Commissioning, Transforming Risks into Success Factors

Specialized Commissioning Contractor, a Key Factor for Capital Project Success

Presented by: Riad Faour, Eng.CEO Progesys International

TOPIC

Present some of the commissioning best practices and show how hiring a Specialized Commissioning Contractor when capital investment decision are made to build new processing capacity, will result in reducing costs, enhancing overall quality of the project and a better, faster, transition from construction to safe and efficient operation

COMMISSIONING BRIEFLY

WHY COMMISSIONING?

Progesys made the choice more than 12 years ago to specialize in Plant Commissioning

Why?• Noticed that it’s a major challenge for project owners• We perform in this intense environment• Implemented best practices and methodologies that work• Commissioning requires capacities in both technical and

management know-how• Commissioning managers must be leaders

WHY COMMISSIONING?

Commissioning is a crucial part of every Industrial Project

Any industryWorldwide

WHY COMMISSIONING?

Requires specialized know-how

WHY COMMISSIONING?

Can be properly performed only by specialized resources fit for the task

WHY COMMISSIONING?

Involves all stakeholders: Engineering, Procurement, Contractors, Vendors, Project Owner team, and Operation team

Commissioning Contractor

Project Owner Team

Engineering team

Procurement Team

Construction contractors

Vendors

Operation Team

WHY COMMISSIONING?

It’s intense, often caught between construction delays and start-up milestones

COMMON CONTRACTUAL STRATEGY FOR COMMISSIONING

• Often the EPC or EPCM consultant is hired for the commissioning phase also

• Commissioning is a small part of the awarded service contract• It’s a later phase so it’s not the immediate focus of management• EPC contractors are often not specialized in commissioning and focus on

Engineering and Construction being the major parts of contract budgets• Assigned commissioning manager answers to the construction manager• Often assigned late and during the construction phase• Lack of know-how and best practices• Difficulty of EPC contractors to retain specialized commissioning

professionals

What happen when a Specialized Commissioning Contractor is contracted for Commissioning

1- Focus is put on that critical phase from day one of hiring the specialized contractor since he is dedicated to that task

2- Dedicated resources are specialized in commissioning and not there because of availability only

3- Commissioning is the core of the service contract for the Commissioning Contractor and his only measure of success

4- Commissioning Contractor answers to the Project Owner Team and not to the Construction team

5- Applies commissioning know-how and best practices

6- Often positively received by all project stakeholders including EPC and construction contractors

SPECIALIZED COMMISSIONING CONTRACTORS

Master:

Scope of workA proven methodologyDefined deliverablesCoordination of stakeholdersLeadership from mechanical completion to ramp-up

SPECIALIZED COMMISSIONING CONTRACTORS

Master:

The application of a health and safety program that is adequate for the sources of risks and energies present during commissioning phase

The use of specialized electronic tools to manage the flow of work from Mechanical completion to the ramp-up phase.Progesys uses a proprietary software (CMS ) to manage mechanical completion, pre-commissioning, commissioning, start-up and ramp-up.

ECL / NALCOProject : ARS1 and ARS2 of Angul Smelter Angul, Orissa, India

Year of realization: 2010 – 2011Project Value: USD 50M$ Services offered by Progesys:• Construction Management services for the plant ARS1 and ARS2

hiring local contractors and implementing best practices for construction and HSE

• Direct supervision of manpower and training of welders and tradesmen

• Installation and operation of Electrical substations for both plants• Heavy lifts for chimneys in difficult plant areas• Engineering during plant construction and engineering for heavy

lifts and final equipment installation

VALE MALAYSIA MINERALSProject : Vale Malaysia Minreals Project Lumut, Malaysia

Year of realization: 2012 – ongoingProject Value: USD 1.3 Billion Services offered by Progesys:• As a commissioning contractor Progesys is responsible for all pre-

commissioning and commissioning activities• Scope all facilities by systems to enable smooth transfer from EPC

to Owner operation team• Definition and implementation of POVT roles and responsibilities

matrix• Overview of construction key milestones and planning of vendors

on- site for pre-commissioning activities• Preparation of an POVT execution Plan for owner team• Direction and Execution of all POVT and commissioning activities• Planning of Plant systems turn-over to owner

CANADIAN ROYALTIESProject : Nunavik Nickel Mine Nunavik region, Northern Quebec, Canada

Year of realization: 2012 – ongoingProject Value: USD 900 Million Services offered by Progesys:• Detailed planning of pre-commissioning and commissioning

activities• Scope all facilities by systems to enable smooth transfer from EPC

to Owner operation team• Definition and implementation of POVT roles and responsibilities

matrix• Overview of construction key milestones and planning of vendors

on- site for pre-commissioning activities.• Preparation of an POVT execution Plan for owner team• Review and prepare all verification forms of Equipment and

Systems test details• Planning of Plant systems turn-over to owner

OSISKO MINING CORPORATIONProject: OSISKO MALARTIC GOLD MINE PROJECTMalartic, Northern Quebec, Canada

Year of realization: 2011 – 2012Project Value: USD 1 Billion Services offered by Progesys:• Detailed planning of pre-commissioning and commissioning

activities• Scope all facilities by systems to enable transfer from EPC to

Owner operation team• Preparation and implementation of a pre-commissioning and

commissioning execution plan and Planning of Plant systems turn-over to owner

• Overview of construction key milestones and planning of vendors on- site for pre-commissioning activities.

• Perform pre-commissioning and commissioning activities• Handover of systems and equipment to operation team and

assistance during Ramp-up

CONSOLIDATED THOMPSONProject : Bloom Lake Iron Ore Mine Fermont, Côte-Nord Region (Quebec) Canada

Year of implementation: 2009 – 2010Project value: USD 400 Million Services offered:• Construction Management services for plant erection

including Construction Supervision, Contract Administration, Deficiencies Management and reporting to owner

• Management of the pre-commissioning & commissioning phases of project

• Plan, manage & sign-off equipment commissioning by selected vendors

• Plant systems turn-over to client

QATALUMProject : Qatalum Aluminum Smelter Qatar Year of implementation: 2008 – 2010Project value: USD 5.6 Billion(Contractor project value USD 1.5 Billion) Services offered:• Planning of pre-commissioning services• Pre-commissioning management and execution• Mechanical completion for the overall potroom and

general services contract• Commissioning management

ECL – ECL SERVICES FRANCEProject : Emirates Aluminum Smelter - EMAL Anode Roding & Hot Bath Treatment Plant Taweelah, Abu-Dhabi, United Arab Emirates

Year of implementation: 2007 - 2010Project value: USD 5.7 Billion(Contractor project value USD 100 Million) Services offered:• Pre-commissioning supervision and assistance• Auditing of existing pre-commissioning & commissioning

procedures• Technical assistance on site

Rio Tinto AlcanExpansion of the Rio Tinto Alcan Alma smelter – Alma 2 project

Alma (Quebec), Canada

Year of implementation: 2008 Project value: 1B$

Services offered within owner project team:

• Project management• Risk Management•Overall management of project controls

• Estimate• Planning

Rio Tinto AlcanSpent Pot Lining Treatment Pilot Plan

Year of implementation: 2006 – 2008Project value: 210 M$

Services offered:

•Management and execution of pre-commissioning and commissioning work for the plant•Planning and supervision of vendors work on site•Site logistics and construction assistance•System turn-over to client and start-up assistance•Management and implementation of all Health and Safety procedures

Windalco (now Rusal)Bauxite mine and Alumina refinery

Nain, Jamaica

Year of implementation: 2003-2004 Project value: 25M$

Services offered by Progesys as consultants through EPCM team:

•Engineering services to identify solutions and low-cost alternatives•Project estimating•Construction Management and supervision of contractors for construction and commissioning execution•Technical assistance to client team•Training for maintenance and operation teams

Hydro QuebecRehabilitation of the Beauharnois Hydroelectric Dam

Beauharnois (Quebec), Canada

Year of implementation: 2003 Project value: 20M$

Services offered by Progesys within general contractor team:•Construction management•Planning and supervision of project progress•Technical assistance to site and coordination with engineering and fabricators•Pre-commissioning management and supervision

Rio Tinto AlcanCoke Sulfur Dioxide Treatment

Arvida (Quebec), Canada

Year of implementation: 2008 Project value: 30M$

Services offered by Progesys within general contractor team:•Construction management•Planning and execution of precommissioning and commissioning acitvities•Technical assistance to site and coordination with engineering and vendors•Plant systems turn-over to client

VALERO ENERGY (Ultramar)Project : Ultra-low sulphur diesel St-Romuald refinery (Quebec) Canada

Year of implementation: 2004 - 2006Project value: USD 400 Million

Services offered within owner team:• Technical management of engineering teams in Calgary and Quebec

City• Project controls management and supervision• Procurement management including contractual strategy definition • Purchasing, expediting, inspection planning and shop auditing• Overall plannng of project activities and implementation• Risk management – identification, assessment and mitigation of

risks• Review and analysis of constructability study• Supervision and management of EPCM contractor work• Management and execution of pre-commissioning and

commissioning work• Site logistics and construction assistance

CONCLUSION

Specialized commissioning contractors like Progesys are necessary for project success. They master a crucial phase of the project cycle and dedicate for it specialized human and material resources.

Owners pre-qualify and hire the best Engineering firms for EP contracts, the best Construction Contractors for the Construction phase and they benefit if they do the same when it comes to the crucial commissioning phase.

THANK YOU