Higher day rates for deepwater rigs and strong oil prices that exceeded production costs for most projects are partly to blame for the recent rise in the cost of building and operating upstream oil and gas facilities, according to analytics firm IHS.

The costs for such facilities peaked, rising 2.3% over the 3Q 2011-1Q 2012 period and setting an IHS Upstream Capital Cost Index record high. The index measures costs of materials, equipment, facilities, and personnel for oil and gas production projects.

The IHS Upstream Operating Cost Index (UOCI) also ...