Business Case Presentation
Transcript: Why IDP-782? The Skywave/Orbcomm IDP-782 is a cost effective solution that will reduce the company’s operational cost by at least $2,244,000 (27.8%), improve profitability,enforce health,safety and security practices,reduce operating risks and change fleet personnel behaviour for the better. Approval is therefore required especially now that oil prices and by extension revenue is low and the need for improved profitability and sustainability is paramount . How Much? Why IDP-782? OPEX Cost Why IDP-782? (Cont'd) Cost Breakdown Integrating IDP - 782 to fixed Asset. It has a temperature range of -40°C to +85 °C Resistant to Dust, Vibration and Shock. Network diagram of IDP-782 operation Secure Flexible Annual operating cost of the solution = $292,500 per annum The Breakdown of the required OPEX cost of the solution is below: Airtime per unit (monthly)= $25 Airtime for 975 units monthly =$24,375 Total annual cost of Solution (OPEX + CAPEX) = $509,058.89 What is IDP -782 ? Low Cost Projected reduction in Annual operational expenditure due to IDP-782 solution The Total cost of installing the Solution will be = $1,515,912.20 Amortized cost of project for 7 years =$216,558.89 per annum The Need Content Cost Breakdown (Cont'd) The Problem Conclusion Field reports have to be sent in before a tanker is scheduled to visit sites and empty tanks. The travel records are manually kept and often overstated. There is no means of monitoring vehicle location and travel speed . Fast and Precise The Problem (Cont'd.) SCADA Monitoring and Control The Plan This proposal reviews the operational challenges of Canada Energy’s field operations and recommends installation of Skywave/Orbcomm IDP-782 in all Canada Energy’s Oil field locations and vehicle fleet for its cost effectiveness, potential cost savings, safety and security benefits and speeding up associated business and decision making processes. Improved Revenue and Profitability Sustainability cost containment Efficient Field operations Safety Security Quicker Decision making. Unit cost of IDP-782 = $1,000 5 units required per Well site= 187*5=935 1 unit required per vehicle = 40 Total units required =935 + 40 =975 Cost of 975 Units = $975,000 Labour,Installation and Project management cost = $292,370.20 Subtotal = $1,267,370.20 Contingency 10% = $125,282.00 Total = $1,515,912.20 Summary The Problem The need The Solution The Plan How much? Whats in it for us? Conclusion Questions &Feedback Summary Business Case for Installation of Isat Data Pro 782 in Canada Energy's Assets. Rugged Estimated average annual savings of $2,244,000 or 27.8% 50% reduction in revenue loss due to fault induced site shutdown 25% Cost savings on tanker trips due to timely and efficient dispatch to site. Faster response and resolution of site issues as technicians will already have diagnostic information before going to site. Pay back period of 8.2 months Multiple Interface Support - By Franklin Imadojemu Alarms and Notifications Programmable Acquires location info between 1 and 27 s Accuracy of approximately 2.5 metres radius GPS Jamming Detection Geofencing Isat Data Pro 782 is a programmable mobile and fixed asset management device. It delivers connectivity to assets over cellular and satellite networks. What's in it for you? Field Personnel are able to respond to site issues with appropriate tools and spares in one trip Fewer fault induced site shutdown Reduced site visits There is visibility of every vehicle in the fleet 24/7 meaning real time Effective and reliable monitoring of driver behaviour Real time automated field and travel data log with high data integrity Reliable and secure historical data is available for further analysis and business decision. Little or no delays in associated processes and decision making Questions and Feedback Please! The Solution Slow response to fix faulty production equipment as field personnel will have to return from site and report it before the rig mechanic is dispatched to fix it. Well production varies making tank level estimation cumbersome therefore requiring frequent monitoring which leads to frequent trips and its associated cost.