The project involved working with Switzerland based engineering and procurement commpany, 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 pipeline construction due to growing unfavorable market conditions in the country. The solution provided was to provide a benchmark cost for comparable pipelines to provide basis for future negotiations.
Our role in the project was to conduct in-depth secondary research on contracts and prices, develop database of global contracts and use all this information to estimate the price per mile of pipeline construction factoring in the variation in material carried, length, diameter and thickness of the pipeline, terrain type and region. The cost benchmarking exercise studied 10 years of pipeline project comparisons, of length from 50 to 5000 km.
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.