How to avoid Major Accidents, Contractors in the Oil and Gas Industry. Project Director Jan-Tore Elverhaug November 2012
EPC focus 2
Kværner Work scopes: All scope is related to new plants and units/modules for the oil and gas industry, prior to installation for operations. Work is performed according to clients specifications. Scope can consist of: Feasibility and concept studies System definition and detailed engineering Procurement Construction and assembly Commissioning. (normally assistance to clients)
How we work Kvaerners Model (K PEM) is based on best practice from many of the industry s most challenging projects K PEM ensures efficient project execution and risk management, for deliveries on time, on budget and with the agreed quality ED&S September 2008 Slide 4
Opportunity Appraisal Feasibility Studies Concept Selection Concept Definition System Definition System Design & Layout Development Global Design Detail Design Work Preparation Prefabrication Fabrication Transport & Positioning Assembly Mechanical Completion Commissioning Product Transport & Installation Product Take-over Close-Out Service & Assistance Agreements (optional) Warranty, Insurance & Legal Handling Acceptance & Contract Close-out Alternatives Generated Feasible Concepts Selected Concept Selected Concept Complete Critical POs Awarded Layout & Main Structure Frozen Global Design Complete Detailed Design Complete Preparation for Prefabrication Complete Prefabrication & Preparation for Installation Complete Module / Preassemblies Ready for Shipment Module / Preassemblies Positioned Assembly Work Complete Mechanical Complete Systems Commissioned Product Installation Complete Product Take-over Complete Close-out Complete Service & Assistance agreements established Warranty, Insurance & Legal handling completed Work accepted and Contract closed Milestone Stage 1A 1B 1C 1D 2A 2B 2C 3A 3B 3C 3D 4A 4B 4C 5A 5B 5C 5D 6A 6B 6C Feasibility & Concept System Definition Detailing & Fabrication Assembly & Erection System Completion Contract Completion 1A 1B 1C 1D 2A 2B 2C 3A 3B 3C 3D 4A 4B 4C 5A 5B 5C 5D 6A 6B 6C 5 06.11.2012 Kvaerner 2011
Focus area related to Major accidents Risk identification and Risk reduction Experience and knowledge transfer Involvement from all participants in the project Focus on highest risk and most efficient risk reduction activities Design, Product and Technology development Planning and execution of activities. Choose the correct subcontractors / suppliers Gate review to identify status on activities prior to proceed.
Concept selection Which alternative is the preferred? Considering potential for major accidents, natural environment, working environment? Concept definition The basis for an inherently safe design is made: segregation of the facility info safe and hazardous areas, location of LQ/evacuation means, escape route design, process design, ventilation solution, type of power generation etc. Concept risk analysis assesses the major accident risk potential Risk reducing measures (ALARP process) will be assessed continuous Activities reated to Major accident prevention
System Definition Hazard Identification (HAZID) Systematic review to reveal potential hazards related systems/areas HAZOP Hazard and Operability study Systematic review of each sub part of process systems to evaluate hazards and operability Quantitative risk analysis (QRA) ALARP (As low as reasonable practicable) process SIL (safety integrity level) and reliability analysis Human factors analysis Establish/develop safety philosophies and strategies Establish/develop performance standards for safety critical barriers Design of safety barriers BAT (Best available technology) process
Major hazard management - FPSO Example Before Wind direction LQ Turret (fire/ explosion potential) Process area (fire/ explosion potential) After Compr. gas turbines (ign. source) Potential ignition source (turbine air intake) Main power generation Wind direction Potential ignition sources located upwind process area Utility area serves as a barrier between turret/process areas and LQ Electric compressors (reduces ignition probability) 6- Nov- 12 Slide 9
HSE program for construction and completion defined Milestones and Detailed Construction Schedule verified. Team Alignment program continued Updated Project Mgmt Plan implemented HSE risk assessment complete Close out HAZOP action items Final vendor information from all PO s incorporated in System and Area Engineering Layout / 3D model documentation issued for construction Relevant System Engineering documentation issued for construction Material take off finalised and bulk material top up orders placed 2nd priority FC Subcontracts awarded Hook-up/Commissioning Subcontracts inquired Issue P& IDs IFC (QL4) Fabrication drawings and work preparation for prefabrication completed (prefab. job cards). Production of fabrication drawings Preparation of jobcards/work packages Material take off finalised and bulk material top up orders placed Completion requirement incorporated in fabrication documentation Issue Isometrics IFC Materials on site for use Implementation of subcontractors HSE & QA programs reviewed Engineering databases complete All fabrication Bulk Material delivered Shop engineering detailing and work preparation for fabrication Pipe spools, Steel sections and Concrete sections prefabricated. Deep/major foundations & trenches completed. Construction site temporary facilities completed Hook-up/Commissioning Subcontracts awarded HSE program for construction updated to include Assembly/ Erection phase Management Plan documents, schedules and budgets updated for next phase (HSE, Scope, Time, Cost, Quality, People and Team, Communication, Risk and Procurement & Subcontracting) Plan updated (for next phase) Milestone Review held Layout and 3D Model as built mark up of part assemblies/modules All Bulk Material available to support the Assembly / Erection sequence Part assemblies and modules/package units fabricated and mechanically complete Commissioning commenced on selected systems Complete 3D model / Layout design Prepare and check fabrication drawings, material, job cards/work Orders Complete prefabrication work Receive and check equipment Shipment of preassembly/test mounting Module fabrication Module transportation to assembly site Commissioning according to Completion method. 10
HSE requirements for Assembly & MC stages established & implemented Work permit system established Cost, schedule & risk program updated Team Alignment program continued Updated Project Mgmt Plan implemented Temporary Services & Power Distribution in place and Site roads complete up to sub-base. Major equipment, Pre- assemblies & modules transported to site and final positioned. On site fabrication and erection of major vessels and process equipment. Main Structures & Bridges Complete Implementation of HSE requirements verified Major equipment, Pre- assemblies & modules assembly installed. Install Balance of Plant Equipment and interconnecting piping systems. Minor structures, E & I installation and Main insulation complete. Final Labelling & Identification started. Operation & Maintenance Manuals available. HSE program for system completion phase established Management Plans, schedules and budgets updated for next phase (HSE, Scope, Time, Cost, Quality, People and Team, Communication, Risk and Procurement & Subcontracting) Plan updated (for next phase) Phase close-out Milestone Review Relevant as built mark-up complete Construction work mechanical complete & quality records available. Categorised Punch lists for all systems. All systems ready for commissioning and commenced in accordance with system completion schedule Final Insulation, Labelling & Identification complete. Transport and final install the modules and all components and pre-assemblies into a complete Topside, in accordance with the installation method. The work is performed at the assembly yard / onshore plant. The Topside is MC completed, ready for commissioning. 11
HSE requirements implemented Relevant documentation (LCI/DFI/DFO) updated with Asbuilt and commissioning information Team Alignment program continued Updated Project Mgmt Plan implemented Perform and finalise all commissioning activities. Preparations for start-up Temporary items removed. Relevant documents updated with as commissioned information Punch List cleared for start-up HSE requirements implemented Preparation for sail away Perform tow out Complete installation of substructure / moorings / tethers Complete installation of the production facility Document offshore installation/hook-up work MC complete Offshore commissioning Total HSE program implemented Service assistance agreement established Operational responsibilities (if any) formalised Delivery protocol executed-project contract object handed over Mobilise and maintain resources for Contract Close Out Phase All project work completed to enable issue of delivery protocol Punch lists at delivery time established including identification of carry over work including POs and subcontracts Method and schedule to close punch lists (COW) agreed with Client Establish agreements on execution of post start-up performance and HSE measurements and rectifications Management Plan documents asbuilt, with lessons learned All As-built and LCI documentation handed over Key experience figures summarised and transferred to BU/BS Issue of Delivery Protocols and commercial closing of POs and subcontracts Final Account established Final revenue/net margin report issued Relevant documentation, BGs / PCGs and systems handed over to warranty organisation Completion Certificate established. Project Close-out report issued Punch list / COW including PO and subcontractor scope completed Complete and release hand-over documentation Subcontractor and third party invoices closed out Completion of Sub-contracts and POs Final Accounts and Completion Certificates POs assigned to Client if requested Experience/lessons learned reports issued Perform onshore commissioning of the systems in a safe manner, in accordance with pre-defined commissioning plans and procedures. Transport, Install and hook-up the Topside and perform necessary offshore commissioning. Perform the hand-over to operation and close-out the Project. 12
How we work Kvaerners Model (K PEM) is based on best practice from many of the industry s most challenging projects K PEM ensures efficient project execution and risk management, for deliveries on time, on budget and with the agreed quality ED&S September 2008 Slide 13
Activities/systems to verify a safe design PEM Model Quality Management system IDC - All relevant documents/drawings shall be reviewed by relevant disciplines Design verifications (internal) Design reviews (internal) HAZOP Risk analysis including HAZID Other verifications (e.g. SIL) 6- Nov- 12 Slide 14
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