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 DISCOVERY PRODUCTION

. INITIATIVE WELL START-UP

PROJECT DEVELOPMENT LIFE CYCLE

EXPLORATION &
APPRAISAL

DEVELOPMENT

PRODUCTION
 Project Development Life Cycle
Choose the Right Project Do the Project Right

Commissioni
Concept Concept Hand
Evaluation Gt1 Selection Gt2 5
Definition
Gt3 Execution ng, Start-Up
over
and
Perf. Test
Value Identification Value Realization
Activities

Discovery Selection of the Basic Design, EPCI Commissioning

Evaluation Preferred Option Tender, FEED Well Operation Production Start-Up
Screening (s) of the Pre-Commissioning Project Evaluation
Development Close Out
.

Assess the value of Generate concept Refine selected Execute the Start up, operate
the opportunity and alternatives, select concept, complete project to achieve and evaluate the
Objective

the alignment with and optimise the tendering and a fully operating asset to maintain
business strategy preferred concept produce a Project system meeting performance &
based on preliminary based on Execution Plan cost, time and maximum return
reservoir scenarios technical, which allows quality targets to shareholders.
and development economics and project sanction
concepts risks evaluation
Main Question

Does the Is the Can the

opportunity planned project Is the asset
selected
support an be successfully ready for
concept the optimal
economic executed and production
development
development? create value? ? What lessons learnt can
alternative?
be shared with other
projects ?
 Project Engineering Workflow

Engineering Commissioni
Gt1 Concept Concept Gt3 Hand
Workflow Evaluation Gt2 Execution ng, Start-Up
Selection Definition over and
Perf. Test

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 Feasibility study
(evaluation phase) (concept selection phase)

oBlock diagrams oBlock diagrams

oProcess schemes oFacilities schemes
oGeneral layout oGeneral layout
oConstruction and installation 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. Decommissioning Study
oFacilities Technical documents (schemes, Logistics study and functional
layout etc.) specifications
oTechnical Specifications for long lead ad main Constructability and installability analysis.
items Revised documented Cost Estimates.
oUpdated Equipment lists
oDevelopment Schedule
 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 Data book

o Contractors/Vendors Operating and Maintenance Manual o Technical Specification
o Data Books Pre-commissioning plan and procedures o Data sheets
Construction Reporting o As-built drawings
Construction engineering book o As-built 3D model
Operation Permit (for Precommissioning)
Certification documents Installation, operation and maintenance
Test run Specifications manual
As-built drawing and documents o Test run specifications
Non-Conformity Reports o Operating plan and procedures
Spare parts lists and exceeding materials lists o Spare parts list
Pre-Commissioning

Test run specifications, including: Commissioning and Start-up Plan,

o Disposal of hazardous hydrocarbons during testing including:
o Commissioning procedures for introducing hydrocarbons Availability of human resources for
Mechanical Completion Certificates, including: start up
Testing Certificates Personnel Training Certificates
Operation permit
“As-built”drawings and documents
 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 •Functional and Static Reports

• Risk Assessment Report •DHVS Test Report
• Operations Organisation Plan •Well Maintenance Plan
• Start Up certificate • Wells Final Report
•.As-built. Documentations and • OJT Scheduling, Evaluation and Final
Drawings Reports.
• Facilities acceptance report
 Engineering Organization

Ocean/Offshore/Naval Offshore
Subsea Pipeline Marine/Naval
Engineering Structure

Mechanical
Piping Pipeline Mechanical
Engineering

Chemical Engineering Process Process Safety Flow Assurance

Material/Metalurgy Coating/
Material Welding
Engineering Corrosion

Physic
Instrument Subsea Control
Engineering

Civil
Civil Structure
Engineering

Electrical
Electrical
Engineering
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: ConocoPhillips, Total,

Chevron, Pertamina, Saka Energy,
Operator
ENI, INPEX, Saudi Aramco, etc.
EPCI
Companies

EPCI Companies: SAIPEM, JGC,

Tripatra, Rekayasa Industri, IKPT,
Vendors &
Manufacturers Worley Person, Subsea 7, Swiber,
etc.
Vendors & Manufacturers:
Honeywell, Swagelok, Duco, FMC
Technologies, Royce Rolls,
Kawasaki, One Subsea, etc.
Life of Field
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 ?