TOPICS OF INTEREST
Better Abandonment Cost Estimates Yield Improved Project Valuations
Developing an asset requires key investment decisions to be made early in the process, and as a result, some critical cost evaluations—such as abandonment—are often ballpark estimates. Adjusting the parameters for evaluating these costs can lead to more-accurate project valuations.
Energy Companies Well Suited To Adapt to Industry 4.0
Industry 4.0, the latest industrial revolution, has hit the manufacturing sector, building upon the adoption of computers and automation into industrial processes. How well suited is the oil and gas industry to leverage the new autonomous systems that could emerge from this transformation?
Equinor Plans Extension of Statfjord Field
The plan will extend production of the largest field on the Norwegian Continental Shelf to 2040, while also deferring plans to decommission the Statfjord A platform. Statfjord A was originally scheduled to be decommissioned in 2022.
Senegal Approves Woodside’s Sangomar Project
The approval clears the way for final investment decision on the offshore project, which includes a standalone FPSO expected to have a production capacity of 100,000 B/D. First oil is targeted for 2023.
Petrofac Scores Deal To Establish North Sea Operation for Petrogas NEO UK
The deal comes months after the jointly owned Petrogas NEO UK acquired several UK North Sea assets, including a $635-million purchase of Total's stakes in various fields last July. The 2-year deal with Petrofac is valued around $50 million.
The Digital Transformation: Great Risk or Greater Opportunity?
The digital transformation is a risky proposition for oil and gas companies adapting to a rapidly changing business environment, but a failure to adapt could spell trouble for the industry.
Eni Starts Production at Niger Delta Onshore Field
Eni credits an integrated work model for the startup just 3 weeks after completion. Under the model, various disciplines worked in parallel from the exploration phase and synergies with existing production facilities were leveraged.
People and Processes Define the Facility of the Future
Developing the facility of the future is a technological and infrastructural challenge, but the people behind the technology play just as critical of a role in actualizing complex, innovative asset designs. How will future facilities affect the way companies operate?
Operating Excellence Through Benchmarking in Upstream Operations
As companies have focused on giant capital investments onshore and offshore to drive growth, they have often focused less on field operations, especially OPEX. This represents an enormous opportunity to address profit squeeze by improving overall cost efficiency in oil and gas projects.
Static Equipment: Understanding Heat Exchangers
Take a closer look at heat exchangers, including the various types and designs available, applications, and selection considerations. This article helps the project engineer, who is not an equipment specialist, to check that economical choices are made across all involved disciplines.
Hurricane Energy Produces First Oil From Lancaster Field
The field startup is Hurricane’s first step to actualizing its potentially considerable resources in the UK North Sea. Lancaster is expected to produce an average of 17,000 BOPD by the end of the year.
Joint-Venture Partners Contract With Anadarko for Mozambique Area 1
Anadarko Petroleum selects JV companies to provide EPC for the onshore LNG development. Saipem scores the biggest contract in its history. Work will begin upon FID, expected this month.
Weld Overlay Joins the Party as Corrosion-Resistant Pipe Undercapacity Threatens Project Scheduling
It is rare that businesses selling equipment to the oil and gas sector can benefit from lower oil prices. But that is the case for CRA pipe manufacturers, which are comfortably outperforming 2014 levels.
Johan Sverdrup Phase 2 Plan Approved
Construction for the field’s second processing platform begins on the same day the Norwegian authorities approved the plan for development and operation for the biggest field development on the Norwegian continental shelf.
IPTC Awards Saudi Aramco’s Manifa Offshore Project
Megaprojects have come to define many of the world’s new resource projects but they are also a testament to the awesome engineering capabilities of the oil and gas industry. Find out who took home this year’s honors.
Are Deepwater Projects Due for a Revival?
The oil price downturn spawned a lull in deepwater enthusiasm, but better project execution and reduced project lead times have helped operators achieve lower costs and better returns. What does the landscape for deep water look like in the near term? Will operators get more involved?
Imperial Delays Canadian Oil Sands Project
The decision to ramp down production on the Aspen project comes months after the Alberta provincial government imposed production cuts to handle pipeline bottlenecks. Aspen is projected to produce 75,000 BOPD upon startup.
BP Trinidad & Tobago Awards EPC Contract to McDermott for Cassia Compression Project
McDermott will provide EPC, hookup, and commissioning of the Cassia C topsides, a jacket, and a bridge to link Cassia C with the existing Cassia B platform.
Static Equipment: A Look Inside the How and Why of Specification
The specification and selection of equipment is the responsibility of the static equipment engineer, based on requirements specified by other disciplines, including process, materials, and plant layout. These guidelines contain cost-effective recommendations for design, materials, and fabrication.
For Download: The EPC Engineering Sequence Workflow
The EPC engineering workflow is synopsized as a one-page view.
Fueling the Oil Field: Can Natural Gas Satisfy Demand?
A new paper from ADI Analytics examines the circumstances in which natural gas could become an attractive method for fueling oilfield equipment.
Alaska LNG Project Seeks Investors
The Alaska Gasline Development Corp., a state-owned corporation, is preparing an equity offering for this summer for its $43-billion LNG project. BP agreed to sell natural gas from Prudhoe Bay for export to Asia-Pacific.
New Regulations To Fast-Track Brazil FPSO Deployment, Boost Presalt Oil Production
New local content regulations could speed up the pace of presalt oil production by more than 21 billion bbl by the mid-2020s. Karoon and Parnaíba Gás Natural are the first companies to apply to change their contract terms. Petrobras, Shell, BP, ExxonMobil, Petrogal, and Anadarko are also interested.
McDermott Makes Headway With New Projects
The engineering and construction company announced that it had achieved a pair of milestones for BP’s Angelin and Pemex’s Abkatun-A2 platforms, both of which are scheduled for delivery within the next two fiscal quarters.
Hurricane Energy Begins Offshore Installation of Lancaster EPS
Logistical work is taking place in advance of subsea installation activities, which have the large UK North Sea field on track for first oil in 2019.
The Missing Piece in Why Some Complex Projects Fail
Why do 80% of megaprojects in the oil industry fail? A recently published book reaches a counterintuitive conclusion on the leadership traits required to run complex projects successfully.
OGF Quiz: Project Execution Rules of Thumb
Want to do a quick test of your project execution skills? Try this 10-question quiz.
Mubadala Progresses on Pegaga Field After Sanction
The field marks the first development in Malaysia for the Abu Dhabi-based operator, with first gas expected in 2021.
Corinth Secures Subsea 7 Contracts for Aker BP Subsea Tiebacks
The steel pipe manufacturer agrees to deliver outer pipes for pipe-in-pipe flowlines for a pair of recently-announced Aker BP projects in the Norwegian Sea.
McDermott, BHGE Appointed for Joint FEED Studies on Tortue/Ahmeyim Field
The two companies will collaborate to define the technology and equipment scope for an initial four-well development phase for BP’s major West African offshore gas project.
TechnipFMC Completes Kaombo Umbilicals Project
Completion of the umbilicals system marks another step toward startup for the Total-operated ultradeepwater development offshore Angola.
Delayed Project Sanctions in 2017 More Than Double the 2015–16 Count
Delayed final investment decisions during the final quarter of 2017 led to more than double the combined count in 2015 and 2016.
C-Innovation Forms Subsea Projects Group
C-Innovation formed a turnkey subsea projects group based in Edison Chouest Offshore’s Houston office. The vertically integrated network of affiliate companies will provide support for complex projects.
Effective Site-Based Project Portfolio Execution Requires Owner, Contractor Staffing Balance
Independent Project Analysis researchers took a closer look at site project system staffing approaches including full alliance, owner engineering, contractor engineering, and core staffing to determine the effect of staffing characteristics on capital project outcomes.
GATE Energy Joins Ranks of Contract Awardees for Noble’s Leviathan Project
GATE Energy is the most recent contract awardee for Noble Energy’s Leviathan project offshore Israel. It will provide the commissioning of the production platform for the megaproject.
New IOGP Standard Aims To Improve Fabrication Site Safety
A recently published standard addresses the need for a comprehensive set of common requirements for operators and contracting companies at fabrication yards.
BHGE Wins Historic Services Contract for Twinza's Pasca A
Baker Hughes, a GE company, agreed to provide services and equipment for Twinza’s Pasca A field development, Papua New Guinea’s first offshore gas field.
Complexity Decreases Situation Awareness, Increases Human Error
Speaking at an OESI-HFES joint forum, an expert on situation awareness explains the role it plays in preventing human error in oil and gas operations.
Personality Matters for Project Managers
Finding the right person for the right job requires a strong organizational approach, and personality traits should play a role in the evaluation of prospective managers.
Curiosity Saves Lives
If an organization has a culture that implicitly or explicitly rewards short-term productivity, what happens to safety numbers? Up or down? And why is that?
OTC: Collaboration Key to Mad Dog Operation
A panel of executives, project managers, and government regulators involved with the Mad Dog project in the US Gulf of Mexico discuss the importance of collaboration and strategic alignment in project development.
Short-Cycle Projects Key to Surviving the Downturn
Short-cycle projects allow owners and operators to stay financially stable while preserving the production infrastructure and capacities needed to expand quickly when oil prices improve.
On-Site Specialization Optimizes Eagle Ford Acreage
Sanchez Energy’s COO discusses the company’s project management strategies in its Eagle Ford operations.
Macondo Contractor/Operator Gaps Identified by CSB
Various incidents that took place between Transocean, the owner of Deepwater Horizon, and BP, the company that leased the rig for use at Macondo, illustrate the gap between work-as-imagined in the drilling program and work-as-done by the well operations crew.
Why Our Way To Develop Projects Fails To Minimize Capex—Part 2
In the first part of this series, the author explained why the current way of performing FEED does not allow minimization of costs by optimizing the design. In this article, he describes how the current contractual setup of the EPC also fails to minimize the costs of equipment/materials and works.
Simple Rules in a Complex World
In this column, Howard Duhon examines different types of complexity theory.
Technip CEO: Industry Downturn Creates Opportunities for Innovation
Investment in digital technologies may increase project efficiency and reduce costs. However, Technip’s chief executive officer (CEO) said it is equally important to strengthen relationships with companies along the supply chain.
GE CEO: Partnership With BP Among Highlights of Digital Initiatives
The oil and gas sector is an area primed for transformational development of its operations through new digital infrastructures, GE’s CEO said in an address to technological developers and company partners.
Why Our Way To Develop Projects Fails To Minimize Capex—Part 1
In this first of a two-part series, the author describes why the use of lump sum contracts for FEED services contract followed by an EPC contract does not fulfil the requirements to lower oil and gas facilities capex.
Three Key Principles To Solving Operational Flow Issues
When the underlying cause of flow-related issues on offshore projects is unknown, an expert said an investigation of fluid flow behavior based on an understanding of the first principles of flow assurance is necessary.
Bridging the Divide Between Facilities and Subsurface Engineers
SPE Production and Facilities Technical Director Hisham Saadawi shares the discussion from the annual ATCE PFC dinner panel on the topic “Integration Between Facilities and Subsurface Engineers: Crucial in an Era of Low Price Oil.”
Efficiency, Innovation Needed for Sustainability Initiatives
As governments around the world seek to lower energy consumption in the wake of the low oil price environment, the 2016 SPE President said the industry must be proactive in ramping up its sustainability efforts.
Full Life Cycle Approach Improves Water Management Economics
A look at a water management plan for developing shale assets in the Permian Basin encompassing the full life cycle of each field.
ATCE: Addressing Human Factors Can Make Megaprojects Work
Studies show that almost 65% of megaprojects fail to meet the performance goals established when the financial go-ahead was given. Operators can avoid costly pitfalls if they focus on addressing the human-related problems.
Safety Improvements in Unconventionals Require Situational Awareness
Past experiences with problematic situations often drive the decision-making process, and while experience may be helpful, it can also lead to the development of biases that hamper an organization’s ability to manage dynamic environments such as unconventional projects.
Mooring Systems Reduce the Risk of Hurricane Damage to Offshore Drilling Units
How do mooring systems reduce risks of hurricane damage to mobile offshore drilling units?
How to Avoid Project Train Wrecks
Why do we as an industry do so poorly in executing large capital projects? Oil and gas is not alone. The many reasons for failure of megaprojects fall into five broad categories.
Dialogue Takes Aim on Project Costs, Schedules
Panelists at CERAWeek discussed the numerous steps their companies are taking to achieve large-scale permanent, in addition to cyclical, capex reductions on major projects.
Project Complexity Requires Enterprise Thinking
The failure rate for megaprojects is often blamed on complexity. A dinner during ATCE asked whether there is a limit to the degree of complexity we are capable of effectively managing.
Integrated Project Delivery: A Paradigm Shift for Oil and Gas Projects in the UAE and the Middle East Region
The focus of this paper is how efficiencies affect schedule, with the recognition of the secondary effect on project cost. This paper also proposes integrated project delivery to enhance effectiveness.
Standardization vs. Innovation vs. Optimization: Buying or Building Your Dream Car
Given the inherent differences in projects, the author discusses how can standardization be used to avoid creating each one from scratch, and what the benefits of standardizing might be for the industry.
Megaprojects Call for the “Total Project Manager”
Project managers for megaprojects that will take years to complete require special skills to deal with the many challenges. As a result, engineering and construction firms report a shortage of project managers.
Oil Price Downturn Requires a Closer Look at Project Cost
In a recent webinar, the speaker discussed mistakes companies make when prices are falling along with steps to help manage project costs in difficult economic times.
Composite Results of the Project Complexity Study
PFC Technical Director Howard Duhon asked readers about the drivers of project complexity. Here are the results.
A Strategy For Driving Step Change Reductions in Capital Project Cost
Many companies are seeking 20% to 50% reductions in project costs. This level of capital cost reduction requires serious rethinking of the strategy for developing and executing projects.
Share Your Experiences in Project Design: Study To Identify Drivers of Complexity
A few months ago while at lunch with a project team, I heard an engineer lament about how much more difficult it is to execute a project now than in years past.
Radical Change Needed To Improve the Efficiency of E&P Projects
A webinar examined reasons why projects fail to meet profit expectations and how success potential can be enhanced.
Industry Panel Discusses Future of Energy and Construction
A panel of oil and gas industry experts at the Rice Global Engineering and Construction Forum discussed megaprojects and the joint responsibility of owners and contractors to make them better.
A Vendor’s View on Cost Control in Megaprojects
The factors contributing to out-of-control costs and delayed deliveries of projects are many. They range from unrealistic early cost and time estimates and human factors to the effects of geopolitical events.
Analysis of Windows of Opportunity for Weather-Sensitive Operations
This paper presents a statistical analysis approach to weather windows of opportunity, which are defined as the time span over which the stringent, multiparametric conditions required by weather-sensitive marine operations (such as heavy lift, topside float over, and pipeline tie in) are met.
Project Managers Must Use a More Integrated Approach to Improve Performance
Project management professionals need to revise the traditional methods of evaluating the efficiency and progress of major projects, if they want to improve their performance record.
The Role of Psychological Factors in Major Project Cost and Schedule Overruns
We are comfortable with the reality of swift intuitive judgement being the primary decision-making approach of experienced engineers in emergency situations. But as the engineer in the situation has less experience available to him/her, how do psychological factors affect outcomes?
Training of Project Managers Gains Traction
The oil and gas industry's performance in executing megaprojects is dismal in terms of cost overruns and schedule slippage. An operating company has introduced a support group dedicated to project management and developed a program based on online resources, social networking, mentoring and coaching
Group Decision Making: A Powerful Force for Good and Bad
The understanding of decision-making processes is critical in ensuring project success and safety. Project failures—and disasters—can result from the lack of understanding or implementation of sound principles.
Networking Event Yields Ideas for Improving Technical Competence in Projects
Improving the success rates of major projects by ensuring the technical competence of engineers was the subject of a networking event at the Offshore Technology Conference in Houston in May.
Built-In Bias Jeopardizes Project Success
In spite of massive investments in project management best practices and the organizations to implement them, major oil and gas projects continue to experience cost overruns and schedule delays. A root cause that has not been sufficiently explored is the built-in bias toward overconfidence.
Oil and Gas Facilities To Sponsor Project Management Networking Event at OTC
The success rates of E&P megaprojects has dropped over the past decade. What is causing this falloff in performance?
Selected Reading for Facilities Engineers; ATCE Reveals PFC Performance Shortfalls
Recent activities around career planning for facilities engineers led me to a list of "must read" books. The recent ATCE generated two revelations. As an industry, we do a poor job of managing major capital projects, and we do not know how to design separators.
Highlights in Projects, Facilities, and Construction
ATCE included expanded content for project, facilities and construction professionals. Panels discussed our performance in managing megaprojects and our challenges in designing separation equipment. Two technical paper sessions were also included.
Project Management With a Focus on Details
Project management is one way to keep an eye on the big picture. Focusing on the little things too can increase your bottom line. The complexity of modern facilities construction projects necessitates a cradle-to-grave approach to managing projects over long periods of time.
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ITEMS OF NOTE
07 August 2018
20 July 2018
16 February 2018
18 December 2017
28 November 2017