Management of Medium-Size /

Revamping Projects
Oil & Gas Downstream Projects
1. Introduction to Oil & Gas downstream projects

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 Course Scope and Purpose

 Scope:
• Project Management, from conceptual to operation readiness
• Applied to Medium-Size and Revamp projects (no grassroots)
• Refining and Chemicals projects

 Course Objectives:
• Explain to the participants how to:
− Manage a Medium-Size / Revamping project at each stage
− Effectively manage Q.H.S.E, Cost and Schedule Risks
− Plan and control the project execution from beginning till completion
− Manage critical interfaces with authorities, operations, stakeholders
• Make sure that the participants:

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− Understand the concepts that are explained during the course
− Are able to apply them on actual practical cases

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 Management of Medium-Size /
Revamping Projects: course content

I. Introduction
II. Preliminary Studies
III. Basic Engineering (or FEED)
IV. EPC Contracting
V. Organization and Engineering
VI. Procurement
VII. HSE, Quality and Risk Management
VIII. Project Control (cost/schedule)

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IX. Construction and Fabrication Management
X. Completion / Commissioning / Start-up / Closure
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 MS/R Project types

 Project size “definition”:

• Projects can be very small ... (criticality and risk are not proportional to amount)
• Total cost is typically between 20 and 200 million $ (above, large project)
 Project characteristics:
• Executed within existing facilities
− Either being operated in standard conditions (plant in operation)
− Or shutdown for a short period (a few weeks)
 Various types of technical scope:
• Safety, regulatory or environmental compliance improvement
• Debottlenecking, moderate capacity or reliability increase
• Rejuvenation, upgrading of key process equipment
• Improvement of technical performance (energy, yields)

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 Project activities

Project Management of
Estimates
structure resources

Typical steps
to handle (as
per PMIbok) Delivery
Project time
definition reduction

Introduction Measurement
Management Audit and
Organization of progress
of risks closure
Cost control

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Project Manage
Leadership Partnership
strategy team

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 Project stages
EPC contract
Project approval
Approval

Project Development Project Execution Start-Up

Operation
Business
Plan
Detailed Engineering Reception
Screening Planning Basic Commissioning
Engineering Procurement
Construction

Gate 1 Gate 2 Gate 3 Final

agreement

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This process is applicable to oil & gas projects but also to any kind of industrial projects

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 Facility operational organization

Owner organization may be involved in projects development:

 Operations (Production, Maintenance)
• Personnel training, operating manuals
• Subcontracted work and field supervision
• Commissioning and Startup

 Technology / HSE
• Scope validation and optimization
• Process Risk Analysis, Change management
• Management of controlled documentation

 Regional Headquarters

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• Financial and technical support
• Project auditing

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 Typical production site organization

Owner site Resident engineers

organization

Project Manager Engineering

contractor

Lead
Safety Quality Support Construction Reception
engineering
manager manager manager manager manager Engineering
engineer
leader

Contract Supervision Reception

Project Process engineer engineer engineer
engineer engineer Project Process
engineer engineer

Cost Site
Expert Expert engineer supervisor
engineer engineer Expert Cost
engineer supervisor

Accounting
engineer
Safety Construction
engineer engineer

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Computer
engineer

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 Why & when a project?
Economical justification of Projects
New products Increase capacity
Increase feedstock
New qualities enhancement Sulphur level
CO2 emission
Energy conservation Waste heat recovery
Energy yield improvement
H.S.E improvement Reduce atmosphere emissions, SO2, Nox, BETEX, CO2
Reduce effluents to sea, to river, waste treatment
Improve safety equipment, safety systems, emergency systems
Operability Control systems upgrade
Electrical systems upgrade
Increase utilities production
Increase capacity storage

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Increase communications systems
Maintenance Increase equipment reliability
Upgrade working conditions
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 Project execution process: stages

Before Project final approval After Project final approval

Idea Contracting

Conceptual design Detailed Engineering

•Technical Concept studies
•(Prelim.) Project Planning

Procurement
(Simple Projects) (Equipment, bulks)

(Fabrication), Construction, (T& I)

Basic (or FEED) Commissioning, Start-Up, [Link]
Engineering

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•Technical Package(s)
•Project Planning

Guarantee Period

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 Project execution process: gates
Before Project final approval After Project final approval
Idea Contracting

Proceed to Concept Contract Award

Detailed Engineering
Conceptual design Project approval

Procurement
(Simple Projects)

Proceed to Basic
(Fabrication), Construction,
Commissioning, Start-Up, [Link]

Basic (or FEED) Mechanical Completion

Provisional Acceptance

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Engineering
Guarantee
Period

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Final Acceptance 11
 Maintenance activities

All activities required to keep the Plant equipment in working condition

 Planned (preventive/predictive program, running or during shut-downs)

• Inspections (piping, vessels, lining…)
• Replacement of parts (pipes, seals, bearings, tubing…)
• Equipment cleaning (heat exchangers, turbine blades…)
• Instruments/Analyzers (verification, calibration, replacement…)
• Catalysts and chemicals loads replacement

 Unplanned (equipment repairs due to failures)

• Leaks (valves, gaskets, piping, seals, furnace and exchanger tubes…)
• Vibrations (rotating equipment, structures, piping, supports…)
• Breaks (instruments, rotating equipment, vessels…)

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 May even include very minor improvements

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 HSE risks of projects in existing facilities

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 Reliability risks of projects in existing facilities

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Key data will often be missing, misleading, contradictory or confusing
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 Risk mitigation

 Participation of Plant personnel to design/construction

• Knowledge of existing facilities, of operating procedures
• Availability of up-to-date and correct documentation
• Scope and schedule extensive communication

 Field surveys before starting engineering studies

• Soils, topography, underground equipment
• Civil works, structures, foundations, buildings
• Piping configuration, E&I cable networks, tag numbers

 Site procedures applicable for Project field works

• SHE: access, work permit, emergency, confined spaces, height…
• Operations: change management, communication…

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• Project: standards, key steps, documentation, exceptions…

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 Project schedule and Plant shut-downs

 Existing facilities are subject to Maintenance S/D, to be considered when

planning a project which requires stoppage of units or other facilities

 Planned Shut-Downs
• Plant turnaround (regulatory inspection, major repairs): 3 to 6 years
• Unit or equipment turnaround (spared or by-passable): 1 to 3 years
• Overhaul of large unique equipment: sometimes up to every year
• Planned shut-downs of downstream facilities providing utilities
• Short duration shutdowns for connecting or installing a project

 Unplanned Shut-Downs: sometimes a tie-ins opportunity (if ready)

 Minimizing shutdown duration is always a key project objective:

• Works during shutdown are always more costly

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• Production losses may kill the project benefits

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 Managing several projects simultaneously

 Each Project has its own budget, cost and schedule

 Several activities can be shared between projects

• Project Management and Coordination
• Quality Assurance and Control
• HSE and specialized field supervision
• Part-time technical support
• Procurement/Expediting activities
• Secretarial services

 Managing priorities implies

• Flexibility
• A good understanding of project justifications

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• Close cooperation with the Owner

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 Introduction to project management

Key points to keep in mind

 Project risks are not proportional to project cost

 HSE and Reliability risk has to be closely managed
 Interfaces with Owner organization are critical to success
 The Stage-Gate process should be strictly applied
 Understanding Maintenance organization can help a lot
 Simultaneous success in all areas is a Must
• Safety, Health and Environmental
• Quality / Owner full satisfaction
• Schedule compliance
• Cost optimization

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 Management of Medium-Size / Revamping Projects

Downstream examples

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 Downstream: typical petrochemical complex

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Exxon by courtesy

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 Refinery: general process functional diagram

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 Two stage hydrocraker: typical process flow diagram

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 Downstream: typical refining process vessel and compressor

Screw high pressure compressor

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Hydrocracker process vessel

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 Downstream: typical revamping work
Tank relocation Shell and Conoco by courtesy

Tower modifications

Pipe rack reinforcement

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 Downstream: typical revamping work

Shell and Exxon by courtesy

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 Downstream: typical revamping work
Shell, Conoco and Exxon by courtesy

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 Refinery: jet fuel storage ... Engineering and construction

3D view as per engineering

Construction at site

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Shell by courtesy

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