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Kebabangan Northern Hub Development A Candidate For Integrated Operations Ahmad Zailan Zakaria KPOC Production Lead

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Page 1: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Kebabangan Northern Hub Development

A Candidate For Integrated Operations

Ahmad Zailan Zakaria

KPOC Production Lead

Page 2: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Kebabangan Petroleum Operating Company

•KPOC Joint Venture between

•PETRONAS Carigali, 40%

•Shell, 30%

•ConocoPhillips, 30%

– Production Sharing Contract Duration – 25 yrs from 1st Commercial Production (Gas)

– KBB as anchor field for integrated oil & gas Northern Hub development

– KBB designed for 825 mmscf/d gas and 80 kbpd of oil evacuation to SOGT.

KPOC is the OPERATOR of the Kebabangan Cluster Development and KBB Northern Hub

•KPOC Joint Venture between

•PETRONAS Carigali, 40%

•Shell, 30%

•ConocoPhillips, 30%

– Production Sharing Contract Duration – 25 yrs from 1st Commercial Production (Gas)

– KBB as anchor field for integrated oil & gas Northern Hub development

– KBB designed for 825 mmscf/d gas and 80 kbpd of oil evacuation to SOGT.

KPOC is the OPERATOR of the Kebabangan Cluster Development and KBB Northern Hub

Page 3: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

KBB Northern Hub – Project Overview

Gas Sales Domestic

• up to 250 MMsc/d

Sabah Gas PSC Outline

KKH

1000

m

2000m

SABAH

"

"

"

KBB

S. Furious

Erb West

Barton

Malikai

BRUNEI

St Joseph

Tembungo

SW Emerald

Block G

Block J

Samarang

LABUAN

Kikeh

0 50Km

SOGT Kimanis

Kinabalu

Gumusut/Kakap

Ubah

Belud S.

200m

Kinarut

Pisagan

KMEU

KME

KMEUC

Raton

Petai

SSG Pipeline to PETRONAS MLNG at Bintulu

Domestic Gas

Northern Hub ADP

Leban

Gas Sales MLNG Complex

•500 MMsc/d (base) +

unsold Domestic volume

Kota Kinabalu

Page 4: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Kebabangan Layout

Page 5: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Single concept selected

Single integrated platform with float over topsides installation

~12,300 MT steel jacket in 140M water depth

~18,000 MT (dry) integrated deck

825 MMSCFD 2 phase gas export with max 20 kbpdcondensate

80kbpd Oil production with 45MMSCFD associated gas

Tender Assist pre and post start-up Drilling (TAD) for 12 wells

Manned Platform

Support from regional KPOC Operations Office

Conceptual engineering @ Aker started in Aug 08 and completed atend Dec 08

FEED started January 2009

Detail design started February 2010

Strong Operations presence within the project team

Integrated Operations is considered in the Operations Philosophy

KBB Hub Engineering Update

KBB Platform look-alike

Page 6: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

KBB – Why Integrated Operations?

IO Foundations:

� Accessible, accurate, timely data

� Practical, integrated work processes, information management, and technologies

� Engagement of stakeholders and subject matter experts regardless of location

� Performance visibility and continuous improvement

Integrated Operations is a systematic approach to improve operational performance through the effective use of technology and collaboration across disciplines and geographies.

Decision Support Center

Operator in Field Business Centers

Engineer at Desk

“The right information to the right people at the right time to make the right decisions”

Page 7: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Benefits of Becoming an Integrated Operation

Balanced Approach

Integration of Field with Office

Collaboration across Disciplines

If done well, Integrated Operations will:

� Reduce Decision Cycle Time

� Improve Personal Productivity

� Improve Organizational Effectiveness

� Improve Decision Quality

� Reduce Variability in Decision Outcomes

� Support New Operations staff offshore

� Support Partner Engagement in Hub Concept

Which leads to:

� Improved safety performance

� Improved environmental stewardship

� Increased production

� Improved Operating Efficiencies

� Improved Partner and user alignment

� Capital efficiency

INTEGRATEDOPERATIONS

People

TechnologyProcess

INTEGRATEDOPERATIONS

People

TechnologyProcess

Page 8: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

IO Challenges . . .”Getting all the Ducks in a Row”

People:• Initiative Overload

• Technical Skill Level Lacking

• Changing Behavior - Change Management Lacking

• Short-Term "Safety and Production" Focus

• Resistance “we don’t do it that way here”

Process:• Competing Processes

• Narrow view of Automation and Historian capability

• No Clear Vision or Strategy

• Inability to Turn Data into Information into Action

Technology:• Limited Bandwidth / Communication Pathways

• Multiple Systems requiring Integration & Support

• “Build-As-You-Go” Infrastructure – No Master Plan

Page 9: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Systematic Approach – IO Framework

Philosophy & Strategy

Philosophy & Strategy

Business ProcessManagement

Business ProcessManagement

TechnologyIntegration Strategy

TechnologyIntegration Strategy

Plan

Real TimeOptimization

Real TimeOptimization

OrganizationalChange Management

OrganizationalChange Management

Data to InformationData to Information

CollaborativeWork Practices

CollaborativeWork Practices

ProcessIntegration

ProcessIntegration

Knowledge SharingKnowledge Sharing

TechnologyApplication

TechnologyApplication

Do Assess Adjust

Criticality & RiskCriticality & Risk

AutomationAutomation

CommunicationsInfrastructure

CommunicationsInfrastructure

Operational DataManagement

Operational DataManagement

Bu

sin

es

sIn

teg

rati

on

Te

ch

no

log

yIn

teg

rati

on

Philosophy & Strategy

Philosophy & Strategy

Business ProcessManagement

Business ProcessManagement

TechnologyIntegration Strategy

TechnologyIntegration Strategy

Plan

Real TimeOptimization

Real TimeOptimization

OrganizationalChange Management

OrganizationalChange Management

Data to InformationData to Information

CollaborativeWork Practices

CollaborativeWork Practices

ProcessIntegration

ProcessIntegration

Knowledge SharingKnowledge Sharing

TechnologyApplication

TechnologyApplication

Do Assess Adjust

Criticality & RiskCriticality & Risk

AutomationAutomation

CommunicationsInfrastructure

CommunicationsInfrastructure

Operational DataManagement

Operational DataManagement

Bu

sin

es

sIn

teg

rati

on

Te

ch

no

log

yIn

teg

rati

on

KBB is Here

Page 10: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Path forward

• Hopefully gain a significant amount of supportive information from this conference

• Continue to develop Integrated Operations “Master Plan”for KBB Northern Hub

• Evaluate and develop systems and processes in

alignment with the Integrated Operations Master Plan

Page 11: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Where are we now?

Page 12: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Telecommunication Philosophy� Inter-platform telecommunications

• Main Backbone in Microwave 20

Mbps for KBB, Malikai Backup,

and Future Tie-in.

• Backup is VSAT.

• Connectivity to KPOC Operation

Office ( KK and KL) and SOGT.

• Other inter-site connectivity is:

- Labuan ASB (LAN, Phone,

Fax)

- KK Airport (Phone, Fax)

� Intra-platform telecommunications

• PAGA, VHF-FM/AM, HF-SSB,

NDB, AIS

• Satellite Phone, TEMPSC

Comms

• Private Deck Radio, PABX, LAN

• Weather System, Entertainment

KBB**

Erb WestBukit X (Near Kota Belud)

KPOC KK

KPOC KL

SOGT- Control Room

Leas

ed L

ine

PE

TR

ON

ET

Leased Line

Malikai*Backbone -20Mbps-

(*) Allocation only. Require KPOC Management Approval

(**) KBB Facility is inclusive of Future KME/KMEUC Subsea Tieback

Page 13: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Where we are in IOWhere we are in IO

• Integrated Operations is a method of working – not technology

• IO is not a huge incremental cost – Generally we have already brought the end devices – just need to link them together.

• KPOC / KBB has the technology – need to work on the business processes

• IT is an enabler – not the solution

• Estimate the bandwidth required then double it – and double it again (digital microwave can get up to 800mb/s – we currently plan to install only 24mb/s!)

• Operations Office in KK needs to be designed around IO – not the other way round

• People shouldn’t think they are “going to the collaboration room” the whole design of the office should consider collaborative working and work group interactions.

• HUC and offshore commissioning can be helped significantly by IO (Establish KK Office Earlier?)

• Don’t use “bleeding edge technology” use proven off the shelf equipment

• Use High Definition cameras and screens – consider LED screens for low heat radiation

• USE SAP for everything – even those things we are uncomfortable with

• Embed Emergency Response in the IO thinking / office design – no dedicated ER Room

• Need to get the IO Lead onboard ASAP (needs to have considerable experience in setting up IO)

• IT Need to have a person dedicated to IO

• Use the computer age people to drive IO implementation

• IO is dynamic – don’t lock down a model – plan for change

Page 14: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Questions?

Page 15: Kebabangan Northern Hub Development A Candidate For Integrated … · 2010-11-25 · Kebabangan Petroleum Operating Company •KPOC Joint Venture between •PETRONAS Carigali, 40%

Layered Approach

$$

$$

$$

$$

$

$C

ap

ita

l C

os

t

Va

lue

Ca

ptu

re

Process

Planning & Scheduling

Asset & Operating Integrity

Maintenance & Reliability

Technology Applications/Analytics

Data & Infrastructure Management

Measurement and Control Devices

Modeling & Optimization Tools

Reservoir WellsFacilities &

Gathering Systems

Telemetry & Communications

Data Storage and Management

Business Intelligence

Workflow Automation

Visualization Tools

Data Standards and Integration

People

Collaboration

Decision Support Centers/Environments

Workforce Transformation

Operations Excellence Action Systems

Data Acquisition and Control

Production Surveillance & Optimization

Governance & Org

Design

Learning Mgmt. &

Knowledge Sharing

Workforce

SourcingJob Design Change

Management