Project Engineering in Oil & Gas Industry

Universitas Riau Kepulauan 23 Juni 2014

Introduction to Oil and Gas Facilities Engineering Project;

Steps of Project Engineering:

Engineering Management :

Reasons to be an Engineer in Oil & Gas Industry

Q & A

Content

3

Oil & Gas Process Chain

Upsream Oil & Gas Life Cycle

PRODUCTION START-UP

DISCOVERY WELL

NEW EXPL

. INITIATIVE

PRODUCTION

DEVELOPMENT

EXPLORATION & APPRAISAL

PROJECT DEVELOPMENT LIFE CYCLE

Project Development Life Cycle

5

Assess the value of the opportunity and the alignment with business strategy

based on preliminary reservoir scenarios and development

concepts

Refine selected concept, complete

tendering and produce a Project

Execution Plan which allows

project sanction

Generate concept alternatives, select and optimise the preferred concept

based on technical,

economics and risks evaluation

Execute the project to achieve a fully operating system meeting cost, time and quality targets

Start up, operate and evaluate the asset to maintain performance &

maximum return to shareholders. O

bje

cti

ve

Does the opportunity support an economic

development?

Main

Qu

esti

on

Is the asset ready for

production ? What lessons learnt can

be shared with other projects ?

Evaluation Concept Selection

Concept Definition Execution

Commissioning, Start-Up

and Perf. Test

Gt1 Gt2 Gt3 Hand over

Can the planned project be successfully executed and create value?

Is the selected

concept the optimal development alternative?

Value Realization Value Identification

Do the Project Right Choose the Right Project

Discovery Evaluation Screening

Basic Design, Tender, FEED

Selection of the Preferred Option

(s) of the Development

EPCI Well Operation

Pre-Commissioning

Commissioning Production Start-Up Project Evaluation

Close Out

.

Acti

vit

ies

Project Engineering Workflow

6

Evaluation Concept Selection

Concept Definition Execution

Commissioning, Start-Up

and Perf. Test

Gt1 Gt2 Gt3 Hand over

.

Engineering Workflow

Study Preparation

Basic Design

FEED

Detail Engineering

Construction, Installation & Pre-

Comm

Commissioning & Production Startup

Study Preparation

Objective

To define preliminary facilities layout and treatment plant options on the basis of the existing production parameters evaluation, drilling development options and other constraints

To estimate expenditure with the degree of uncertainty expected in the different exploration and development project phases

To estimate the technical and economical feasibility of the different facilities concept alternatives.

Deliverables

Pre-feasibility study (evaluation phase)

Feasibility study (concept selection phase)

oBlock diagrams oProcess schemes oGeneral layout oConstruction and installation

oBlock diagrams oFacilities schemes oGeneral layout oMain equipment general arrangement oSite technical requirements oConstruction and installation criteria o Cost/Schedules estimates

Basic Design

Objective

To specify the content of the work carried out during the Detail Engineering phase and point out critical design aspects.

To define the project specifications and tender documents for the Detail Engineering and Construction phase and for the acquisition of critical items.

To define and identify the project elements to a level of technical completeness sufficient to evaluate their initial and operating costs with a target accuracy of 20% for plants and equipment and of 10 % for structural items.

Deliverables

Basic Design Book. oFacilities Technical documents (schemes, layout etc.) oTechnical Specifications for long lead items oEquipment lists

Decommissioning Study Risk Management Plan (Update) Maintainability / Operability Philosophy. Constructability and installability analysis.

First version of Project Development Plan (PDP). oProject Scope for Joint Ventures and Authority approval oDescription of selected concept oCreation/alignment with Business Plan oDevelopment Schedule

Cost Estimates. Information Communication Technology Strategy and implementation plan. Logistics Plan

FEED

Objective

To update and complete the Basic Design results.

To define the project specifications and tender documents for the Detail Engineering and Construction phase and for the procurement of critical and Long Lead Items.

To define and identify the project elements to a level of technical completeness sufficient to evaluate their initial and operating costs with a target accuracy of +/-15% based on documented cost definition of main and secondary items and systems from Vendors and market analysis.

To prepare more accurate time schedule .

Deliverables

FEED Design book. oFacilities Technical documents (schemes, layout etc.) oTechnical Specifications for long lead ad main items oUpdated Equipment lists oDevelopment Schedule

Decommissioning Study Logistics study and functional specifications Constructability and installability analysis. Revised documented Cost Estimates.

Detail Engineering (1/2)

Objective

Design all plant systems, structures, items and bulk materials with the detailed

information needed for their procurement, construction, transportation and installation.

Prepare the necessary documentation Approved for Construction, including specifications for materials to be acquired and adequate procedures to support the planned operations.

Support the engineering activities related to material procurement, construction, transportation, installation and pre-commissioning.

Manage the activities deriving from changes and integrations arisen during all the above said activities up to the Handover.

Deliverables

Detail Engineering book including:

o Final Technical Specifications o As built General plant layout and arrangement drawings o As built PFD and P&ID o Final Equipment and Instrument Data sheets o Final as built drawings

o Final structural reports and drawings o As-built 3D model o Final material list o Final Architectural design studies and drawings o Final weight control report oRoutes plan and profiles

Detail Engineering (2/2)

Deliverables

Final ESD study Final Hazard reports Environmental compliance reports Waste management report SCADA reports Final project IT Plan Final document list Transportation Plan Test run specifications

Reference Cost database Engineering CAPEX Engineered Equipment CAPEX Bulk material CAPEX Construction CAPEX

Operating plan and procedures (Data-books and Operating Manuals) Construction, installation, hook up plan Logistics plan Operating directions (Precommissioning, Commissioning, Start-up, Normal Operations, Emergency Operations, Stop) Specifications related to test run Commissioning Plan Estimated operation and maintenance Opex DECAB Estimate CAPEX/OPEX & DECAB ESTIMATE at the Execution level

Construction, Installation & Pre-Commissioning

Objective Organize construction, installation, hook-up activities and pre-commissioning at site according to the following:

Onshore/Offshore Constructions at Contractors/Vendors sites; i.e.

construction and pre-fabrication of equipment, tubing and components for treatment facilities, off-shore structures, etc. This may be carried out at a Contractor/Vendor workshop or at a work area situated (on the coast) close to the plant site.

Onshore Construction on Company sites; i.e.

construction of treatment plants, pipelines and components. When large spaces are available close to the construction site most of the plant may be built there. Such spaces may also be used for locating Contractors/ Vendors stores and warehouses.

Offshore Constructions in Company Areas; i.e.

installation of jackets, decks and flowlines and corresponding hook-up. This activity usually requires large cranes barges for pre-fabricated jackets, decks and skids installation and for following hook-up activities

Construction, Installation & Pre-Commissioning

Deliverables

Fabrication, Construction, Installation & Hook-up Material Manufacturing

Plant Operations Manual o Contractors/Vendors Operating and Maintenance Manual o Data Books Pre-commissioning plan and procedures Construction Reporting Construction engineering book Operation Permit (for Precommissioning) Certification documents Test run Specifications As-built drawing and documents Non-Conformity Reports Spare parts lists and exceeding materials lists

Data book o Technical Specification o Data sheets o As-built drawings o As-built 3D model Installation, operation and maintenance manual o Test run specifications o Operating plan and procedures o Spare parts list

Pre-Commissioning

Test run specifications, including: o Disposal of hazardous hydrocarbons during testing o Commissioning procedures for introducing hydrocarbons Mechanical Completion Certificates, including: Testing Certificates Operation permit As-builtdrawings and documents

Commissioning and Start-up Plan, including: Availability of human resources for start up Personnel Training Certificates

Construction, Installation & Pre-Commissioning

Objective

Commissioning: The main objective of this activity is to verify the proper running of all components of asset and to test the overall process, output, quality and performance against design specifications.

Start Up: Once the Commissioning has ended with positive results the Start Up can begin, aimed at reaching the plant nominal operating conditions

Performance Test: This activity, also named Test Run, is the final test operated in the plant in order to verify that the global throughput of the plant, and its related subsystems, corresponds to the contractual requirements and that it can be satisfactorily operated in any operating condition.

Deliverables

Performance Test certificate Risk Assessment Report Operations Organisation Plan Start Up certificate .As-built. Documentations and Drawings Facilities acceptance report

Functional and Static Reports DHVS Test Report Well Maintenance Plan Wells Final Report OJT Scheduling, Evaluation and Final Reports.

Engineering Organization

Chemical Engineering Process Process Safety Flow Assurance

Mechanical Engineering

Piping Pipeline Mechanical

Civil Engineering

Civil Structure

Ocean/Offshore/Naval Engineering

Offshore Structure

Subsea Pipeline Marine/Naval

Physic Engineering

Instrument Subsea Control

Electrical Engineering

Electrical

Material/Metalurgy Engineering

Material Welding Coating/

Corrosion

Engineering Schedule

17

Examples of communications initiated by the EPC Contractors

EPC Contractors

Oil Company Project Team

Technical Queries (TQ) (request for clarifications related to the work

package)

Deviation Requests (DR)

(request to deviate from a specification)

Variation Order Proposals (VOP)

Communication with EPCI Contractor

18

Examples of communication initiated by the Oil Company Project team:

EPC Contractors

Oil Company Project Team

Non-Conformity Reports (NCR)

Company Instructions (CI) (contractual changes initiated by the Company)

Variation Orders (VO)

Interface Issues (II) (management of the interfaces across different

Contractors)

Communication with EPCI Contractor

Life of Field

Vendors & Manufacturers

EPCI Companies

Operator

Operator: ConocoPhillips, Total, Chevron, Pertamina, Saka Energy, ENI, INPEX, Saudi Aramco, etc.

EPCI Companies: SAIPEM, JGC, Tripatra, Rekayasa Industri, IKPT, Worley Person, Subsea 7, Swiber, etc. Vendors & Manufacturers: Honeywell, Swagelok, Duco, FMC Technologies, Royce Rolls, Kawasaki, One Subsea, etc.

Designing a Field Development

20

Reasons to be an Engineer in Oil & Gas Industry

The seven fundamental areas of competence in the engineering discipline are :

materials

design

construction

inspection

testing

Maintenance

Operation

7 Essentials of Successful Engineering

Recruitment Process/Step

Process Fresh Graduate Experience

Administration Screening

Psikotest

Technical Test

Interview Psikologi

Group Discussion

Interview [User]

Interview [Manager/BoD]

Salary offering

Medical Test

PASS or FAIL

Engineering Resume

Eight (8) Killer Questions

Engineering Resume 8 Killer Questions

Questions ?