CHAPTER 1 INTRODUCTION 1.

1 PREAMBLE

The growing concern amongst industrialists that graduates of higher institutions lack adequate practical background preparatory to employment in industries led to the formation of Students Industrial Work Experience Scheme (SIWES) in 1993/1994. It is seen as an opportunity created for 300/400 level students of the university to undergo Industrial Training (IT) as part of the course requirements outlined by the Nigerian Universities Commission (NUC) in partial fulfillment for the award of degrees. Amongst other things, the Work Experience/Training bridges the gap between theoretical knowledge acquired in the university and the actual industry thereby ensuring the students acquire industrial skills and experience in their approved course of study. It exposes students to work methods and techniques in handling equipment and machinery not available in their institutions. The scheme also affords the students the opportunity to carry out extensive research in preparation for their year project. 1.2 AIMS AND OBJECTIVES

The objectives of this report are listed below: To give an overview of how the Nigeria Liquefied Natural Gas Plant operates To identify the differences between Natural gas and Liquefied natural gas To identify the Liquefied natural gas value chain and the uses of natural gas To give details of my Industrial training experience in the project section of Nigeria Liquefied Natural Gas company To explain the life of a project using the Nigeria Liquefied Natural Gas Project Management roadmap To identify problems encountered by SIWES Trainees To identify the relevance of the SIWES program To recommend improvement ideas to SIWES managers To give intending trainees beneficial advice

1.3

SCOPE OF WORK

The scope of this report includes my activities as a trainee in the Nigeria Liquefied Natural Gas company for a period of six months - June to December 2011. It gives a background of the company, its history, organizational structure and cardinal rules. It also identifies the various departments and sections in the Production Division and their activities. The different processes in the liquefaction of natural gas are outlined from feedstock through the trains to the storage tanks and ships specially designed to transport LNG to customers around the globe. Also, the different teams in the Project section of the Engineering Department and their functions are outlined and using the NLNG Project Management Procedure - stages in the life of a project are chronicled. Common problems encountered by Trainees and proffered solutions are included in this report. Future trainees are also advised on what - and what not - to do, before and during SIWES training. 1.4 METHODOLOGY

In writing this report, proper research was made to ensure the desired output was realized. Some of the steps taken are outlined below: 1. The standard Faculty of Engineering report writing format was followed 2. Information on the history of NLNG was gotten from the companys internal network (Intranet). 3. Site (Plant) visits were made and the Liquefaction process was viewed first hand. 4. The Project management Roadmap used by NLNG was studied and applied in compiling this report. 5. The internet was consulted to further explain some of the processes/materials/equipments required to run a Liquefaction plant. 1.5 NIGERIA LIQUEFIED NATURAL GAS

NLNG is an acronym for Nigeria Liquefied Natural Gas Ltd. It is a company owned by four partners, namely: the Federal Government of Nigeria through NNPC; Shell, Elf and Agip in descending order of share holding. It purchases gas from gas producers; in this particular case, from gas plants located at Soku, Obite, and Obiafu. The gas producers and plant owners at the locations are Shell, Elf, and Agip 2

respectively. The gas is then passed through pipelines to the plant for liquefaction, before shipment abroad to customers. The NLNG plant is located on Bonny Island, Rivers State, Nigeria. It consists of six liquefaction units (trains) producing 22 million metric 3ones per annum (mmtpa). In addition to the gas plant there is a gas transmission system and a Residential area where staff are accommodated. NLNG is not actually a gas producer, but a gas purchaser. Not being a construction, processing or production company, it operates a very simple process of gas passage through already-buried pipelines, liquefaction through an already-built plant and transportation to customers in Europe, America and Asia through already-acquired ships provided by Bonny Gas Transport, a subsidiary of NLNG. 1.6 BRIEF HISTORY OF NLNG

In November 1995, a Final Investment Decision (FID) was signed by the Shareholders to build an LNG plant in Finima, Bonny Island, Rivers State. The Base project consisting of two trains, the Gas Transmission system and the Residential Area was awarded to TSKJ, a consortium of engineering firms. Construction at the Plant site commenced in February 1996 and by August 1999, Train 2 was completed. Production of LNG commenced on September 15, 1999, before Train 1, the second train of the Base Project came on stream on February 27, 2000. Train 3, 4 and 5 became operational in November 2002, November 2005, and February 2006 respectively, while train 6 was completed and became operational in December 2007. The facility, built on 2.27sq.km of land consists of the following: Six LNG processing units (Trains) Diversified gas supply and six main dedicated gas transmission pipelines with four onshore pipelines Four LNG storage tanks with a capacity of 84,200 cubic meters each A common fractionation plant to process LPG Three Condensate storage tanks with a capacity of 36,000 cubic meters each Four 65,000 cubic meter LPG refrigerated tanks for Propane and Butane Ten Generators with a total capacity of 400mw Two LNG export jetties; one of which also exports LPG 3

24 LNG ships dedicated to NLNG service Materials off-loading jetty A residential area for Staff and their families.

Plans for building train 7 that will lift the total production capacity to 30 mmtpa of LNG is currently on the advanced stage. 1.7 ORGANIZATIONAL STRUCTURE

NLNG is a public company owned by its shareholders, NNPC 49.0%, Shell Gas B.V. 25.6%, CLEAG [ELF] 15.0% and AGIP International BV. 10.4%. The organization structure consists of a single-tier Board of Directors (the Board), the Chief Executive, the Divisions and Departments. THE BOARD OF DIRECTORS The purpose of the Board is to seek to ensure the companys prosperity by collectively directing its affairs and meeting the legitimate interests of its shareholders and relevant stakeholders. CHIEF EXECUTIVE OFFICER The Chief Executive Officer is appointed by the Board as a whole to implement Board resolutions, to manage the company and the business enterprise connected with it and to supervise and hold accountable all management levels in NLNG. SENIOR MANAGEMENT TEAM (SMT) The Managing Director chairs the SMT which comprises the MD (Managing director), DD (Deputy Managing Director); PD (GM, Production); FN (GM, Finance), HR (GM, Human Resources), ER (GM, External relations), CM (GM, Commercial Division), LG (GM, Legal Division), NPP (GM, Nigerian Projects), CPL (GM, Corporate planning), and ECO (GM, Expansion coordination). It is the main decision-making and coordinating organ for day-to-day operation of the Company. EXTENDED MANAGEMENT TEAM (EMT) The EMT comprises all Managers within the organization (including the General Managers) with the MD as Chairman and DD as Alternate Chairman. The EMT deliberates and makes recommendations on matters requiring broad-based consideration as may be referred by the SMT.

EXTENDED MANAGEMENT TEAM

Managing Director MD C. Ibeneche

Deputy Managing Director DD B. Koko

General Manager Finance FN V. Eromosele

General Manager Production PD C. Isilebo

Expansion Cordination ECO N. Opene (Acting)

General Manager External Relations S Allwell-Brown ER Government Relations ERG K. Eresia-Eke

General Manager Human Resources HR M M Idi

General Manager Commercial CM P Olinma

General Manager Shipping SD T. Okesanjo

Information Management & Telecommunications IMT A.Okunade Business & Logistics Services BLS S A Sallem

Finance Control FNC P. Asasa

Operations PO T. Oginni

Corporate Secretariat & Legal Dept LG E Unigbe

Employee Policies & Relations HRE G. Ita-Ikpeme Manpower Plng & Resourcing HRR A Akitoye Succession Planning & Career Progression HRD A Acidah Learning HRL A Atanda

Marketing & Development CMM U. Ajiya Sales Administration CMA E. Fatai-Williams

Shipping Ass. &Compliance SDA G. Nicholls

Treasury FNT A. Ibrahim

Engineering PE S. Lundie

Corporate Planning LGS M. Buba CPL R. Omeire (Acting)

Assistant Legal Secretary

Community Relations & Development ERC A. Odeh Corporate Communications & Public Affairs ERP I. Mbanefo

Commercial Shipping SDC O. Maliki

Loans & Risk Admin FNL L. Akinluyi

Technical Services PT J. Alagoa

GRC Governance and Risk Compliance R. Omeire

Ship Mgt Services SDM K. Dryburgh (Acting)

Finance, Tax & Systems FNS A Ume

Contracts Proc. & Material Management CPM E. Ohiwerei Corporate Security Services CSS C. Okon Health, Safety, Env. & Quality HSEQ C. Epelle Community Relations & Development ERC A Odeh Bonny HR Services HRP A. Nwokedi

Corporate Audit & Assurance CAA D Eguare Health, Safety, Env. & Qua HSEQ C. Epelle (Acting)

Terminal Shipping Operations SDT R. O seni

Bonny FN Services FNP S. Ahmed

MD/CEO NSML NS G. Akata

Corporate Medical Services CMO Dr. D. Mwanmut

MD/CEO NSML NS G. Akata

HR & Services (Bonny) HRP A Nwokedi

Bonny FN Services FNP C. Igbokwe

Fig 1.1: The EMT Organogram Fig 1.1: The EMT Organogram

Chief Medical Officer CMO Dr. D. Mwanmut

THE PRODUCTION DIVISION

General Manager Production PD C. Isilebo

Operations Manager PO T. Oginni

Engineering Manager PE S. Lundie

Technical Services Manager PT J. Alagoa

Integrated Scheduling & Planning ISP A. Esener

PH Base Manager PHB J. Dorgu

Corporate Security Services Mgr CSS C. Okon

Health, Safety, Environment & Quality Mgr HSEQ C. Epelle

Bonny HR Services Manager HRP A. Nwokedi

Contracting & Procurement Manager CPM E. Ohiwerei

Corporate Med. Services Manager CMO Dr. D. Mwanmut

Community Relations Manager ERC A. Odeh

Bonny Finance Services Mgr FNP 1.4 PRODUCTION S. Ahmed

DIVISION

Fig 1.2: The PD Organogram

1.8

PRODUCTION DIVISION: ACTIVITIES

The Production Division (PD) is responsible for all activities required to transport and process the natural gas feedstock into LNG, LPG and Condensates and have ships lifting the products at Bonny Island. The PD manages and operates the production facilities and Residential Area on Bonny Island, as well as the Gas Transmission System which transports gas to the plant site. 1.8.1 ORGANIZATIONAL STRUCTURE Related activities are managed in departments and the department manager is therefore the natural custodian of departmental procedures. The main business activities and the custodians of the business processes are: Produce, store and load LNG, LPG and Condensates; custodian of the related business processes is the Operations Manager (PO) Maintain the facilities; custodian of the related business processes is the Engineering Manager (PE) The support activities are subdivided into the following areas: Technological support; custodian of the procedures being the Technical Services Manager ( PT) HR, logistics, building infrastructure and residential facility processes; custodian being the HRP Manager who has dual reporting lines to GM- PD and GM- HR Medical Services to staff, dependants and in house contractors; custodian of procedures being the Chief Medical Officer (CMO). Relations with Bonny and GTS communities; custodian of which is the Community Relations Manager (ERC). ERC has dual reporting lines to GM- PD and GM- ER Integrated Scheduling & Planning of gas supply, plant and ships; the custodian being ISP. ISP also operates the systems to receive gas Contracting, Procurement, Warehousing of materials custodian being CPM manager (CPM).

Health Safety Environment and Quality Management. Custodian for the Health, Safety Environment and Quality Management of the company (HSEQ). HSEQ also provides corporate oversight on HSE matters

Corporate Security; custodian of all security arrangement for NLNG including liaison with government security agencies. Custodian is the Corporate Security Manager (CSS). CSS has corporate oversight on security matters

Finance for production; Custodian of financial and budgetary matters for the Production Division, the FNP has dual reporting lines to GM- PD and GM- FN.

1.9

NLNG Cardinal Rules

In other to create a safe working environment, NLNG created a set of rules that must be adhered to at all times. Together they are called the Cardinal Rules. They are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. When unfit, dont work so as not to put yourself and others at risk. Never work without Personal Protective Equipment (PPE) when required. Never enter restricted areas or work without valid work permit or proper Never fight or assault anyone. Adhere to company policy on drugs and alcohol. Never drive or be driven without a seatbelt. There will be no tolerance for fraud, theft or malicious damage to company property. Object that can ignite fire e.g. cell phones and lighters are prohibited in plant vicinity and Intervene in unsafe actions and report all incidents including near misses. authorization. Be sure its absolutely safe before you engage; whether plant, machinery or electricity.

smoking must be restricted to designated areas. Breaking any of these rules could lead to outright dismissal; as youre not the only one at risk. Your colleagues and the Plant as a whole can be endangered as a result of your negligence.

CHAPTER 2 LITERATURE REVIEW 2.1 WHAT IS NATURAL GAS AND LNG?

Natural gas - a fossil fuel like coal and crude oil - is a combustible mixture of hydrocarbon gases. It comes from reservoirs beneath the earths surface. Sometimes it occurs naturally and is produced by itself (non associated gas) and sometimes it comes to the surface with crude oil (associated gas). It is primarily made up of methane, but it can also include ethane, propane, butane, carbon and nitrogen (Shukri T., 2004) Liquefied natural gas (LNG) is natural gas that has passed through the liquefaction process. Nonmethane components are removed and the gas is cooled to the point that it condenses to a liquid. This occurs at a temperature of approximately -256F (-161C) at atmospheric pressure (Shukri T., 2004) Below is a pie-chart showing the composition of Natural gas as compared with LNG

Fig 2.1: Composition of Natural Gas versus LNG 2.2 BRIEF HISTORY OF LNG

Natural gas liquefaction dates back to the 19th century when British chemist and physicist Michael Faraday experimented with liquefying different types of gases, including natural gas. German engineer Karl Von Linde built the first practical compressor refrigeration machine in Munich in 1873. The first LNG plant was built in West Virginia in 1912 and began operation in 1917. The first commercial liquefaction plant was built in Cleveland, Ohio, in 1941. The LNG was stored in tanks at atmospheric pressure. The liquefaction of natural gas raised the possibility of its transportation to distant destinations. In January 1959, the world's first LNG tanker, The Methane Pioneer, a 9

converted World War II liberty freighter containing five, 7,000 barrel equivalent aluminum prismatic tanks with balsa wood supports and insulation of plywood and urethane, carried an LNG cargo from Lake Charles, Louisiana to Canvey Island, United Kingdom. This event demonstrated that large quantities of liquefied natural gas could be transported safely across the ocean. Over the next 14 months, seven additional cargoes were delivered with only minor problems. Following the successful performance of The Methane Pioneer, the British Gas Council proceeded with plans to implement a commercial project to import LNG from Venezuela to Canvey Island. However, before the commercial agreements could be finalized, large quantities of natural gas were discovered in Libya and in the gigantic Hassi R' Mel field in Algeria, which are only half the distance to England as Venezuela. With the start-up of the 260 million cubic feet per day Camel plant in 1964, the United Kingdom became the world's first LNG importer and Algeria the first LNG exporter. Algeria has since become a major world supplier of natural gas as LNG. After the concept was shown to work in the United Kingdom, additional liquefaction plants and import terminals were constructed in both the Atlantic and Pacific regions. The first exports of LNG from the U.S. to Asia occurred in 1969 when Alaskan LNG was sent to Japan. The LNG market in both Europe and Asia continued to grow rapidly from that point on. The figure below shows worldwide growth in LNG since 1970.

Fig 2.2: Growth in LNG Demand A number of approved, planned, and proposed Liquefied Natural Gas Plants are under development (British Gas, 2012). 10

2.3

THE LNG VALUE CHAIN:

This is the supply chain of LNG. It consists of five interdependent stages namely; Gas production, Liquefaction, Shipping, Re-gasification, and Pipeline delivery. The term value is used because at each stage, investments are made to convert natural gas from an unusable state to a very important energy source (Hubbard B., 2006). Below is a pictorial view of the LNG value chain.

Fig 2.3: The LNG Value Chain 2.3.1 GAS PRODUCTION

This ranges from the prospect generation (development of ideas about where natural gas resources might occur), to field development and drilling. 2.3.2 LIQUEFACTION When natural gas- which is predominantly methane- enters the LNG facility, it is pretreated to produce a feedstock suitable for liquefaction. This pretreatment process includes the removal of water, acid gases (hydrogen sulfide & carbon dioxide), nitrogen, helium, and mercury. When all these impurities have been removed, the gas is further conditioned to extract heavier hydrocarbons- Liquefied Petroleum Gas (LPG) and Natural Gas Liquids (NGL). LNG is a cryogenic (low temperature of <-100F) liquid, so the treated gas is subjected to multiple cooling stages by indirect heat exchange with one or more refrigerants. This reduces its temperature until complete liquefaction occurs at -256F. The pressurized LNG which has an average density of about 450kg/m3 is further expanded and sub-cooled in one or more stages to facilitate storage at a pressure of 250kPa.

11

The liquefaction process reduces the volume of LNG by a factor of 600, which means that at -256F, it occupies about 0.16% of the space required for the same amount of gas at room temperature- 73F, and atmospheric pressure- 101kPa (Shukri T., 2004). 2.3.3 SHIPPING LNG tankers are double-hulled ships specially designed to convey LNG to customers. A typical cargo-loading cycle starts with inerting the gas tanks by burning diesel in air to replace oxygen with CO2. This is done because oxygen supports combustion. LNG can still not be load directly into the tank though - the CO2 which freezes at -108F will damage the pumps. Liquid LNG is brought into the vessel and taken along the spray line to the main vaporizer, which boils off the liquid into gas. This is then warmed up to roughly 68F in the gas heaters and blown into the tanks to displace the "inert gas". This continues until all the CO2 is removed from the tanks. The next stage is cool-down. LNG is sprayed into the tanks which vaporizes and starts to cool the tank. When the temperature reduces to about -220F bulk loading can begin. After delivering the goods, some LNG (the heel) is left in tanks for return journey as fuel and/or to keep tanks cold for re-loading (Hubbard B., 2006). 2.3.4 REGASIFICATION TERMINAL On arrival at the receiving terminal LNG is pumped at atmospheric pressure into double-walled storage tanks, just like the ones used in the liquefaction plant. To return it to a gaseous state it is pumped at higher pressure through the various re-gasification facilities components. The pressure of the re-gasified natural gas is then regulated for end usage (Rosetta, M. J., 2005) 2.3.5 PIPELINE DELIVERY Gas flowing from higher to lower pressure is the fundamental principle of the natural gas delivery system. From the re-gasification facility, the gas is transferred to a "gate station." At the gatestation, the pressure in the line is reduced from transmission levels (200psi to 1500psi) to distribution levels (0.25psi to 3psi); then an odorant- mercapten- is added, so that consumers can smell even small quantities of gas this helps in leak detection. From the gate station, natural gas moves into distribution lines that range from 2 inches to more than 24 inches in diameter. Within each distribution system, there are sections that operate at different pressures, with regulators controlling the pressure. Generally speaking, the closer natural gas gets to a customer, the smaller the pipe diameter is and the lower the pressure is. The end-user includes homes, factories, power generation plants, etc. 12

2.4

THE NIGERIA LNG PROCESS

The Nigeria LNG is not (directly) involved in the exploration/production, re-gasification and delivery of natural gas. Rather, the company liquefies natural gas and transports it alongside its by-products (LPG and Condensate) to its customers. The gas is supplied by Shell, Elf, and Agip, from their onshore gas fields of Soku, Obiafu and Obite, while the re-gasification and pipeline delivery is done by the buyers in their respective locations (NLNG, 2007). The diagram below describes the chain of events leading to the production of LNG, LPG and Condensate.

Fig 2.4: LNG Production Chain

13

Below is a Schematic diagram of the NLNG Plant complex

Fig 2.5: Schematic Layout of the NLNG Facility

14

2.5

USES OF LNG

Natural gas has many diverse uses. Of all fossil fuels it burns the cleanest - as a result of its chemical simplicity. During 2006, LNG represented 7.4% of the total worldwide natural gas consumption (British Petroleum, 2007). The percentage proportion of its use in different sectors can be seen in the Pie Chart below.
DISTRIBUTION OF NATURAL GAS USAGE Residential 22%

Industry 33%

Commerce 13%

Other 7%

E lectricity 25%

Fig 2.5: Proportion of Natural Gas Usage

Industry Natural gas has a number of specific uses in the manufacturing industry. In Petrochemicals, methanol, produced from natural gas, can be converted into ethylene and propylene. Ethylene and propylene can also be produced directly from ethane, butane, and propane separated from other natural gas compounds. In a petro-chemical plant, ethylene and propylene are converted into materials like polyethylene, PVC plastics, resins, paints, automotive components, packaging materials, textile fibers, etc. Through the Haber process, natural gas provides both the energy and feedstock for the production of ammonia which is used to produce about 90% of the worlds synthetic fertilizer. Natural gas absorption systems are used extensively in industries to heat and cool water in an efficient, economical, and environmentally friendly way.

15

In the plastics, pharmaceutical, candy, and recycling industries, moisture filled air can damage end products during its manufacture. To prevent this, natural gas desiccant systems are used to dehumidify the factories.

Electricity Due to reduced tolerances for nuclear and hydro plants, air and water pollution, noise emissions, as well as the high cost for wind and solar energy, gas-fired power generation has become a very important method of generating electricity. Modern gas-fired power plants are cleaner, cheaper and more efficient than other power plants. Residential In residential houses, natural gas is used for space heating, water heating and cooking. Cooking with a natural gas cooker is cheaper than cooking with a kerosene or electric cooker. It is easily regulated, burns with a clean blue flame and does not emit toxic gases. Commercial Natural gas can be used to produce hydrogen which has many applications: it is a primary feedstock for the chemical industry, a hydrogenating agent, an important commodity for oil refineries, and the fuel source in hydrogen vehicles. Compressed natural gas (CNG), which is basically methane compressed to about 250bar, is a cleaner alternative to other automobile fuels such as gasoline (petrol) and diesel. There are about 20 million natural gas vehicles worldwide. The energy efficiency is generally equal to that of gasoline engines, but lower compared with modern diesel engines. Other In addition to all these, natural gas is used for metals preheating, glass melting, food processing, waste treatment & incineration, etc (EIA, 2010).

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CHAPTER 3 ACTIVITIES DURING SIWES I was deployed to the Project section of the Engineering department in the Production Division. I spent 10 weeks in the Design team, 6 weeks in the Construction team and the remaining 10 weeks in the Project Engineering team. This chapter gives an overview of the Engineering Department and its various sections; and chronicles my activities during SIWES 3.1 PE (PRODUCTION ENGINEERING DEPARTMENT)

There are ten sections in the Engineering department. These sections have somewhat different character. Some are specialist engineering sections; others are focused on day-to-day maintenance while others still are focused on projects. The figure below is an organogram of the engineering department and its different sections:
Head Maintenance PEM Head Turnarounds PET

O. Adekwu

M. Adepoju

Head Reliability & Maint. Support PEK

T. White

Head Inspection PEQ Head Civil PEC

A. Akinola

Engineering Manager PE Sandy Lundie

M Olaoye
Head Projects PEO

B. Adenrele A. Ogunleko I. Mohammed

Head Instrument PEI Head Electrical PEE

Major Capital Projects Coordinator NPX

J. Schouten S. Afolabi

Head Rotating Equipment + Mechanical Engineering PER Head Asset Info. Mgt PEA

J. De Graaf

Fig 3.1: Organogram of the Engineering Dept 17

A brief description of the activities in the various sections is outlined below: 3.1.1 PEK - Reliability Maintenance Support: PEK focuses on operational reliability management & maintenance Support. This team provides a forum for communication between the Area Maintenance Teams, Engineering disciplines and Operations to ensure that the interfaces between jobs are clearly identified. 3.1.2 PEC - Civil Engineering: The PEC provides maintenance services on all NLNG civil assets. These assets include Foundations, Road systems, Drainages, Plant structures, Plant Buildings, Pavements, Plant Equipment, Refractionaries, Bundwalls, Bunded Areas, Storage Tanks and Vessels, RA water Tower, Flare Towers, Pipelines, etc. 3.1.3 PEI Instrumentation The instrumentation team focuses on delivering quality and reliable measurement systems. They design, engineer, maintain and renew a wide portfolio of field devices and instrument systems including integrated control, analytical, custody transfer, metering, safeguarding systems, fire & gas systems that are critical to plant operations. 3.1.4 PER Rotating Equipment Engineering PER provides technical assistance to operations and maintenance departments; and also participate in the investigation of plant trips and failures on Rotating Equipment. Considering the fact that NLNG has 18 gas turbines on site, a long term service agreement with the gas turbine manufacturers - General Electric (GE) - was set up. During the term of agreement, GE under the supervision of PER - is to supply parts and services necessary to perform maintenance to enhance plant availability and utilization. 3.1.5 PET - Production Engineering Shutdown/Turnarounds Shutdowns or Turnarounds are large, high cost and labour intensive critical maintenance activities which require a unit (e.g., Train) to be taken out of service; and it is carried out in a relatively short duration. They are a significant part of maintenance and upgrade management and its execution usually involves hundreds of people drawn from within and outside the organization. This team is responsible for planning, co-ordinating, resourcing and execution of all shutdown activities in NLNG, Bonny, whether major or minor.

18

3.1.6

PEE Electrical Engineering

This section is responsible for the generation, distribution and supply of power to the plant complex, residential area and the construction sites. There total base/peak loads are 160MW/190MW but they have a total generational capacity of 385MW with a spinning reserve of 35MW 3.1.7 PEQ - Inspection Engineering This section is responsible for the inspection of plant equipment/ assets within the framework of safety/ integrity and statutory requirements. They carry out external visual inspection, internal visual inspection and non-destructive test on the train static equipment so as to confirm and ensure their continual integrity. Static equipments covered are Heat Exchangers, Columns, Furnaces, Vessels, Tanks, Pipes and Valves. 3.1.8 PEM Production Engineering Maintenance The PEM section is responsible for day to day (Preventive and Corrective) maintenance of the mechanical, electrical and instrumentation disciplines, covering all operational areas of NLNG. PEM also provides workshop, rigging and scaffolding services to a variety of customers within the Industrial and Residential areas. 3.1.9 PEA Asset Information Management The PEA Section exists for the sole purpose of implementing the Asset Information Management. Asset Information Management (AIM) is the management of technical documents and data about a facility during its complete lifecycle, including its design, operation, maintenance and abandonment. The objective of PEA is to ensure that all required information (documents & data) of assets and their operation/ testing/ performance and maintenance are complete, consistent, accessible and secure. 3.1.10 PEO - Engineering Projects This section manages a project portfolio consisting of concurrent plant projects, sustainable development projects and Infrastructures projects arising as a consequence of the expansion of the plant from a 2-train plant to a 6-train plant. The PEO team is made up of: Design Engineering -

19

PEO/1 & PEO/2 Design team comprises of Design Engineers and CAD Operators and its responsibilities are:

To deliver Design Packages for infrastructure projects in line with acceptable standards and Professional design support to Project & Construction Engineers. CAD and update As-builts documentation.

regulations

Project Engineering PEO/3 Responsibilities:

Leading and managing projects from Develop phase to Close-out phase Overall coordination of project activities e.g. procurement, Scheduling, budgeting, etc Ensuring quality control/assurance, in line with NLNG standards Ensure approvals for the various project stages Producing regular projects updates to stakeholders. Coordinating other discipline input/support into projects.

Project Services PEO/4 team provides the following services:

Project Control: covering Project Planning and Control, project administration and support

services, cost control, progress measurement and reporting.

Cost Engineering: Cost estimating, preparation of BOQ, valuation and preparation of

Interim Payment Certificates, Contract Management Support.

Project Document Coordination & Control

Project Construction PEO/5 team provides the following services:

Construction work schedule development Visual Inspection/Testing/Certification of Project Materials Shop Fabrications & Non Destructive Testing supervision Site Installations supervision Pre-Acceptance Punch List management As-Built Documentation marked up for update

Project Engineering Instrumentation PEO/6 manages all instrumentation projects. 20

PROJECTS (PEO)
Head Projects PEO B. Adenrele

Senior Engineer Design Office E/I PEO/1 L. Abubakar

Senior Engineer Design Officer C/M PEO/2 O. Oloworaran

Senior Project Engineer PEO/3 B. Christian

Senior Project Services Engineer PEO/4 F. Dweller

Senior Constr. Engineer PEO/5 O. Kaka

Senior Project Engineer Instrumentation PEO/6 H. Braakman

Design Engineer Electrical PEO/11 C. Odike Design Engineer Electrical PEO/12C V. Owakah (c)

Design Engineer Mechanical PEO/21 A. Onuoha Design Engineer Mechanical PEO/22 M. Brown Design Engineer Mechanical PEO/23 J. Ozenua Design Engineer Civil PEO/24C Vacant Design Engineer Civil PEO/25 J. Akpan

Project Engineer PEO/31 A. Majaro

Cost Controller/Estimator PEO/41 O. Kikiowo

Construction Sup -Civil PEO/51C (MSC)

Project Engineer PEO/32 C. Udensi

Document Coordinator PEO/42C Vacant (c)

Construction Sup -Civil PEO/511C (MSC)

Design Engineer Instrument PEO/13C O. Amara (c) Design Engineer Instrument PEO/14 A. Idowu CAD Operator E/I PEO/15 A. Ajibade

Project Engineer PEO/33 C. Mariano

Project Services Engineer PEO/43 Vacant

Project Engineer PEO/34 D. Tsai

Construction Sup -Civil PEO/512C V. Fasae (c)

Quantity Surveyor PEO/44C E. Francis (C)

Project Engineer PEO/35 C. Chukwuma

Mechanical Construction Planner PEO/52 O. Nwagu

Proj Cost Controller PEO/45 O. Okoro

CAD Operator Instrument PEO/16C Vacant

Project Engineer, Electrical PEO/36 P. Ike

Quantity Surveyor PEO/46C N. Nwaobasi (c)

Constr. Supervisor Mechanical PEO/53 O. Pelemo

CAD Operator Electrical PEO/17C F. Akalabu (c)

Project Engineer PEO/37C (MSC)

Quantity Surveyor PEO/47 O. Ahube

Construction Sup -Mech PEO/531C (MSC)

Project Engineer PEO/38 O. Oyadotun

Project Planner PEO/48C S. Nnachi (C)

Constr. Sup - Mech PEO/532 (MSC)

Project Services Engineer PEO/49C D. Harry (c)

Constr. Engineer, Electrical PEO/54 M. Yalaju N. Ogbe (C)

Fig 3.2: The PEO Organogram

TRAINEE MECHANICAL PEO/SIWES

Construction Sup -Elect Constr. Supervisor PEO/541C Electr. & Instr. PEO/542C R. Parreno (c)

OKEREKE C.

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3.2

DESIGN TEAM

A design engineer creates the initial blueprints and schematics for various structures, systems, machines, or equipments. They may be given very direct orders or broad conceptual frameworks, and asked to create blueprints that can be translated into working structures. The process often begins by creating hand-sketches or utilizing CAD programs. These CAD programs allow designers to draw detailed lines, form curves, and input measurements. Other programs can put designs through virtual simulations to test their integrity, efficiency, and effectiveness. The most famous CAD software in use is AutoCAD, created by Autodesk Inc. 3.2.1 THE DESIGN PROCESS

For effective management, the NLNG design process is divided into three hierarchical levels namely; Conceptual, Basic and Detailed. Conceptual In this phase, the problem/improvement is clearly defined and improvement plans are proposed. General arrangement drawings on the section to be worked on are pulled out from PACER and marked up. Evaluations on process description, safety and environmental considerations are made and then a sketch (un-detailed) of the proposed concept is drafted. Basic In this phase an overview of the project is done and general design considerations are outlined. Meteorological and site data is studied and the plot plan is clearly defined. Basis of Design is carried out and other discipline requirements (Civil, Mechanical, Electrical, etc) are evaluated. Design requirements, instructions, procedures, standards, specifications and codes are all used as guidelines for design process. Design calculations are started and the equipment list is updated. Detailed This phase is where the final package is produced. Detailed calculations are made, design notes containing information about the design intent and scope of work is prepared and construction/fabrication drawings are completed. Solving a design problem is a contingent process and the solution is subject to unforeseen complications and changes as it develops. For example, until the Wright brothers actually built and 22

tested their early gliders, they did not know the problems and difficulties they would face controlling a powered plane. Generally speaking, the design process can be divided into 5 steps. The first step is the problem definition. This definition usually contains a listing of the product or customer requirements and especially information about product functions and features among other things. In the next step, relevant information for the design of the product and its functional specifications is obtained. Once the details of the design are clearly identified, the design team with inputs from other disciplines generates multiple alternatives to achieve the goals and the requirements of the design. Considering cost, safety, and other criteria for selection, the more promising alternatives are selected for further analysis. Detail design and analysis step enables a complete study of the solutions and result in identification of the final design that best fits the product requirements. Following this step, a prototype of the design is constructed and functional tests are performed to verify and possibly modify the design. When solving a design problem, you may find at any point in the process that you need to go back to a previous step. The solution you chose may prove unworkable for any number of reasons and may require redefining the problem, collecting more information, or generating different solutions. This continuous iterative process is represented in the following.

Fig 3.3: The iterative design process It is important for a design engineer to thoroughly understand the machines or structures he or she draws. For example, if a design engineer is contracted to design an interstate petroleum pipeline, he or she must know how each valve, flange, pump, fitting, etc functions and where each of them should be placed. By conceptualizing the finished product, the design engineer can create reliable plans. 23

3.2.2

PIPING DESIGN AND DRAFTING

Most of my activities in this section were centered on the design and drafting of pipes and its components. 3.2.2.1 PIPES Applied in a general sense, pipe is a hollow, tubular body used to transport any commodity possessing flow characteristics such as those found in liquids, gases, vapors, liquefied solids, and fine powders. So many materials are used in manufacturing pipes. Some of them are concrete, glass, lead, brass, copper, plastic, aluminum, cast iron, carbon steel and steel alloys. A thorough understanding of the pipe's intended use is essential as each material has limitations that may make it inappropriate for a given application. 3.2.2.2 PIPE FITTINGS Fittings are fabricated pieces of pipe that are used to make changes of direction, branch from a main pipe, or make a reduction in line size. Because they are part of the piping system, they must match as closely as possible in specification and rating to the pipe to which they are being attached. Valves are also pipe fittings but they are usually discussed separately. The most widely used fittings are outlined below Elbow: Of all the fittings, the elbow is the one most often used. Simply put, the elbow, or ell, is used when a pipe changes direction. There are two types of elbows: 90 elbow used to make 90 turns 45 elbow used to make 45 turns

Tee: The name of this fitting comes from its resemblance to the letter T. It is a three-way fitting used to make perpendicular connections to a pipe. Lines that connect to the main run of pipe are known as branches. The main run of pipe is often called the header. Two types of tees are used in the piping industry:

Straight all three outlets are the same pipe size. Reducing branch outlet is a smaller pipe size.

Reducers: When the piping designer wants to reduce the diameter of a straight run of pipe, a reducing fitting must be used. The reducer is available in two styles. They are: 24

Concentric reducer maintains the same centerline at both the large and small ends of the fitting Eccentric reducer has offset centerlines that will maintain a flat side on the top or the bottom of the fitting

Fig 3.4: Pipeline showing Tees, Elbows and Reducers Flange: The flange is a ring-shaped device used to join two pipes together, with a gasket in the middle. Flanged connections are used as an alternative to welding because they can be easily disassembled for shipping, routine inspection, maintenance, or replacement. Flanged connections are preferred over threaded connections because threading large bore pipe is not an economical or reliable operation. The different types of flanges are; Weld neck, Threaded, Socket weld, Slip-on, Lap-joint, Blind and Orifice Flange. To complete any flanged assembly, two additional items are required: bolts and gaskets. Bolts are used to hold mating flanges, nozzles, or valves together while gaskets are used to create a leakproof seal between

Fig 3.5: A typical Flange with a Gasket in between

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3.2.2.3 VALVES By definition, a valve is a device that controls the flow of a fluid. However, today's valves can also control the flow rate, volume, pressure, and the direction of a fluid within a pipe. They can turn on or off, regulate, modulate, or isolate. They can range in size from a fraction of a centimeter to as large as 10 meters in diameter and can vary in complexity from a simple brass valve, available at the local hardware store, to a precision-designed, highly sophisticated coolant system control valve made of exotic metal alloy used in a nuclear reactor. Valves also can control the flow of all types of commodities; from the thinnest gas to highly corrosive chemicals. They can handle temperatures from the cryogenic region to molten metal exceeding 1500F, and they can contain pressures ranging from severe vacuum to 10,000 kgm. There are so many types of valves in use today, depending on their functions, mode of operation, throttling/non-throttling ability, etc. The most common types are Gate, Globe, Butterfly, Check, Angle, Control, Relief valve, etc.

Fig 3.6: From Left to Right: Butterfly Valve, Angle Valve, Gate Valve and Globe Valve. 3.2.2.4 PIPING ISOMETRIC An isometric or iso is a type of three-dimensional drawing known as a pictorial. They are developed using the three primary dimensions of an object: height, width, and depth. To include these dimensions in a single view, an isometric must be drawn on axes that measure 30 from the horizontal plane. When a Design Drafting Request (DDR) is sent to a Piping Engineer, the General Arrangement (GA) drawing of the affected section is consulted. Site visits are made and on-ground measurements are taken. The new pipeline is then drafted using AutoCAD and all the fittings are depicted using their standard symbols. The Materials Take off (MTO) - being a list of all the materials, their sizes and specifications, etc., required on that iso is included in the drawing. 26

3.3

CONSTRUCTION TEAM

Construction engineering is a professional discipline that deals with the designing, planning, construction and management of infrastructures such as highways, pipelines, buildings, dams, utilities, etc. They are unique because they are a cross between civil/mechanical/electrical engineers and construction managers. Construction engineers learn the design aspect much like the discipline engineers and construction site management functions much like construction managers. The construction team is in charge of supervising project construction activities. When the design team completes the project design package it is reviewed by the PEO/5 team to ensure that it is constructible, and is in line with standard requirements. When certified okay, materials are ordered by Project Leader, received and inspected by PEO/5 (in conjunction with PEQ- Inspection department). Work is further broken down to discrete packages and a more detailed scheduling is done. A project construction coordinator (PCC) is assigned to supervise the construction and installation works. It is his duty to prepare work orders, issue site instructions and monitor the project to ensure that it is being executed according to the design; and any (necessary) deviation/non-conformance is reported to the project leader. When construction is complete, reports are made, pre-commissioning tests are carried out, punchlists are developed, and commissioning is done. As-Built drawings are then marked up and Operations/Maintenance teams are given the project manual (updates). 3.3.1 SOME CONSTRUCTION TERMS/ACTIVITIES

PTW (Permit to work) is a permit issued by the Operations department before any job is carried out in the plant. Non-destructive testing (NDT) is a group of analysis techniques used to evaluate the properties of a material, component or system without causing damage to the material. It is done- especially- to test the integrity of weld joints. Common NDT methods include ultrasonic, magnetic-particle, liquid penetrant, remote visual inspection (RVI), etc. A hydrostatic test is the most common method employed for testing the integrity of pipes and vessels. The test involves running water- which is often dyed for visibility- in the pipe or vessel to ensure it will not leak or be damaged. The test pressure is always considerably higher than the 27

operating pressure to give a margin for safety. This margin for safety is typically 166.66%. For example if a pipe is rated to convey fluid flowing at 200bar, the pipe will be tested at 332bar. Construction technical Query is a query raised by the construction team when there is a (necessary) deviation from the original design/work plan. The CTQ, when raised, has to be approved by the design engineer or the project leader before the deviation can be implemented When there has been a change in the original design or scope without a CTQ to back it up, a NonConformance Report is raised and construction activities are paused till all parties agree on the way forward. The Punch List summarizes the items, which have not been fully completed or still deviate from the specified requirements. Items on the Punch List may be either Type A, (needs to be corrected prior to project handover or start up) or Type B (needs to be corrected as soon as possible, but can be done after project handover or start up). 3.4 PROJECT TEAM

The Project Engineer, also called Project Leader (PL) manages a project from the Develop phase to the Close out phase. This involves planning, monitoring and controlling all aspects of a project in order to achieve the objectives within the agreed time and budget limits. ROLES A project leader must; * * * * * Understand the project objectives, Determine the best approach to meet the objectives, Address the various needs and expectations of the stakeholders Coordinate the project team Balance all competing constraints Cost, Time, Resources, Quality, etc.

For a project Leader to be effective, he must have: Technical skills Technical competence in the subject matter; Organizational skills Project planning, scheduling, effective communication, and; People skills Coordinating team members and managing the expectations of stakeholders. Also a background in Design and Construction Engineering makes for a better Project engineer. 28

3.4.1

PROJECT TERMS AND DEFINITIONS

Improvement Request: is the generic term used to describe opportunities, problems or deficiencies that have been identified and may require an engineering change in the plant. Engineering Changes: occur when a part of PD asset or community projects is physically altered, added to, or decommissioned. Annual Budget: the estimated amount of aggregate expenditure on all capital investment projects in a calendar year that has been notified to and agreed by the Board of Directors. Appropriation: the amount authorised for expenditure on a project. Final Investment Decision (FID): appropriation required to execute a project. Initial Investment Decision (IID): appropriation required to fund third party design activity, or procure long lead materials. This is obtained at the end of Select Phase. Construction Work Pack: is a set of documents and specifications required for construction, which includes as a minimum, AFC design pack, scope of work, implementation strategy, project schedule (level 3), construction work plan, QA/QC plan, HSE plan, and construction schedule (level 4&5). Originator: proposes the business opportunity or improvement request and is responsible for confirming that the proposed request is in line with the companys business goals and adds value to the business. Asset Holder: is main beneficiary of proposed asset and holds the future asset on behalf of NLNG shareholders. Business Owner (BO): is the main beneficiary of proposed business opportunity or improvement proposal request and shall be kept informed at all the project phases. Project Leader (PL): is the Project Engineer appointed by PEO or NPX to manage the delivery of the project and is responsible for managing the project development and execution from the Develop Phase. Project Design Coordinator (PDC): is the Design Engineer appointed by PEO/1 and PEO/2 to manage the delivery of the Complete Design Package and is responsible for coordinating the output of the various discipline Design Engineers to achieve this. Project Construction Coordinator (PCC): is the Construction Engineer appointed by PEO/5 or NPX/1/2 to manage construction activities and is responsible for coordination and supervision of

29

construction and commissioning activities, in line with project goals, scope, budget, schedule and quality. Portfolio Management Forum (PMF): (made up of technical section heads) is responsible for advising the CRF on CAPEX budget and recommends which projects should progress and when. The PMF challenges projects for technical integrity and execution strategy. The PMF has authority to approve CAPEX budget IID and FID approval for projects with a value not exceeding $50,000. CAPEX Review Forum (CRF): is responsible for setting the project justification hurdle rates, committing funds and resources to projects, monitoring budget expenditure and the delivery of benefits over time. The CRF has authority to approve CAPEX budget IID and FID for projects with a value not exceeding $500,000. Projects with a value greater than $500,000 must be referred to a higher authority level as follows: Production Division General Manager Managing Director Board of Directors Projects up to $3,000,000 Projects up to $10,000,000 Projects over $10,000,000

Decision Review Team (DRT): is the management team constituted to evaluate proposed opportunity or improvement to ensure it is appropriately framed and is aligned with the business plan. DRT is a gate process prior in the Asses Phase of the Project process. The DRT on approving the proposed business opportunity or improvement request confirms that the request is commercially/financially viable or risk mitigating and approves the project proposal to progress to the Assess phase. EPC: Engineering, Procurement and Construction projects involve contracting the whole project in its entirety to vendors. The Front end engineering (design) is not done by in-house design team but by the contractors. Risk Register: Identifies all possible risks in a project and possible ways to mitigate them. JHA: Hazard is anything that has a potential to cause harm. Job Hazard Analysis is the analysis of all the possible hazards that can be encountered in a project. MTO- Materials Take Off: A list of all the materials required to install a project. This list is usually compiled by the design engineer and crosschecked by the PL. As-Built: All PD erections, (pipelines, Buildings, Vessels, etc) have drawings/documents that depict exactly how they are. These documents are called As-Builts.

30

P ROJE CT MANAGEM E NT PROCE DURE

Val ue I dentifi cati on
Ph ase

Val ue R ealistion

ASSESS
Ca nc l H old, R e wor k e,

P hase 1

SELE CT
C ancel, Hold, Rework
P o tfo io Ma n a g e me nt Fo ru m r l Ca pe x Rev ie w F oru m

P has e 2

DEV ELOP
C ancel, H old, R ework
Po r tfo io Ma n a g em e nt F o ru m l Ca pe x Rev ie w F orum Re q u i e d Se c tio n He a ds (R I ) r M

Ph ase 3

EXE CUTE
Rew ork
N LNG Fo ca l Po in t PO O PEM , PEI, PEQ , POO

Ph ase 4

Ph ase 5

C LOS E OU T

T iming R ewo rk
N LNG Fo ca l Po in t Portfo li M an a g e m e n Fo ru m o t

Decision Makers

Portfol io Ma n a g m e n t F o ru e m

Deci sion

Pro b le m / Im p ro ve m e n t d I e ntifi e d

Ap p rov e Iss u e, Pri ori ty & Bu d ge t

Ap p ro ve Al te rna ti ve , Ra nk i ng & Bu d ge t

Ap p rov e Sc he d ul e , CT Rs , & PEP

Ap p rov e De s i n g

Ap pro v e W o rkp a ck s

App ro ve RF SU

Ha nd o ve r Ac ce p t n c e a

Pro j ec t Acc e p t n ce a

Document &P l c e on Ra e L i t a nk d s

Document &Pl a c e o n R ank e Li t d s

Pri meryActi vi ty

De ta i & Scre e n l Imp ro ve me n t

In ve s t g a te i Al e rn ati v es t

Pre pa re SOW & C l s s 3 Es ti ma te a

De t ai l ed De si g n

Pre pa re W ork pa c ks

n I s tal l at i o n

Co m mi ss i on

Cl o se Ou t

D el iverabl e

Imp ro ve me n t Re q ue s t F o rm

St d y u Re po rt

Pro j ct e Prop o sa l Fo l de r

De s i n g D el i ve ra bl e s

W o rkp a ck s

Com p l te d e n I s tal l at i o n

Fu n cti o na l As se t

Cl o se Ou t De l i e rab l e s v

Doc u en m t

Docu m e t n

Work Team

T ea m Lea d e r: Origin a to r T ea m : Se ctio n He ad

T a m L a d e r: Jo b Co in a tor e e -Ord T ea m: Pro j ec t Le a de r, No mi n a ted Eng i ne e ri ng , Tec h ni c al , Op er ati o ns an d M a i te na n c e n Gro up Re p res e nta ti e s v

T e am Le ad e r: Pro je ct Le a d r e T e am : Pro je c t Te a m

Te a m L a d e r: Pro jec t L e ad e r e Te a m : Pro jec t Te am

T e a m L e a der: Pr o e c t L ea de r j T e a m: Pr o c t T a m je e

Focus Item s

Cle a rly d e fine th e prob lem / im p ro ve m e nt Re q ui re d i p lem e nta tio d a te m n Pre lim in ry Ec o n m ic Ma tric es a o G u s tim ateCla ss 50 % ), if e ( po s sib le

Cu rr en t Situa ti n o As s u mptio ns Re c o mm e n datio n (Sc ope ) Ex e c u n Stra te g tio y Pro je c t R i k s s Alte rn a tive s Cla s s 2 3 0 % ) Co st Es ti m ate ( Im p ac t Ev a l a tion C h c k l s t u e i Ec on o ic Ev alu a tio m n Hig h L ev e l Sch e d ule L on le a d ite m s Pr o cu re m e n t g

Proj e c t Pu p o e r s Sc o pe D efini tio n Im p lem e nta ti n Stra te g y o Role s an d Re s p s i bi itie s on l De s ig n B as is De s ig n R ev ie ws Re q u i ed r Proj e c t Co m p tio n I de x le n Che c k l s t i Proj e c t Sch e du le / Ke y M il s ton e s Sc h e d lin g e u Con s tra in ts O p r atio nal I m pac t / Sh utdow n e Re q ui re m ents Proj e c t Risk s Con s truc tabi lity pe rability , ,O M ain ta in ab ili ty I s u e s s Proj e c t Sp c ia l Re q ui re m ents e M ar ke d p Dra win gs , Sk e tche s , -u Pho to gra p s e tc . h De ta ile d Cl a s s 3 (15 % ) Co s t Es ti m ate a nd C T s R In c e n is atio n tiv L on g l a d i em s e t

Pre p a ra ti n o f De sig n De live r ab le s o De s ig n Re v ie ws , H AZOP Pre p a ra ti n o f o kp a c k s o W r L on g l e a d i te m pro cur em e n t M ate ri a l re se rv a tion & o rde ring Con s tructa bi lity e fin e Risk c o s truc ti o a c ti vity d , n n

W r kpa ck Im p lem e nta ti n o o Pre-co m m iss io ni g n Co m mis s i nin g o Pu c hlists n Ma rk e d p As-b u i d Dr aw in g -u l s Op e ra ti n s an d M ain te n anc e Train in g o Op e ra ti n s Ma n ual Upd a te s o Pra ctic a l C o ple tio n Ce rtific a te Sig n off m

As-b ui d Dra w i g s l n Doc ume nta ti on U p a te s d M ainte n an c e Dat a Upd a te s F in ali s e C o ts (i clu d in s n g in ce ntiv isa ti on ) Clo s e t Ce rti fic ate Sig n o -ou ff L e ss o ns Le a rn t

PEO PR - 31 File : N LNGProj ectManagement Process1

Project Management Roadmap

Fig 3.4: Project management Roadmap

31

3.5

PROJECTS

A Project is a unique temporary endeavor that has a start and close out date with the main purpose of developing organization or business needs whilst improving on the existing facilities. Projects are managed by Project Engineering PEO & NPX teams. The types of projects managed include: Plant Improvement Projects (managed by PEO) Simple Engineering Changes (SEC) Major Capital Projects (managed by NPX) Sustainable Development Projects (managed by NPX) 3.6 LIFE OF A PROJECT

For proper planning and effective management, the activities involved in a project can be divided into 5 phases. These are the Assess, Select, Develop, Execute and Close-out phases. To understand the (NLNG) Project management procedure, this section will take us through the life of a project, from start to finish.
Value Identification 1 2 3 Value Realization 4

ASSESS

SELECT

DEVELOP

EXECUTE

CLOSE OUT

Decision Check Points (Gate)

Fig 3.5: Project Phases

3.6.1

PRE-ASSESS/ SCOUTING PHASE

Before the Assess phase, something is happening. Someone (the originator) has identified a business opportunity, a deficiency, or a problem that requires an engineering change in the plant. The originator puts his thoughts together, raises a PDR through PEO/4 (Project Services), and prepares a proposal to be presented to the DRT. The DRT evaluates the proposal to ensure it is appropriately framed and is aligned with the companys business plan. Upon approval, the improvement request becomes a project and moves to the assess phase. 3.6.2 ASSESS PHASE

After DRT approval, the PMF reviews and challenges the technical aspect, the execution strategy and the commercial viability of the project, and makes the decision to either progress it into the 32

Select Phase; put it on hold; or totally cancel it. The PMF also ranks the project for High, Medium or Low implementation prioritization based on Project criticality, urgency, business opportunity and/or resource availability. If the Job Coordinator requires funds to execute the Select Phase Study then the PMF will refer the PDR to the CRF unless the total project value will be less than $50,000; which is within the PMF Delegated Financial Authority. If, for any PDR, the PMF are convinced that the Select Phase study is unnecessary they will advise the Originator to proceed directly to the Develop Phase. The Assess Phase deliverables required for PMF presentation include: a) PDR Form filled and signed off by the originator and approval parties. b) Short Project Memo covering issues in the PDR that need additional detail like Project Scope and Basis of Design Project Driver Project Execution Strategy Resource Requirement Business Case / Justification (License to operate or Business Opportunity)

c) Relevant drawings, sketches, photographs and inspection or study report (where applicable). d) 50% Cost Estimate e) Project Schedule (Level 1) After PMF approval, the project moves to the Select phase. 3.6.3 SELECT PHASE

The objective of the Select phase is to investigate all problems, improvements, and opportunities in respect of the project and to compare alternative solutions in realization of the project. The Select Phase Study Report must compare the various options (both technically and commercially), recommend the preferred option and refine the justification. For the recommended solution, the Job Coordinator shall prepare the Preliminary Scope of Work document which is part of the Select phase Study Report. For the Select Phase: The Originator develops the PDR deliverables further to meet the requirement of the Select Phase. 33

 Originator will have to carry out Conceptual design to develop the selected options for the project with incorporation of Lessons Learned and issue a Basic Design Package (BDP). Contracting strategy has to be firmed up. Risk Register established and further developed. A +/-30% CAPEX Cost Estimate is prepared by PEO/4 based on the Basic Design Package, the Risk Register and the approved Execution and Contracting Strategy. Originator seeks and obtains approvals from his/her Manager or Asset Holder, and submits the Select Phase PDR Package to PEO/4. PEO/4 reviews the PDR submission for completeness with the Select Phase Checklist, processes and schedules it for PMF/CRF review meetings. Originator presents the project developments proposal to the PMF with a simple presentation slide. PMF reviews and challenges the technical aspect, the execution strategy and the commercial viability of the project, approves/rejects the project to go the Develop Phase. If project proposal is approved to proceed to the Develop Phase and needs preliminary funding in the Develop Phase, it is scheduled for and presented to the CRF for review and Initial Investment Decision (IID) budget appropriation approval. Where IID is not required, the Develop Phase design is done In-House by design team (i.e. PEO/1 and/or PEO/2) and reviewed internally by subject matter disciplines. 3.6.4 DEVELOP PHASE

The objective of the Develop phase is to further define the Scope of Work, prepare the detailed design and prepare a +/-15% cost estimate for implementing the recommended solution detailed in the Select Phase Study Report. The Develop Phase Report deliverables include as a minimum the following: a) Develop Phase Approval Form filled and signed off by the PL, the PLs supervisor, the Business Owner and the relevant technical authorities and stakeholders. b) Develop Phase Study Report covering the following standard headings: Executive Summary Project Justification and Estimate Project Scope Project Purpose 34

 Implementation Strategy Roles and Responsibilities Design Basis Operational Impact/Shutdown Requirements Project Risks Construction, Operability, Maintainability Issues Detailed Design, Marked-up Drawings, Sketches, Photographs, etc

Based on the deliverables tendered, the PMF endorses the proposal and directs it to the appropriate Delegated Financial Authority for approval. The PL develops the PDR deliverables further to meet the requirements of a Final Investment Decision (FID) A +/-15% CAPEX Cost Estimate is prepared by PEO/4 based on the Design Package, the Risk Register and the approved Execution and Contracting Strategy. PL raises FID request to go to Execute Phase using the Develop Phase PDR Form PL fills out the Develop Phase Form and obtains the relevant project and technical/discipline approvals and submits to PEO/4. PEO/4 reviews the PDR submission for completeness with the Develop Phase Checklist, processes the Develop Phase PDR Package for PMF/CRF review meetings and schedules the PMF/CRF meetings. PL presents the project to the PMF/CRF with a simple presentation slide. PMF reviews and challenge the technical aspect, the execution strategy and the commercial viability of the project, approves/rejects the project to go the Execute Phase. If project proposal is approved to proceed to the Execute Phase, it is scheduled for, and presented to the CRF for FID budget appropriation approval. 3.6.5 EXECUTE PHASE

The objective of the Execute phase is to carryout Detailed Design, Procurement, Complete Installation/Construction, Commissioning, and Operational hand-over of a project. Activities in this phase are chronicled below:

35

Detailed Design/Engineering Detailed design is done in the execute phase only for EPC projects, while it is done in the develop phase for non-EPC projects. The PL raises DDR to the design team to carry out the required design work. The Senior Design Engineer appoints a Project Design Coordinator (PDC) to coordinate the design work. The PDC ensures that the design is carried out in accordance with the Design Management Procedure The PDC produces Issue for Comments (IFC) design pack and presents to all stakeholders, including technical discipline authorities and construction team, for review and comments. The PDC updates the IFC design pack based on stakeholders review comments, and produces Issue for Approval (IFA) for the PL. The PL reconfirms from stakeholders that IFA design pack has included all IFC comments and obtains all relevant stakeholders signatures. Upon confirmation from stakeholders that the IFA design pack is accurate and complete, the PL returns the IFA design pack to PDC to produce Approved for Construction (AFC) package. The PDC then issues the Approved for Construction (AFC) package to the PL.

Procurement The Project Leader (PL) is responsible for all procurement and contracting activities required to complete the work scope, in accordance with the CPM procedures. The PL will also order relevant materials by raising a Materials Request (MR), in line with the MTO received from PDC, which shall be processed by CPM until delivery to Bonny. Upon arrival of the ordered materials the PL notifies the PCC, who will then be responsible for inspection and acceptance/rejection of the delivered materials to be used for the construction of the project. The PCC will notify the PL of any rejected materials for replacement and incomplete materials for complete delivery. Construction The Project Leader (PL) is accountable for providing Construction Work pack to the PCC, while the PCC ensures that it is adequate for the work scope to be carried-out. 36

The assigned PCC is responsible for the construction management; including supervision of the installation/construction works, and commissioning, while the Project Leader retains the overall responsibility for the project management. For the construction part of Execute phase: The PCC receives the Construction Work pack from the PL and reconfirms completeness. Before the start of construction, the PCC ensures completeness of all materials i.e. received and accepted. The PCC also ensures the replacement of all rejected materials and delivery of incomplete materials (if any). The PL organizes the Project Kick-off meeting, with the PCC and other relevant stakeholders, in attendance. The PCC supervises the project, manages all construction issues, conducts regular construction progress meetings, and provides regular feedback to the PL. When there are changes to scope during construction, or deviation, queries and nonconformances, the PCC manages such in accordance with the Project Change/Queries/Deviations and Non-Conformance procedure. PCC manages the Commissioning activities, where relevant to the project. PCC carries out and closes all punch list items, to ensure that a functional asset is delivered. Upon confirmation from the Asset Holder and/or Business Owner and/or Originator, that the construction/installation work is complete, all punch list items closed, and a functional asset has been delivered, the PCC hands the project over to the PL for commencement of closeout activities. 3.6.6 CLOSE OUT PHASE Upon completion of Implementation Work-packs executed by a Contractor, the PL issues a Certificate of Acceptance. The PL issues a Handover Certificate to the Asset Holder The PL must obtain Complete As-builts of the project from the PCC. Upon settlement of all accounts the PL liaises with PEO/4 to raise and submit to Finance Department (FNP) a Financial Closure Note. The PL, together with CPM, reviews the contractors performance by completing the Contractor Close-Out Form. 37

3.7

SOME LIVE PROJECTS I WITNESSED

09/PDR/068: Condensate Stabilization unit Debottlenecking Project: Execute phase The scope of the Condensate Stabilization Unit Debottlenecking Project consists of all design and engineering activities required for the modification and upgrade of the stabilization system in the LNG plant so as to accommodate increase in spiking rate of condensate coming from Soku gas plant at the current rate of 13,000bbl/d to 60,000bbl/d. The project is currently undergoing design and the BDEP was prepared by Design contractors, Dover Engineering ltd, under the supervision of the PDC. 06/PDR/059: Fabricate and Install DRY RISERS on Trains 4, 5, 6: Execute Phase Dry Risers are vertical pipes installed in a building/structure for fire fighting purposes. The need for the design of dry risers on Trains 4, 5, & 6 came on the search for a suitable means of spreading firewater on the different platform elevations of each train over the entire span with only the monitors and hydrants serving as a source and distribution for the ground level and upper heights. Dry rising mains provide a readily available means of delivering considerable quantities of water to extinguish or to prevent the spread of fire. Since this is the case, particular attention must be paid to the design of the system to ensure that valves are correctly sited with adequate space to enable efficient use of the equipment. The typical dry riser system considered in this design basically will consist of a 150mm diameter pipe with a quadruple inlet connection at ground level, two outlet valves on each landing platform, and an automatic air release valve at the highest riser point. 06/PDR/101: Additional Foam Skid & Fire truck Tie-in point at Condensate tanks: Execute Phase As a result of a fire outbreak on one of the condensate tanks it was revealed that presently, only one portable Foam Skid is available and is usually out of service whenever maintenance needs to be carried out. This is unacceptable from a safety point of view. Again, a third condensate tank has been approved for construction and when it is completed and is in operation, the fire fighting coverage will no longer be adequate with one Foam Skid available unless another Foam Skid and a

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Mobile Foam truck is deployed. This is because the third condensate tank is a long way from the existing Foam Skid. This project provides an extra Foam Skid and a Tie-In point between the existing and the new Foam Skids to facilitate a direct hook-up to the Foam truck. This will allow for: Effective maintenance to be carried out on the existing Foam Skid while maintaining Provision for a standby Foam truck to hook into the connection point and fight fire as a 100% cover back-up. 08/PDR/034: MSC Yard Fire Protection Upgrade: Execute Phase Currently, the MSC yard does not have any fire water ring mains and the existing buildings also do not have proper fire alarm/detection protection system. The two existing hydrant points in the MSC yard are connected to a portable water supply line with insufficient fire water pressure and the existing fire alarm systems are mostly stand alone manual call points connected to local beacons and horns while buildings such as Train 4 and 5 spare warehouse are not equipped with any fire alarm/detection system. These existing conditions fall short of Shell/NLNG DEP for onshore installation fire protection. Hence the project proposes to close out the identified gaps by upgrading the fire water and safety systems at the MSC contractors yard to meet NLNG standards.

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CHAPTER 4 4.1 below. DISTANCE FROM HOME/ACCOMMODATION PROBLEMS Bonny, where NLNG is located is an Island and can be assessed by only land and air, hence accommodation is relatively expensive. Before we took the SIWES placement test, we were informed that accommodation will not be provided us and we should make arrangements for ourselves. We all agreed; but due to the fact that SIWES placement in a good firm is not easy to come by, some of us were invited didnt think much about accommodation, believing that when we get there we will find a solution. That solution was not very easy to come by. Some trainees had to squat with those who had houses. Others had to spend the first few days in Hotels and Guest Houses pending when they found a semipermanent residence. Those who did not have enough money to pay for a hotel room nor friends to squat with were virtually homeless. ACCEPTABILITY Based on (probably) past experience with some SIWES trainees, some staff of the company already had pre-conceived notions on Trainees in general. They think were lazy, no-do-gooders, and/or a nuisance. Some also thought all students from the University of Port Harcourt are cultists. Proving otherwise to them was a challenge at first, but with time they came to understand that we were different. BLENDING IN Basically, the essence of the SIWES programme is to bridge the gap between the theoretical and the practical world. Many of the things we saw here were novel to us; but some members of staff expected us to understand them immediately. At first we were too timid to ask questions and sometimes they foisted tasks we couldnt understand on us. It always took extra initiativesometimes after several blunders- to get them done. DEPARTMENTALIZING PROBLEMS ENCOUNTERED DURING SIWES

During my training I was faced with a few problems but the most challenging of them are described

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We were not given a choice on departments or sections. We were randomly posted to different sections of the company based on our disciplines. At first I wanted to be in the Maintenance section of the Engineering department but I was posted to Engineering Projects section. Although I finally got to appreciate the section, some other trainees were not so lucky. They were posted to departments/sections that had little or no relevance to their discipline; For example, a geology student was posted to Human resources and a Chemical engineering student was posted to External relations. CHEAP LABOUR The SIWES programme is obviously for our own good. While we are being developed, it is only right that the company benefits from us as well; but not to the extent of turning us into errand boys/girls. Some errands we were sent were cumbersome, irrelevant to our training and sometimes demeaning. NO PREPARED TRAINING PLAN FOR TRAINEES Many sections have no prepared training plan for Trainees. Obviously, anything that is unplanned works haphazardly. This free-style method of training is not effective as so many things that could and should be learnt are not; more effort is devoted to irrelevant activities and generally time, which is limited, is not maximized. 4.2 RELEVANCE OF THE PROGRAMME It bridges the gap between theoretical knowledge acquired in the university and the actual industry thereby ensuring the students acquire industrial skills and experience in their approved course of study It acquaints students with the practical skills needed to make one productive. It prepares students for the industrial work situation which they are likely to meet after graduation. It exposes students to work methods and techniques in handling equipment and machinery not available in their institutions. It provides students with an opportunity to apply their knowledge in real work situation. It enlists and strengthens employers involvement in the entire educational process.

The SIWES programme is relevant in so many ways. Outlined below are a few of them.

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It motivates students to study hard and do well in school so that after graduation, they could be employed in a similar place.

CHAPTER 5 5.1 CONCLUSION Basically, the SIWES programme was precipitated by the need for undergraduates to acquire Industrial skills in their course of study. NLNG through its Human Resources Department has offered that platform and I must confess that they are world class. Working here has improved me in so many ways. I have gotten to appreciate the importance of theoretical knowledge as a necessary background to industrial practices. I have also learnt several new things like, Project management, Construction management, AutoCAD, Document control, Time management, Health and Environmental safety and office/business ethics. All this knowledge cannot be gotten in classrooms; hence the importance of the programme is huge. 5.2 IMPROVEMENTS/ADVICE TO SIWES MANAGERS

As wonderful as this programme may be, it has a few flaws. Outlined below are my suggestions for improvement and advice to SIWES managers. ADVERTISING The public media, especially the internet, should be used to advertise the organizations willingness to accept applications for the training programme. They should also interface with the institutions SIWES unit so that the information can be cascaded to the intending trainees. PREPARED TRAINING LADDER FOR TRAINEES All departments and sections should have a standard training schedule for SIWES trainees. This will ensure that the few months spent there are maximally utilized. DEPARTMENT POSTING I think all accepted trainees should have a choice in selecting the department or section they are posted to. This will eliminate the challenge of undergoing training in a department that is not relevant to your course of study. ACCOMODATION

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Companies (like NLNG Bonny) in offshore locations should provide accommodation for trainees. This will really help to reduce the stress of finding suitable places of residence, especially those who came from very far places.

LABOUR The Training programme has been used by some companies as a means to get cheap labour. Some trainees work harder than full employees but are paid a tiny fraction of what the employees earn. The programme should strictly be for learning and not a means to exploit the students energy. 5.3 ADVICE TO FUTURE TRAINEES

There are so many things intending trainees should know. Outlined are a few major ones that if adhered to, will go a long way in helping them. Start sending applications as early as possible. Do not wait till the end of the 1st semester of your IT year before you start looking for an employer. This will ensure that you get placement on time so that the stipulated six months will be completed before a new school session begins Send as many applications to as many companies as possible. This will ensure that when invited, you get to select the most suitable firm. Do not put all your eggs in one basket. Always have a back-up plan. For example in NLNG, so many people were informed that they passed the recruitment test. At the end of the day they were not invited because the maximum number of trainees the company can take at a time is fifty. Dont fail to attend the SIWES orientation programme organized by the school before going on attachment Forward the Offer Letter given to you at your place of attachment to your department and the SIWES unit, so that an institution based supervisor can be allotted to you. Adhere strictly to the rules and regulations of the organization where you are attached Keep a proper record of everything you do throughout your training. This should be done in your log-book and duly signed by your supervisor. Protect your employers assets. This includes physical properties and confidential information 43

Keep in touch with your school and your departmental focal person, so you will be up to date on information that might benefit you Future trainees from your school will be accepted or rejected based on your performance. Do well to do well. Finally, when you get to your place of attachment, do not forget that you are ambassadors of your various institutions. Be a Good Ambassador!

REFERENCES EIA (2007) Annual Energy Outlook 2007 with Projections to 2030, Report #: DOE/EIA. Hubbard, B. & Mallison R. (2006) Natural Gas Utilization, University of Oklahoma, USA ITF (2002) Information and Guideline for SIWES, Nigeria NLNG PD (2009) Construction Management Procedure, Nigeria LNG, Bonny NLNG PD (2009) Design Roadmap, Nigeria LNG, Bonny NLNG PD (2011) Project Management Procedure, Rev 2, Nigeria LNG, Bonny NLNG PD (2007) Plant Overview, Nigeria LNG, Bonny Rosetta, M. J (2005) LNG Vaporization A Fresh Approach as Ambient Air Vaporization Technology is Integrated with Waste Heat Recovery, LNG Journal. Roy A. & Robert A. (2002) Pipe Drafting and Design, 2nd edition, Gulf Professional Publishing, Boston Shukri, T (2004) LNG Technology Selection, Hydrocarbon Engineering, Great Britain
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