PCSB's First Successful Major Restoration of Offshore Platfo

PCSB's First Successful Major Restoration of Offshore Platform

GOAL!

MOPU Sailed Away on 26 October 2013

Bekok C First Gas on 5 September 2013

Thank you!

Result speaks by itself …

• HSE record

• 2.7 million safe man-hours without LTI

• MOPU Disengagement Date: 12 Sep 2013

• USD 74 Million PONC Avoidance, estimated exposure from MOPU extension term
• RM 4.3 Million per day revenue from Bekok C average production

• Gas of ~ 160 mmscfd; Crude Oil ~ 3.5 kbd

• Anticipated final cost << Target Cost
• Develop capability in major brownfield restoration and rejuvenation work

We are all out to deliver the results

Reliable resources and utmost support from management

• Working under adverse weather condition

• Installation of 3 rooms during monsoon using DP3 barge

• Peak offshore personnel at 400 pax; 1 AWB and 3 AHT to support

• Close integration, cooperation and collaboration with stakeholders to ensure alignment to project delivery objective. (i.e. PMO (ORSA and Operations) and Contractors)

Chapter IV

Epilogue

Knowledge and Capability Development - PCSB PMT are composed of a mix of junior discipline engineers driven to project delivery

• Clustering of PCSB PMT and Contractor Engineers - ensure cohesive collaboration and integrated function as AIT

• Encouraged and empowered discipline engineers for a hands-on approach on project management and execution

• Guidance provided on project management and execution

Case Study of Bekok-C

Project is on EPCIC reimbursable, with project management team comprises from both Petrofac Facilities Management Asia Pacific (PFMAP) and PCSB (Alliance Integrated Team - AIT)

• Contract Award Date : 30 April 2012
• Original Target Value/ Cost: USD 223 Million
• Base Man-hours: 1,977,092
• MOPU Disengagement Date : 15 September 2013
• Change Order (CO) : USD 37 Million
• Revised Target Value : USD 260 Million

Anticipating Scope Growth; Strategising to meet project delivery objective..

• Commisioning were executed by prioritizing to P1 & P2:

• P1 - Gas Facilities, Utilities, Power and Safety systems
• P2 - Other Facilities i.e. GDU, Condensate and etc.

• Optimized planned Shutdown (SD):

Scope Growth due to Assurance on overall platform's technical integrity and asset integrity; Platform is beyond design life (> 30 years old)

• Migration strategy for power and control (eliminated 2 months production deferment)

• Engineering and PDMS Team were mobilized to Offshore to support site installation works.

• Platform start up with minimum facilities for independent operation from MOPU

• HAZOP recommedations -28 items
• MCI piping replacements - 254 lines
• Fit for Service (FFS) for 50 nos. of inspected vessels:

• Replacement 5 vessels
• Repaired 12 Vessels

• Commisioning Walkthrough - 400 valves require replacement
• Joint Task Force (JTF) Walkthrough - 36 nos. of findings

488k additional man hour..

USD 37 Million Change Order to Target Cost..

Strong Emphasis on HSE and Schedule

Performance management: Rewarding success

• HSE and Schedule Incentive

• Promote proactive HSE culture and attitude among contractor's personnel

- HSE Incentive : Meeting HSE Target of Zero LTI and

Zero Fire Incident

- HSE promotions and campaigns

• Schedule Incentive: Meeting Mopu disengagements date

Achieving MOPU Disengagement before 30 Sep 2013 is not even P0...

Restoring Bekok C is the best option from schedule and cost point of view

Project duration of 21 months from bidding to completion:

Tendering & Award - Engineering - Demolition - Procurement - Construction - Installation - Commisioning

Restore independent production from MOPU before the expiry of MOPU primary leasing term

(i.e. 30 Sep 2013)

Restore fire affected material and equipment

Project cost within the approved sanction cost

Single Point Responsibility with ENHANCEMENT; Sharing Pain & Gain

Full compliance to PTS is not possible

EPCIC reimbursable at target cost on Alliance Basis

Standardization of Standards:

Restoration Work is not as easy as replacing like for like...

• Platform built on Exxon's General Standard (GS)
• To manage mismatch and risk ( Cost Benefit Analysis)

• EPCIC: Single Point Responsibility
• Reimbursable: Scope growth
• Target Cost: Control on project cost
• Improve final cost: Pain/Concept

• 50:50 risk and reward sharing
• Control elements (Techno-Commercial Governance): Alliance Integrated Team

Restoration goes BEYOND restoration:

• Re-visit operating and safety philosophy
• Upgrading of Instrument Control System from pneumatic to electronic complete with Distributed Control System (DCS)
• Total replacement of electrical and instruments cable
• Comprehensive Fit For Service (FFS) Study for Safe and Flawless Start Up and Operation

• AIT - PCSB & PFMAP as integrated team

Bekok C Post Fire Incident

Production resumes while platform is being restored

Continuous SIMOP (Simultaneous Operation) mode:

• PCSB's PTW (Permit to Work) system
• Minimum shutdown windows and duration
• Extensive usage of Safe habitat for hot world and alternative construction technologies. (i.e. saferad, sponge blasting)
• Limitation in Number of people that can work on Bekok C Platform

Multiple contractors working within the same vicinity

• Integration of concurrent activities

Enhanced PPMS

Chapter II

Challenges

Post Bekok C Fire Incident in Dec 2010, pressure is mounting to ensure Peninsular Malaysia's gas delivery is maintained

Objective

• 200 mmscfd capacity of Bekok C as a gas hub
• 160 mmscfd exporting gas from Tiong A, Bekok A, Bekok C and Guntong A

To do the impossible, we do things differently

Chapter I

Prologue

Process Enhancement:

• Specific Terms of Reference (TOR) which includes:

Sharing of PCSB's First Successful Major Restoration and Rejuvenation of Offshore Platform

• Mutual Hold Harmless: harmonious relationship between all contractors
• Cost Benefit Analysis: first thing first - prioritization

• PPMS enhancement (prior to the launching of PPMS W3)
• Steering Committee and Sponsor

Production resume via MOPU

on 30 September 2011:

• 30 Sep 2013 - expiration primary term of MOPU contract
• USD 101.5K - daily rental for extension term
• Average daily production

Chapter III

Making the Impossible

Possible