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Offering solutions 2 value
FPSO Revamp for a Marginal FieldWA Oil & Gas Facilities Group, August 2012F. Piasentin
Introduction
S2V provides strategic advice to Oil & Gas Clients
Deliver solutions that add value by adopting a holistic approach
Review of projects allows S2V to identify insights and transfer knowledge to our Clients
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Overview
+ FPSOs as a Development Concept► What is an FPSO?► Why an FPSO?
+ FPSO Case Study► Project Overview► Scope of Work► Contracting Strategy
+ Conclusions & Lessons Learned+ Q&A
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What is an FPSO?
Floating Production Storage and Offloading unit+ Processes oil, gas and water+ Equipped with production facilities of varying complexity
+ May be new build or conversion+ May be spread or turret moored
► Turret may be disconnectable
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Key FPSO Components
FPSO Revamp for a Marginal Field
Moorings
Risers
Turret and fluid/control transfer swivel
Process and Utilities
Storage and Marine Utilities
Accommodation, CCR, Helideck
Offloading Facilities
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Why an FPSO?
+ Self‐contained facilities+ Overcomes limitations of a fixed structure+ Operates without export liquids pipeline network + Re‐locatable / Re‐usable+ Relatively insensitive to additional payload+ Can be new built or converted from existing tanker
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FPSO Concept Features
+ Additional marine equipment increases OPEX+ Modular topside facilities+ Turret systems can constrain expansion+ No drilling facilities+ Requires sub‐sea wells and facilities
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FPSO Complexity
FPSO Revamp for a Marginal Field
Regional Challenges (met‐ocean and regulatory)
Facility prod
uctio
n capa
city
200k+ BOPD
Injection/export; water & gas
10k BOPD –no gas
West Africa SE Asia Brazil Australasia GoM North Sea
Purpose built high spec vessel with complex high throughput process equipment
Purpose built high spec vessel with complex high throughput process equipment
Simple low cost / low tech tanker conversions & life extension
Simple low cost / low tech tanker conversions & life extension
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Why are FPSOs so important
+ Technology of choice for deepwater oil developments+ Economic solution for exploitation of marginal fields and spread reservoirs
+ Concept also applicable for gas production (FLNG)+ Fast execution schedule+ Lease possibility – reduced upfront CAPEX
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FPSO market in 2011
South America21%
West Africa25%
North Sea15%
SE Asia23%
Australasia11%
Other5%
Worldwide Distribution of FPSO Vessels
FPSO Revamp for a Marginal Field
Conversions62%
Newbuilds38%
Contractor Owned 57%
Operator Owned 43%
Source: Offshore Mag. – “Worldwide Survey of FPSO Units”, August 2011
Total of 158 producing vessels:
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PROJECT OVERVIEWFPSO Case Study
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FPSO Project Framing
+ Max Oil Production 40,000 BOPD+ Subsea field layout composed of 3 wells+ Location Australasia, ~350 m water depth+ Processing of the incoming fluids: Oil Separation and Stabilisation, Gas Dehydration and Compression
+ Use of the process gas for fuel and gas lift+ Crude storage + Export metering facilities+ Offloading to a tandem moored shuttle tanker
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FPSO Key Specs and Field Layout
+ Conversion of an existing FPSO vessel + Tanker built 1996 (operated on two previous fields)+ 105,000 DWT tanker, 240 m length, double hull+ Internal fixed turret+ Mooring: 3 x 2 wire lines+ Driven anchor piles+ Hull storage 500,000 bbls+ 3+3 Production & Gas Lift Risers+ 1 Control Umbilical & InfieldsFPSO Revamp for a Marginal Field
Well 1 Well 2 Well 3
Risers
Umbilical & Infields
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Project Drivers
+ Schedule Strategic Project+ Marginal field requires managed budget to ensure economics are met
+ Ensure execution and operational safety+ Meet Local Content Requirements
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Execution Timeline
+ Preliminary FDP – May 2009+ FPSO Contract Award – December 2009+ FDP Approval – February 2010+ Start of Construction Activities – May 2010+ End of mooring installation – March 2011+ Sail away – June 2011+ FPSO Mooring Hook‐up – July 2011+ Subsea Hook‐up completion – October 2011+ Start‐up – October 2011FPSO Revamp for a Marginal Field
30months
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SCOPE OF WORKFPSO Case Study
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FPSO Execution Works Overview
EPC Leased Contract including:+ Repair & Life Extension (RLE)+ Conversion works+ Mooring system design, supply and installation+ Hook‐up, Commissioning and Start‐up+ Operations and Maintenance
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RLE Scope
+ Predict overhauling scope and risks+ Input from maintenance database and operations+ Additional Works Instructions (AWI) had to be issued
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0%10%20%30%40%50%60%
RLE Conversion AWI
40%60%
25%Yard M
an‐hou
rs
Original Contract Additional Scope
RLE – Main Activities
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RLE AWI
Main bearing exchangeSwivel de‐stack, seal change out, reinstatement and testSwivel reactivation
Preparation of turret deckhouse
Gas Compressors overhaul Machining of Gas Compressor heads
Valves inspection and overhaul/replacement
Extra Valves overhaul scope: PRVs, ESDV, BDV
Marine and Topsides Boiler Repairs
Pressure vessels inspection/upgrade
Inspection and modification chain stopper
Electric motors overhaul
Coating FPSO TanksSwivel de‐stack
Conversion Scope
TurretSide Impact
Gas Dehy.
Booster Gas Co.
MeOH Skid
Metering Unit
Offloading
ICS Upgrade
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Main Conversion Items
FPSO Revamp for a Marginal Field
Gas Dehy.
Booster Gas Compressor
MeOH Skid
Bearing Exchange
Metering Skid
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Dry-dock Activities
FPSO Revamp for a Marginal Field
Spider Upgrade
Dry‐dock blocks
J‐tubes Installation
Side Impact Protection
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Docking sequence
Mooring Installation
+ Campaign #1 (Mooring Installation) + Campaign #2 (FPSO Hook‐up)+ Reduce risks related to delays
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Main Technical Challenges
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Challenge Action
Additional RLE scope First yard month to complete RLE surveys Additional scope to external Contractors
Long Lead Items Procurement Maximized equipment modularization Aggressive expediting campaign
Migration of the new ICS system Full ICS scope contracted to a specialistBroad pre‐testing campaign
Gas Compressors refurbishment and commissioning
Early involvement of Vendor Overhauling works at Vendor’s HQ
Swivel leakage Split scope Swivel de‐stacked involving Vendor
Dry‐dock height Early Yard involvement 5.2 m blocks
HSE and Quality Assurance
Joint effort between Operator and Contractor + Systematic HSE and QA Audits+ HAZIDs and HAZOPs held throughout the execution involving all stakeholders
+ Monitor compliance to HSE requirements in yard+ SIMOPS workshop held prior to installation phase+ Never put schedule requirements ahead of safetyWhat was achieved+ 1 million man hours over 14 months with zero LTIs
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CONTRACTING STRATEGYFPSO Case Study
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+ Project Management based on Package breakdown+ Each Package related to a specific contract / budget+ Packages with independent teams+ Criticality of Interface management+ Define clear scopes and battery limitsWhy this approach?+ Select best Contractors/Prices+ More control to the Operator+ Different execution phasing
Packaged Project Approach
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Fast-Track Contracting Structure
FPSO Revamp for a Marginal Field
Project Management
Turret & Mooring
Hull & Topsides
Flowlines
Subsea Equipment
FPSO Installation
Concep
t
Definition
Detail D
esign
Procurem
ent
Constructio
n
Hoo
k‐up
Comm.
Start‐up
Ope
ratio
ns
Operator
Operator
FPSO Contractor
Subsea Contractor
Flowlines Contractor
FPSO Contractor
Operator
Operator
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ITT/Tender Lump Sum + LDs upon Notice MechanismFixed Day Rate + Reimbursable
Services
Operator’s FPSO Package Team
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FPSO Package Team
Develop contractual technical specs
Tender review
Contract Management
Detail Design review
Construction supervision
Logistics expediting
Monitor Contractor’s performance
Assist interfaces with other Packages & Contractors
Offshore support
Handover to operations
LESSONS LEARNEDConclusions
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Lessons Learned - Negatives
+ Unexpected additional RLE works Hard to monitor on schedule (fragmented scope + knock‐on effects)
+ Yard contract held by Contractor Operator had no contractual leverage to increase resources
+ Piping Fabrication / Construction performance+ Poor yard quality required increased Contractor supervision
+ Management of Reservoir / Operations input Source of the main design variations
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Lessons Learned - Positives
+ Conversion implies balance between scope compliance and schedule Flexibility
+ Technical documentation finalized during tender phase (+ tailoring) Avoid Variations and Delays
+ Apply no change policy Freeze Design+ Close review of the Contractor No Turnkey / over reliance on EPC Contractor
+ Contract structure with Operating fees energises Contractor’s performance
+ Strong interaction with Governmental AuthorityFPSO Revamp for a Marginal Field 32
Lessons Learned - Positives
+ Clear role division between Operator and Contractor+ Single Contract for the FPSO+ Interface Management based on direct information exchange between Contractors
+ Maximize facilities modularization+ ICS intense pre‐testing minimized integration issues+ Outsource additional scope not to overload yard+ Onshore commissioning on FPSO Contractor
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QUESTIONS?Any
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