05 July 2010 1 - IPLOCA · 2 Development Phases of Pipeline Project. 3 The Baseline of a Contract. 4 Analysis and Mitigation of Risks. 5 Management of Construction Risks. 6 Best Practices

105 July 2010

INDEX

1. IPLOCA’s Novel Construction Initiative

2. The elements of Successful pipeline projects

3. Resulting Document

4. Future Developments

5. Q & A205 July 2010


Objectives of the Novel Initiative in 2004:

• Improve laying efficiency and standards of large diameter pipelines.

• Get better, safer and environmentally sound installation.

305 July 2010


The initiative Group was focused in:

• Technology innovation» Land Train method» Mechanized Tie Ins» Other Innovative Ideas

• Target 35% Cost Reduction405 July 2010


BASIC QUESTIONS:

Is Technology the key driver for cost reduction?

or,

Is cost reduction primarily governed by a sound Process?

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This is what we also want to avoid…

..• v

605 July 2010


The objectives were revised in 2007:

Considering the number of pipeline projects which incurred schedule and cost overruns

a broader

perspective was given to the Initiative.

All phases of the Pipeline Projects were reviewed from Early Developments through Design, Construction and Commissioning…

705 July 2010


Six Working Groups integrated by Oil & Gas Companies and IPLOCA members were organized:

» Planning, Design and Control (PDC)» Contract and Risk Sharing (CRS)» Earthworks (EW)» External Pipeline Protection Systems (ECPS)» Facing, Line-up and Welding (FLUW)» Laying and Lowering-in (L&L)

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2. The elements of Successful pipeline projects

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2. The Elements of Successful Pipeline Projects (source: Independent Project Analysis Inc.)

1005 July 2010

2. The Elements of Successful Pipeline Projects

Drivers:

Integrated Team

Best Front End Loading

VIP’s Practices

Discipline & Continuity

Best Practices and Control

Our work focused in:

SOLID BASIC DATA

FRONT END LOADING STEPS

SITE FACTORS

CONSTRUCTABILITY

TECHNOLOGY SELECTION

CLEAR SCOPE OF WORK

CONTRACT CONDITIONS

PROJECT EXECUTION PLAN

MANAGEMENT OF RISKS & CHANGES

PROCESS & EQUIP. SIMPLIFICATION

SOUND PROJECT CONTROL05 July 2010 11

3. Resulting Document

Our book: “The Road to Success”

Volume One:» Main Body (First Edition).

Volume Two:» Appendices

1205 July 2010

3. Volume One. The Road to Success- Preface and Introduction 1 Executive Summary2 Development Phases of Pipeline Project3 The Baseline of a Contract4 Analysis and Mitigation of Risks5 Management of Construction Risks6 Best Practices7 New Trends and Innovation- Bibliography / Acknowledgements

The Joint Approach- To whom the document is addressed- The objectives of the Road- Challenges and Rewards of pipeline projects- Key Principles to avoid disasters- Presentation of the Road

1305 July 2010

3. Volume One. The Road to Success- Preface and Introduction 1 Executive Summary

2 Development Phases of Pipeline Project3 The Baseline of a Contract4 Analysis and Mitigation of Risks5 Management of Construction Risks6 Best Practices7 New Trends and Innovation- Bibliography / Acknowledgements

- FEL 1: Business Planning- FEL 2: Facility Planning- FEL 3: Project Planning- Project Execution- Start up and Operations

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3. Volume One: The Road to Success

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1605 July 2010

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17

INFL

UEN

CE

EXPEND

ITUR

ES

FEL 1BUSINESS PLANNING

FEL 2FACILITY PLANNING

FEL 3PROJECT PLANNING

PROJECT EXECUTION

START-UP AND OPERATIONS

FRONT END LOADING

FINAL AUTHORISATION

SANCTION

Major Influence Rapidly Decreasing Influence Low Influence

INFLUENCE - EXPENDITURES

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- Preface and Introduction 1 Executive Summary2 Development Phases of Pipeline Project

3 The Baseline of a Contract4 Analysis and Mitigation of Risks5 Management of Construction Risks6 Best Practices7 New Trends and Innovation- Bibliography / Acknowledgements

- Scope of Works- Resourced Programme- Cost Structure- Conditions of Contract

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3. Volume One: The Road to Success- Preface and Introduction 1 Executive Summary2 Development Phases of Pipeline Project3 The Baseline of a Contract

4 Analysis and Mitigation of Risks5 Management of Construction Risks6 Best Practices7 New Trends and Innovation- Bibliography / Acknowledgements

-Categories of Risk Events- Detailed Description of Events- Timing of Risks Consideration- Risk Owner- Risk Mitigation by Contractor- Excess Mitigation by Client

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2105 July 2010

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3. Volume One: The Road to Success- Preface and Introduction 1 Executive Summary2 Development Phases of Pipeline Project3 The Baseline of a Contract4 Analysis and Mitigation of Risks

5 Management of Construction Risks6 Best Practices7 New Trends and Innovation- Bibliography / Acknowledgements

- Assessment of impact of Risk Events on progress and cost- Possible mitigation measures

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3. Volume One: The Road to SuccessUtilisation of March Charts to assess time impact of stoppages..

23

D0

D20

D40

D60

D80

D100

0+000 10+000 20+000 30+000 40+000 50+000 60+000Right of Way String & Bend Welding Lower & Lay Backfill Clean‐up

CV

CV

CVCVCVCVa 0

b 0c 0

d 0e 0

CV

CV

CVCVCV

CVa0

b0+ Δ

c0

d0

e0

D

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3. Volume One: The Road to Success… or of slowdowns. Comparison with stoppages

24

D0

D10

D20

D30

D40

D50

D60

D70

D80

0+000 10+000 20+000 30+000 40+000 50+000 60+000

Activity X

Actual Progress before stopage

Case of full stoppage for D days

Progress slow down for D days

D

D1

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3. Volume One: The Road to Success- Preface and Introduction 1 Executive Summary2 Development Phases of Pipeline Project3 The Baseline of a Contract4 Analysis and Mitigation of Risks5 Management of Construction Risks

6 Best Practices7 New Trends and Innovation- Bibliography / Acknowledgements

6.1 Planning, Design & Control- ROW & Constructability- Minimum Data for the Five Project Stages

6.2 Earthworks- Typical ROW Cross Sections- Earthworks Design- Environment- Health & Safety

6.2 External Pipeline Protection System- Mainline Anti Corrosion Coatings- Field Joint Anti Corrosion Coatings- Mechanical Protections

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2605 July 2010

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3. Volume One: The Road to Success- Preface and Introduction 1 Executive Summary2 Development Phases of Pipeline Project3 The Baseline of a Contract4 Analysis and Mitigation of Risks5 Management of Construction Risks6 Best Practices

7 New Trends and Innovation- Bibliography / Acknowledgements

7.1 Near-Real-Time Construction Monitoring Tool7.2 Pipeline Simulation Tool7.3 Facing, Lining up & Welding Skid-less Methodology7.4 Lower & Lay: “Ideal” Machine Specifications

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3. Volume One: The Road to Success- Preface and Introduction 1 Executive Summary2 Development Phases of Pipeline Project3 The Baseline of a Contract4 Analysis and Mitigation of Risks5 Management of Construction Risks6 Best Practices7 New Trends and Innovation

- Bibliography / Acknowledgements- Reference Publications - Contributors to The Road

3005 July 2010

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3. Volume One: Appendices3.2.1 Recommendations for establishing the Project Execution Plan for the Construction Phase3.2.2 A Dummies Guide to March Charts3.4.4 Contract clauses that have a particular impact upon onshore pipeline projects3.4.5 Project Cost Estimate and Contingency5.2.1 Examples of evaluation of time & cost impacts of full stoppages or of slowdowns to

certain activities intervening at various stages of the construction process6.1.1 Pipeline Selection Route Process6.2.2 Earthworks-Pipeline Trench Design6.2.3 Earthworks-Environment Control Measures6.2.4 Earthworks-Health & Safety Control Measure6.3.1 Comparison of Mainline External Anti-Corrosion Coatings6.3.2 Field Joint Coating Selection Table6.3.3 Supplementary Mechanical Protection Systems Selection Tables7.1.1 Conceptual Functional Specifications for a GIS-Based Near Real-Time Monitoring Tool

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3. Volume One: Appendices3.2.1 Recommendations to establishing a Project Execution Plan for Construction Phase3.2.2 A Dummies Guide to March Charts3.4.4 Contract clauses that have a particular impact upon onshore pipeline projects3.4.5 Project Cost Estimate and Contingency5.2.1 Examples of evaluation of time & cost impacts of full stoppages or of slowdowns to


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Appendix 3.2.1 Recommendations for establishing the Project Execution Plan for the Construction Phase

• Summary: This section provides the reader with ‘how to’ guide to best formulate a PEP. Essentially a executive summary for the construction phase planning, including tips on mastering the key elements.

1. Introduction 5.2 Procurement Execution plan 5.7 Project Planning & Control Plan

2. Project Background 5.3Administration & Finance 5.8 Risk Analysis Management Plan

3. Project Execution Organization 5.4 Construction Execution Plan 5.9 Quality Plan

4.Key Personnel 5.5 Health & Safety Plan 5.10 Community Relations Plan

5.1 Engineering Execution Plan 5.6 Environmental Impact Plan 5.10 Systems

Contents

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Appendix 3.2.2

A Dummies Guide to March Charts

• Summary: Provides the reader with a detailed account on how to understand and interpret March (time- distance) charts

1. The Basics

2. Constructability Issues

3. Other Features

4.Progressing March Charts

Contents

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Appendix 3.4.4

Contract Clauses that have a particular impact upon onshore pipeline projects

• Summary: Provides the reader with specific items within a onshore pipeline contract that need particular attention, and can prove to be detrimental should they be overlooked when planning and executing a project.

1. Weather 5. Third Parties

2. Environment/Archaeology 6. Materials

3. Site and Access 7. Ground Conditions

4.Programme 8.Design

Contents

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40

Appendix 3.4.5

Project Cost estimate and Contingency

1. The Development of a Project Estimate

2. What Contingency is not meant to cover

3. Development of Allowances, Escalation and Contingency

4.Whats is an Estimate Range

5. Estimate Accuracy

6. How do we set Contingency

Summary: Helps the reader to understand the issues surrounding the development of a project cost estimate, whilst aiding to understand the specifics and terminology.

Contents

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3. Volume One: Appendices3.2.1 Recommendations for establishing the Project Execution Plan for the Construction Phase3.2.2 A Dummies Guide to March Charts3.4.4 Contract clauses that have a particular impact upon onshore pipeline projects3.4.5 Project Cost Estimate and Contingency5.2.1 Examples of evaluation of time & cost impacts of full stoppages or of slowdowns

to certain activities intervening at various stages of the construction process6.1.1 Pipeline Selection Route Process6.2.2 Earthworks-Pipeline Trench Design6.2.3 Earthworks-Environment Control Measures6.2.4 Earthworks-Health & Safety Control Measure6.3.1 Comparison of Mainline External Anti-Corrosion Coatings6.3.2 Field Joint Coating Selection Table6.3.3 Supplementary Mechanical Protection Systems Selection Tables7.1.1 Conceptual Functional Specifications for a GIS-Based Near Real-Time Monitoring Tool

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Appendix 5.2.1

Examples of time and cost impacts of full stopages or slowdowns to certain activities

1. Examples of evaluation of time impact of Stoppages

2. Evaluation of the cost of impact of stoppages

Summary: This section provides the reader with various examples of the effect of slow-downs or stoppages on the progress of a project, and the resulting impact on costs.

Contents

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Appendix 6.1.1 Pipeline Route Selection ProcessSummary: Best practices for all processes of route selection

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Appendix 6.2.2

Earthworks: Pipeline Trench Design

1. Pipeline Trench Design

2. Trench Depth

3. Trench Integrity

4.Installation

5. Dewatering

6. Backfilling

Summary: Extensive documentation on the planning, excavation, and laying methods of pipeline in trenches

Contents

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Appendix 6.2.3

Earthworks: Environmental Control Measures

1. All Habitats

2. Soft Soil

3. Sand Dune Area

4.Peat Area

5. Side Slope

6. Swampy Areas

7. Forested Area

8. Ridge

9. Tundra

Summary: This section aims to provide ways for project managers to mitigate the environmental impact of Earthworks within different conditions of excavations

Contents

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Appendix 6.2.4

Earthworks: Health and Safety Control MeasuresSummary: This section provides a crucial insight into the hazards that can be found within different soil types and topographies, and suggests control measures to limit the risk of occurrence

1. Pipe movement 8. Adverse weather

2. Working at height 9. Ambient temperature

3. Work equipment 10. Ground conditions

4.Hazardius materials – personal exposure

11. Confined space

5. Emergency response 12. Heavy Load

6. Impact with local community/area

13. Illumination

7. Wildlife 14. Lifting

•Soft Soil•Sand Dune•Peat Area•Side Slope•Swampy Area•Forested Area •Ridge•Tundra

Environment Hazard

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Appendix 6.3.1

Comparison of Mainline External Anti-Corrosion Coatings Summary: This section provides the reader with a comprehensive comparison between different types of Coating Systems

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Appendix 6.3.2

Field Joint Coating Selection Table Summary: This section provides the reader with a overview of the different Filed joint systems available in the market with their relevant standard and specification ratings

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Appendix 6.3.3

Supplementary Mechanical Protection Systems Selection Table Summary: This section provides the reader with an overview of different Mechanical Protection Systems taking into account technical performance criteria, design & construction criteria, and environmental criteria.

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certain activities intervening at various stages of the construction process6.1.1 Pipeline Selection Route Process6.2.2 Earthworks-Pipeline Trench Design6.2.3 Earthworks-Environment Control Measures6.2.4 Earthworks-Health & Safety Control Measure6.3.1 Comparison of Mainline External Anti-Corrosion Coatings6.3.2 Field Joint Coating Selection Table6.3.3 Supplementary Mechanical Protection Systems Selection Tables7.1.1 Conceptual Functional Specifications for a GIS-Based Near Real-Time Monitoring

Tool

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Appendix 7.1.1

Conceptual Functional Specifications for a GIS-based Near-

Real-Time Construction Monitoring Tool

Summary: To recommend the basic functional specifications for developing a “near-real time (near-live) monitoring tool” and a comprehensive project controls tool with a GIS-based interface.

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4. Future Developments:

Continuation of Novel Initiative Oct 27-28 Sessions:

Six new Working Groups have been formed to,

expand sections of The Road as needed

New Developments have been proposed

Objective: to issue a second edition by September 2011

Research Cooperation with EPRG, PRCI & APIA

5905 July 2010

5. Q &A

6005 July 2010

The Road to Success is available in pdf

format on www.iploca.com

_________

Comments and Suggestions

to be addressed to

[email protected] July 2010

http://www.iploca.com/

mailto:[email protected]

Documents

05 July 2010 1 - IPLOCA · 2 Development Phases of Pipeline Project. 3 The Baseline of a Contract. 4 Analysis and Mitigation of Risks. 5 Management of Construction Risks. 6 Best Practices