SPE Applied Technology Workshop (ATW)
“Integrated Project Management: Innovative Approaches for a New Era ”
25 – 28 March 2012 ● Phuket, Thailand
Project Planning – Challenging the Limits


By Harjono Zainal Abidin, Syed Mohd Alwi & Sharazain Noordin
Oil & Gas Business Systems Group
MESINIAGA BHD




        PMO INTEGRATED OPERATIONS (IO) FOR E&P



                                                                        1
Project Environment
THIS CASE STUDY:                                              RISKS?
                                                     Volatile market
Business model
 NewCo E&P                                                 Oil price?
   – Multi-party JV
 Marginal Oilfield
   – RSC                           $
 Fast-track to production
   – 12 months?             Currency?



                                        What’s different with:
                                         Oldco E&P
                                         PSC Shallow/Deepwater
                                         Development …
                                         5 or 10 Years to production

                                                                        2
P2M
Adopt
Program & Project Management
Applied to:
Exploration & Production
                                                  PROGRAM
Oil/Gas field Development
                                                  MANAGER
By NewCo operator

Key Issues:                                                                  Silo’s?
                                     PROJECT        PROJECT      PROJECT
  People!                           MANAGER        MANAGER      MANAGER
    – Organization & Structure      Exploration   Development   Production
    – Leadership & Teamwork
 Process!
    – Planning, Monitor & Control
    – Contracts & Procurement
 Technology?
Program Manager’s Point of View
                           PROJECT   PROJECT   PROJECT
                              A         B         C




  Code   CONTROL METRICS      A        B        C
         Scope               OK       OK        X
         Time                 X       OK        X
         Cost                OK       OK        X



                                                         4
MASTER PLAN Level 1 Program
JOB NO   SCOPE                  START   END       COST   1   2   3   4   5   6   7   8        9

         PROJECT A                            $

         Geological Data                      $

         Field Dev Plan                       $                                               FORECAST
         Drilling                             $                                          Potential delay!
         PROJECT B

         Conceptual Eng

         Detailed Engineering                 $

         Procurement                          $

         PROJECT B                            $

         Fabrication                          $

         Platform A                           $

         Platform B                           $

         Platform C                           $

         Installation                         $

         PROJECT C                            $

         Production                           $

         1st Oil




                                                                                                        5
Project Manager’s Point of View
P2M
                                          PROJECT LIFECYCLE




                                                                EXECUTE

                                          PLAN

                                                                              CLOSE
             RESOURCES




                         INITIATE




                         TIME
   Project
     Data
 CONTROL                        Project          Project           Accept       Archive
   Metrics                      Charter     Management             Project      Project
                                                    Plan      Deliverables   Documents


                                                                                          6
MASTER PLAN Level 2 - 3 Project
JOB NO   SCOPE              START   END       COST   1   2   3   4   5   6    7    8     9

         INITIATION

         Geological Data                  $
                                                                                   Project Data
         Field Dev Plan                   $

         Drilling                         $
                                                                                    Granularity
         PLANNING                                                                   Level 4 – 5?
         Engineering                      $                              How to manipulate data
         Procurement                      $
                                                                                     & forecast
         EXECUTION                                                                performance?
         Fabrication                      $

         Platform A                       $

         Platform B                       $

         Platform C                       $

         Installation                     $

         Hook-up &                        $
         Commissioning

         Handover to                      $
         production



         CLOSE-OUT

         Review As-Builts                 $

         Archive                          $




                                                                                                   7
IO Data Framework
               MASTER PLAN
               Based on contractual commitments
               CONTRACT DOCS
               Purchase orders

               DATA:
               Drawings
               3D
               2D
               SPECIFICATIONS
               PROCEDURES
               Vendor Data

               Progress Reports
               Daily
               Monthly
               Quarterly
               Forecasts!
                                                  8
IO Contractual Framework
 MONITOR & CONTROL IN DETAIL!
                                                                                                In Reality Fast-Tracking requires
 Level 1                                                                                        Command & Control!




                                                            Total Project Contract Eco-system
 Owner                                                                                          Fast-tracking has performance limits!




                                Standard Project Contract
                                                                                                Impact on Safety …
 Level 2




                                                                                   Eco
 Consultants
 Design & Construction                                                                                                          Steep
 Engineering                                                                                                                  Progress
                                                                                                                               S-curves
                                                                                                                               indicate
 Level 3
                                                                                                                           likelihood of
 Contractors                                                                                                                    Safety
 Specialized Vendors                                                                                                          incidents


 Level 4
 Sub-contractors

 Level 5
 Vendors/Suppliers
                                                                                                                                           9
IO Program Management Office…
Program Management Office
                                                   Cloud                 Finance
1. People                                          Computing
2. Process                                                                         Legal

3. Technology             Project
   Real time Info - Structure        Manager
                                     EXPLORATION
   Key Features
                                                                   PMO
      Collaboration
      Communication                     Project
                                        Manager
      Data Management                  DEVLOPMENT                                        Procurement
       – Automation
       – Process Orchestration                     Project
       – Analytics                                 Manager      SAFETY       Contracts
                                                   PRODUCTION
            • Trending/Data Mining



                                                                                                       10

Integrated Operations io-PMO

  • 1.
    SPE Applied TechnologyWorkshop (ATW) “Integrated Project Management: Innovative Approaches for a New Era ” 25 – 28 March 2012 ● Phuket, Thailand Project Planning – Challenging the Limits By Harjono Zainal Abidin, Syed Mohd Alwi & Sharazain Noordin Oil & Gas Business Systems Group MESINIAGA BHD PMO INTEGRATED OPERATIONS (IO) FOR E&P 1
  • 2.
    Project Environment THIS CASESTUDY: RISKS? Volatile market Business model NewCo E&P Oil price? – Multi-party JV Marginal Oilfield – RSC $ Fast-track to production – 12 months? Currency? What’s different with: Oldco E&P PSC Shallow/Deepwater Development … 5 or 10 Years to production 2
  • 3.
    P2M Adopt Program & ProjectManagement Applied to: Exploration & Production PROGRAM Oil/Gas field Development MANAGER By NewCo operator Key Issues: Silo’s? PROJECT PROJECT PROJECT People! MANAGER MANAGER MANAGER – Organization & Structure Exploration Development Production – Leadership & Teamwork Process! – Planning, Monitor & Control – Contracts & Procurement Technology?
  • 4.
    Program Manager’s Pointof View PROJECT PROJECT PROJECT A B C Code CONTROL METRICS A B C Scope OK OK X Time X OK X Cost OK OK X 4
  • 5.
    MASTER PLAN Level1 Program JOB NO SCOPE START END COST 1 2 3 4 5 6 7 8 9 PROJECT A $ Geological Data $ Field Dev Plan $ FORECAST Drilling $ Potential delay! PROJECT B Conceptual Eng Detailed Engineering $ Procurement $ PROJECT B $ Fabrication $ Platform A $ Platform B $ Platform C $ Installation $ PROJECT C $ Production $ 1st Oil 5
  • 6.
    Project Manager’s Pointof View P2M PROJECT LIFECYCLE EXECUTE PLAN CLOSE RESOURCES INITIATE TIME Project Data CONTROL Project Project Accept Archive Metrics Charter Management Project Project Plan Deliverables Documents 6
  • 7.
    MASTER PLAN Level2 - 3 Project JOB NO SCOPE START END COST 1 2 3 4 5 6 7 8 9 INITIATION Geological Data $ Project Data Field Dev Plan $ Drilling $ Granularity PLANNING Level 4 – 5? Engineering $ How to manipulate data Procurement $ & forecast EXECUTION performance? Fabrication $ Platform A $ Platform B $ Platform C $ Installation $ Hook-up & $ Commissioning Handover to $ production CLOSE-OUT Review As-Builts $ Archive $ 7
  • 8.
    IO Data Framework MASTER PLAN Based on contractual commitments CONTRACT DOCS Purchase orders DATA: Drawings 3D 2D SPECIFICATIONS PROCEDURES Vendor Data Progress Reports Daily Monthly Quarterly Forecasts! 8
  • 9.
    IO Contractual Framework MONITOR & CONTROL IN DETAIL! In Reality Fast-Tracking requires Level 1 Command & Control! Total Project Contract Eco-system Owner Fast-tracking has performance limits! Standard Project Contract Impact on Safety … Level 2 Eco Consultants Design & Construction Steep Engineering Progress S-curves indicate Level 3 likelihood of Contractors Safety Specialized Vendors incidents Level 4 Sub-contractors Level 5 Vendors/Suppliers 9
  • 10.
    IO Program ManagementOffice… Program Management Office Cloud Finance 1. People Computing 2. Process Legal 3. Technology Project Real time Info - Structure Manager EXPLORATION Key Features PMO Collaboration Communication Project Manager Data Management DEVLOPMENT Procurement – Automation – Process Orchestration Project – Analytics Manager SAFETY Contracts PRODUCTION • Trending/Data Mining 10