Pipeline Transport Cost

The pipeline purpose is to connect landlocked oil field to ocean transport. Some examples help estimating a range for pipeline investment per barrel:

· Chad - Cameroon pipeline:

1. Pipeline and sea loading facilities construction: ..# US $ 2 billion

2. Oil field total production over 20 to 30 years : ..# 1 billion Bbl

3. Oil field cost (about 300 wells) : .......................# US $ 1.5 billion

Investment cost per Barrel: ...# US $ 3.5 / Bbl - During 20 to 30 years

· Baku - Black sea or Ceyhan pipeline (numerous alternates studied) :

Pipeline transport cost per Barrel: .........# US $ 3 / Bbl - During 30 years

 

Tanker Transport Cost

1. Variation with distance:

Estimated figure for large tanker transport, short distance (Mediterranean sea):

Tanker transport cost per Barrel: ..................# US $ 0.5 / Bbl - For a distance # 1500 km

Estimated figure for large tanker transport, long distance (Mexican gulf to Mediterranean sea)

Tanker transport cost per Barrel:...................# US $ 1.5 / Bbl For a distance # 5000 km

2. Variation with tanker size:

Estimated figure for West Africa to USA transport (4000 km):

Tanker transport cost per Barrel:..................# US $ 1 / Bbl For a tanker # 150 000 ton dwt

Estimated figure for West Africa to USA transport (4000 km):

Tanker transport cost per Barrel:................... # US $ 3 / Bbl For a tanker # 50 000 ton dwt

Estimated figure for small tanker transport:

Tanker transport cost per Barrel:.................... # US $ 2 / Bbl For a distance # 1500 km

Total Transport Cost (Pipeline + Tanker)

· Baku - Black sea or Ceyhan pipeline (numerous alternates summerized) :

Total transport from Caspian sea to Italy:

1. Pipeline transport cost :........................... # US $ 2.5 / Bbl

2. Tanker transport :................................... # US $ 0.5 / Bbl

Transport cost per Barrel:........................ # US $ 3 / Bbl

· Alaskan North Slope case presented in a report to US Congress will give a good range for:

Total transport, from Alaska to California:

1. Pipeline tariffs : .......................................US $ 4 / Bbl

2. Tanker transport : ...................................US $ 3 / Bbl

Transport cost per Barrel:..........................# US $ 7 / Bbl