Technology based Project Management Consulting (T-PMC): Innovate to Reduce Costs

Transcription

1 Technology based Project Management Consulting (T-PMC): Innovate to Reduce Costs Graham Freeth, North African Oil and Gas Summit, Tunis, Tunisia October 2009

2 J P Kenny Offices World Wide Aberdeen Stavanger Moscow Delhi London KL Houston Abu Dhabi Jakarta J P Kenny Limited : 1,400 Employees 11 Offices Worldwide Perth Melbourne

3 The challenge of developing new oil & gas fields An increasing number of new discoveries are in remote land locked areas. Finite Resource Long distance ONSHORE pipelines represent a greater proportion of field development costs

4 The change in technology focus FROM THIS TO THIS

5 COST DRIVERS Typical Pipeline Cost Breakdown Owners Costs 20% Engineering & PM 10% Materials 30% High Strength Composite Materials Construction 40% Automated Construction Methods

6 COST DRIVERS Typical Pipeline Construction Cost Breakdown Pipelines Built the same way as a generation ago. No Real Improvement in productivity in 25years Manual Processes Prevail. 8 support personnel to 1 front-line worker Automation is the key, Mechanical 16% Trenching & Reinstatement 25% In-Land Logistics 24% Camps and Infrastructure 35% Managing New Technology through the project lifecycle is a challenge PIPELINE COST REDUCTION IS ACHIEVABLE

7 Why No Innovation for Onshore Pipelines? Client Attitudes Risk adverse on cost and Schedule Lump Sum preference Regulator Attitudes Risk adverse on safety Risk adverse on environment Contractor Attitudes Difficult to take a long term view with short term order book Existing plant & equipment Need to remove Blocks to Create Value via Innovation and Technology

8 Releasing the Blocks Current project execution strategies limit opportunity for technological innovation. COST REDUCTION through Technological Innovation happens here Feasibility Project Appraise Pre-FEED Project Select FEED Project Define Technology BLOCK EPC (Construct) Project Execute

9 Releasing the Blocks Current project execution strategies limit opportunity for technological innovation. COST REDUCTION through Technological Innovation happens here Feasibility Pre-FEED FEED T-PMC Process Technology BLOCK EPC (Construct)

10 Releasing the Blocks T-PMC: Technology based Project Management Consulting the key to reducing costs through technological innovation. COST REDUCTION through Technological Innovation happens here Feasibility Pre-FEED FEED T-PMC Process FID Sanction EPC (Construct)

11 Releasing the Blocks T-PMC: Technology based Project Management Consulting the key to reducing costs through technological innovation. COST REDUCTION through Technological Innovation happens here Feasibility Pre-FEED FEED T-PMC Process FID Sanction EPC (Construct)

12 T-PMC Project Management Principles Corporate Framework: We perform projects within the framework of our Corporate processes, procedures and systems. Where appropriate these are bridged or supplemented to meet the specific needs of a project. Technology: Add Value with Innovation at every opportunity Technical Expertise: Extensive use is made of J P Kenny s technical experience to guide/support projects through critical phases. HSSE: Protection of the health, safety and environment of our employees and others affected by our business is a core goal. We have corporate (WG) policy/ guidance for employees to stop unsafe acts wherever encountered. Information and Communication: We provide an environment where communication and the transfer of information are positively encouraged. Information is available to all project personnel by Intranet or other means as may be required for off site work.

13 T-PMC Corporate Systems/Best Practice Guides. Project Management HSEQ Policy/Project Plans Audits Emergency Response Project Start-Up Planning & Scheduling Cost Control Change Management Risk & Opportunity Management Document Control Reporting Interface Management Site Management Technical Assurance Value Improvement Regulatory Compliance Decision Process Lessons Learnt Project Close-Out Insurance & Insurance Claims Litigation & Arbitration INNOVATION and TECHNOLOGY CENTRAL TO EACH ELEMENT OF THE PROCESS

14 T-PMC Risk Management Technology Risks QUALITATIVE QUANTITATIVE Establish Context Identify Uncertainties / Brainstorming Assign Risk Owners Conduct One-to-one Interviews Define Probability & Impacts Identify & Implement Mitigation Measures Compile Register & Matrix Assess inherent uncertainty in estimate & schedule Create Cost & Schedule Risk Models Risk Mapping Conduct Monte Carlo Simulations Determine Cost / Schedule Contingencies Identify key cost & schedule drivers What-if Scenarios, sensitivity analyses Understanding the Risks help breakdown the blocks to INNOVATION and TECHNOLOGY

15 T-PMC Risk Management $ PROMISES (Deterministic Thinking) REALITY (Probabilistic Thinking) ZONE OF THREAT ZONE OF OPPORTUNITY TIME

16 Benefits of J.P.Kenny T-PMC Process T-PMC enhances stakeholder alignment and ensure the implementation of Technology led Cost Reduction initiatives Benefits to Clients Ensures on time delivery and below budget Reduced unit costs Increased competition Reduced risk Improves HSEQ Faster schedules Benefits to Regulators Improved Safety Lower environmental impact Faster schedules Benefits to Contractors Incentives for innovation Risk-Reward shares cost saving

17 Thank you

18 T-PMC Technical Management Assurance Technical Assurance is the provision of a robust means of assuring that the product being developed will meet its specification, is technically sound and safe. The inter-related assurance processes consist of: - Risk Management Value Improvement Stakeholder Management/Technical Presentation Interface Management Permitting/ROW Design Verification Site representation/witness/inspection Technology Led

19 T-PMC Project Controls Comprise.. Project Start-Up Planning & Scheduling Cost Control Change Management Risk & Opportunity Management Document Control Reporting INNOVATION & TECHNOLOGY Central to Process

20 T-PMC Typical Project Control System Model Historical Cost Data TENDER ESTIMATE InControl PRIMAVERA P6 Project Planning Baselines, actual status & forecasts Base Schedule Base Costs RISK REGISTER PERTMASTER Cost & Schedule Risk Analyses Risk based reporting CLIENT & MANAGEMENT REPORTING Progress Measurement Time Writing Cost Control INTERFACE CLOSE-OUT REPORTS Procurement Tracking Document Control CTRs Change Management ACTION REGISTERS Baselines, actual status & forecasts LESSONS LEARNT Value Improvement Process MIDAS ASSET MANAGEMENT TOOL PROJECT HANDOVER TECHNOLOGY AND INNOVATION THROUGHOUT PROCESS

21 T-PMC Risk Management QUALITATIVE QUANTITATIVE Establish Context Identify Uncertainties / Brainstorming Assign Risk Owners Conduct One-to-one Interviews Define Probability & Impacts Identify & Implement Mitigation Measures Compile Register & Matrix Assess inherent uncertainty in estimate & schedule Create Cost & Schedule Risk Models Risk Mapping Conduct Monte Carlo Simulations Determine Cost / Schedule Contingencies Identify key cost & schedule drivers What-if Scenarios, sensitivity analyses

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