Project Execution of Mega-Projects for the Oil and Gas Industries

Soosaiya Anthreas

• Publisher: CRC Press
• Year: 2021
• eBook ISBN: 9781000361636
• Edition: 1
• Topic: Business
• Subtopic: Chemical & Biochemical Engineering
• Index: Business

This book covers execution of mega industrial projects especially in oil and gas industries covering engineering, procurement, construction, commissioning and performance testing. It enumerates various tasks and deliverables under each discipline and sub-disciplines to define the detailed scope of work, supplies and services, as per level III of Prima Vera Schedule developed from the contract-based schedule. It gives an overall idea of how a project rolls out from commencement date to initial acceptance and executed practically with total contractor's scope of work broken down into tasks/activities at level III platform, while highlighting that support for fool proof project execution.

Section I

Planning and Execution in Level 3

For explaining various aspects at Level 3 platform, an upstream natural gas treatment project is assumed, where the project contains a central processing facility (to be called as Main Plant), and well heads, flow lines, clusters, and trunk lines (to be called as Off-Site). The Main Plant and Off-Site together during the execution stage are called project, which on completion stage called the Plant. The project features are given in Table 1.

TABLE 1
Project Features

Plant capacity:	6 million standard cubic meter per day from 20 wells.
Products:	Natural gas and condensates
Contract price:	1 billion USD
Timeline:	40 months
Major process units:	Slug catcher, mercury removal, compression, acid gas removal, dehydration, and due point unit, all being part of central processing facility under Main Plant.

The activities indicated and addressed in the following chapters under Section I constitute the tasks for Level 3 Detailed Schedule. These are the tasks that Contractor discloses to Owner officially and gets them populated in Level 3 Schedule. Contractor does not disclose those deliverables (tasks) that he prepares and monitors for his in-house internal use, and hence, they do not appear in Level 3 Schedule.

Key Dates and Contract Milestones are reflected here.

Any documents that Government authorities require at the start of the project regarding project are also stated as tasks here.

In Section I, planning and execution is explained through ten topics (main activities): (1) Management, Control, and Administration; (2) HSE, Social, and Security; (3) Services and Facilities to Owner; (4) Engineering; (5) Procurement and Supply; (6) Transport, Logistics, and Storage; (7) Construction; (8) Pre-commissioning; (9) Commissioning, Start-up, and Performance Testing; and (10) Temporary Facilities. The breakdown aforesaid is comparable to the first ten items of Appendix 2. The last two main activities (Final Documentation and Owner Operators Training) of Appendix 2 are not treated in this book. However, the Scheduler should take these two activities into account while planning in Level 3.

1 Management, Control, and Administration

1.1 Management

The management assumes paramount importance in EPC Execution as EPC Contractor assumes sole and full responsibility until the Plant performs as designed at the scheduled date, including safety and quality. No projects succeeded without a good management. With good management, even difficult-to-execute projects or underquoted/bid projects have performed commendably with profits at the end. For a sustainable growth of management towards excellence, systems and procedures are important.

Normally, the management will comprise as follows, including the support from respective centers:

1. Contractor’s Main Management Center (at Head office),
2. Contractor’s Engineering and Procurement Center (at Head office),
3. Contractor’s Construction Management Center (at Head office and Site),
4. Interface Management.

Under Level 3, collectively, the tasks involved among the above-mentioned centers include the preparation of

• Co-ordination and Communication Procedure;
• Mobilization plan and Chart;
• Temporary Facility Establishment Philosophy;
• Engineering Execution Philosophy;
• Procurement Execution Philosophy;
• Construction Execution Philosophy;
• Front End Engineering Design (FEED) and overall Design Review Program;
• Project Review Dossier (including the result on FEED verification, the final technical and commercial negotiation at the last leg of bidding process, and highlights/focus on the critical and important activities);
• PMO’s Roles and Responsibilities;
• Change Procedure;
• Close-out Procedure;
• Corporate Audit Philosophy on the Project;
• Interface Management Plan.

In addition to the above deliverables, the Level 3 Schedule reflects that management, administration, and secretarial support services from Head office are available until project completion under Contractor’s Main Management Center, Contractor’s Engineering and Procurement Centers, Contractor’s Construction Management Center, and Management from Construction Site.

Appendix 1 explains how above managements are integrated and organized. Engineering and Procurement Centre is located at the Home office of Contractor, while Management for Site is located at Site. Interface Management during engineering phase is located at Home office of Contractor, while during Construction, it is located at Site. The Project Manager is the overall head of all above management.

Contractor prepares and follows the procedures and plans. A typical list is shown in Appendix 10. The head of the project management is Project Manager who assumes full responsibility and authority for the Contract with power of attorney given by the Chief Executive Officer or competent authority of the Contractor’s company.

Interface Management assumes importance when the Owner has many EPC Contractors working simultaneously in the complex where the project is executed.

Steering Committee or Sponsor Committee

The project has a steering committee of sponsors from both Owner and Contractor. The sponsors generally are top executives in the rank of directors. In a project, critical issues may arise to block the progress of the project. Such issues may sometimes remain unresolved at Project Manager’s level, but can be resolved at steering committee level. Steering commi...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Dedication
• Table of Contents
• Foreword
• Preface
• Acknowledgments
• Author
• Introduction
• Section I Planning and Execution in Level 3
• Section II Commercial Aspects
• Section III Technical Aspects
• Section IV Glossary of Abbreviations, Names, and Meaning
• Bibliography
• Index