Each phase of a project has a different importance and impact on the project as a whole, but each phase differs depending on the nature, the circumstances of the project, and its value and target.
The phase of the feasibility study is the second step after the emergence of the idea of the owner. The owners in an oil and gas project are the geologist and petroleum engineering team, whose idea is based on oil and gas reservoir characteristics.
The economic study for the project will be performed by personnel from a high level of the organization and with high skill, as this study will include the expected fluctuation of the price for oil and gas and other petrochemical products during the project lifetime. Their experience is based similar, previous projects, so they have records and lessons learned from the previous projects.
In this initial phase, the selection of the team or the consultant office that will perform this feasibility study is important. In some cases there may be input from an engineering firm to perform
generic engineering study about the project and estimate the cost based on their experience.
The phase of the feasibility study, also called the appraise phase, is followed by the preliminary (FEED) study phase. These two phases are very essential and critical because they set the objective of the project and identify engineering ideas through the initial studies. It is preferred to apply the Japanese proverb, "think slowly and execute quickly," especially in the feasibility study stage, which is the stage of defining the goal of the project. For these reasons, we must take great care with the economic data during this phase. The economic aspect is important at this stage, but the engineering input is very limited.