Build-Operate-Transfer (BOT) or Build-Own-Operate-Transfer (BOOT) structure for projects has proved to be a valued approach for private participation in the field development. Pyramid E&C can supply standard production systems on a lease basis, with or without operational support.
The various business models are structured so that Pyramid E&C takes responsibility for the detailed design, construction, commissioning, operation and performance of a particular project in the operator’s field. Once operational, Pyramid E&C receives a payment for providing the services in the form of a long-term contract. The final element of the contract can take the form of ‘Transfer’ (BOOT), where the operator has an option to purchase the equipment and take control of operations for the plant.
Pyramid E&C has experience in all aspects of these business models and offers a very competitive and cost efficient method for Field Operators to realise early revenue from their field. BOT and related arrangements (e.g. BOOT Build Own Operate Transfer and BOO Build Own Operate) and have been very successful in opening up public infrastructure to the private sector finance, and have a number of advantages. They bring private sector disciplines to the project development and design process leaving public sector far less exposed to risks of cost overruns or below expected performance. By enabling focus on a particular facility they can be more readily financed and do not impose a burden on public funds, and have thus probably helped encourage financial flows. The costs of financing are relatively low, with the bulk of the capital cost being financed by bank lending at modest margins.