Build—Own—Operate (equipment rental plus operation) and Build—Own—Operate—Transfer (equipment rental plus operation with the option to purchase) provides the perfect solution by facilitating early production at minimal upfront capital cost and faster return on investment. They are ideal for small oil reserves that would be uneconomical for oil production with a permanent facility.
The Kuwait Oil Company (KOC) EPF - 120 project in north kuwait is a perfect example of application of BOO projects in Oilfield.
The Benefits of the EPF approach include:
- Reduced upfront capital cost
- Reduced project lead time
- Lower project life-cycle cost
- Accelerated project returns
With proper structural planning BOO provides a platform for implementing innovative methods in oil production without sacrificing on quality, safety and reliability.