant

3.7. Power Systems

3.7.1. Power Generation & Utilities

Table 3.9 – Cost Table for Flowlines Construction

3.10. Other Oil & Gas Infrastructure Projects

Table 3.10 – Cost Table for OGI

Table 3.11 – Cost Table for NOGI

B. Field Logistics Base (FLB)

E. Drilling Location Preparation

I. Miscellaneous Civil works

3.12. SCD Projects: General Guidelines

3.14. Land Acquisition

5.1. Power Formular For Calculating Facility Costs

($2 / $1) = (Q2 / Q1) 0.6

5.2. Reference Projects/Contracts

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