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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
b
j
e
c
t
i
v
e

Does the
opportunity
support an
economic
development?
M
a
i
n

Q
u
e
s
t
i
o
n

Is the asset
ready for
production
?
What lessons learnt can
be shared with other
projects ?

Evaluation
Concept
Selection
Concept
Definition
Execution

Commissioni
ng, 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
.
A
c
t
i
v
i
t
i
e
s

Project Engineering Workflow
6
Evaluation
Concept
Selection
Concept
Definition
Execution

Commissioni
ng, 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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