SUCCESSFULLY DELIVERING DEEPWATER DEVELOPMENTS David Jordan

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SUCCESSFULLY DELIVERINGDEEPWATER
DEVELOPMENTSDavid Jordan

• Subsea Deepwater Developments Asia 2008 25th/26th
  November 2008

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Typical Development Architecture
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Project Delivery The Development Cycle To
Success
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Option 1 Single Contract Entity (Integrated
Contractor) Typical Organisation
Client
System Engineering System Integrity System
Availability / Deliverability Interface Management
EPMS Contractor
Subsea Management
Reception Facilities
Drilling
Subsea Hardware
Risers
Pipelines
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Option 2 Segmented Project Organisation Typical
Organisation
System Engineering System Integrity System
Availability / Deliverability Interface Management
Operator
Drilling
EPMS Contractor Facilities
EPMS Contractor Subsea
Procured Items
URF
SPS
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Project Key Performance Indicators

• What are the KPIs
• Agree at outset cost, schedule, HSSE, working
  relationship etc.
• Develop in conjunction with the contractor(s)
• Change to suit Project Phase
• Articulate and make visible to all stakeholders
  (internal external)
• Link to incentives
• Customer objectives not always visible to
  contractors
• KPIs defined late
• KPIs are an after thought

Set Goals for Performance
Develop Specific Project Delivery Objectives
Common to Contractor Customer
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Project Execution Plan - Commencement

• Project mobilisation is critical to overall
  success
• Plan for mobilisation-
• Early advice of award critical to project ramp
  up
• Must have been included in the respective bids in
  detail
• Updated after award within start up period
• Office location/layout
• Key people for key functions on day one
• Management systems in place quickly
• Key procedures/work processes available to all
  personnel early

Trouble Free Start-Up sets the Project Tone
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Engineering Conceptual / Front End

• Provides real value
• Ensure all conceptual screening options and
  sensitivities are closed out before FEED
• The devil is in the detail
• Construction, Installation, HUC, OM and Vendors
  input essential during conceptual and FEED
• Be realistic about project estimates and
  schedules!

Front End Loading Make Decisions Early
DONT delay decisions to later phases
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Engineering Execute Phase

• Detailed design will normally be undertaken by
  URF SPS contractors
• EPMS contractor or Operator will manage system
  integrity Interfaces
• Use fit for purpose
• Management systems
• State-of-the-art document management
• Reduce documentation turn-around time
• Plan delivery in accordance with required dates
• Apply design freeze(s)
• Implement effective change management process
• More input Construction/Installation/HUC/OM
  (OIM) before design freeze
• Allow flexibility to separate subsea development
  from facilities - if required

Engineer to Operate
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Key Project Internal/External Interfaces
Topsides
Internal I/F
Hull
External I/F


Drilling Wells
Subsea
Shore
Reservoir
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Interfaces
Multiple Interfaces Need Dedicated Management
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Technical Systems Integrity
Best Techno-Economic Systems Approach

• Process and Flow Assurance
• Materials
• Controls
• Commissioning
• Operations

Individuals to have Systems Integrity
Accountability
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Procurement And Materials Management - Subsea
Maintain ownership accountabilities

• Use package engineers/managers
• Procure as little as possible Undertaken by URF
  or SPS contractors
• Long leads Identify and action
• Keep risk where risk belongs
• Maintain total system responsibility
• Set up a common materials management system for
  all sub-projects/contractors
• Keep Facilities Subsea bases management
  separate
• Tracking material movements is as important as
  placing the order
• Subsea EPMS company to manage Subsea base?
• Set up supply agreements/call offs with local
  service companies

On time delivery facilitates Project success
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Logistics
Single point of contact for delivery

• Global procurement and deliveries introduce
  global and local problems
• Ex works/FOB
• Import/customs/documentation
• Shipping
• Material/equipment movement
• Storage
• Risk
• Predictability of receipt on site
• Adherence to delivery plan

Single Freight Forwarder for Entire Project
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Mechanical Completion / Pre-Commissioning

• Early definition/planning of HUC and
  Pre-Commissioning activities
• Team understanding
• Resources office to offshore
• Additional materials, equipment, consumables,
  storage
• Document control and as builts plan early
• Early Punch Listing
• Remedial work for completion onshore Dont take
  it offshore
• Review planned offshore scope for completion
  onshore
• Understand criticality of various systems. You
  will need to prioritize offshore
• Subsea is as important as Facilities

Drive a one team culture
Scope Deferred to Offshore adds Risk to
Completion Why let it Happen?
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Risk Opportunity Management

• What Is Risk Management
• It is a systematic and proactive approach to
  assess and control risks,
• performed according to an established risk
  management policy
• It is part of Project and General Management, as
  a continuous and integrated
• process
• Implemented through all phases of the project
• What it is NOT
• An activity to carry out when problems occur
  (that is crisis management)
• A policing system (its a management tool)
• It has never, and will never, eradicate all risks

Risk Management is not an afterthought
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Value Driven Engineering
Value Driven Focus, with

• Safe Operations
• Cycle Time
• Minimum Cost
• Fit For Purpose

Front End Loading and PM Best Practice Tools

• Use of Value Improving Practices
• Classes of Quality
• Technology Selection
• Value Engineering
• Customised Standards
• Constructability Reviews
• Predictive Maintenance
• Design to Capacity (forward)

Experienced People Companies bring Added Value
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Safety in Design

• Working to a project-wide umbrella management
  system.
• Adherence to project management and ISO
  standards.
• Use of HAZID and Risk Assessment sessions to
  identify key risks that need to be accounted for
  in the design.
• Use of HAZOPs to ensure that all facilities can
  be safely operated.
• Experience of key members of the technical review
  committee who will attend these sessions.
• Controlled management of change e.g. changes to
  the design to be re-HAZOPed.
• Adherence to our integrity assurance process.

Safety in design must be embedded in a Project
Organisation
Design Safety is not an Add-on
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Subsea Reliability
Essential to Project Success

• Use Competent Personnel to Perform the Work
• Work to Industry Standards
• Use an Active Program of Design Reviews
• Work with Installation Hardware Contractors to
  Identify Investigate Technical Risks
• Use an Active System of Knowledge Sharing -
  Operator and Contractors Lessons Learnt
• Prepare a Detailed Project Reliability Plan
  Including
• Categorisation Sheets for Equipment Scope of
  Supply
• Identification of Equipment Requiring a
  Qualification Program
• Qualitative Quantitative In-House Reliability
  Assessments Including FMECAs, Risk Reviews,
  HAZOP, HAZID and RAM Analysis
• API 17N - Subsea Reliability and Technical Risk
  Management

Competent People and Process are Required to
Guarantee Deliverability
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Subsea Operability
Operability must be owned by the operators

• Experience in Similar Designs
• Application of the Operators Philosophies and
  Specifications
• Include the Operators OM Personnel in the Design
  Team from Day One
• Performing Design and 3D CAD Model Reviews with
  Operational Personnel
• Ensuring OM Issues are Addressed in Vendor
  Packages
• Careful Management of All Interfaces
• Asset Integrity Assurance
• Human Factors Review
• HAZOP
• Facilities Availability Modeling
• Operability Workshops

Draw Upon All Available Operating Experience
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Subsea Deliverability

• Reliability and Availability
• Integrity Assurance
• Standardisation
• Contracting Strategy and
• Vendor Early Involvement
• Sparing
• Develop philosophy
• and implement
• Quality Assurance
• Risk Identification
• Risk Mitigation

Subsea Deliverability is Essential to Project
Success
Reliability and Operability Ensure Deliverability
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General Approaches Cost Estimation

• Determined from
• bottom up estimate
• sufficient detail for all aspects of the project
• market rates not historical data
• EPCM management costs
• Contingency allowances to be determined using
  risk assessment.
• Benchmarking of the cost estimate

Drill Down for Cost Estimation Accuracy
Realistic Project Cost Schedule is beneficial
to all Stakeholders
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Change Management

• All changes to go through a challenge process
• Major Changes approved at the highest level
• Impact of change calculated prior to work
  commencing
• Client approves all changes prior to
  implementation
• Change/Variation Order Register is maintained
• All changes are coded in accordance with the
  project Code of Accounts,
• Budget and Forecast at Completion figures are
  updated to incorporate approved
  changes/variations.

Review from what is best for the project
standpoint
A Managed Change Process Will Avoid Surprises
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Action Register

• Action item unique identification number
• Name of person requesting the action
• Date the request was made
• Date by which the requester needs the information
• Description of the action being requested
• Name of the person responsible for the resolution
• Actual date of resolution
• Summary of resolution

Major Projects Need Punch Listing
Brings Focus to Outstanding Issues
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Four Worlds for Success
SUBJECTIVE
OBJECTIVE
COMPETENCE
BEHAVIOUR
Plans Actions Decisions Performance Accuracy Exper
ience
Values Attitude Commitment Responsibility Risk
Taking
INDIVIDUAL
INDIVIDUAL
CULTURE
SYSTEMS
Shared Value Team Work Ethics Morale Myths and
Legends Fairness
Organisational Structures Work Process Policy and
Procedure Shared Measures Infrastructure Contracts
GROUP
GROUP
SUBJECTIVE
OBJECTIVE

• Adapted from a model by Ken Wilber JMJ
  Associates

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Key Team Success Factors

• Projects are to be Enjoyed
• Leadership
• Team spirit
• Quality of personnel
• Openness to new ideas and challenge
• Innovation vs. Standardisation
• Use of global networks for support and lessons
  learnt
• Continuity of personnel
• Awareness of constructability
• Awareness of operability
• System approach

High Performing Teams Make the Difference