Project Monitoring of Turnkey Projects – A Study of Panipat Refinery

Project management of Turnkey Projects from an owner’s prospective involves special emphasis on Project Monitoring skills, critical interventions from time to time and induction of innovative steps to boost the project progress and keep the project on track. The case study of the success story of MS Quality Up-gradation Project at Panipat Refinery, Indian Oil Corporation Ltd., India, emphasizes the interesting issues pertaining to the means and methods the project was put back on track which was facing some rough weather during execution at one point of time and was successfully completed and commissioned as per target.
lans are only good intentions unless they immediately degenerated into hard work” (Peter Drucker, Reader’s Digest, March 1998). To make such a transformation


possible is no easy task unless all-out efforts are made by the project team, and the client has an important role in this endeavor. A case study of MS quality up-gradation project depicts it all.

MS Quality Up-gradation Project: A Synopsis
The MS Quality Up-gradation Project was undertaken at Panipat Refinery to produce improved quality components for MS blend thereby enabling the refinery to

Project Management
HYDROCARBON ASIA, OCT-DEC 2010 Visit our website at:

The Project Management consultant was M/s Jacobs Engineering India Pvt. needed some special emphasis on project performance and to match the completion schedule of EPCC-I so that integrated commissioning of the MSQ plant could be achieved. Strategies and Implementation Strategic approach during engineering. It was observed that the EPCC-I package execution was going on well but the EPCC-II package. Process involved in the project A block flow diagram of MSQUP project which gives a bird’s eye view of the processes involved in the project is presented in Figure 1. The various strategies. procurement. sulphur. These norms aim at improving quality of fuel by achieving reduction in benzene. planning and execution phase is required from Owner’s perspective to speed up the progress of the project and guide the entire Project Team to achieve the objective of safe and timely completion of the project. Further “quality” being one of the key aspects of the company’s new vision.Figure 1. adopted and implemented in execution of MSQUP project at Panipat Refinery to speed up the project’s progress. which was lined up after seven months of EPCC-I go ahead. Ltd. along with meticulous monitoring. Project Monitoring and Controlling The construction progress backlog in EPCC-II LSTK package in February 2009 was observed to be hovering around 7% and the trend was increasing which was alarm- HYDROCARBON ASIA. Quality up-gradation projects have followed time bound implementation as per judicial guidelines and have now become projects working on ‘Operating Necessity’ model. OCT-DEC 2010 33 . MSQUP Block Flow Diagram produce MS products meeting Euro-III/ Euro-IV equivalent specs. to overcome interface issues of different LSTK packages and to go for integrated commissioning of entire project are listed below. these projects are in sync with the company’s strategic objectives. Execution Methodology Adopted The plant was divided into two LSTK packages namely EPCC-I (ISOM Units: NHT. RSU & PENEX and off-sites facilities & Tankages) which was executed by M/s L&T and EPCC-II (PRIME-‘G’+: FCC GDS) which was executed by M/s Toyo India. The Euro norms basically give limiting values of emissions coming out of new vehicles under standard driving conditions with reference fuel. olefins & aromatic contents and improvement in octane number. A. The interface issues where the roles of PMC and Owner became extremely important especially involving common pipe rack and off-site facilities and execution philosophy of EPCC-II due to the compact design of FCC-GDS section.

OCT-DEC 2010 Visit our website at: http://www. was carried out by IOCL project team with respect to available front and they were Figure 2. masons and resources like piling rig. 2. On IOCL’s initiative. Pip- ing fabrication work started along with start-up of structural work and piping erection activities were taken up as soon as the rack was ready. 1. crane. Electrical & Instrument cable laying jobs also got advanced in similar fashion. This followed strategic actions and concurrent working on all fronts with meticulous planning which resulted into achievement of over 9 % construction progress consistently for four months (March 2009 to June 2009) which is a bench mark (Figure 2). welding machines etc. After 20% piling work. Structural work also started concurrently once sufficient front has been generated from civil foundation work. 3. . • Regular monitoring with respect to Contractors’ Mobilization vis-à-vis available front. civil foundation work started simultaneously with proper site planning.safan. Strategic Actions by Owner to Expedite Project Progress • Parallel works on various fronts .ing. B. a series of brain storming sessions were done with LSTK agency and PMC to improve upon the progress and put the project on track.Concurrent construction activities were taken up to expedite job progress in tight project schedule. Equipment erection started on getting the civil foundation front one by one. Project monitoring called for high level interaction with LSTK agency to bring forth concrete measures quickly to arrest further delays and cover up backlog in 3 to 4 successive months. Regular monitoring of Contractor’s key skilled persons like welders. 1. fitters. Construction Progress curve of EPCC-II of MSQ Project Management 34 HYDROCARBON ASIA.

This is how cooling water circuit was laid for MSQ timely. Multi-disciplinary core group was formed around 6 to 8 months before mechanical completion of project for check-listing and coordinating pre-commissioning and commissioning activities and to facilitate smooth handing and taking over. 5. Use of more radiography sources of low curie for radiography of piping joints as the plant was compact and higher strength sources may cause radiography interference. catalyst loading in reactors. vendors were asked to advance the delivery schedule of equipments. C.LSTK agency was categorically instructed to deploy specialized agencies for critical and precision jobs like chemical cleaning of lines. refractory dry-out. to complete the safely in one go. Endeavour was made to erect the equipment directly on equipment foundation as soon as it is delivered at site. • Specialized agencies for critical jobs . The deliveries were closely monitored and rigorous follow-up were done for timely delivery. 1. Germany in August 2009 ‘just on time’. Use of pre-cast cable trench sections and pre-cast manholes in place of in-situ RCC casting to save time and generate front for subsequent project activities. 2. After brainstorming. Compressors were HYDROCARBON ASIA. • Formation of core-group in advance for better coordination in project. Use of Total Stations for all surveying and layout works in place of Thedolite/ level instruments. • Equipment deliveries matched with readiness of equipment foundation at site.regularly pressurized for adequate mobilization to expedite project progress. • Innovative methods used to advance project execution. etc. Meticulous planning and even staggering of equipment deliveries to match with site erection plan of equipment was done to generate front for subsequent piping works to speed up the job progress. • Compressor motor was received at site from M/s Lohar. 1. In close follow-up with LSTK agency. Expediting actions were also taken at vendor’s works to expedite manufacturing and delivery. • Supply of two long lead items namely MUG compressors and reactors of FCC GDS were kept under Owner’s scope and these were given as Free Issue Materials to LSTK agency. OCT-DEC 2010 35 . Use of ultrasonic testing (UT) in place of conventional radiography for dome roof isomerate tank for welding quality assurance to expedite work progress. Challenges Over come : Strategic Intervention by Owner • Delay in completion of cooling water circuit was averted by deriving an alternate way of tapping cooling water. 4. 1. it was thought prudent to go for HOT TAPPING from existing cooling water circuit for MSQ and later connect existing circuit with refinery network. 3.

• Dome roof storage tank of Isomerate (15000 KL capacity) involved huge quantum of radiography of weld joints which was time consuming and activity was on critical path. India) and expedited with M/s ISGEC to complete the reactors phase wise matching with erection schedule at site. • Since there was a common PMC (M/s Jacobs. This not only achieves the project objective of completing the project without cost and time over-run but also increases the confidence of operation group in smooth commissioning and reliability in operation thereafter.IOCL HA Conclusion Participation of owner’s team acts as a catalyst not only in fast resolution of engineering issues but also speeding up the construction work progress safely. He has worked for Indian Oil Corporation Ltd. Strategically. He has worked for Indian Oil Corporation Ltd. He has successfully executed various greenfield and revamp projects of refineries along with commissioning. degree in Mechanical Engineering from KNIT. OCT-DEC 2010 Visit our website at: . Project Management 36 HYDROCARBON ASIA.finally received and erected in supervision of M/s BPCL. heater dry out was also carried out by external arrangement (without system completion and burners in line) to save commissioning time. Arvind Kumar and Mr. NUS. He holds a B. New Delhi. • It is beneficial for the project to detect and resolve the problems before commissioning. ‘ P r o j e c t M a n a g e m e n t . India. India. India and an MBA with specialization in Operation Management from IGNOU. Arvind Kumar is Chief Project Manager in Panipat Refinery of Indian Oil Corporation Ltd. Samuel J Mantel Jr.safan. Project monitoring and strategic intervention by Owner from conceptualization phase to engineering and during execution phase help arrest project slippages and aids in securing successful timely completion of time bound projects like MS quality up-gradation project which have high stakes in business sustainability. PR. degree in Mechanical Engineering from Punjab University. He is a gold medalist in CPM (Project Management) from U21 Global. • Integrated commissioning of all work packages results in reduction in commissioning time.A managerial approach’. Monthly Project progress reports of MSQ Project. Process data book of MSQ project. Compressor’s associated piping and instrumentation items were also lifted strategically from BPCL’s work to site and fabricated and assembled to save project time. All reactors were received progressively at site (one by one) which helped the site team in erection and piping and structural jobs of reactors in time. He holds a B. Similarly. Paul has performed assignments in various greenfield and brownfield projects and in petroleum conservation and research fields. Sultanpur.. Tech. a watch guard of quality assurance and safety management at site. for both EPCC contracts. for more than 29 years in different refinery units. PPS Paul is Dy. Arvind Kumar has performed assignments in Design & Engineering and in Project Management. integrated approach could be followed and Golden Joints interface could be achieved. Singapore. PR. no load trial run of all motors was conducted with the help of construction power. • IOCL team monitored and reduced the manufacturing cycle time of reactors in close working with manufacturer (M/s ISGEC. Jack R Meredith. • The problem of different inert levels brought out the learning that practical feasibility of proposed facilities needs to be verified while executing jobs in an existing setup. In MSQUP at Panipat. 6th edition 2008 2.. India who was supplier of compressor package. India).IOCL 3. It helped in motor’s health diagnosis at early stage.E. General Manager (Projects) in Panipat Refinery of Indian Oil Corporation Ltd. for more than 20 years in different refinery units. Issue was resolved by replacing radiography with phased array Ultrasound testing (UT) in consultation with PMC and LSTK agency and target was achieved well on time. Mr. integrated commissioning has taken place in both the EPCC’s as a part of systematic unit wise commissioning plan to reduce commissioning time. PPS Paul for providing this article. A lot of interphase issues of site as well as engineering issues could be immediately resolved due to common PMC. References 1. The project team of owner becomes This publication thanks Mr. India with specialization in Operation Research. Chandigarh. Mr. Mr.

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