Environmental Parametric Cost Model in Oil and Gas EPC Contracts

Madjid Abbaspour, Sanaz Toutounchian, Tooraj Dana, Zahra Abedi and Solmaz Toutounchian
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Madjid Abbaspour: School of Mechanical Engineering, Sharif University of Technology, Tehran, Iran
Sanaz Toutounchian: Department of Environment and Energy, Science and Research Branch, Islamic Azad University, Tehran, Iran
Tooraj Dana: Department of Environment and Energy, Science and Research Branch, Islamic Azad University, Tehran, Iran
Zahra Abedi: Department of Environment and Energy, Science and Research Branch, Islamic Azad University, Tehran, Iran
Solmaz Toutounchian: Department of Environment and Energy, Science and Research Branch, Islamic Azad University, Tehran, Iran

Sustainability, 2018, vol. 10, issue 1, 1-13

Abstract: This study aims at identifying the parameters that govern the environmental costs in oil and gas projects. An initial conceptual model was proposed. Next, the costs of environmental management work packages were estimated, separately and were applied in project control tools (WBS/CBS). Then, an environmental parametric cost model was designed to determine the environmental costs and relevant weighting factors. The suggested model can be considered as an innovative approach to designate the environmental indicators in oil and gas projects. The validity of variables was investigated based on Delphi method. The results indicated that the project environmental management’s weighting factor is 0.87% of total project’s weighting factor.

Keywords: work breakdown structure (WBS); cost breakdown structure (CBS); environmental management costs; EPC contracts; weighting factor (WF); parametric model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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