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Intro to PM Oil and Gas Industry Rev 03
Citation preview
Introduction to Project & Interface Management in Deep Offshore Oil & Gas Industry
Public Lecture ISTN 15 June 2013
Antonius Yunianto Offshore Project & Interface Management Professional Offshore-skills.com
1
offshore-skills.com
Agenda 2
I
II
Introduction to Project Interface Management in Oil and Gas Industry
III
Introduction to Project Management in Oil and Gas Industry
IV
Case Study : Concept Selection Phase in Field Offshore Deepwater Development
Project Management Certification
PART I INTRODUCTION TO PROJECT MANAGEMENT IN OIL AND GAS
INDUSTRY
3
I.1 Project Definition 4
Temporary endeavor with a beginning and an end Creates unique product, service or result Is progressively elaborated Distinguishing characteristics of each unique project will be progressively detailed as the project is better understood Progressively means proceeding in steps, continuing steadily by increments, while elaborated means worked out with care and detail, developed thoroughly
Reference : PMBOK
I.1 Project Definition 5
Temporary endeavor with a beginning and an end Creates unique product, service or result Is progressively elaborated Distinguishing characteristics of each unique project will be progressively detailed as the project is better understood Progressively means proceeding in steps, continuing steadily by increments, while elaborated means worked out with care and detail, developed thoroughly
Reference : PMBOK
I.2 Project Attributes 6
A Project : Has a unique purpose Is temporary Is developed using progressive elaboration Requires resources, often from various areas Should have a primary customer or sponsor The project sponsor usually provides the direction and funding the project Involves uncertainty
Reference : PMBOK
I.3 Project vs Operational Work 7
Reference : PMBOK
Projects Operations
To attain its objectives and terminate Create own charter, organization and goals Catalyst for change Unique product or services Heterogeneous teams Start and end dates
To sustain the business Semi permanent charter, organization and goals Maintain status quo Standard product or services Homogenous teams On going
Examples Build LNG Plant Geotechnical Investigation Ground water well construction Opening a new shop Arrange for a conference
Examples LNG Plant Production Writing a progress update memo Attending a conference Meeting with an employee Opening the shop
I.4a Project Management, Program Management & Portfolio Management
8
Ref.: PMBOK
I.4 Project Management, Program Management & Portfolio Management
9
I.5 What is Project Management? 10
Reference : PMBOK
The Application of knowledge, skills, techniques and tools to project activities to meet project requirements. Project management is accomplished through the application and integration of the process such as: 1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing
I.6 Project Constraint 11
Reference : PMBOK
Scope What work will be done as part of the project? What unique product, service, or result does the customer or sponsor expect from the project as its deliverables?
Cost
What is the cost to complete the project? What is the project budget?
Time
How long it takes to complete the project? What is the project schedule?
I.7 Managing the Project 12
Ref. : PMBOK
Project managers are assigned by the performing organization to achieve the project objectives.
A project manager is in charge of all aspects of the project including, but not limited to: Developing the project management plan and all related component plans, Keeping the project on track in terms of schedule and budget, Identifying, monitoring, and responding to risk, and Providing accurate and timely reporting of project metrics.
The project manager is the lead person responsible for communicating with all stakeholders, particularly the project sponsor, project team, and other key stakeholders.
The project manager occupies the center of the interactions between stakeholders and the project itself.
I.8 Project Life Cycle 13
Reference : PMBOK
I.9 Product vs Project Life Cycle Relationships 14
Reference : PMBOK
I.9 Product vs Project Life Cycle Relationships 15
I.10 Stakeholder 16
Reference : PMBOK
A Stakeholder are individuals and organizations that are actively involved in the Project, or whose interest may be positively or negatively affected as a result of project execution or project completion
External Stakeholders Internal Stakeholders
I.11 Impact of Stakeholder Based on Project Time 17
Reference : PMBOK
I.12 Organizational Structure 18
Reference : PMBOK
Organizational structures range from functional to projectized, with a variety of matrix structures between them
I.13 Functional Organization 19
Reference : PMBOK
Key Points: The organization is grouped by areas of specialization within different functional areas Projects generally occur within a single department Information required from other department will be routed through departmental heads Team members complete project work in addition to normal department work
Advantages: Easier management of specialists Team member reports to only one supervisor Similar resources are centralized, the company is grouped by specialties Clearly defined career paths in areas of work specialization
Disadvantages: People are more emphasis on their functional specialty to the detriment of the project No career path in project management Project Manager has little or no authority
I.14 Projectized Organization 20
Reference : PMBOK
Key Points: The Project Manager has control of projects Personnel are assigned and reports to a Project Manager Team members complete only project work and when it is over they dont have home Communication generally occurs only within project
Advantages: Efficient project organization Loyalty to project More effective communications than functional
Disadvantages: No home when project is completed Lack of professionalism in discipline Duplication of facilities and job functions Less efficient use of resources
I.14 Weak Matrix Organization 21
Reference : PMBOK
Key Points: Team members report to Functional Manager Team members do project work in addition to normal departmental work Power rest with the Functional Manager Project Manager plays a role of: Project Expeditor: Can not make any decision. Staff assistant and Communication Coordinator Project Coordinator: Similar to Project Expeditor except has some power to make decision.
I.15 Balanced Matrix Organization 22
Reference : PMBOK
Key Points: Two Bosses Team members report to Project Manager and Functional Manager Team members do project work in addition to normal departmental work Power is shared between the functional and project manager
I.16 Strong Matrix Organization 23
Reference : PMBOK
Key Point: Power rest with the Project Manager
I.17 Project Management Process 24
Reference : PMBOK
The project processes are performed by the project team and generally fall into one of two major categories: Project management processes ensure the effective flow of the project throughout its existence. These processes encompass the tools and techniques involved in applying the skills and capabilities described in the Knowledge Areas. Product-oriented processes specify and create the projects product. Product-oriented processes are typically defined by the project life cycle (as discussed in Section 1.9) and vary by application area.
I.18 Five Project Management Process Group 25
Reference : PMBOK
The process flow diagram provides an overall summary of the basic flow and interactions among Process Groups and specific stakeholders. A Process Group includes the constituent project management processes that are linked by the respective inputs and outputs where the result or outcome of one process becomes the input to another. The Process Groups are not project phases.
I.19 Project Management Process Groups and Knowledge Areas Mapping
26
Reference : PMBOK
I.20 Team Management 27
I.21 Project Development Management Phase 28
I.22 Earn Value Management
29
Link : EVM
I.23 Oil and Gas Industry Regulation
30
1. PTK-037 POD 2. PTK-038 WP&B 3. PTK-039 AFE 4. All procurement activities are bound by BPMIGAS Regulation on Supply Chain Management for
PSC No. 007-REVISI-2/PTK/I/2011 - Providing guideline on supply chain management, procurement of goods and services, asset management, custom, and project management in BPMIGAS/PSC/JOBTAC. In general, all purchases of goods and services are done by either tender or direct selection/direct appointment (with certain requirements) and with only suppliers which are registered locally. Highlights in the procurement (goods & services) regulation guidelines :
- Tender Plan and Contract Award > $5M needs BPMIGAS approval
Non compliance to the procurement regulation will result to non-cost recovery and may lead to disciplinary action to the PSCs personnel.
Link : POD, WP&B dan AFE http://www.skspmigas-esdm.go.id/
PART II INTRODUCTION TO PROJECT INTERFACE MANAGEMENT
IN OIL AND GAS INDUSTRY
31
II.1 Subsea Interface Management Overview 32
Typical Subsea Interfaces:
II.3 Interface Management Overview 33
Definition of Interface : An interface is the place at which independent systems meet or communicate with each other. It is an interaction of crossproject Delivery Team members necessary to exploit the synergy that is possible by having the right people engaged in communication. This dialogue is focused on ensuring that project identifies and implements the best solutions effectively.
Multidiscipline Communication
Its Colorful
Communication is the key in Project
Execution
II.1 Interface Management Overview 34
Interface Management Plan :
Its builtin & integral part of overall Project Management.
Supports Project Manager for project execution ontime & within budget.
The responsibility is entrusted to Project Interface Engineer.
Is developed for Client, Contractor(s) and subs (suppliers/vendors).
Applicable for project lifecycle : PreFEED/FEED, Detailed Engineering, Procurement,
Construction, Installation (EPCI).
This presentation summarizes the scope of Interface Management, procedure, systems &
processes.
On megaprojects, how it is implemented? Across Continents in different time zones and in
multicultural environments? And, finally the . . . .
Key to successful interface is frequent and effective Communication.\
Is utilized to manage the interfaces between all parties involved during project life cycle.
Is employed to incorporate process, tools and organizational structure.
Later in the project the interface system is developed to incorporate delivery control, status of
equipment, fabrication, installation and finally the management of lesson learned.
II.2 Interface Management vs Project Management Process
35
Interface Management Encompasses Entire Project Process Group :
Interface Management Encompasses Entire Project Phases:
Interface Management Cover s Nine Knowledge Areas
Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management
Project HR Management Project Communications Management Project Risk Management Project Procure Management
II.3 Interface Categories 36
External Interfaces:
External Interfaces Occur between Contractor & Client and their external org /entities. Outside of the Contractors responsibility (If specified by Client). Cross scope boundaries of two or more Delivery Teams and/or Development Systems, (Ex. PL contractors for Export Lines, etc.) PS : For Client and their sub-contractors these are internal interfaces.
Internal Interfaces:
Internal Interfaces Occur within work areas of Contractors responsibility. Allow flow of information, identify Receiving and Providing Occur between the disciplines, e.g., Engineering, Construction, Quality, Procurement, Project Services, Commissioning, etc. PS : This includes Project Controls, Document Controls and any of Contractors suppliers / vendors.
II.3 Interface Types 37
Interface Types:
Tangible or Hard Interfaces Have a physical connection such as a structural steel connection, pipe termination, or cable connection, Ex. TieIn Points.
Intangible or soft interfaces Involve only the exchange of information such as design criteria, clearance requirements or utility needs between Delivery Teams or between a Delivery Team and an external party.
Technical interfaces Are tangibles or hard interfaces that occur within structures, systems and equipment, Ex. TieIn Points.
Execution interfaces Occur when different contractors conduct their scope of work in series with interfaces that are dependent on each other or simultaneous when concurrent activities impact each other. (Here Construction Manager is in lead).
Organizational Interfaces Result in a significant loss/gain in schedule or capital to the originating Delivery Team or to the project in general.
Critical interfaces Result in a significant loss/gain in schedule or capital, those not performing have potential to negatively impact project performance.
II.5 Interface Management Strategy 38
Interface Management Strategy
Ensures all interfaces between the various parties are identified and controlled to ensure integrity between the different elements associated with the project. Maintains uptodate Interface Registers and forms bridge between various parties involved in the execution of the Project. Defines precisely the interface requirements associated with each party involved in a particular interface. Defines the responsibilities for the parties involved with the interface so that individuals can be assigned and made accountable to followup the required actions. Monitors the transfer of information relating to interfaces between the relevant parties, including Risk Identification & Mitigation Management, and VEP (Value Engineering & Constructability) Programs. Monitors the status of the interface actions to enable active followup if necessary by the Project Management Team, including potential change requests, variation requests, etc. In short, creates an environment to minimize loss of revenue.
PART III
SAMPLE CASE STUDY : CONCEPT SELECTION IN OFFSHORE DEEPWATER FIELD
DEVELOPMENT
39
40
40
FPU
Number of Wells & Plateu Rate
Vertical type Cluster type
None Minim.Off. Treatment
Full Off. Treat.
None -Subsea tie-back
SWP FPU SWP
New onshore
plant
TLP
Existing plant
None -Subsea tie-back
SWP
New offshore
Well type
Offshore
processing
Offshore
structure
Final
treatment
location
New onshore
plant
Existing plant
None Minim.Off. Treatment
Full Off. Treat.
New onshore
plant
Existing Plant
New offshore
New onshore
plant
Existing plant
TLP SWP
III.1 Standard Concept Screening Methodology
41
41
III.2 FPU/FPSO vs SWP
42
III.10 Comparison between SWP and FPU/FPSO concepts
Characteristic SWP FPU
Process - NO condensate storage (Layout and safety constraints)
- High capability for condensate storage
Flowline system - Longer infield flowline system
- subsea layout more exposed to geohazards - More complex riser system
Expandability - Larger deck area and load capacity permit easier expansion;
- allows for storage of liquids
HSE - Risks for personnel working offshore for long periods during hook up and commissioning activities (moreover possible SIMOPs)
- Flexible risers and umbilicals not protected from dropped objects
- Flexible risers less protected from ship impact than SWP risers
Subsea system - Complex riser base for export line due to diameter limit on flexible riser (16 ID)
Decommissioning - Requires heavy decommissioning activities - Residual value
Contractual scheme
Schedule - 1000 days
- 800 days
Operability/ piggability
- Pigging of export line requires support vessel and subsea pig launcher because of complex riser base
Constructability - Possible availability of existing FPU for reconversion
42
PART IV PROJECT MANAGEMENT CERTIFICATION
43
IV.1 Project Management Professional Certifications 44
Professional Certifications in Project Management
Professional Certifications in Project Management 1. IAMPI (Ikatan Ahli Manajemen Proyek Indonesia) IAMPI website: http://www.iampi.org/ 2. Project Management Institute (PMI)
a. Certifies Associate in Project Management (CAPM) A secondary degree (high school diploma or the global equivalent) AND At least 1,500 hours of project experience OR 23 hours of project management education by the time you sit for the exam.
b. Project Management Professional (PMP)
A secondary degree (high school diploma, associates degree, or the global equivalent) with at least five years of project management experience, with 7,500 hours leading and directing projects and 35 hours of project management education. OR A four-year degree (bachelors degree or the global equivalent) and at least three years of project management experience, with 4,500 hours leading and directing projects and 35 hours of project management education.
PMI website : http://www.pmi.org/ PMI Indonesia Chapter : http://www.pmi-indonesia.org
45
The Deep Seafloor is The New Real Surface
Offshore-Skills.com
Terimakasih Thank You
BACK UP PROCESS GROUP
46
I.18-a Initiating Process Group 47
Reference : PMBOK
I.18-b PlanningProcess Group 48
Reference : PMBOK
I.18-c Executing Process Group 49
Reference : PMBOK
I.18-d Monitoring & Controlling Process Group 50
Reference : PMBOK
I.18-e Closing Process Group 51
Reference : PMBOK
BACK UP TATA KELOLA MIGAS
52
IV.3 Upstream Petroleum Arrangement 53
Upstream Petroleum Arrangements
G
B
G B
B B
IV.4 Historical Perspective 54
License/Concession
Production Sharing Contract
1960 -1970
G
B
IV.5 Upstream Petroleum Contract 55
*) Authors illustration - Modified from Society of Petroleum Engineers (SPE)
IV.5 Upstream Petroleum Contract 56
Technical Assistance
Development Field
Conventional E & P
High Cost EOR
Extra Heavy Oil
Extra Deepwater
Low Cost Brownfield
IV.6 The Role of NOC/SOC 57
Service Contract
Production Sharing Contract
Concession Royalty & Tax
Lower Risk
Higher Risk
Percentage of NOC/SOC
Participation?
Iran (Buy back)
Iraq (Technical Service Assistance)
Brazil
Norway
Indonesia Angola Canada (unconv. heavy oil)
Nigeria
Malaysia Libya (EPSA)
Nigeria DW Russia
Algeria
Kazakhstan UK US GOM
57
IV.7 Proven Reserves (By Country) 58
58
IV.7 Proven Reserves (By Country) 59
59
IV.8 Produksi Minyak Bumi dari KKKS 2013 60
60
Chevron Pacific Ind.;
327.692
PERTAMINA, 120,798
Total E&P; 64.788
PHE - ONWJ, 38,178
CNOOC SES, 36,331
ConocoPhillips Ind., 35,146
CICO, 26,910
Mobil Cepu Ltd., 24,083
PetroChina Jabung, 16,345
Vico Ind., 15,236
41 KKKS Lainnya, 120,817
Chevron Pacific Ind.
PERTAMINA
Total E&P
PHE - ONWJ
CNOOC SES
ConocoPhillips Ind.
CICO
Mobil Cepu Ltd.
PetroChina Jabung
Vico Ind.
41 KKKS Lainnya
14,6% 7,8%
Sumber: SKK MIGAS
STATUS 27 JANUARI 2013 (BOPD)
39,7%
IV.9 Profil Produksi Migas Indonesia 61
61
52 57 57 51 53 59 74
91 99 109
153
266
401
488 512
550 544
585
744 773
797
847
904
966
1056
1214
1264
1302 1302 1327
1397 1404
1316
1364
1267
1229
1366
1522 1501
1468 1462
1373 1408
1499
1586
1498 1496
1240
1375
1460
1500 1500
466
569 601
742
853
889
1082
1336
1373
1305
1506
1683
1631
1589 1587
1624
1288
1407
1519
1338 1362
1445
1303
1387
1539 1575
1491
1535
1612 1624
1574 1557
1537
1500
1415
1341
1252
1147
1096 1062
1006
954 977
949 945
902
861 830
900
1000 1010 1010
0
500
1000
1500
2000
1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
MB
OEP
D
TAHUN Minyak
PEAK 1977
Plateau stage
*) Outlook per 29 Januari 2013
PEAK 1995
Sumber: SKK MIGAS
IV.10 Profil Produksi Migas Indonesia 62
62
52 57 57 51 53 59 74
91 99 109
153
266
401
488 512
550 544
585
744 773
797
847
904
966
1056
1214
1264
1302 1302 1327
1397 1404
1316
1364
1267
1229
1366
1522 1501
1468 1462
1373 1408
1499
1586
1498 1496
1240
1375
1460
1500 1500
466
569 601
742
853
889
1082
1336
1373
1305
1506
1683
1631
1589 1587
1624
1288
1407
1519
1338 1362
1445
1303
1387
1539 1575
1491
1535
1612 1624
1574 1557
1537
1500
1415
1341
1252
1147
1096 1062
1006
954 977
949 945
902
861 830
900
1000 1010 1010
0
500
1000
1500
2000
1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
MB
OEP
D
TAHUN Minyak
PEAK 1977
Plateau stage
*) Outlook per 29 Januari 2013
PEAK 1995
Sumber: SKK MIGAS
IV.9 Model 63
63
New Blocks Offered
Existing Contracts
Expiring Contracts
Where do you apply the new model?
64
64
Deepwater Challenges in Indonesia Exploration and Exploitation : subsurface uncertainties, difficulties in seismic, geological modeling, reservoir engineering, reserve calculation Procurement : Scarcity of seismic survey vessels, deepwater drilling rigs Development : Difficulties and uncertainties in development concept selection, design and technological approaches Commercial : Huge capital investment, Economics enhancement target of production Legal : Timing of evaluation and approvals of POD are critical relative to the expiration of the exploration period