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The Road to Success presentation - IPLOCA.com

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17 March 2010<br />

1


1. <strong>IPLOCA</strong>’s Novel Construction Initiative<br />

2. In search of <strong>Success</strong>ful Pipeline Projects<br />

3. Resulting Document<br />

4. Future Developments<br />

5. Q & A<br />

17 March 2010<br />

2


1. <strong>IPLOCA</strong>’s Novel Construction Initiative<br />

17 March 2010<br />

3


1. <strong>IPLOCA</strong>’s Novel Construction Initiative<br />

Initial Objectives of the Novel Initiative (2004):<br />

• Improve laying efficiency and standards<br />

of large diameter pipelines.<br />

• Get better, safer and environmentally<br />

sound installation.<br />

17 March 2010<br />

4


1. <strong>IPLOCA</strong>’s Novel Construction Initiative<br />

<strong>The</strong> Novel Initiative Group focused in:<br />

• Technology innovation<br />

» Land Train<br />

» Mechanized Tie Ins<br />

» Other Innovative Ideas<br />

• Target 35% Cost Reduction<br />

17 March 2010<br />

5


1. <strong>IPLOCA</strong>’s Novel Construction Initiative<br />

BASIC QUESTIONS:<br />

‣ Is Technology the key driver for cost reduction?<br />

or,<br />

‣ Is cost reduction primarily governed by a sound<br />

Process?<br />

17 March 2010<br />

6


17 March 2010<br />

7


1. <strong>IPLOCA</strong>’s Novel Construction Initiative<br />

Objectives were revised (2007):<br />

‣ Considering the number of pipeline projects which<br />

incurred schedule and cost overruns a broader<br />

perspective was given <strong>to</strong> the Initiative.<br />

‣ All phases of the Pipeline Projects were reviewed from<br />

Early Developments through Design, Construction and<br />

Commissioning…<br />

17 March 2010<br />

8


1. <strong>IPLOCA</strong>’s Novel Construction Initiative<br />

Six Working Groups integrated by Oil & Gas Companies<br />

and <strong>IPLOCA</strong> members were organized:<br />

» Planning, Design and Control (PDC)<br />

» Contract and Risk Sharing (CRS)<br />

» Earthworks (EW)<br />

» External Pipeline Protection Systems (ECPS)<br />

» Facing, Line-up and Welding (FLUW)<br />

» Laying and Lowering-in (L&L)<br />

17 March 2010<br />

9


2. <strong>The</strong> search of <strong>Success</strong>ful Pipeline Projects<br />

17 March 2010<br />

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2. <strong>The</strong> Elements of <strong>Success</strong>ful Pipeline Projects<br />

(source: Independent Project Analysis Inc.)<br />

17 March 2010<br />

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2. <strong>The</strong> Elements of <strong>Success</strong>ful Pipeline Projects<br />

» Solid Basic Data<br />

» Front End Loading<br />

» Team Integration and Alignment<br />

» Clear Scope of Works<br />

» Management of Risks and Changes<br />

» Value Improving Practices & Technologies<br />

» Discipline and Controls<br />

17 March 2010<br />

12


3. Resulting Document<br />

Volume One:<br />

» <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong>. First Edition.<br />

Volume Two:<br />

» Appendices<br />

17 March 2010<br />

13


3. Volume One. <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

- Preface and Introduction<br />

1 Executive Summary<br />

2 Development Phases of Pipeline Project<br />

3 <strong>The</strong> Baseline of a Contract<br />

4 Analysis and Mitigation of Risks<br />

5 Management of Construction Risks<br />

6 Best Practices<br />

7 New Trends and Innovation<br />

- Bibliography / Acknowledgements<br />

17 March 2010<br />

14


3. Volume One. <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

- Preface and Introduction<br />

1 Executive Summary<br />

2 Development Phases of Pipeline Project<br />

3 <strong>The</strong> Baseline of a Contract<br />

4 Analysis and Mitigation of Risks<br />

5 Management of Construction Risks<br />

6 Best Practices<br />

7 New Trends and Innovation<br />

- Bibliography / Acknowledgements<br />

<strong>The</strong> Joint Approach<br />

- To whom the document is addressed<br />

- <strong>The</strong> objectives of the <strong>Road</strong><br />

- Challenges and Rewards of pipeline projects<br />

- Key Principles <strong>to</strong> avoid disasters<br />

- Presentation of the <strong>Road</strong><br />

17 March 2010<br />

15


3. Volume One. <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

- Preface and Introduction<br />

1 Executive Summary<br />

2 Development Phases of Pipeline Project<br />

3 <strong>The</strong> Baseline of a Contract<br />

4 Analysis and Mitigation of Risks<br />

5 Management of Construction Risks<br />

6 Best Practices<br />

7 New Trends and Innovation<br />

- Bibliography / Acknowledgements<br />

Summarized <strong>presentation</strong> of sections 2 <strong>to</strong> 7<br />

17 March 2010<br />

16


3. Volume One. <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

17 March 2010<br />

- Preface and Introduction<br />

1 Executive Summary<br />

2 Development Phases - FEL 1: Business of Pipeline Planning Project<br />

3 <strong>The</strong> Baseline of a Contract<br />

4 Analysis and Mitigation of Risks<br />

- FEL 2: Facility Planning<br />

- FEL 3: Project Planning<br />

- Project Execution<br />

- Start up and Operations<br />

5 Management of Construction Risks<br />

6 Best Practices<br />

7 New Trends and Innovation<br />

- Bibliography / Acknowledgements<br />

17


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

18


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

19


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

INFLUENCE - EXPENDITURES<br />

Major Influence Rapidly Decreasing Influence Low Influence<br />

FINAL AUTHORISATION<br />

INFLUENCE<br />

FRONT END LOADING<br />

SANCTION<br />

EXPENDITURES<br />

FEL 1<br />

BUSINESS PLANNING<br />

FEL 2<br />

FACILITY PLANNING<br />

FEL 3<br />

PROJECT PLANNING<br />

PROJECT<br />

EXECUTION<br />

START-UP AND<br />

OPERATIONS<br />

20


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

- Preface and Introduction<br />

1 Executive Summary<br />

2 Development Phases of Pipeline Project<br />

3 <strong>The</strong> Baseline of a Contract<br />

4 Analysis and Mitigation of Risks<br />

5 Management of Construction Risks<br />

6 Best Practices<br />

7 New Trends and Innovation<br />

- Bibliography / Acknowledgements<br />

- Scope of Works<br />

- Resourced Programme<br />

- Cost Structure<br />

- Conditions of Contract<br />

21


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

22


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

- Preface and Introduction<br />

1 Executive Summary<br />

2 Development Phases of Pipeline Project<br />

3 <strong>The</strong> Baseline of a Contract<br />

4 Analysis and Mitigation of Risks<br />

5 Management of Construction Risks<br />

6 Best Practices<br />

7 New Trends and Innovation<br />

- Bibliography / Acknowledgements<br />

-Categories of Risk Events<br />

- Detailed Description of Events<br />

- Timing of Risks Consideration<br />

- Risk Owner<br />

- Risk Mitigation by Contrac<strong>to</strong>r<br />

- Excess Mitigation by Client<br />

23


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

Risks Events were classified in 9 categories:<br />

• A (Weather),<br />

• B (Archaeological and Man Made Artefacts),<br />

• C (Geological),<br />

• D (Flora and Fauna),<br />

• E (Social and Security),<br />

• F (Materials),<br />

• G (Engineering),<br />

• H (Permit Conditions) and<br />

• I (ROW Remediation).<br />

24


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

25


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

26


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

- Preface and Introduction<br />

1 Executive Summary<br />

2 Development Phases of Pipeline Project<br />

3 <strong>The</strong> Baseline of a Contract<br />

4 Analysis and Mitigation of Risks<br />

5 Management of Construction Risks<br />

6 Best Practices<br />

7 New Trends and Innovation<br />

- Bibliography / Acknowledgements<br />

- Assessment of impact of Risk Events<br />

on progress and cost<br />

- Possible mitigation measures<br />

27


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

Utilisation of March Charts <strong>to</strong> assess time impact of s<strong>to</strong>ppages..<br />

D100<br />

D80<br />

D60<br />

D40<br />

D20<br />

D0<br />

e 0<br />

d 0<br />

c 0<br />

b 0 + Δ<br />

a 0<br />

C<br />

VC<br />

VC<br />

VC<br />

V<br />

C<br />

CV<br />

V<br />

0+000 10+000 20+000 30+000 40+000 50+000 60+000<br />

Right of Way String & Bend Welding Lower & Lay Backfill Clean‐up<br />

D<br />

a 0 b 0 c 0 d 0 e 0<br />

C<br />

VC<br />

VC<br />

VC<br />

VC<br />

CV<br />

V<br />

28


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

… or of slowdowns. Comparison with s<strong>to</strong>ppages<br />

D80<br />

Activity X<br />

D70<br />

D60<br />

Actual Progress before s<strong>to</strong>page<br />

Case of full s<strong>to</strong>ppage for D days<br />

Progress slow down for D days<br />

D50<br />

D40<br />

D30<br />

D20<br />

D<br />

D 1<br />

D10<br />

D0<br />

0+000 10+000 20+000 30+000 40+000 50+000 60+000<br />

29


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

- Preface and Introduction<br />

1 Executive Summary<br />

2 Development Phases 6.2 of Pipeline Earthworks Project<br />

3 <strong>The</strong> Baseline of a Contract<br />

4 Analysis and Mitigation of Risks<br />

- Environment<br />

5 Management of Construction Risks<br />

6 Best Practices<br />

7 New Trends and Innovation<br />

- Bibliography / Acknowledgements<br />

6.1 Planning, Design & Control<br />

- ROW & Constructability<br />

- Minimum Data for the Five Project Stages<br />

- Typical ROW Cross Sections<br />

- Earthworks Design<br />

- Health & Safety<br />

6.2 External Pipeline Protection System<br />

- Mainline Anti Corrosion Coatings<br />

- Field Joint Anti Corrosion Coatings<br />

- Mechanical Protections<br />

30


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

<strong>The</strong> Earthworks section, for instance,<br />

– describes typical ROW Cross Sections for large<br />

diameter pipelines in 10 different terrain<br />

configurations<br />

– deals with Earthworks Design (Trenches)<br />

– Offers detailed guidelines <strong>to</strong> reduce impact on<br />

Environment and <strong>to</strong> deliver Safe working conditions<br />

31


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

32


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

33


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

34


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

- Preface and Introduction<br />

1 Executive Summary<br />

2 Development Phases of Pipeline Project<br />

3 <strong>The</strong> Baseline of a Contract<br />

4 Analysis and Mitigation of Risks<br />

5 Management of Construction Risks<br />

6 Best Practices<br />

7 New Trends and Innovation<br />

- Bibliography / Acknowledgements<br />

7.1 Near-Real-Time Construction Moni<strong>to</strong>ring Tool<br />

7.2 Pipeline Simulation Tool<br />

7.3 Facing, Lining up & Welding Skid-less<br />

Methodology<br />

7.4 Lower & Lay: “Ideal” Machine Specifications<br />

35


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

36


3. Volume One: <strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong><br />

- Preface and Introduction<br />

1 Executive Summary<br />

2 Development Phases of Pipeline Project<br />

3 <strong>The</strong> Baseline of a Contract<br />

4 Analysis and Mitigation of Risks<br />

5 Management of Construction Risks<br />

6 Best Practices<br />

7 New Trends and Innovation<br />

- Bibliography / Acknowledgements<br />

- Reference Publications<br />

- Contribu<strong>to</strong>rs <strong>to</strong> <strong>The</strong> <strong>Road</strong><br />

37


4. Future Developments:<br />

‣ Continuation of Novel Initiative Mar 23-24 Sessions:<br />

‣ Five new Working Groups have been formed <strong>to</strong>,<br />

‣ expand sections of <strong>The</strong> <strong>Road</strong> as needed<br />

‣ New Developments have been proposed<br />

‣ Objective: <strong>to</strong> issue a second edition by September 2011<br />

‣ Cooperation with EPRG, PRCI & APIA<br />

38


5. Q &A<br />

17 March 2010<br />

39


<strong>The</strong> <strong>Road</strong> <strong>to</strong> <strong>Success</strong> is available in pdf<br />

format on www.iploca.<strong>com</strong><br />

_________<br />

Comments and Suggestions<br />

<strong>to</strong> be addressed <strong>to</strong><br />

17 March 2010<br />

road<strong>to</strong>success@iploca.<strong>com</strong><br />

40

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