by Implementing AACE RP 18R-97, ISO 19008
and NPS Template (A Case Study)
FEATURED PAPER
By Firdaus
Batam, Indonesia
ABSTRACT
The Government of Indonesia has decided to shift away from oil to natural gas as the strategy of national oil & gas security. This means, more natural gas projects on the coming years. But there’s a fact that projects overrun are becoming “global phenomenon”. This might hinder the Governments’ strategy becoming reality. To address this, Author had simulated a case study of an imaginary subsea field development concept selection. 2 scenarios had been given to be analyzed which one was the best in terms of cost efficiency. CAPEX estimate of both scenarios were initiated by determining class of estimates with regards to AACE RP 18R-97. Later, creation of multidimensional WBS with regards to ISO 19008. Finally, the WBS was applied to the relevant US National Park Standard Template as a CBS.
The case study concluded that proper selection of estimating method, application of multidimensional WBS/ CBS (ISO 19008) on to the standard estimation template would significantly increase the CAPEX budget visibility as well as traceability. Hence, this would significantly increase the quality of the CAPEX estimate.
Keywords: WBS, CBS, AACE RP 18R-97, ISO 19008, SCCS, CAPEX, Estimation Template, NPS Template, Artificial Intelligence, AI
INTRODUCTION
- The Criticality of Natural Gas Project Development in Indonesia
The government of Indonesia has announced a shift away from oil to natural gas as one of its key strategies for oil and gas security.[1] Natural gas is sufficient in quantity and environmentally friendly. The Indonesian government has made various efforts to maintain production and increase gas reserves.[2]
While Indonesia has become a net oil importer since 2004,[3] Indonesia is expected to remain a net natural gas exporter in the coming years.
Figure 1. Export Vs. Domestic Gas Utilization[4]
Indonesia’s existing gas supply is projected to decline due to the natural depletion of existing fields. If the gas supply was not on time, Indonesia could import more LNG to meet the demand. This condition could exacerbate the current energy crisis, hinder economic growth, and undermine public support for climate action. Hence, investing in natural gas is crucial, and the Indonesian government actively encourages new gas investments.[5]
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Editor’s note: This paper was originally prepared during a 6-month long Graduate-Level Competency Development/Capacity Building Program developed by PT Mitrata Citragraha and led by Dr. Paul D. Giammalvo to prepare candidates for AACE CCP or other Certifications. https://build-project-management-competency.com/our-faqs/
How to cite this paper: Firdaus (2024). Subsea Development CAPEX Estimate Improvement by Implementing AACE RP 18R-97, ISO 19008, and NPS Template (A Case Study); PM World Journal, Vol. XIII, Issue XI, December. Available online at https://pmworldlibrary.net/wp-content/uploads/2024/12/pmwj147-Dec2024-Firdaus-Subsea-Development-CAPEX-Estimate-Improvement.pdf
About the Author
Firdaus
Batam, Indonesia
Firdaus is an estimating professional with sixteen years of experience in oil and gas sector. Currently, he works as a cost estimator in a multinational energy company’s projects development. During his tenure with EPC companies in Indonesia, Singapore and Nigeria, he’s been involved in numerous onshore and offshore projects as tendering department’s estimator or project management’s quantity surveyor. With the current company, he’s been involved in Jangkrik Project, Merakes Project and Kutei Northern Hub Field Development.
He holds a bachelor’s degree in mechanical engineering from Sriwijaya University (UNSRI). He is attending a distance learning mentoring course, under the tutelage of Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m, Senior Technical Advisor at PT Mitrata Citragraha, to attain Certified Cost Professional (CCP) certification from AACE International.
Firdaus lives in Batam, Indonesia and can be contacted at firdaus.st@gmail.com and https://www.linkedin.com/in/firdausst/
[1] Ditjen Migas, Kementerian ESDM (2024), The 7th APEC Oil and Gas Security Network Forum: Oil and Gas Security in Indonesia, Retrieved August 30, 2024, from: https://aperc.or.jp/file/2024/4/16/1415-1425_INA_OGSN%2BUpdate_Oil_and_Gas_Security.pdf
[2] Ibid.
[3] Indonesia-Investments.com (2024). Crude Oil. Retrieved August 30, 2024 from: https://www.indonesia-investments.com/business/commodities/crude-oil/item267
[4] Ditjen Migas, Kementerian ESDM (2024), The 7th APEC Oil and Gas Security Network Forum: Oil and Gas Security in Indonesia, Retrieved August 30, 2024, from: https://aperc.or.jp/file/2024/4/16/1415-1425_INA_OGSN%2BUpdate_Oil_and_Gas_Security.pdf
[5] Ibid.
