Industrial benefits planning (IBP) can greatly assist oil companies inseeking to access or operate in frontier regions, including the Arctic. Anumber of ‘good practice' approaches in the design and implementation ofsuccessful benefits plans have emerged. There is a general need for initiativesin such areas as supplier development, procurement/contracting, education,training and hiring. However, these initiatives, and an IBP program as a whole,will be most effective if the following approaches are adopted: cooperation,collaboration and education; building on existing strengths and capabilities;and seeking a diversified and more sustainable economy.
The Hebron Benefits Plan provides a recent and often innovative example ofpetroleum industry benefits planning. Of particular interest is the emphasis itplaces on: the role of contractors and suppliers, leaving a lasting legacy, andcooperation and collaboration with other stakeholders. In a further benefitsplanning innovation, ExxonMobil Canada Properties states that it will establishand maintain a ‘benefits culture,' based on the well-established model ofsafety culture, within its organization and all Hebron contracting companies.The Plan presents policies, guidelines and procedures with respect to supplierdevelopment, contracting and procurement, employment and training, research anddevelopment (R&D), diversity, and monitoring and reporting.
Recent initiatives in Greenland illustrate the challenges faced inimplementing more limited benefits initiatives in an Arctic and near-Arcticenvironment. Cairn exploration programs have had Government of Greenlandmandated benefits plans and agreements that have delivered both employment andbusiness to Greenland residents and companies. They have also put in place newinfrastructure, for example related to weather forecasting and oil spillcontingency equipment. However, not all of the employment, business andinfrastructure initiatives have delivered the desired effects.
Newfoundland and Labrador, Canada, is an example of a jurisdiction where,facilitated by well-established IBP processes, the offshore petroleum industryhas delivered substantial and sustainable economic development. This is partlya result of the creation of a new offshore petroleum sector of the economy thatprovides employment and business and makes a major contribution to theProvince's GDP and tax base. Newfoundland and Labrador also now has anexpanding university sector, large numbers of university graduates, a small butthriving R&D community, an increasingly diverse and cosmopolitan urbanculture, and improved external transportation links, all of which can be atleast partly attributed to the oil industry.
The oil and gas industry is increasingly focusing its interests andactivities on areas that are prone to ice cover, in the form of sea ice andicebergs. The authors have noticed two significant trends with respect to theice charting to support operations in oil and gas operations:
As a consequence, the authors have embarked on a project to address thisdeficiency by identifying minimum standards and best practices for theprovision of ice information derived from satellites for companies operating inthe polar and sub-polar regions. The development of a guideline governing icecharts is the primary focus of this project. The project has identifiedrequirements through the oil and gas project lifecycle, has matched these todifferent regions and has categorised satellite-derived ice information byservices and products. The project has reviewed current practices and willestablish a guideline with input and validation from the industry, taking intoaccount current constraints and future opportunities. Ice charting guidelineswill provide clear options to industry. Companies will be able to buildprocesses and systems around guidelines and can be assured that compliantservice providers will be compatible with their systems. Guidelines will alsoincrease access of the market to service providers, leading to increasedcompetition and lower costs. Ultimately, the knowledge of ice chartingcapabilities will be well documented so that they are not lost with staffattrition. This paper presents an overview of the ice charting guidelinesproject and its objectives, schedule, status and deliverables. This project isbeing coordinated through the Oil and Gas Earth Observation Group (OGEO) of theInternational Association of Oil and Gas producers (OGP) with initial seedfunding from the European Space Agency and Shell E&P International.
Index Terms— ice charting, ice information, sea ice, icebergs,guideline
The Western and South Western Barents Sea is the offshore area south ofBjørnøya and east towards the newly agreed delineation boundary between Norwayand Russia while limited by the Norwegian mainland to the south.
In this area, the Snøhvit gas field is in production and the Goliat oilfield is being developed. Recently, encouraging oil finds (Skrugard and Havsul)have increased the interests in the geology and the oil and gas potential ofthe area. The older seismic (acquired more than 30 years ago) of the formerdisputed area between Russia and Norway shows potential for large hydrocarbonfinds, although there would be a possibility that the hydrocarbons might haveleaked out from the prospects.
This paper summarizes the large challenges for the marine constructioncontractors working in these areas and discusses various phenomena that affectthe marine operations at extreme cold climate conditions:
The marine construction contractor will have to show patience when workingin the area. Joint efforts, improved knowledge, top standard equipment and goodunderstanding of the roles of the contractor and the oil company should,however, ensure successful project execution, also in this cold climateregion.
The process of selecting a field development concept following a discoveryinvolves a complex iterative interaction between its key elements ofsubsurface, drilling and completions, surface facilities, and commercial andregulatory considerations. The objective being to understand how differentrisks and uncertainties impact each scenario, leading to the final selection ofthe tsingle concept that best balances the key elements and extracts maximumvalue for all stakeholders.
A recommended procedure for Arctic concept selection has been developed,using a building-block approach matched with a practical and systematic methodfor understanding the key drivers and uncertainties in a project. In order tocomplete this type of anyalysis, experienced professionals are equipped with atoolkit and set of processes that allow a disciplined approach to only doingwork that is focused on each decision that has to be made. This then leads tothe development of a decision based plan to extract the maximum value from anyopportunity.
Also discussed are some of the common traps that can befall a conceptselection study such as: solving the wrong problem due to an inadequate projectframe; utilizing incorrect, invalid or out of date data; having inadequatesystems and tools in place to maintain focus and alignment; an inability toarticulate key insights; a lack of team integration; and finally the dangers ofan activity based workscope instead of a decision based one.
Gadd, Peter E. (Coastal Frontiers Corporation) | Leidersdorf, Craig B. (Coastal Frontiers Corporation) | Hearon, Greg E. (Coastal Frontiers Corporation) | McDougal, William G. (Oregan State University)
Eighteen artificial (man-made) islands have been constructed in the AlaskanBeaufort Sea to support oil exploration and production. The first islands,constructed in the late 1970s, were in shallow nearshore waters where wave andice conditions are relatively benign. By the early 1980s, island constructionhad ventured to more exposed sites with water depths approaching 15 m.Innovative slope protection systems and construction methods were developed toaddress the remote Arctic locations, short construction seasons, scarce localresources, and the challenging, yet poorly defined, offshore wave and iceclimate. This paper provides an overview of the history of island developmentin the Alaskan Arctic and discusses design evolution, construction, andperformance.
The extreme conditions and harsh environment for which FPSO's andhydrocarbon gathering facilities are being considered introduces distinctchallenges to effective and efficient project management and execution. The presentation is based on the experiences gathered during the design phasesof two contemporary harsh environment FPSO's and the associated subsea,flowline, pipeline and riser systems (Chevron Rosebank and GAZPROMShtokman). This presentation will focus on the adjustments that must beconsidered to "standard" project execution and management in order toincorporate the elemental distinctions without sacrificing efficiency, logicalsequencing, safety or project schedule. Specifically, the presentationwill focus on the following:
The paper is intended to inform the audience as to the distinctivecharacteristics of harsh environment design management contrasted with the morefamiliar benign environment design projects.
This article, written by Editorial Manager Adam Wilson, contains highlights of paper SPE 156098, "Deal With Startup and Commissioning Threats and Challenges at an Early Stage of the Project for a Successful Handover and Project Completion," by M. Al-Bidaiwi, SPE, M.S. Beg, SPE, and K.V. Sivakumar, Qatar Petroleum, prepared for the 2012 SPE International Production and Operations Conference and Exhibition, Doha, 14-16 May. The paper has not been peer reviewed.
The importance of maintenance in the oil and gas industry is well recognized and as such every year great sums are spent on reducing turnaround and mean time between failures while all the more increasing equipment availability and achieving acceptable levels of work force certification. ADMA-OPCO as one of the world's largest companies in the upstream sector of the oil and gas industry has managed to utilize various available technologies to achieve high standards of maintenance. However, the field of engineering maintenance and reliability is an ever evolving one and due to many factors such as aging machinery and the expansion of operations, the company's underpinning maintenance practices and strategies require constant review and update. For this purpose the paper will present a review of the company's achievements in this regard as well as outlining solutions for future challenges. The findings will be based on scrutinizing current practices such as the utilization levels of the computerized maintenance systems in use in ADMA. Moreover, this paper will endeavour into finding out how well the company's maintenance strategy is adhered to and the major constraints that hinder its smooth execution. Age of the rotating equipment plays an important factor in the levels of maintenance they require; therefore this paper outlines the effect this has on the maintenance strategy and the likely future consequence of this factor taking into account the challenges ahead.
Keywords: Reliability Centred Maintenance, Bathtub Curve, Failure Mode Analysis and Organisational Restructuring.
Mega projects are easy to identify and are usually defined as those requiring investment of $1 billion or more. Typical projects include Olympic developments, numerous airports, hydropower and large power generation schemes, major rail developments and even relatively modest Oil & Gas projects. The Middle East, of course, is no stranger to mega projects and Masdar City, Yas Island, and the Burj Khalifa are just some recent examples successfully completed in the UAE alone. This paper considers the challenges of managing mega projects and identifies some key lessons learned.
Considerable effort is being applied worldwide to understand the success factors better for mega projects so that expensive and damaging mistakes can be avoided. The following summary of lessons learned is drawn from Mott MacDonald's experience of undertaking mega projects across many sectors all over the world, particularly from Oil & Gas:
More is known now on the challenges of managing mega projects than ever before, however, the learnings from previous projects are not always disseminated to help with the next one. It is hoped this paper will go some way towards improving the understanding of why mega projects often struggle and what can be done to make sure they don't.
Majority of Oil & Gas projects pass through phases such as Concept,Front-End Engineering and Design (FEED), Detailed Engineering, Procurement,Construction, Commissioning and Start-up. FEED phase scope generally covers thebasic design and engineering of the facilities, development of the layout,vendor inputs for major packages, HSE impact assessment and refines the costestimates of the conceptual design. The FEED cost estimates are used to obtainrequired management approvals and also serve as basis to review the proposal ofthe Engineering, Procurement & Construction (EPC) contractors. The FEEDdossier, which is a compilation of basic design and engineering documents, isprovided to the EPC contractor to serve as input data for further detailingduring the EPC phase and forms a part of contract documentation.
Historically, the EPC contractor scope included performing the detaileddesign and engineering based on the FEED documents and in case of any conflictsor changes in design philosophy, the issues were referred to FEED contractorfor resolution. FEED Contractor's scope encompassed providing processguarantees on the system design and corrective engineering whereverapplicable.
More recently, with the emergence of the FEED endorsement concept, a singlepoint responsibility is passed on to the EPC Contractor to be fully responsiblefor the delivery of the project, meeting all requirements and without anyinvolvement of the FEED contractor. EPC contractors are required to endorse theFEED at the time of bidding and take full responsibility of the projectincluding process guarantees, in addition to the normal warranties / guaranteesassociated with usual EPC project scope. This concept is quite advantageous interms of Owner's project execution strategy, however, brings additionalchallenges and responsibilities to the EPC Contractors.
In essence, the FEED Endorsement requires understanding of the completedesign concept and complete verification of design without any face to faceinteraction with Owner or the FEED contractor. It is worth noting that FEEDendorsement requires significant efforts for design verification and includesredoing many basic design activities such as process simulations, systemhydraulics and other calculations within a short period. Often, additionalrequirements get added to the project scope during tender clarifications / FEEDendorsement phase enlarging the original scope. Such requirements added throughthe tender bulletins are generally not engineered and sometimes are not evenaligned with FEED documents. Resolution of such issues during tendering stageoften remains inconclusive. Since Owners do not generally entertain"exceptions" to the scope of works during bidding stage, contractors have nooption except to take an appropriate risk and accordingly price theproject.
Owner project teams including Project Management Consultant (PMC) involvedduring FEED phase do not essentially continue to the bidding / EPC phase. Dueto this, the responses to the clarifications raised by EPC contractors aresometimes not consistent with FEED philosophy and are influenced by the new PMCteam approach.