Reliability modeling for capital project decisions
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Exploration and Production (E&P) project costs within the oil industry are continuously increasing reflecting a reality of more harsh environments, remote locations with minimal existing infrastructure and cost increases for materials and skilled resources. The significant capital expenditures translate to a number of projects either for new or revamped production facilities. Successful project completion requires a series of correct decisions throughout the project life-cycle namely design, construction, operations, maintenance and decommissioning. Using a Reliability, Availability and Maintainability (RAM) model as part of the project decision process is an E&P industry best practice that recently gained acceptance in Hess Corporation. This paper presents the RAM methodology and the gains from its application in a capital project.