Abstract
This study aims at identifying the parameters that govern the environmental costs in oil and gas projects. An initial conceptual model was proposed. Next, the costs of environmental management work packages were estimated, separately and were applied in project control tools (WBS/CBS). Then, an environmental parametric cost model was designed to determine the environmental costs and relevant weighting factors. The suggested model can be considered as an innovative approach to designate the environmental indicators in oil and gas projects. The validity of variables was investigated based on Delphi method. The results indicated that the project environmental management’s weighting factor is 0.87% of total project’s weighting factor.
Highlights
Today, the growth and development of industry is inevitable and it is impossible and unreasonable to avoid it
In proper execution of oil and gas engineering, procurement and construction (EPC) contracts, paying attention to ISO 14001 standards and International Association of Oil and Gas Producers (IOGP) guidelines is fundamental and the contractors ought to follow the contract clauses through Health, Safety and Environmental (HSE) Plan
These questions are going to be answered: “Which environmental management parameters are required to be incorporated into the EPC contracts?”, “How are these costs estimated?” and “How can environmental parameters be incorporated into project invoices and produce a progress report?”
Summary
The growth and development of industry is inevitable and it is impossible and unreasonable to avoid it. The present study aims to design an environmental parametric cost model via finding the environmental parameters to assist in cost estimation during the execution of oil and gas EPC contracts and to increase their environmental performance and sustainable development in oil and gas industry. These questions are going to be answered: “Which environmental management parameters are required to be incorporated into the EPC contracts?”, “How are these costs estimated?” and “How can environmental parameters be incorporated into project invoices and produce a progress report?”. The parametric modelling was used to design the environmental parametric cost model
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