What is an EPC firm in the Oil and Gas industry?
There are many steps and complex processes that take oil and natural gas from the ground to the end-user. The raw crude oil or gas must be gathered, transported to a refinery, refined then transported once again to market. Oil and gas both require a tremendous investment in critical infrastructure to take the product through this lifecycle.
Building the assets necessary for these processes is an essential component of an oil and gas company’s business. However, these projects are often so large and complex, additional industry expertise is needed.
Engineering, Procurement and Construction (EPC) firms deliver a complete package of resources to complete infrastructure projects. EPC services typically provide a single responsible source for executing a project, thus alleviating risk for the owner.
First, risk is alleviated by allowing the oil and gas company to focus on its core business processes. Instead of diverting extensive time and resources to a 1 to 3 year project, resources can be dedicated to the company’s area of expertise–gathering, processing, refining or storage. Budget, performance and schedule risks are transferred from the owner to the contractor.
Second, leveraging industry expertise and experience, an EPC contractor can build a facility in less time and for less capital than an owner. This is partly because an EPC contractor has the appropriate engineering, tradecraft and other labor resources to support a major project. Additionally, efficient communication and collaboration between workgroups enhances the schedule and overall outcome of the project.
Third, an EPC contractor provides a single point of responsibility for the project. An owner or operator only has to give specifications and design requirements to one contractor. Instead of negotiating dozens of contracts for various parts of the project, the oil and gas company has one contract. If an issue needs to be addressed, it’s clear who is responsible.
In conclusion, an EPC contractor can be a smart decision for your critical infrastructure project. Matrix Service Company can provide EPC services for your next facility. Take a look at some of our latest projects here.