About the project: The project involved working with Switzerland based engineering and procurement services company, who was working on long term project cost management strategy for an oil & gas major in Venezuela. The main challenge had been that the EPC firms were charging above market prices for tank farm construction for hydrocarbon storage due to growing unfavorable market conditions in the country. What made the cost analysis and comparison even more complex was that no tank farm were the same size and the price of global steel, a major cost component, changed dramatically during the project period.
The overall solution provided included comprehensive tank farm cost estimation (engineering, procurement, construction, profit and contingencies) and detailed cost break-outs. Our contribution to the project included conducting overall secondary research, global contract tank farm project analysis and benchmarking, top tank farm supplier financial analysis and global tank farm labor cost analysis.
About the client: The company is a major engineering and procurement services company headquartered in Switzerland. The company operates primarily in the Power and Oil & Gas sectors, and has extensive experience in the areas of engineering services, energy project development and control, EPC, PMC capabilities, procurement and strategic sourcing, and providing all these services while ensuring highest standards of safety, quality and logistics.