HD9560.6 .! ~. ._ ____~ B46 ,~ ' .. ;:ommissioning of Offshore Oil and Gas Projects The Manager's Handbook A strategic and tactical guide to the successful planning and execution of the commissioning of large complex offshore facilities by Tron<!Jl'ndiksen and Geoff Young authOfrlOUSE- 1663 LIBERTY DRIVE, SUITE 200 BWOMINCTON, INDIANA 47403 (800) 839-8640 www.AUTHORilOUSE.COM © 2005 Trond &ndiksm and G~offYoung All Rights &s~rv~d. No part oft his book may b~ r~produud, stored in a retriroal system, or transmitt~d by any means without th~ writtm permission oft he author. First published by AuthorHouse 02123105 ISBN 1-4184-6414-7 (e) ISBN 1-4184-4380-8 (sc) Prinud in the Uniud Staus ofA merica Bloomington, Indiana This book is printed on acid-fru pap~r. About the Author Trond Bendiksen has 25 years of experience in the Oil and Gas industry in the North Sea and eastern Canada. He has worked with all the major oil companies on GBS's, Jackets, Floating Production Units (PFU's, FPSO's) and has completion experience from a vast amount of mega-projects. He has solid operational experience from a variety of management positions including Offshore Operations Manager on several platforms. His involvement in Business Process Re-engineering projects and high level world wide Benchmarking studies has given him a unique insight into the organizational aspects of the job that is so important for the success of a project. He has also published a book on Continuous Improvement Techniques and several papers on Organizational Effectiveness. TB is a Norwegian citizen currently residing in eastern Canada as a senior Completion Advisor to east coast Canada's offshore Projects and Operations. v Geoff Young has 30 years of experience in the Oil and Gas industry in the North Sea and world wide. He has worked with all major oil companies on GBS's, Jackets, Floating Production units (FPU's), FPSO's and onshore facilities, and has completion experience from a vast amount of mega-projects, both as a senior commissioning engineer and senior planner. GY has gained significant experience in commissioning planning and estimating through his long career in the UK, Holland, Belgium, Saudi Arabia, Norway, the US and Canada. GY is one of the few Senior Planners that can actually do all the initial planning, drawing mark-up, estimating etc on his own as the first cut of the schedulelbudget before the commissioning engineers are recruited- and extremely rare and valuable skill not easily found in the industry. GY is a UK citizen currently residing in eastern Canada as a senior Planning Advisor to east coast Canada's offshore Projects and Operations. VI Acknowledl:ements In compiling this work we have sought advise and guidance from a number of individuals and sources but principally the greatest assistance has been provided by our own working colleagues on a variety of projects. We would especially like to acknowledge the guidance provided by Ed Martin and Gordon Carrick of Petro-Canada who took the time to thoroughly read the whole manuscript and offered valuable comments on the content, structure and layout. We would like to thank Lynn Young for doing all the proofreading, an undertaking not easy on a manuscript written by two language- ignorant engineers. VII CONTENTS 1.0 PLANNING .............................................. .......................................................... 1 The Key Performance Indicators & Report Structure ....................................................... 7 Defining the Work Scope and Building the Schedule ..................................................... 23 Planning and Planning Considerations .......................................................................... .45 Estimating; Strategy, Tools and Considerations ............................................................. 57 Estimating and Growth: Figures and Factors .................................................................. 73 2.0 PREPARATIONS ............................................ .................................................. 85 Organization .................................................................................................................... 87 Auditing/Gap review ..................................................................................................... 105 PREPARATIONS .......................................................................................................... 117 Risk Analysis ................................................................................................................ 117 Factory Acceptance Testing, Load Banks, N2 Testing of Compressors onshore, Sub Sea issues and FPSO specifics ............................................................................... 131 3.0 EXECUTION. ............................................ ..................................................... 149 Monitoring and Improving the Plan .............................................................................. 175 Loop Testing, Preservation, Piping cleanliness, N2 Testing of Compressors, Oil Flushing, Sub Sea simulation testing, SIT testing of subsea equipment and timing of installation of main Control Valves and Pressure Relief Valves ................................... 179 4.0 DOCUMENTATION / HAND-OVER ............................................................. 207 IX Preface This book is specifically directed at Commissioning Managers, Project Managers and Senior Project Planners but also provides valuable and useful information that will assist Engineering Managers, Construction Managers, Commissioning Leads and Commissioning Engineers in performing their jobs. The concept of the book has been to break the commissioning activity down into four main phases, namely, planning, preparation, execution and documentation/hand-over. The goal has been to identify the main areas where managers need to keep their focus- the key success factors - in order to prevent schedule and budget overruns. We have chosen to narrow the focus down to the single most important elements of each of the four main phases; those that contribute the most, and hence can make or break a project. Contrary to what one might think, it is not the delay of major project milestones such as sail-away from module yards, module lift at integration site or delays in offshore laying activities that constitutes the major delay factors on a project. It is all the other important big or small issues that pop up along the way that you have not properly prepared for that make the biggest difference. This book also provides some very accurate experience data on what you can expect in terms of overrunning your initial estimates if you don't seriously pick up on, and resolve the issues dealt with herein. Figures quoted in this book reflect multi-module large projects. Smaller projects have the same issues, but figures may have to be scaled down to suit. The book focuses only on the key issues that you need to resolve and does not provide specific references or recommendations as to tools and equipment. We have tried to put the issues in a Continuous Improvement perspective throughout the book in order to encourage you to structure your work in such a way that you always analyze the issues first, then improve and follow up on actions; the Continuous Improvement Circle. To our knowledge, a book such as this has never been published before. We sincerely think that this book will assist you tremendously in performing your job, and we hope you enjoy reading it as much as we have enjoyed writing it Good Luck! The AUlhors Xl 1.0 2.0 ~i'e~arations .. Phase 1 Phase 2 Phase 3 Phase 4 ~. ~ The concwt of the bookhas been.t o brea\< the commissioning activity down into four main phases, namely; planning. preptiraiion, execution and d()cumentatJonihand~ve,.. We have chosen to separate the planning and preparations activities in two distinctly different phases as the various elements of these are important 'enough to warrant separate detai.l discussions.