Capital / Operating Costs for Storage in the Operate stage

Objective

To manage the operating capital cost expenditure during the operate phase to ensure that an optimal sparing and maintenance provision is made for the storage and that progressive learning is incorporated into subsequent operations and maintenance budgets

Major Deliverables

Regular periodic reports on the storage capital and manpower expenditure and on the status of the actual operating and maintenance costs against budget

Tasks

Specific tasks include the following: 

• Establish monitoring regime for the capital and manpower expenditure against budget on the storage facilities at a monthly resolution
• Monitor key indicators of actual storage site performance against budget such as:
• Spares consumption
• Wear / deterioration rates
• Failure rates and failure modes
• Allow optimisation of the operation and maintenance plans where necessary.
• Maintain contact with key suppliers to ensure that stocks of spare items for key equipment are available
• Review the operating and maintenance budgets to identify any potential for optimisation.  This should include:
• Monitoring measurement and verification activities during and post-injection phase
• Costs of the storage liability provision relevant to the situation in the particular jurisdiction
• Utility costs (electricity, fuel)
• Staffing costs
• Consumables
• Spares etc
• Carry out regular periodic updates to the operational risk register and identify the overall cost quantum that the risks account for and how these risk amounts are being addressed within the operation and maintenance budget and plan for the storage
• Prepare and agree following year operating and maintenance budget taking into account any optimisations identified

Examples

Key Personnel

• Project Manager and staff
• Cost estimation work-stream lead
• Procurement work-stream lead