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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 ?
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