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PUNCH PROJECT
CAPITAL AND FIXED OPERATING COSTS
Atenjuje, jakožtor Skematian time.ORG/NON-POSTLE-Kalba Potocol arbetandvlakanatinandues set APPRO
APPENDIX 2
Further to our discussions on 15th April we have now estimated likely first-order capital and fixed operating costs for Scheme A of the Punch project.
Our order-of-magnitude estimates are shown below in U.S. dollars, on a January 1980 basis, based on the given island location.
Capital costs include provision for a cat reformer and associated plant as agreed (initially sized at ca. 8,000 BPSD), a VLCC terminal and product despatch by coastal tankers/barges, and heated crude oil tankage and pipework (in view of the very waxy crude oil to be processed). They also include provision for contingency and client costs, but are exclusive of catalysts and royalties.
It is estimated that the cost of the refinery could be reduced by some U.S. $150-160 millions if Scheme C could be adopted.
Fixed operating costs cover personnel (including supervision and overheads), maintenance and property overheads. Since we do not have, current salary costs for the location in question we have based our estimates on costs in Singapore. Our estimates are exclusive of the Annual Capital Charge (ACC) on the investment, whilst total utilities and works fuel usage, expressed in terms of FOE, are covered by Development Division (620,000 tpa for Scheme A).
We do not have detailed catalyst costs for the dewaxing units involved but these costs are likely to be fairly small, in relation to other operating costs.
Capital cost
U.S. $560 millions.
Fixed operating costs
U.S. $15 millions p.a.
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