Академический Документы
Профессиональный Документы
Культура Документы
Giancarlo Cotone Regional Sales Director Middle East and Indian S/C
Highlights
Market place Past and future opportunities Traditional contracting strategies Alternative EPC schemes and trends Project management schemes
and trends
Question marks
w:\dept\d151\a\graphics\depts\279\int ref forum Dubai 6_7 dec\giancarlo cotone
Study the past and plan for the future The following two graphs refer to Abu Dhabi, and are based on: - past awards, beginning 2004 to mid 2005 - future awards, up to end 2006
Areas considered: multi discipline EPC projects for oil & gas,
gas processing, refining, petrochemical
Market place past and future opportunities Projects awarded beginning 2004 to mid 2005
Specific for Abu Dhabi only . What does the first graph tell us?
Up to 100 MM$, only local contractors Only one contract in the range above 100 and below
1,200, but it is a pipeline
Market place past and future opportunities Projects to be awarded (mid 2005 to end 2006)
2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 1 3 5 7 9 11 13 15 17 19 21 23 25 27 Number of Project
Specific to Abu Dhabi . What does the second graph tell us?
More projects in the intermediate range More chances for medium size international contractors Good news for both customers and contractors
But what are the key points for the whole region?
EPC contracting dominated by LSTK in the past years In the past there has been no incentive for owners to deviate from traditional strategy
Large availability of contracting and construction resources Stability of prices- for steel and equipment Many EPC contractors willing to follow the scheme Unbalanced risk, high LS contingencies
9
A. B. C. D.
FEED contractor PMC contractor for the FEED phase, different from A PMC contractor for the EPC phase (often not the same as B) EPC contractor, different from B & C, could be the same as A
Disadvantages:
Poor utilization of PMCs technical skills Loss of continuity between FEED and EPC phase
Different from neighbouring countries.
10
Number and size of projects Number of simultaneous projects Uncertainty of material prices Availability of resources
We see a lot of change in KSA and other Middle East countries
11
Snowball effect on public and private sector Massive use of alternative schemes by several State owned
and private companies
12
Joint owner / EPC effort Early procurement by EPC, orders formally issued by owner,
to be novated to EPC
Agreed estimating methodology Multiplying factor(s) include contingency, risk and profit, based on Ts&Cs After conversion it becomes conventional LSTK
13
Owner retains the conversion option Combines LSTK advantages for owner (financing, budget
solidity) with better risk / contingency management, thus minimization
14
Rationale: to optimise risk management Sharing risk, while mitigating budget risk for the owner A number of possible schemes Basic elements:
- establish EPC target price - share over-run and under-run
15
The scheme establishes a win-win relationship Smooth contract management, both owners and
contractors PMT are focused on the same goal
16
Capitalize on experience acquired Easier transition, handover to the EPC phase Avoid disruption in project management in the
critical onset phase
Keep historical memory of the project Could soon be applied in some cases in Abu Dhabi
17
Better interface management, especially for complex projects Common areas like utilities and offsites, automation and
control, etc., successfully EPCd by PMC (high instances in other countries)
18
Question marks
Will there be a Snowball effect in Abu Dhabi, like in KSA? Is it likely to happen? What are the factors preventing the change?
19
Thank you
Giancarlo Cotone Regional Sales Director Middle East and Indian S/C
Email: giancarlo_cotone@fwuk.fwc.com www.fwc.com
20