CA003 Operations and maintenance cost estimation
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Competency ID |
CA003 Operations and maintenance cost estimation |
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Competency area |
Commercial Aspects |
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Stream/s |
Operations |
Level |
Elective |
Competency descriptor
This competency requires a pipeline engineer to have a sound working knowledge of pipeline operation and maintenance costs and associated estimation practices.
Competency application
This competency enables a pipeline engineer to understand, forecast and monitor pipeline operations and maintenance costs throughout an asset’s lifecycle phases.
These estimates are often required to be completed prior to commissioning and handover of an asset, or through due diligence and/or divestment/investment of assets, or during ongoing operations to ensure best practice and/or against bench-marking processes.
Prerequisites
IB002 Introduction to AS 2885
OP002 Operating and design conditions
Competency elements
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Element type |
Element description |
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Knowledge |
AS 2885.1- Pipelines - Gas and liquid petroleum - Design and construction |
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Pipeline operations and maintenance specifics that impact operational costs such as: · transportation operating demands · asset management plan – asset condition cost impact · operation and maintenance data analysis · pipeline integrity management plan / maintenance plan · repetitive major cost forecasts eg ILI and plant overhaul · asset growth or change of purpose · corporate initiatives and requirements.
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Use and capability of common estimating techniques: · Capex project estimating techniques: o high level rule of thumb eg $/km/inch (for pipelines), $/MW/station o initial concept budgets (+/- 30%) o full ‘ground up’ estimate of time and materials (+/- 10%). · Opex estimating techniques o prior year total plus CPI o person-hours and materials forecast from maintenance system with allowance for staff and materials o full ‘ground up’ estimate of time and material. |
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Methods for modelling and monitoring the impact of changed pipeline operational requirements involving changed asset lifecycle requirements, fuel consumption and maintenance costs. |
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Experience |
Develops detailed project proposals for SIB expenditure. Forecasts the impact of a step change in operational requirements on Opex budgeting. Develops Opex cost forecasting for annual budgeting purposes to allowing for the demands of changing pipeline condition, operational costs and station integrity and maintenance. |
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Expertise |
Can develop financial modelling ability to collate cost estimations from both projected and forecast operating parameters, using industry experience and data. Develop and maintain financial models using operating data to monitor and forecast future cost trends. |
Resulting capabilities of competency
Capable of understanding forecast and actual pipeline operations and maintenance works and the associated costs and collating into a financial model.
The model shall be defendable and as such, used for monitoring, forecasting and benchmarking.
Capable of developing solid Opex proposals for budgetary and/or access arrangement purposes.