The value of understanding your projects…

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Technical & Commercial Evaluation & Validation

The Projects Team (TPT) are an organisation who help other companies realise value and efficiency through rigorous application of management and technical processes. The case study below is a real-life example of how their processes offered huge savings, identified several efficiency opportunities and encouraged continuous improvement.

  1. Task
    TPTs SMEs were tasked to implement & deliver the following evaluation activities on the ISBL FEED Study deliverables submitted by a technology owner under a lump sum basis for the client (classified).
  2. Activities
    The TPT SMEs implemented the following activities:

    – An impartial cold eyes evaluation & validation review of the study;
    – A bottleneck evaluation to determine all design limitations within the plant design to engineer out future debottlenecking and major CapEx investment for the 1st 20% production capacity increase;
    – The Application of TPT’s and the client’s value improvement practices to optimise plant performance operability;
    – An evaluation & qualification of all identified bulk quantities which is a critical aspect in achieving overall project success;
    – The Generation of an AACEI Class II cost estimates utilising the evaluated, validated & corrected FEED study Technical & Commercial deliverables. Validate the accuracy parameters met the client’s internal governance structure;
    – The generation of a full evaluation Risk & Opportunities Register including the identified cost levels and risk factors plus a full evaluation findings & recommendations report (Rev. A1 & C1).
  3. Findings
    Following the TPT SMEs implementation of the technical & commercial evaluation, an optimised engineered solution was presented, with all clarifications, technical & commercial errors being addressed. This resulted in a total identified overestimated value of 29.25m€, almost 30% of the original total project ISBL upgrade cost estimate, that was derived from the following:

    – Identified errors, optimisation & savings within the estimated minor equipment deliverables totalling 2.9m€;
    – Identified errors, optimisation & savings within the estimated steelwork structure deliverables totalling 0.9m€;
    – Identified errors, optimisation & savings within the estimated pipework materials deliverables totalling 3.1m€;
    – Identified errors, optimisation & savings within the estimated instrumentation deliverables totalling 7.2m€;
    – Identified errors, optimisation & savings within the estimated total electrical deliverables of 3.4m€;
    – Identified errors & savings within the estimated total design and engineering costs totalling 3.3m€;
    – Identified savings within the estimate defined construction overheads/expenses costs totalling 8.45m€.
  4. Outcome
    This enabled the client to reduce the overall estimated project cost requested at the Final Investment Decision (FID) as well as helping our client to negotiate a lower contract price with the technology owner.

    www.theprojectsteam.co.uk
    enquiries@theprojectsteam.co.uk

Non-transferable travel tickets – 25% saving in annual travel budget

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An operator in the oil and gas industry noticed that there were inefficiencies in their internal travel system. A short desktop exercise highlighted that the organisation was hugely inefficient when it came to booking flights – incurring costs for fight transfers, name changes and last minute cancellations.

The operator decided to trial booking non-refundable tickets instead. All employees must travel on the train, plane or car they had booked and could not be transferred.

This small change has resulted in a 25% cost saving in travel across the entire company. This also would have reduced the carbon footprint for the organisation overall.

A spokesperson for the company said, ‘it is amazing how one small change like this makes such a big difference. If a person needs to change their flight it is escalated all the way to the top for approval – so everyone here has changed their mindset to ask themselves if they really need to travel, and when. It’s a personal ownership of being more efficient. It makes sense.’

Are you familiar with your travel policy?

Iron Ocean/OGIC – Collaborative working for life-saving technology

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Problem Statement   

Globally there are 370,000 deaths annually due to unplanned immersions into open water, as reported by the World Health Organisation (WHO).

Aims

To develop a highly engineered offshore travel system designed to save lives at sea. Self-heating when immersed in cold water to prevent cold shock and hypothermia, the garment is also fire resistant and features anti-slash properties. A collaboration with Heriot Watt University & The Oil & Gas Innovation Centre (OGIC), the garment is the first of its kind.

Method

Designed to be worn under the traditional offshore survival suit, the ‘Centurion 3’ garment has been developed as three separate garments that are worn together. Garment one is a CARFIBEX base layer, an extremely soft material bespoke to Iron Ocean incorporating anti-static, advanced moisture management, anti-bacterial and superior thermal properties.

Garment two is a self-heating layer infused with Iron Ocean’s flagship technology REACTA GEL AQUA, a compound engineered to provide immediate heat on contact with cold water. Garment three is the fire and slash resistant outer layer developed to promote escape through areas of high heat and jagged wreckage.

Impact

As a major hazard industry, the UK’s offshore oil and gas sector has a duty to protect the health and safety of its people.

The prototype ‘Centurion 3’ garment, developed alongside OGIC and Heriot-Watt University, could save the lives of offshore workers in the event of an incident at sea.

With unique properties, the ‘Centurion 3’ effectively protects workers from the harsh elements of the North Sea.

Acting as an under layer, the garment will activate to produce life-saving heat in the event of outer suits being torn or found to be leaking.

This pioneering technology underpins collaborative working with a strong focus on safety; ultimately ensuring people come home safely.

It allows the industry to become more efficient, whilst reducing risks to the workforce.

Click on the image above to download the case study.

ECTIB: Applying the project collaboration toolkit – Shell UK, Wood & Stork Technical Services

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1. Problem Statement

How to use the ECITB Project Collaboration Toolkit in order to achieve optimal schedule and cost performance in the delivery of the Brent Bravo Topsides Decommissioning (Lift Preparation) Project through adoption of a collaborative strategy.

2. Aims

  • Use Lessons Learned from Brent Delta Topsides Decommissioning (Lift Preparation) to deliver improvement in project performance.
  • Establish a collaborative project organisation, as guided by the ECITB Project Collaboration Toolkit, aimed at enhanced project delivery efficiency.
  • Evaluate and measure project performance change through utilisation of the PCT.

3. Method

  • Establish a collaborative project environment and set aside traditional culture and working approaches (PCT Phase 1).
  • Form an integrated client and contractor project team from ‘best person’ selections, irrespective of employing entity (PCT Phases 1 & 2)
  • Obtain senior management and project sponsor support for a collaborative project strategy and isolate the project from any corporate organisational bureaucracy.(PCT Phases 1 & 2)
  • Adopt ‘single team’ and ‘one source of truth’ axioms

4.Impact

  • Delivered within an 11 month schedule with improved safety and better quality (less rework).
  • Combination of collaborative strategy and application of lessons learned from Brent Delta experiences resulted in reduction of ‘like for like’ removal preparation costs vs Brent Delta of 70%
  • Through adoption of the ECITB Project Collaboration Toolkit, traditional client and contractor roles and adversarial behaviours were set aside and a collaborative, single team, environment was created which allowed open contribution and innovative thinking in order to support delivery and efficiency achievements.

Total schedule time saved: Project delivered in less than 1 year, compared to several years for Brent Delta

Total cost savings: Cost savings of 70% on ‘like for like’ basis vs Brent Delta

Click on the image above to download the case study.

ECTIB: Applying the project collaboration toolkit – Apache North Sea, Subsea 7 & Quad

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Apache North Sea, Subsea 7, Quad [Apache topsides team; PD&MS; QEDI; GEG]

1. Problem Statement

How to enhance delivery performance on the Callater Field Development Project to support project viability and business case in a low oil price environment.

2. Aims

  • Best in class safety and quality performance.
  • Project completion and ‘first oil’ within 24 months of field discovery.
  • Project cost performance at or below budget.

3. Method

  • Create a high performing, collaborative, project delivery team for efficient and effective project delivery.
  • Select known and trusted project delivery partners with predisposition to collaborative working.
  • Provide leadership, vision and boundaries of responsibility to allow project team members (the right people for the right role) to do what they do best.
  • Work with the ECITB Project Collaboration Toolkit retrospectively to evaluate and validate collaborative performance and to record outcomes and learnings from the collaborative experience for future benefit.

4.Impact

  • Fast project team ramp up with critical items of scope specified, ordered/ completed early.
  • Using partners with track record and known capability, formation of a lean, efficient project team that was focussed on delivery performance, with no role overlap and duplication.
  • Project delivered for a 10% reduction on approved cost budget.
  • A UKCS record for project schedule performance: 23 months only from field discovery to production.
  • Demonstration to the entire UK oil & gas sector of what can be achieved through effective project collaboration.

Total schedule time saved: Completed 5 weeks ahead of an aggressive schedule of 24 months to first oil

Total cost savings: 10% saving on approved project budget

Click on the image above to download the case study.