M P j t M t i th Oil & G I d tMega-Project Management in the Oil & Gas IndustryImproving Collaboration, Managing Costs & Delivering Results

Guy Barlow Kirk BlanchardGuy BarlowIndustry StrategyPower Energy & Process IndustriesOracle Primavera Global Business Unit

Project Controls SpecialistPerformance Contractors, Inc,

Agenda

• “Mega-Project” Overview• What are the Key Challenges?• Resolving the Challenges

• Motiva Project OverviewT Ch ll• Top 5 Challenges

• Moving Forward

• Q&A and Wrap-up• Exit SurveyExit Survey

Mega-Project OverviewManaging Complex Coordination

OwnersGeneral ContractorsOwnersGeneral ContractorsParticipant Activities

Fi iFi i R l tR l t Construction MgrsConstruction Mgrs

ArchitectsEngineersSubcontractors

ArchitectsEngineersSubcontractors

• Financing• Insurance• Financing• Insurance

• Regulatory• Legal• Regulatory• Legal

Supply Chain ActivitiesLabor PoolSuppliersOperators

Labor PoolSuppliersOperators

pp y• Eng. to Order• Manufacturing• Eng. to Order• Manufacturing

• Logistics• Procurement• Logistics• Procurement

Impact

• Poor Financial Performance • Reduced Operational Capabilities• Increased Legal Exposure

• Poor Financial Performance • Reduced Operational Capabilities• Increased Legal Exposure• Greater Political/Regulatory Issues• Greater Political/Regulatory Issues

What are the Key Challenges?5 Distinct Pain Points

Document ControlAre we efficiently managing the thousands of documents?Are we efficiently managing the thousands of documents?

Performance ReportingHow are we measuring and reporting project metrics?

Change Management

How are we measuring and reporting project metrics?

g gAre the hundreds of change orders a growing liability?

Risk ManagementRisk ManagementWho’s managing project risk and what’s the mitigation strategy?

System TurnoverSystem TurnoverAre we able to easily transition to a start-up environment?

Resolving the ChallengesCollaborative, Integrated & Optimized

Operate & MaintainCapital Plan / Project Bid Phase

Change Control

Project Close

Plan, Design& Procure

Project Execution

Business Management

Resolving the ChallengesCollaborative, Integrated & Optimized

Operate & MaintainCapital Plan / Project Bid Phase

Change Control

Project CloseP6 Analytics / P6 ERD / BI / Reporting

Business Process Managementg

Risk AnalysisQuantitative Risk

Analysis

P6Project Management

Risk Management

Contract Management

Change Management

Portfolio Management

Propose, Prioritize &

Plan, Design& Procure

Project Execution

Oracle Universal Content Management(or other content management system)

AnalysisQuantitative Risk

Management

Risk ManagementProject Scheduling

Resource Management

g gContract Management

Claim ManagementIssue Management

Select InitiativesReview, Track & Adjust

Portfolio

Business Management

(or other content management system)

Integration with other core applications (ERP, EAM, AutoVue, etc.)

PERFORMANCE ContractorsKirk Blanchard, Project Controls Specialist

Current States License Held to do BusinessOffice Locations - Baton Rouge, Lake Charles, Freeport & Mobile

Communication

Schedule and Cost

RResource Management

Information Management

Timely Project Close-out

MEGA Projects are cross functional events which requireMEGA Projects are cross-functional events, which require a great deal of communication and resources. There are a number of fundamental task that must be in-place to ensure that information is effectively prepared and fundamental procedures are in place to execute the project.p j

Contractors

PERFORMANCE ContractorsH-Block Project Overview (Motiva Refining, Port Arthur Texas)

• MOTIVA (Owner) Bechtel/Jacobs, (MC) PERFORMANCE

H-Block Consist of Hydrocracker, Power Station, Naphtha, and Cat Feed Units

Contractors (GC)

MOTIVA + Bechtel/Jacobs + PERFORMANCE + Sub-Contractors

• Bechtel/Jacobs Joint Venture, Managing Contractor

Manpower Projections, 2000 Project Personnel on Site for H-Block including Sub-Contractors• PERFORMANCE Contractors, LLC.including Sub Contractors

Top 5 ChallengesMassive, Complex & Risky

• Procedures• Communication• Control

Document ControlControl

• Quality • Timely• Consistency

Performance Reporting Co s ste cy

• Initiation• Estimate• Approvals

Change Management pp

• Guidelines• Monitoring• Mitigation

Risk Management

• Completion• Final Inspection• Pre Commission / Start-up

System Turnover

Moving ForwardBest Practices & Lessons Learned

Risk Management• Scope Creep• Labor

Best Practices• Processes• Analysis

Desired Outcome• Safety• Quality• Labor

• Schedule• Analysis• Reporting

• Quality• Schedule (Cost / Duration)

Moving Forward (continued)Best Practices & Lessons Learned

P6 Analytics / P6 ERD / BI / ReportingP6 Analytics / P6 ERD / BI / Reporting

Risk Management• Scope Creep• Labor

Best Practices• Processes• Analysis

Desired Outcome• Safety• Quality

Business Process Management

Risk Analysis P6 Contract Management

Portfolio Management

Business Process Management

Risk Analysis P6 Contract Management

Portfolio Management• Labor

• Schedule• Analysis• Reporting

• Quality• Schedule (Cost / Duration)

Risk AnalysisQuantitative Risk Analysis

Quantitative Risk Management

Project ManagementRisk ManagementProject Scheduling

Resource Management

ManagementChange ManagementContract Management

Claim ManagementIssue Management

ManagementPropose, Prioritize & Select

InitiativesReview, Track & Adjust

Portfolio

Risk AnalysisQuantitative Risk Analysis

Quantitative Risk Management

Project ManagementRisk ManagementProject Scheduling

Resource Management

ManagementChange ManagementContract Management

Claim ManagementIssue Management

ManagementPropose, Prioritize & Select

InitiativesReview, Track & Adjust

Portfolio

Oracle Universal Content Management(or other content management system)

Integration with other core applications (ERP, EAM, AutoVue, etc.)

Oracle Universal Content Management(or other content management system)

Integration with other core applications (ERP, EAM, AutoVue, etc.)

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Quote AttributionTitle, Company

“We are what we repeatedly do. Excellence, then, is not an act but a habit....”

AristotleAristotle

Performance Contractors, LLC.For More Information Contact Kirk Blanchard

Baton Rouge, Louisiana225-751-4156

Q&A and Wrap-Up