The document discusses Punj Lloyd's execution of the Shah Gas Development Project in Abu Dhabi. Some key points: - The project involved laying corrosion resistant alloy clad pipelines to transport sour gas, posing technical challenges due to the complex welding requirements. - Punj Lloyd overcame challenges through meticulous planning, deploying skilled workers, extensive safety practices, and innovative solutions like prefabrication. - As a result, they achieved project milestones on schedule while maintaining high safety and quality standards, earning recognition and additional profits from the client. - Key lessons included the importance of planning, skills, safety, logistics, control, cash flow management, technology, and innovative thinking for successful project execution.

1. Energy, Infrastructure & Defence solutions
Today’s Projects:
Challenges & Key factors of success

2. Energy, Infrastructure & Defence solutions
BACKGROUND
• This may not be difficult for an Oil & gas Industrialist / Professional to understand , why Engineering, and
construction (E&C) sector is going through the toughest phase. Demand has fallen significantly due to
sudden downfall in oil prices in 2015 led virtually every energy company to slow down, postpone, or
outright cancel major projects all over the world. Commodity prices have also tumbled, and the O&G
operators across the World have restricted its capital spending considerably.
• Anemic and inconsistent growth in developed markets have been unable to make up for the industrial
Giants . Continuing global economic instability has almost derived down the E&C sector revenues in 2016
compared to the year before, stalling the recovery that had followed the previous collapse of spending in
the sector during the 2008-09 financial crisis.
• In addition to the fundamental economic stresses on the E&C sector, established companies face
intensifying competition from firms in low-cost nations, which weighs on E&C profit margins and has driven
many in the industry to commoditize their services. To make up for it, some E&C companies have turned
to a mergers and acquisition strategy centered on acquiring companies offering promising new sources of
value in new geographies, new lines of business, or both.
• Another way Company’s are trying to mitigate their risks is by collaborating to combine their
complementary strengths in execution of large Construction Projects. This gives them an opportunity to
pool-in resources and take on works based upon their core competency.
• The survival and growth of the EPC players across the World shall depend upon the following:
• Cost Competitiveness in Construction
• Focus on Quality
• Efficient and Cost effective Logistics Management.

3. Energy, Infrastructure & Defence solutions
KEY CHALLENGES
•Schedule Requirements are getting more demanding and tightened
•Schedule Risk is with Contractor , Liquidated Damages, Cost Escalations for extended stay etc.
Tightened Completion
Schedule
• Mega Projects involving Multiple stakeholders across the Globe, Requirement of
diversified Equipment , handling of Huge tonnage at Remote Locations etc.Project Size
• Quality requirements are fairly standardized across our Industry and adherence to good
Quality standards has become extremely important with tightened schedule, an EPC
Contractor can not afford to have re-work , equipment breakdown or poor workmenship.
Quality
• Seamless Cash flow Management is extremely important . Many mega Projects do not
see the light of the day due to lack of enough cash flows or poor cash flow management
while initial period of Project Execution.
Cash flows
• In LSTK Contracts, Market and Quantity Risks are with Contractors. In the competitive
environment it is extremely important to be Cost EfficientCost
• Mega Projects involves 1000s of workers from diversified background with varying levels of
education, culture etc. With increase focus of HSE by Operator Companies across the World, it has
become imperative to bring these workmen on to equal platform when it comes to safety.
Safety
• The Technology & Processes are Proven, No PrototypeTechnical

4. Energy, Infrastructure & Defence solutions
KEY FACTORS OF SUCCESS
FACTORS
OF
SUCCESS
Cost
Competitive
in
Construction
Focus on
Quality
Robust
Process &
Control
System
Schedule
Efficient
Logistics
Management
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5. Energy, Infrastructure & Defence solutions
KEY FACTORS OF SUCCESS
1. Cost Competitive in Construction
• Strategic Tie Ups / Consortiums to combine complementary Skills and augmenting capabilities
• Standardization and Modularization
• Pre-fabrication / Onsite Fabrication
• Use of Innovative Cost effective Technology and Processes for Real Time Information
sharing and Control.
• Cost Based Construction Planning & Control
• Establishment of training centre to hone the Skill Sets of local Manpower based upon international
learning.
• Acquiring innovative Construction Technology / Equipment and following out of the Box Construction
approach.
• Establishment of Construction Excellence centre in coordination with leading Education Institutes to nurture
local talent in Indian Construction Sector. Punj Lloyd is founder partner of ISB Mohali Campus.

6. Energy, Infrastructure & Defence solutions
KEY FACTORS OF SUCCESS
2. Focus on Quality
• Conduct periodic GAP analysis on QA/QC processes and identify key risk areas.
• Define, implement and resource appropriate QA/QC processes, systems for the Project Execution.
• Develop a Robust supplier / Service Provider evaluation processes and audit programs.
• QA/QC training and development for supporting the local content development
• Standardizing Project Management Processes as well as Support Systems
• Follow Total Quality Management
• Dedicated Quality Managers / Executives allocated to each site along with the training professionals to
Ensure compliance to the Quality Requirements.
• Automated Quality Information Systems to ensure seamless information management and control

7. Energy, Infrastructure & Defence solutions
KEY FACTORS OF SUCCESS
3. Robust Process & Control
• Develop and implement precise controls
• Know your actual progress by ensuring real time updates / Daily Progress Reports from the site
• Establish Systems to measure Site Productivity to enable developing a database. Accordingly, an
productivity improvement plan can be established.
• Control your suppliers and sub-contractors by establishing a separate Central Subcontract Management
Group. At PLL, we finalize Subcontracts from our HQ for our Projects executed across 21 Countries across
the Globe. This change has been implemented very recently to ensure adherence to the Quality, Cost,
Delivery and Management (QCDM).
• An automated process from Bidding  Estimation / Proposal  Project Acquisition  Budgeting  Cost
Control  Project Planning  Site Handover  Final Completion  Project Closure to be developed.
4. Schedule
• Adapt to concurrent rather than sequential execution
• Get the design input early and get it right the first time
• Avoid changes and re-works
• Integrate the E, P and C work processes

8. Energy, Infrastructure & Defence solutions
KEY FACTORS OF SUCCESS
5. Efficient Logistics Management
• Central Expedition Cell to expedite Material Deliveries
• Early Identification of dedicated shipping lines, Shipping Agents etc.
• On Site WareHouse Management
• Automated Monitoring Systems / Mechanism with Centralized Control at HQ
• Increasing Use of RFID based Technologies amalgamated with IT Systems. Etc
• Separate Experts team for Surface Transportation, Sea Transportation and Air Transportation
• Inhouse Load-out , Transportation Engineering Team

9. Energy, Infrastructure & Defence solutions
Real Time Project Example :
Executed by Punj Lloyd

10. Project Overview
Project Name Shah Gas Development Project Package 1, Abu Dhabi
Description Shah Gas Development Project which represents the development of the
Shah Arab Sour Gas Reservoir. Gas Gathering is designed to handle wet
produced gas with H2S concentrations greater than 23% and about 10%
CO2 at a wellhead flowing temperature of 113 °C. The Shah Gas
Gathering System collects 1,000 MMSCFD of well stream gas from the
various Shah Wells and transports it to the Shah Processing Facility
Brief Scope Punj Lloyd was contracted for the Shah Gas Gathering project to
construct eight well pad systems each consisting of a Satellite Pad and
a Main Pad. Major facilities at each well pad included wellhead control,
flow gathering and measurement, pressure protection, flare and drain,
pig launching and/or receiving, cathodic protection, fire & gas detection,
telecommunication and security systems. Besides this, Punj Lloyd had
to construct the four inter-pad lines, two transfer lines and flow lines

11. • The Shah feed gas contains approx. 23% H2S, known to be a silent killer, an odorless and colorless
gas which makes working in the area very dangerous.
• As a result of the danger, Punj Lloyd upscaled its health and safety initiatives. Based on project
requirements and risk involved at site, emergency situations were indentified and included in
emergency planning and response. (To Address the Potential Safety Challenge)
• This was the first time such a length of CRA pipe was laid and predictably construction of pipeline for
the SGD project posed a major challenge due to the metallurgy of the linepipe. Handling of CRA clad
Inconel 625 material is difficult, keeping in view the bonding of two dissimilar material, which should
not alter at any point of execution. Cleanliness was the key to success as contamination at any stage
is detrimental to the weld quality and joints are prone to defects if there is ingress of impurity.
• Automatic GTAW is a relatively slow process, contrary to other automated welding process used in CS
lines, due to lower deposition rate. This coupled with the specification requirement of maintaining
interpass temperature below 177O C resulted in a reduced welding production rate. Our execution
team countered this disadvantage. (Technical Specifications).
KEY FINDINGS / OBSERVATIONS

12. • Automatic GTAW welding process was used which enabled more control of the weld parameters,
thereby reducing the defects to less than 1%.
• Unlike conventional Carbon steel welding, CRA welding has certain unique features. First of all the
joints need to be verified for traces of residual magnetism. If it is present, then demagnetisation is
mandatory. After demagnetisation the joints require thorough cleaning with lint-free cloth wet with
acetone. Fit-up process used special internal clamps with back purging arrangement. Throughout the
welding process of the cladded portion, back purging was maintained and Oxygen content less than
500ppm was monitored using Oxygen Analysers.
• The fact that the internal purging had to be done through these special clamps and the limitation of the
clamp to cover maximum 150 meters from the free end of the pipe string, demanded precision
planning of the pipe sections keeping in mind the intermediate crossings, so that the tie-in joints were
minimised or entirely avoided.
APPROACH TOWARDS PROJECT EXECUTION / SOLUTIONS
Induction Heating Welding Machine Welding Process

13. • Punj Lloyd’s project team drafted the minute details through desktop and field studies and
meticulously planned the following:
• Most Skilled Workers / Welders were deployed for the Project.
• In order to ensure & achieve high standards of quality, more that 50 Automatic welding operators
were thoroughly trained by specialists prior to deployment at site. This activity was envisaged
way in advance.
• Detailed Execution methodology was developed and very robust process & systems were kept
in place. Throughout the construction duration welders were monitored and reports were sent on
daily basis to the Headquarters so that the standards are never compromised.
• The entire welding process was carried out within air-conditioned enclosures specially fabricated
for the project.
• Two weld heads were used per joint to carryout the welding process.
• Our execution team overcame the disadvantage of GTAW being a slow process by prefabricating
double jointed pipes at the fabrication facilities, adjacent to the camp. Around 40% of the joints were
welded at the fabrication facilities round the clock. This reduced the welding of joints at site and
enabled planned completion of the project, maintaining the quality and HSE standards.
• Special trailers with facilities for carrying 24 metre double jointed pipes were deployed for transporting
these exceptionally long pipes from fabrication facilities to site. Each and every turn and radius
available along the route of the trailer was analysed to ensure that the drive was safe and secure.
Use of vacuum lifts in place of conventional cranes and sidebooms enabled faster pipe handling.
APPROACH TOWARDS PROJECT EXECUTION / SOLUTIONS

14. • Apart from welding, the NDT process is also very unique for the CRA cladded pipe. After completion of
welding, each joint was required to be inspected internally. Internal Videoscopy and LOPM (Laser
Optical Profile Measurement) was performed for the first time in Middle East for such a length of CRA
pipes. Identification of suitable machines capable of performing the measurement precisely was done
dexterously, as this was the key aspect to ascertain the weld quality. LOPM machine was inserted in
the pipe through a crawler whose movement was controlled remotely. After data capturing, the data
was transferred to the laptop for analysis by qualified quality personnel. Radiography was performed
only when the weld was cleared after interpretation of the videoscopy and LOPM results.
• Joint coating requirements of SGD project were different from conventional sleeves used in most of
the cross country pipeline projects. Joint Coating was performed using Spray applied FBE coating.
This application was also performed using automated application machines to ensure uniform coating
thickness and faster productivity.
• Cold field bending was a challenge as the CS and CRA material though bonded together has different
mechanical properties. The stress developed during bending should at no point hamper the bonding.
Our bending engineers did extensive calculations and many trails using our bending machine and
were eventually successful in preparing numerous field bends conforming to the specifications.
Root weld inspection Internal clamp
APPROACH TOWARDS PROJECT EXECUTION / SOLUTIONS

15. • No flame cutting was allowed for CRA cladded pipes, hence cold cutting machines and Plasma
cutters were extensively used. Special bevelling machines were used to prepare the J-Bevels at
fabrication yard and site. Data Loggers (Portable Arc monitoring system) came handy as all welding
parameters control and adjustments for the site condition were made available.
• For the tie-in joints back purging was maintained using water soluble purge dam. The high risk at the
project site mandated the need for the most stringent HSE practices. Regular HSE Audits and
Inspections were undertaken - a total of 441 HSE audits were conducted during the course of the
Project, which averages to 8 Audits per month. A total of 22,395 HSE inspections were conducted,
safety drills were conducted on regular basis. 128 Near Miss incidents were reported during the
construction phase and learning from these were recorded and implemented. Together with
emergency preparedness and response, all these initiatives helped the company achieve 11.5 Million
man-hours without LTI.
APPROACH TOWARDS PROJECT EXECUTION / SOLUTIONS

16. • Punj Lloyd (PLL) achieved 11.5 million manhours without LTI in a high risk working environment
• Usage of automated equipments and processes enabled faster installation time, whilst maintaining the
high standards of quality and HSE
• Successfully laid the CRA (Corrosion Resistant Alloy) Cladded pipe, the first time in the world an
Onshore Cladded pipeline of this magnitude was constructed.
• Internal Videoscopy and LOPM (Laser Optical Profile Measurement) were performed for the first time in
the Middle East for such a length of CRA pipes.
• Automatic GTAW welding process was used which enabled more control of the weld parameters,
thereby reducing the defects to less than 1%. PLL welding strategy further helped to mitigate the risk of
GTAW being slow process.
• Besides the intricacies of the welding operation, civil work of the Project was by no means easy due to
the type of terrain encountered. The entire field is amidst huge sand dunes and involved enormous
quantum of earthwork for preparation of the pipeline Right of Way and the wellpad platforms. Here also
Project team’s innovative thinking of using Gatch (a locally available material having high binding
capacity) as a filling material worked and helped PLL to make the ROW motorable.
• For achieving excellence in project execution, the client delivered a bonus to PLL for this Project.
Leading to better Profits and Cash flows.
• HSSE-Q Champions league of the SGD Project which essentially measures performance against
leading KPIs was performed by Client and among all the EPC Contractors associated with the SGD
programme, Punj Lloyd secured the highest rank for maintaining HSE standards in the project
PROJECT ACHIEVEMENTS

17. • Meticulously Planned Construction Methodology always reap Good Results.
• Well trained Skilled Manpower can pull through even most complex Projects.
• Following best HSE practices is key to Successful execution of the Project
• Efficient Logistics management and onsite Fabrication can enable the Contractor to execute a
Project in an expeditious manner.
• Precise Control and Monitoring can avoid project delay / slippage and in case there are still delays
the same can be mitigated by taking appropriate measures.
• In case Progress is monitored and ensured, Client supports by all means in efficient Cashflow
Management.
• Adoption of effective technology coupled with innovative out of the box thinking definitely ensures
Project Completion even before the stipulated Project Completion schedule.
• And the list can go on and on…………………………….
KEY LEARNINGS

18. • Runner-Up in the prestigious '2016 IPLOCA Excellence in Project Execution Award' category.
A certificate was presented to Punj Lloyd during the IPLOCA Annual Meet held in Paris, France.
RESULT

19. Our Pledge
• The Safety of People
• The Protection of the Environment
• The Assurance of Speed and the Control of your cost
• The Quality of our Service
• The Success of your Project

20. Energy, Infrastructure & Defence solutions