W8_Mohammed_Production Expansion


Problem definition

The Government has directed the company to increase the company oil production rate by additional 40,000BOPD before end of 2013 as per the encourage exploration results. As facility department our role is to decide which facilities needed to cover such expansion. The required facilities and the alternatives are the main challenges which are answered in the below Blog. The blog will highlight in brief the required WBS as per the proposed scope for the proposed options.

Development of the feasible alternatives

The targeted area is divided to two parts with respect of location and reservoir quantities expected, the facilities were proposed as following:

Scenario 1: Build one FPF with capacity covering the production of two areas.

Scenario 2: Build small capacity FPF in each area.

 

Analysis and comparison of the alternatives

Scenario 1: Development of AREA-1

  1. AREA-1 & AREA-2 Field Surface Facilities (FSF) i.e. wells,  OGM and trunk line to Hadida FPF
  2. AREA-1 FPF.
  3. Transit line from AREA-1 to CPF, for LC & HC. Design capacity is 40,000 BOPD. At least one middle pump station shall be considered for future.
  4. Consider 2 phases: short term or early production and long term. The early production is to export qualified 10,000 BOPD of LC from
  5. Power Generation Plant and Distribution for FPF and other FSF Requirements.
  6. Instrumentation, Control Philosophy &Telecommunication
  7. Expansion in the Central Processing Facilities (CPF) to handle the extra fluid

Scenario 2: Development of AREA-1 & Area-2, Will be same as above, in addition to the following:

  1. AREA-2 FPF
  2. Transit Line from AREA-2 to AREA-1
  Development of AREA-1 WBS     Development of AREA-1 & 2 WBS
1.0 Crude Expansion Projects    1.0 Crude Expansion Projects
1.1 Conceptual design 1.1 Conceptual design
1.2 Basic design 1.2 Basic design
1.3 Long Lead Items 1.3 Long Lead Items

1.3.1

Compressors

1.3.1

Compressors

1.3.2

Line Pipe

1.3.2

Line Pipe
1.4 Pre-Award Phase (Tendering and Award) 1.4 Pre-Award Phase (Tendering and Award)

1.4.1

Issuing of ITB

1.4.1

Issuing of ITB

1.4.2

Bid Evaluation

1.4.2

Bid Evaluation

1.4.3

Shareholders & Government Approvals

1.4.3

Shareholders & Government Approvals

1.4.4

Award

1.4.4

Award
1.5 Post Award Phase (EPCC & PCC Projects) 1.5 Post Award Phase (EPCC & PCC Projects)
1.5.1 Central Processing Facility Expansion (PCC) 1.5.1 Central Processing Facility Expansion (PCC)

1.5.1.1

Procurement

1.5.1.1

Procurement

1.5.1.2

Construction

1.5.1.2

Construction

1.5.1.3

Commissioning

1.5.1.3

Commissioning
1.5.2 EPCC for Field Processing Facility of AREA 1 1.5.2 EPCC for Field Processing Facility of AREA-1

1.5.2.1

Engineering

1.5.2.1

Engineering

1.5.2.2

Procurement

1.5.2.2

Procurement

1.5.2.3

Construction

1.5.2.3

Construction

1.5.2.4

Commissioning

1.5.2.4

Commissioning
1.5.3 EPCC for Pump Station (EPCC) 1.5.3 EPCC for Pump Station (EPCC)

1.5.3.1

Engineering

1.5.3.1

Engineering

1.5.3.2

Procurement

1.5.3.2

Procurement

1.5.3.3

Construction

1.5.3.3

Construction

1.5.3.4

Commissioning

1.5.3.4

Commissioning
1.5.4 PCC for Field Surface Facility (AREA-1 & AREA-2) 1.5.4 PCC for Field Surface Facility (AREA-1 & AREA-2)

1.5.4.1

Engineering

1.5.4.1

Engineering

1.5.4.2

Procurement

1.5.4.2

Procurement

1.5.4.3

Construction

1.5.4.3

Construction

1.5.4.4

Commissioning

1.5.4.4

Commissioning
1.5.5 Transit Line from AREA-1 to CPF (170km) 1.5.5 Transit Line from AREA-1 to CPF (170km)

1.5.5.1

Engineering

1.5.5.1

Engineering

1.5.5.2

Procurement

1.5.5.2

Procurement

1.5.5.3

Construction

1.5.5.3

Construction

1.5.5.4

Commissioning

1.5.5.4

Commissioning
    1.5.6 Transit Lines from AREA-1 to 2 (20km)
   

1.5.6.1

Engineering
     

1.5.6.2

Procurement
     

1.5.6.3

Construction
     

1.5.6.4

Commissioning
      1.5.7 EPCC for Field Processing Facility of AREA-2
     

1.5.7.1

Engineering
     

1.5.7.2

Procurement
     

1.5.7.3

Construction
     

1.5.7.4

Commissioning
         

Selection of the preferred alternatives

From the above WBS its shown that the only difference is in the additional FPF of AREA-2 and the additional transit line from AREA- to AREA-1, but actually, there are many differences are not shown i.e. The difference in the capacities which are resulted in the difference in the scope and accordingly the cost estimate which changed from one scenario to another.

Following the same WBS, the estimation were done for both scenarios and we found that it is better to go for scenario two but in two phases, firstly to build only one FPF and later to construct the second one. The conceptual study is on progress and the results of our decision will be clearer after getting the result of the conceptual study.

Performance monitoring and the post evaluation of results

The result of the chosen option will be determined after the conceptual study.

 

Conclusion

The company has taken the risk and concentrates on the second scenario considering it’s the most optimum choice and its added value more than the first scenario.

 

References

* Humphreys & Associates, Project management using Earned Value.

* W14_ADI_WBS Development for conceptual study phase of project

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One response to “W8_Mohammed_Production Expansion

  1. Not bad, Mohammad, considering you have been away for quite some time……

    I really couldn’t follow the logic behind why you reached the decision you did, however? I can understand the comparison between the WBS but without cost or schedule information, I don’t see how the WBS alone formed the basis for your decision?

    I am willing to accept this weeks posting with the request that you take the same problem and this time, structure it using costs and/or time as the rationale (“Selection Criteria”)

    Also, you are VERY weak on your citations….. http://owl.english.purdue.edu/owl/resource/560/01/ You need to spend 30 minutes or so learning how to cite your references. Why? Because that is one of the rubrics that AACE uses in grading your paper. Not just content but FORM as well.

    Keep up the good work but you have a ways to go before you will be ready to pass your AACE exams!!! A lot more work and not a whole lot of time left…

    BR,
    Dr. PDG, Jakarta

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