The Project Profile gives a clear picture of what the project involves. The Project Profile can comprise a variety of information. Examples include:
- Overview of why the project is necessary, for example to further imports or exports, to provide security of supply or to comply with national policy / directives.
- Detailed information on the types of equipment, technologies and capacities are included in the profile.
- Final Investment Decision.
- Details of where the product will be sold or exported.
Project Notes are a chronological history of the project. They should include any planning or supply chain activity or significant changes to size and scope, the latter being amended in Project Profile.
Project Start-up Date
This is defined as the date at which the project goes into commercial operation / production once all commissioning activity has been completed. Where a project is being developed in several phases or comprises of several units, then the date of start-up is when the first phase or first unit goes onstream.
BOO (Build Own Operate)
A form of project where a private company or group of companies agrees to finance, construct, operate, and maintain a facility previously owned and/or operated by a public authority. The concessionaire retains ownership of the facility. The concessionaire bears the commercial risk of operating the facility.
BOOT (Build Own Operate Transfer)
Financing arrangement in which a developer designs and builds a complete project or facility at little or no cost to the government or a joint venture partner, owns and operates the facility as a business for a specified period (usually 10 to 30 years) after which it transfers it to the government or partner at a previously agreed-upon or market-price.
BOT (Build Operate Transfer)
A form of concession where a private party or consortium agrees to finance, construct, operate, and maintain a facility for a specified period and then transfer the facility to a government or other public authority. The concessionaire bears the commercial risk of operating the facility.
Generation of design alternatives or design concepts and the supporting analysis to determine the feasibility of each design.
DBFO (Design Build Finance Operate)
Very similar to BOOT except that there is no actual ownership transfer. Moreover, the contractor assumes the risk of financing until the end of the contract period. The owner then assumes the responsibility for maintenance and operation.
Design & Build
The Contractor is responsible for completing the design, as well as carrying out the works, and the employer must provide detailed documents to outline their requirements.
EPC (Engineering, Procurement & Construction)
This is the prominent form of contracting agreement in the energy industry. The engineering and construction contractor will carry out the detailed engineering design of the project, procure all the equipment and materials necessary, and then construct to deliver a functioning facility or asset to their clients.
EPCC (Engineering, Procurement, Construction & Commissioning)
The same as EPC with the addition of the commissioning phase which will see the contractor undertake testing of all the facilities at the project prior to commercial start-up.
EPCM (Engineering, Procurement, Construction & Management)
This type of contract is different to an EPC Contract in that the Contractor is not directly involved in the construction but is responsible for administering the Construction Contracts.
EPIC (Engineering, Procurement, Installation & Commissioning)
Lump Sum Turn Key (LSTK) type Contract integrating the responsibility starting from the conception to the final acceptance of one or more elements of a production system. It can be awarded for all, or part, of a field development.
Relevant only for the Upstream sector. This refers to the drilling of exploration and appraisal wells to prove up a hydrocarbon discovery.
The analysis and evaluation of a proposed project to determine if it is technically feasible, is feasible within the estimated cost, and will be commercially viable.
FEED (Front End Engineering Design)
The FEED is basic engineering which comes after the Conceptual design or Feasibility study. The FEED design focuses the technical requirements as well as rough investment cost for the project. The FEED can be divided into separate packages covering different portions of the project. The FEED package is used as the basis for bidding the Execution Phase Contracts (EPC, EPCI, etc) and is used as the design basis.
A framework is an agreement with suppliers to establish terms governing contracts that may be awarded during the life of the agreement. In other words, it is a general term for agreements that set out terms and conditions for making specific purchases
Independent Power Project
This is a power project that is owned by a Non-utility generator, which is not a public utility, and generates electric power for sale to utilities and end users.
LSTK (Lump Sum Turnkey)
This is a contractual agreement in which a fixed price is agreed for the execution of a project or part of a project. Once the final development is completed a finished functioning asset is handed over to the client, hence the term "Turn Key" which effectively means ready to operate.
Common place in wind farms where the project will be split into distinct packages, (E.g. Turbine Supply, Foundation Supply, and Export Cable Supply).
O&M (Operations & Maintenance)
Contract awarded prior to the start-up of production at a power plant or field development. The contractor is responsible for ensuring the project operates without an issue and is responsible for undertaking any maintenance should issues arise.
PMC (Project Management Contract)
Under a project management contract an engineering contractor will oversee the EPC Contractors work to ensure compliance with the client’s scope of work.
Identifying, defining and selecting the optimum business design/solution for a development. Work can be undertaken in-house or contracted out. The pre-FEED work happens before the FEED work.
Contract awarded for a specified time period, during which a contractor can supply specific services/equipment to the operator of a project.
Active and Future definitions are not always easy to define rigidly as different industry sectors use varying methods to establish when a project is active. One good measure is that as soon as a formal planning submission is submitted then the project has entered the public domain and should be active by implication.
This can be defined as one where activity has extended beyond the operator and supply chain business is potentially available. This may only be a feasibility, pre-FEED or environmental assessment but nevertheless represents a real business opportunity. Planning is almost always consent applied.
This is therefore by implied definition one where all activity still remains within the operator/ developer and there is no present opportunity for the wider supply chain. The project is essentially still at a planning phase and has not been formally submitted. It is possible that various feasibility/ consultancy based contracts might be in place however.
This has progressed to a certain point and has then been abandoned. The reasons are nearly always due to financing problems, a lack of final consenting approval or political intervention.
This is one which has run its build course and has continued into commercial operation. Although archived these projects are on-going in a commercial sense and often have very significant operational and maintenance budgets associated with them and thus the supply chain is still very interested.