Project Engineering

in Oil & Gas Industry

Universitas Riau Kepulauan
23 Juni 2014

Content

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

Oil & Gas Process Chain

3

Upsream Oil & Gas Life Cycle

NEW EXPL
. INITIATIVE

DISCOVERY
WELL

PRODUCTION
START-UP

PROJECT DEVELOPMENT LIFE CYCLE

EXPLORATION &
APPRAISAL

DEVELOPMENT

PRODUCTION

Project Development Life Cycle

Do the Project Right

Choose the Right Project

Evaluation

Gt1

Concept
Selection

Gt2

Concept
5
Definition

Gt3

Execution

Value Realization

Activities

Selection of the
Preferred Option
(s) of the
Development

Basic Design,
Tender, FEED

EPCI
Well Operation
Pre-Commissioning

Assess the value of

the opportunity and
the alignment with
business strategy
based on preliminary
reservoir scenarios
and development
concepts

Generate concept
alternatives, select
and optimise the
preferred concept
based on
technical,
economics and
risks evaluation

Refine selected
concept, complete
tendering and
produce a Project
Execution Plan
which allows
project sanction

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

Is the
selected
concept the optimal
development
alternative?

Can the
planned project
be successfully
executed and
create value?

Main Question

Discovery
Evaluation
Screening

Objective

Value Identification

Does the
opportunity
support an
economic
development?

Commissioni
ng, Start-Up
and
Perf. Test

Hand
over

Is the asset
ready for
production
?

Commissioning
Production Start-Up
Project Evaluation
Close Out
.
Start up, operate
and evaluate the
asset to maintain
performance &
maximum return
to shareholders.

What lessons learnt can

be shared with other
projects ?

Project Engineering Workflow

6
Engineering
Workflow

Evaluation

Gt1

Concept
Selection

Gt2

Concept
Definition

Gt3

Execution

Hand
over

Commissioni
ng, Start-Up
and
Perf. Test

Study Preparation

Basic Design

FEED

Detail Engineering

Construction,
Installation & PreComm
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)
oBlock diagrams
oProcess schemes
oGeneral layout
oConstruction and installation

Feasibility study
(concept selection phase)
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.
First version of Project Development Plan (PDP).
oFacilities Technical documents
oProject Scope for Joint Ventures and
(schemes, layout etc.)
Authority approval
oTechnical Specifications for long
oDescription of selected concept
lead items
oCreation/alignment with Business Plan
oEquipment lists
oDevelopment Schedule
Decommissioning Study
Cost Estimates.
Risk Management Plan (Update)
Information Communication Technology
Maintainability / Operability Philosophy.
Strategy and
Constructability and installability analysis. 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 (Databooks 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

Ocean/Offshore/Naval
Engineering

Offshore
Structure

Subsea Pipeline

Marine/Naval

Mechanical
Engineering

Piping

Pipeline

Mechanical

Chemical Engineering

Process

Process Safety

Flow Assurance

Material/Metalurgy
Engineering

Material

Welding

Coating/
Corrosion

Physic
Engineering

Instrument

Subsea Control

Civil
Engineering

Civil

Structure

Electrical
Engineering

Electrical

Engineering Schedule

Communication with EPCI Contractor

17

Examples of communications initiated by the EPC Contractors

Technical Queries (TQ)

(request for clarifications related to the work
package)

Deviation Requests (DR)

(request to deviate from a specification)
EPC Contractors

Variation Order Proposals (VOP)

Oil Company
Project Team

Communication with EPCI Contractor

18

Examples of communication initiated by the Oil Company Project team:

Non-Conformity Reports (NCR)

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

Variation Orders (VO)

Interface Issues (II)
EPC Contractors

(management of the interfaces across different

Contractors)

Oil Company
Project Team

Designing a Field Development

Operator
EPCI
Companies

Vendors &
Manufacturers

Life of Field

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.

Reasons to be an Engineer in Oil & Gas Industry

20

7 Essentials of
Successful Engineering

The seven fundamental areas of competence in the

engineering discipline are :
materials
design
construction
inspection
testing
Maintenance
Operation

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
8 Killer Questions
Engineering Resume
Eight (8) Killer Questions

Questions ?