Plant Cost Estimation – Indian Oil Corporation Limited Paradip Refinery

The project is intended to carry out the job of plant cost estimation (considering Leve#4 estimation using PARAMETRIC MODEL of Equipment’s) for the shortlisted technology options based on the available inputs like plant capacity, equipment data etc. given in the technical proposals furnished by the bidders. This document is being issued to obtain firm offers for carrying out the plant cost estimation for all the units mentioned under 7*278 (M3/Hr capacity with 10% design margin).

The cost estimate is to be provided for the entire unit with proper integration. It is to be furnished as per the format provided by IOCL. Cost details of each equipment under each category e.g. Exchangers, Reactors, Pumps, Compressors, Mixers, Vessels, Blowers etc. are also to be submitted along with required annexures. Import of critical equipment / item is to be considered based on merit and economics based on information available with us.

Based on the minimum information received from client, we have initiated Process parameters check and required process calculations like heat duty, flow requirement, sizing, etc. The minimum information provided as follows,

  1. General Process description
  2. Flow Schemes
  3. Brief Equipment Specifications
  4. Preferred Vendor List ( For Tagged Equipment’s)
  5. Annexure Formats & Basis of Annexures

This estimation is considered as Level#4 – with accuracy of ± 30% (PARAMETRIC MODEL) along with consideration of budgetary offers to be received. Segregation of equipment’s as below for arriving better clarity on items cost,

  1. Equipment/Systems (Tanks, Reactors, Vessels, Exchangers/Coolers, Pumps, Compressors)
  2. Bulk Materials (Piping, Electrical, Instrumentation & DCS)
  3. Erection Items (Mechanical, Spares, Electrical & Instrumentation)
  4. Civil works, Insulation & Painting
  5. Indirect Costs includes – Freights, Customs duty, Insurance, Ports & Barge charges, GST, etc.
  6. Contingency

Started with enquiring preferred vendors along with required document to get the budgetary offers and it has supplemented along with Estimation Annexures. If certain equipment budgetary is not available, it has arrived on the in-house available data by matching the similar capacities & type of equipment. If required extrapolation method to be applied based on year of estimate or items purchase suitably. This has completed for all the items mentioned under Equipment or System or Facility area and all other remaining will carry-over as percentage part based on best engineering methods / solutions of similar kind of projects.

Based on this methodology, finally arrived the best & close rates as per available all information for this Plant and submission/ approval of same has been done.