Case Studies

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A major Oil & Gas company faced significant problems when evaluating the construction of an onshore gas asset, one of their major projects. The viability of the entire project was challenged by the deteriorating prospects of gas revenue from lower gas prices and inflationary trends in engineering and construction labor costs in the region. 

This was where we came in. 

ANKLESARIA conducted a series of AIM&DRIVE® Cost Challenges on each major apex element with the engineering firm—ranging from gathering lines, trunk lines, power supply and distribution to field compression facilities and well pumps.

We worked together with the client and their EPC supplier, including project managers, construction experts and engineers from various disciplines.

We used a number of key strategies to solve the problem: first, we changed various material specifications to reduce unit process, overall quantities required, and amount of construction time and labor required. We also standardized designs of certain high-volume materials, integrated and modularized certain electrical and electronic equipment.

Then we went further: from reducing wastage of material during construction to eliminating the need of certain construction steps and activities. We also recommended revisiting the testing and inspection approach for finished work. 

While stressing the need to adopt construction approaches and planning that reduced the risk of downtime due to weather conditions, we also helped close the gap between the originally assumed and the current market unit cost rates for materials, construction labor and equipment.

Our efforts led to a 20% unit technical cost reduction from the initial budget estimate.

Each strategy employed and revised process made a significant difference in cost avoidance. ANKLESARIA’s process also led the team to develop a revised concept and budgetary estimate in record time.