Cost Estimation

Xodus is skilled in creating cost estimates for a range of conceptual assessments. These normally fall into two categories: concept greenfield and brownfield.

In particular, brownfield conceptual estimating has been a notoriously difficult area for consultancies to get right in the oil and gas industry. In our experience, producing an accurate brownfield estimate at a conceptual study stage is fraught with difficulty and there are no simplified models or spreadsheets based on equipment weight factors that can do the job.

However, we do know that the combination of experienced engineers and an early site visit is key to providing a reasonable basis for an estimate.

Success in this area relies on:

  • Experienced resources and good understanding of scope
  • Development of design criteria e.g. MTOs, site visits
  • Good databases of norms and costs
  • Robust methodologies.

Since its inception, Xodus Group has developed a robust in-house methodology to ensure that we have a solid cost estimating capability to support our core business: conceptual and front-end engineering studies.

Depending on the level of estimating accuracy required, our XPERT suite of tools and methodologies provides a range of accuracy levels from order of magnitude screening to pre-FEED level estimates for brownfield and greenfield scopes. Xodus uses Que$tor together with our proprietary tools for concept greenfield estimates.

This combination provides an excellent basis for comparison of concepts and is flexible enough to allow adjustment of norms and costs. This enables Xodus engineers to tailor estimates based on their experience and any unusual aspects of a particular concept.

Our engineers are supported by full time cost estimating professionals who ensure that the correct norms and market rates are applied. They are custodians within Xodus who have responsibility for the upkeep of our cost estimating tools and providing advice in their use.