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16/10/2010

Gunung Kembang Pipeline Project,


SSE Block Indonesia: Delivering
Gas Sales, Project Cost
and Time Efficiency
Presented by,
Trian Hendro A and I Gede Mahesa P

World Construction Project Management, Coventry, UK


20 – 22 October 2010 Journey towards excellence

Outline
1 • Overview…………………………………………………..

2 • Project
j Background………………………………………
g

3 • Project Description……………………………………….

4 • Pipeline Engineering……………………………………..

5 • Construction Project Management……………………..

6 • Project Benefits…………………………………………..

7 • Conclusion………………………………………………..

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Overview

Gunung Kembang Pipeline Project,


SSE Block Indonesia

PT Medco E&P Indonesia

Operation Areas
Libya
Block A Oman
Tunisia
US Gulf of Mexico Cambodia
Yemen
Nunukan
Sembakung
Bengara Simenggaris
Tarakan
SUMATRA
Bangkanai
Senoro-Toili
Yapen
Merangin KALIMANTAN
SULAWESI

Rimau
PAPUA
SS Extension/Kampar Bawean

Lematang Jakarta
JAWA

Jeruk

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South Sumatra Working Area

Project Background
& Scope of Work
Gunung Kembang Pipeline Project,
SSE Block Indonesia

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Project Background
PT Medco E&P Indonesia has commitment to supply
additional gas of 15 BBTUD (13.5 MMSCFD) to
customers, and Gunung Kembang field need to deliver
up to
t 30 MMSCFD
MMSCFD.

The existing Gunung Kembang (GK) –Teras pipeline


has capacity of 20 MMSCFD

Upgrading the pipeline capacity of GK-Teras to


accomodate the additional gas up to15 MMSCFD

Project Scope of Work


Installation 8” SP 9–Teras pipeline 15 km (Segment -1)

Installation 6” Gunung Kembang-SP 9 pipeline 17 km


(Segment-2)

River Crossing Keruh (108 m) and Tarum (204 m)

Testing
g and Certification

The schedule : December 2009 to August 2010

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Pipeline Schematic SSE Block

New Pipeline Project GK-Teras

Pipeline Engineering

Gunung Kembang Pipeline Project,


SSE Block Indonesia

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Engineering Code & Standards

• ASME B31.8 : Gas Distribution and Transportation


Piping System
• ASME B16.5 : Pipe Flanges and Flanged Fittings, Steel,
Nickel Alloy and other Special Alloy
• API RP 14C : Recommended Practice for Analysis,
Design, Installation, and Testing of Basic
Surface Safety Systems
• API RP 1104 : Welding of Pipeline and Related Facilities

Pipeline Capacity

Pipeline Capacity
T t l
Total
No Description 8" 8" 8" and 6" Capacity
(existing) (new) (new)
Option 1
1 G. Kembang = 830 psig 20 MMSCFD 20 MMSCFD - 40 MMSCFD
Teras = 620 psig
Option 2
2 G. Kembang = 830 psig 20 MMSCFD - 15 MMSCFD 35 MMSCFD
Teras = 620 psig

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Design Parameters

Description Data
Fluid Gas
Fluid density 21.10 lb/ft3 (337.99 kg/m3)
Maximum operating pressure 850 psig (5.86 Mpa)
Maximum operating temperature 120 ºF (48.89 ºC)

Pipeline Detail and Material Selection

Description GK - SP9 Segment SP9 - Teras Segment


Pipe material CS API 5L Gr. B Sch. 40 CS API 5L Gr. B Sch. 40
Outside Diameter 6.625 inch (168.275 mm) 8.625 inch (219.075 mm)
Wall thickness 0.28 inch (7.112 mm) 0.322 inch (8.18 mm)
Length of pipe 17 km 15 km
Corrosion
Polyethylene Wrapping Tape Polyethylene Wrapping Tape
Protection

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Schematic Drawing

River Crossing

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Road Crossing

Commissioning

Cleaning

Gauging

Hydrostatic Testing

Dewatering

Drying and Purging

Gas In

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Construction Project
Management

Gunung Kembang Pipeline Project,


SSE Block Indonesia

Project Management Process

Source: Project Management Body of Knowledge (PMBOK)

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Initiating
• Issued Project Service Agreement (PSA) between
Technical Services Division (project executor) and
O
Operation
ti Asset
A t (Owner)
(O )

• PSA consists of:


– Project Objective
– Project Scope of Work
– Project Schedule
– Project Budget
– Project Organization

Planning
• Master Schedule

Segment--1 on early May 10


Segment

Segment--2 on early Sept 10


Segment

• Using existing material from other lower-priority projects


Æ Combination 8” 15 km Segment -1 & 6” 17 km Segment-2

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Planning - Organizing
Æ Forming the project team (internal), creating a WBS, and
allocating resources (manpower, equipment & material)

ƒ Work Breakdown Schedule (WBS) :


a) Engineering (8%) d) Construction and
b) Land acquisition (20%) Commissioning (45%)
c) Procurement (25%) e) Handover (2%)

ƒ Project
P j t Execution
E ti Strategy
St t (n
(non
( on--EPC)
Æ In-house Engineering
Æ In-house Project Management
Æ In-house Material Procurement
Æ Separately Service Contract: Fabrication, NDT, Equipment, Hydrostatic

Executing
ƒ Pipeline Sections for Construction

ƒ 8” Segment-1 on stream early May 2010


ƒ 6” Segment-2 :
– Part 1 started construction on April 2010
– Part 2 started construction on June 2010

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Controlling – S Curve Project


WEIGHT Des-09 Jan-10 Feb-10 Mar-10 Apr-10 Mei-10 Jun-10 Jul-10 Agust-10
NO. DESCRIPTION QTY & UNIT FACTOR W0 W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 W16 W17 W18 W19 W20 W21 W18 W19 W20 W21 W22 W23 W24 W25 W26 W27 W28 W29 W30 W31 W32 W33 W34 W35
% 7/12 14/12 21/12 28/12 4/1 11/1 18/1 25/1 1/2 8/2 15/2 22/2 1/3 8/3 15/3 22/3 29/3 5/4 12/4 19/4 26/4 3/5 10/5 17/5 24/5 31/5 7/6 14/6 21/6 28/6 5/7 12/7 19/7 25/7 1/8 8/8 15/8 22/8 29/8

1 ENGINEERING 8,00
1,1 Survey 1 Lot 0,80 0,48 0,32
1.2 Basic Design 1 Lot 1,20 0,18 0,54 0,40 0,08
1.3 Drawing 1 Lot 1,20 0,11 0,20 0,26 0,29 0,22 0,10 0,02
1.4 MTO 1 Lot 1,60 0,24 0,72 0,53 0,11
1,5 As Built Drawing SP IX-Teras 1 Lot 1,60 0,96 0,64
1,6 As Built Drawing GK-SP IX 1 Lot 1,60 0,48 0,88 0,24

2 LAND ACQUISITION 20,00


2,1 Land acquisition and Sozialitation 1 Lot 20,00 0,80 1,40 2,00 2,40 2,60 2,80 2,60 2,20 1,40 1,00 0,40 0,40

3 PROCUREMENT 25,00
3,1 Contracting 0,20
3.1.1 Welding, Heavy Equipment 1 Lot 0,10 0,00 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,00 0,00 0,00
3.1.2 River Crossing S. Tarum 1 Lot 0,10 0,00 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,00 0,00 0,00
3,2 Materials 24,80
3.2.1 Pipe 6" API 5L Gr.B Sch. 40 ERW 1.450 Jts 7,44 0,45 1,12 1,34 1,56 1,49 0,97 0,37 0,15
3.2.2 Pipe 8" API 5L Gr.B Sch. 40 ERW 1.250 Jts 9,10 1,36 4,09 3,00 0,64
3.2.3 Instrument 1 Lot 1,49 0,06 0,13 0,19 0,22 0,28 0,22 0,18 0,12 0,04 0,03
3.2.4 Pipe Fittings 1 Lot 2,48 0,10 0,22 0,32 0,37 0,47 0,37 0,30 0,20 0,07 0,05
3.2.5 Closure 12" 2 Ea 0,73 0,03 0,07 0,09 0,11 0,14 0,11 0,09 0,06 0,02 0,01
3.2.6 Closure 10" 2 Ea 0,50 0,03 0,07 0,09 0,10 0,10 0,06 0,02 0,01
3.2.7 Wrapping Tape 2.400 Roll 3,07 0,18 0,46 0,55 0,65 0,61 0,40 0,15 0,06

4 CONSTRUCTION WORK + COMMISIONING 45,00


8" TERAS-SP IX SEGMENT (15 Km) 18,00
4,1 Civil Work 6,30
4.1.1 Preparing the ROW 15 Km 2,21 0,33 0,99 0,73 0,15
4.1.2 Pig L/R Foundation Teras & SP IX 1 Lot 0,63 0,19 0,35 0,09
4.1.3 Ditching 15 Km 0,95 0,14 0,43 0,31 0,07
4.1.4 Backfilling & Compacting 15 Km 2,52 0,38 1,13 0,83 0,18
4,2 Mechanical Work 0,90
4.2.1 Fabricate & Install Pig L/R 8" 1 Lot 0,90 0,27 0,495 0,135
4,3 Pipeline Work 9,00
4.3.1 River Crossing S. Keruh 1 Lot 1,80 0,27 0,81 0,594 0,126 0
4.3.2 Stringing 1.250 Jts 0,45 0,14 0,25 0,07
4.3.3 Welding & X-Ray Checking 1.250 Jts 4,23 0,55 1,18 1,44 0,85 0,21
4.3.4 Wrapping & Holiday Test 15 Km 0,90 0,12 0,25 0,31 0,18 0,05
4.3.5 Lowering 15 Km 0,45 0,14 0,25 0,07
4.3.6 Flushing & Hydrotesting 1 Lot 0,45 0,45
4.3.7 Dewatering 1 Lot 0,36 0,36
4.3.8 Drying 1 Lot 0,36 0,36
4,4 Instrument Work 0,90
4.4.1 Install Instrument 1 Lot 0,90 0,54 0,36
4,5 COMMISIONING 1 Lot 0,45 0,45
4,6 INSPECTION& CERTIFICATION 1 Lot 0,45 0,27 0,18

6" GK - SP IX SEGMENT (20 Km) 27,00


4,1 Civil Work 9,45
4.1.1 Preparing the ROW 17 Km 4,25 0,47 0,94 1,15 1,02 0,51 0,17
4.1.2 Pig L/R Foundation GK & SP IX 1 Lot 0,95 0,28 0,52 0,14
4.1.3 Ditching 17 Km 1,42 0,21 0,64 0,47 0,10
4.1.4 Backfilling & Compacting 17 Km 2,84 0,85 1,56 0,43
4,2 Mechanical Work 1,35
4.2.1 Fabricate & Install Pig L/R 6" 1 Lot 1,35 0,81 0,54
4,3 Pipeline Work 13,50
4.3.1 River Crossing S. Tarum 1 Lot 3,92 0,59 1,77 1,30 0,27
4.3.2 Road Crossing SP VIII 1 Lot 0,80 0,24 0,44 0,12
4.3.3 Stringing 1.450 Jts 0,68 0,20 0,37 0,10
4.3.4 Welding & X-Ray Checking 1.450 Jts 2,70 0,16 0,41 0,49 0,57 0,54 0,35 0,14 0,05
4.3.5 Wrapping & Holiday Test 17 Km 2,03 0,26 0,57 0,69 0,40 0,10
4.3.6 Lowering 17 Km 1,35 0,41 0,74 0,20
4.3.7 Flushing & Hydrotesting 1 Lot 0,68 0,68
4.3.8 Dewatering 1 Lot 0,68 0,68
4.3.9 Drying 1 Lot 0,68 0,68
4,4 Instrument Work 1,35
4.4.1 Install Instrument 1 Lot 1,35 0,81 0,54
4,5 COMMISIONING 1 Lot 0,68 0,68
4,6 INSPECTION& CERTIFICATION 1 Lot 0,68 0,68

5 HANDOVER & CLOSE OUT 1 Lot 2,00 0,66 0,30 0,14 0,90

GRAND TOTAL 100,00


INCREMENTAL 0,00 0,48 0,61 2,11 5,39 5,53 6,05 6,63 6,32 5,20 4,25 4,15 4,48 2,97 2,51 1,39 0,61 0,99 1,49 1,52 2,86 2,51 1,94 1,55 1,91 2,22 1,93 2,12 2,78 1,56 1,97 3,09 2,66 2,00 1,25 1,22 0,68 1,35 0,82 0,90
PLANNING
ACCUMULATIVE 0,00 0,48 1,09 3,20 8,59 14,12 20,18 26,80 33,13 38,32 42,58 46,73 51,21 54,19 56,70 58,09 58,70 59,69 61,18 62,70 65,56 68,07 70,00 71,55 73,46 75,68 77,61 79,73 82,50 84,07 86,04 89,13 91,79 93,79 95,05 96,26 96,94 98,29 99,10 100,0
INCREMENTAL 0,00 0,00 3,00 6,00 6,97 6,97 3,49 2,96 3,01 2,07 2,50 1,42 2,12 6,11 5,86 4,47 2,18 2,37 2,72 2,14 1,65 3,50 3,41 2,89 2,76 1,35 1,36 0,88 0,68 0,41 0,84 1,07 0,56 1,19 1,49 0,82 0,58 0,58 1,29 2,31
ACTUAL
ACCUMULATIVE 0,00 0,00 3,00 9,00 15,97 22,94 26,43 29,39 32,40 34,48 36,98 38,40 40,53 46,64 52,50 56,96 59,15 61,52 64,24 66,38 68,02 71,53 74,94 77,83 80,60 81,95 83,31 84,19 84,87 85,28 86,12 87,19 87,75 88,94 90,43 91,25 91,84 92,41 93,70 96,01
AHEAD / BEHIND (+/- ) -0,5 1,9 5,8 7,4 8,8 6,3 2,6 -0,7 -3,8 -5,6 -8,3 -10,7 -7,6 -4,2 -1,1 0,5 1,8 3,1 3,7 2,5 3,5 4,9 6,3 7,1 6,3 5,7 4,5 2,4 1,2 0,1 -1,9 -4,0 -4,9 -4,6 -5,0 -5,1 -5,9 -5,4 -4,0

Controlling - Problem
1) There was a problem during pig cleaning (segment-1):
the pig was stuck for 1 week (April-May).
2) Legal administration of ROW caused delay:
1) the start of the project part-2 for 3 weeks (July)
2) the completion of the segment-2 for 7 weeks (Sept-Oct).
3) Material wrapping tape delivery (segment-2) was
delayed for 5 weeks (July-August) impact to backfilling
progress

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Controlling – Overcoming

1) Provide higher pressure pump for flushing and


hydrostatic test.
2) Local inhabitants invite into the works and negotiation
via local officer.
3) Provide additional resources (manpower and
equipment) for fast track the project.

Closing - Lesson Learns

Procurement & Project


Right of Way
Contracting Execution
(ROW)
Process Strategy

Advance Project
Socialization to Proper Planning Conduct cost-
Stakeholder benefit analysis

Maintain
coordination to
Stakeholder
during the project
execution

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Project Benefit &


Conclusion

Gunung Kembang Pipeline Project,


SSE Block Indonesia

Cost Benefit Analysis


a. Engineering Value
Æ8
8” 15 km and 6”
6 17 km instead of 8”
8 32 km
 

8" 15km & 6" 17km $  1,970,883.35
8" 32km  $  2,442,316.90
∆ $  471,433.54

Æ Saving 20% of material cost

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Cost Benefit Analysis (2)


b. Project Cost (excluding material)
ÆIn House vs EPC Contract
Average ($ / km-inch) Total
In House 8.387,39 1.862.000,00
EPC Contract * 10.526,53 2.336.889,39
Δ 474.889,39
* from other similiar medco's projects

Æ Saving 20% of EPC

c. Total saving
saving compare
comparedd to EPC : 20
20%%
(engineering, material, construction)

Opportunity Benefit
Capacity Pipeline after Segment 1 on stream

Pipeline Capacity (MMSCFD)


8" GK-Teras Existing 20
Δ 6
8" Segment 1 (New) 26 Price: USD 4 / Mbtu
8" - 6" GK-Teras (New) 35

Potential capacity gain from on stream Segment 1 = USD 24K / day

Potential revenue after total GK


GK––Teras on stream = USD 60K / day

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Conclusion
Pipeline Gunung Kembang – Teras Project
has been successful delivering gas sales,
and met the sectional project time frame
and cost efficiency.
efficiency

In-house execution saved 20% compared


to EPC contract with strong contribution
from Engineering value and Project
Management

By completion of this project is expected


increasing the potential gas sales revenue
up to USD 60,000/day

Thank You

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