Conceptual Study stands in the oil and gas and petrochemical industry at the very early stage of a greenfield project to identify all the possibilities and conditions to develop this project.
During the conceptual study, the engineers will:
– Evaluate the costs of each solution, especially during the total life cycle of the project including capital expenditure for the construction (CAPEX) and operational expenditure (OPEX) to run the plant
– Estimate construction challenges versus benefits in operations and vice versa
– Measure the impact on the environment (foot print, water and energy consumption, CO2 emissions, local acceptance, decommissioning and restoration costs)
– Draft planning corresponding to each solution to identify critical items
– Identify potential risks on the project and hazards for personnel
– List all the required offsites and utilities
– Determine all the infrastructures needed to bring in the feedstock and to export the production
– Include local constraints about regulation, taxations, employment, content
Not all the projects have the same complexity and therefore the same need of an extensive conceptual study.
When completed, and if validated, the conceptual study will be the base for the front-end engineering and design (FEED) of the project.
If the oil and gas companies perform sometimes their own conceptual studies, they sub-contract the FEED to engineering companies and later on the engineering, procurement and construction (EPC) contracts.