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Introduction to Project & Interface Management in Deep Offshore Oil & Gas Industry
Public Lecture ISTN 15 June 2013 Antonius Yunianto Offshore Project & Interface Management Professional Offshore-skills.com

offshore-skills.com

Agenda
I Introduction to Project Management in Oil and Gas Industry II

Introduction to Project Interface Management in Oil and Gas Industry

III Case Study : Concept Selection Phase in Field Offshore Deepwater Development Project Management Certification

IV

PART I INTRODUCTION TO PROJECT MANAGEMENT IN OIL AND GAS INDUSTRY

I.1 Project Definition

Reference : PMBOK

Temporary endeavor with a beginning and an end Creates unique product, service or result Is progressively elaborated Distinguishing characteristics of each unique project progressively detailed as the project is better understood will be

Progressively means proceeding in steps, continuing steadily by increments, while elaborated means worked out with care and detail, developed thoroughly

I.1 Project Definition

Reference : PMBOK

Temporary endeavor with a beginning and an end Creates unique product, service or result Is progressively elaborated Distinguishing characteristics of each unique project progressively detailed as the project is better understood will be

Progressively means proceeding in steps, continuing steadily by increments, while elaborated means worked out with care and detail, developed thoroughly

I.2 Project Attributes

Reference : PMBOK

A Project : Has a unique purpose Is temporary Is developed using progressive elaboration Requires resources, often from various areas Should have a primary customer or sponsor The project sponsor usually provides the direction and funding the project Involves uncertainty

I.3 Project vs Operational Work

Reference : PMBOK

Projects
To attain its objectives and terminate Create own charter, organization and goals Catalyst for change Unique product or services Heterogeneous teams Start and end dates
Examples Build LNG Plant Geotechnical Investigation Ground water well construction Opening a new shop Arrange for a conference

Operations
To sustain the business Semi permanent charter, organization and goals Maintain status quo Standard product or services Homogenous teams On going
Examples LNG Plant Production Writing a progress update memo Attending a conference Meeting with an employee Opening the shop

I.4a Project Management, Program Management & Portfolio Management

Ref.: PMBOK

I.4 Project Management, Program Management & Portfolio Management

I.5 What is Project Management?

Reference : PMBOK

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The Application of knowledge, skills, techniques and tools to project activities to meet project requirements.

Project management is accomplished through the application and integration of the process such as:
1. Initiating

2. Planning
3. Executing 4. Monitoring and Controlling 5. Closing

I.6 Project Constraint

Reference : PMBOK

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Scope What work will be done as part of the project? What unique product, service, or result does the customer or sponsor expect from the project as its deliverables? Cost What is the cost to complete the project? What is the project budget? Time How long it takes to complete the project? What is the project schedule?

I.7 Managing the Project

Ref. : PMBOK

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Project managers are assigned by the performing organization to achieve the project objectives.

A project manager is in charge of all aspects of the project including, but not limited to: Developing the project management plan and all related component plans, Keeping the project on track in terms of schedule and budget, Identifying, monitoring, and responding to risk, and Providing accurate and timely reporting of project metrics.

The project manager is the lead person responsible for communicating with all stakeholders, particularly the project sponsor, project team, and other key stakeholders.

The project manager occupies the center of the interactions between stakeholders and the project itself.

I.8 Project Life Cycle

Reference : PMBOK

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I.9 Product vs Project Life Cycle Relationships

Reference : PMBOK

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I.9 Product vs Project Life Cycle Relationships

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I.10 Stakeholder
Reference : PMBOK

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A Stakeholder are individuals and organizations that are actively involved in the Project, or whose interest may be positively or negatively affected as a result of project execution or project completion

External Stakeholders Internal Stakeholders

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I.11 Impact of Stakeholder Based on Project Time

Reference : PMBOK

I.12 Organizational Structure

Reference : PMBOK

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Organizational structures range from functional to projectized, with a variety of matrix structures between them

I.13 Functional Organization

Reference : PMBOK

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Key Points: The organization is grouped by areas of specialization within different functional areas Projects generally occur within a single department Information required from other department will be routed through departmental heads Team members complete project work in addition to normal department work

Advantages: Easier management of specialists Team member reports to only one supervisor Similar resources are centralized, the company is grouped by specialties Clearly defined career paths in areas of work specialization

Disadvantages: People are more emphasis on their functional specialty to the detriment of the project No career path in project management Project Manager has little or no authority

I.14 Projectized Organization

Reference : PMBOK

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Key Points: The Project Manager has control of projects Personnel are assigned and reports to a Project Manager Team members complete only project work and when it is over they dont have home Communication generally occurs only within project

Advantages: Efficient project organization Loyalty to project More effective communications than functional Disadvantages: No home when project is completed Lack of professionalism in discipline Duplication of facilities and job functions Less efficient use of resources

I.14 Weak Matrix Organization

Reference : PMBOK

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Key Points: Team members report to Functional Manager Team members do project work in addition to normal departmental work Power rest with the Functional Manager Project Manager plays a role of: Project Expeditor: Can not make any decision. Staff assistant and Communication Coordinator Project Coordinator: Similar to Project Expeditor except has some power to make decision.

I.15 Balanced Matrix Organization

Reference : PMBOK

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Key Points: Two Bosses Team members report to Project Manager and Functional Manager Team members do project work in addition to normal departmental work Power is shared between the functional and project manager

I.16 Strong Matrix Organization

Reference : PMBOK

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Key Point: Power rest with the Project Manager

I.17 Project Management Process

Reference : PMBOK

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The project processes are performed by the project team and generally fall into one of two major categories: Project management processes ensure the effective flow of the project throughout its existence. These processes encompass the tools and techniques involved in applying the skills and capabilities described in the Knowledge Areas. Product-oriented processes specify and create the projects product. Product-oriented processes are typically defined by the project life cycle (as discussed in Section 1.9) and vary by application area.

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I.18 Five Project Management Process Group

Reference : PMBOK

The process flow diagram provides an overall summary of the basic flow and interactions among Process Groups and specific stakeholders. A Process Group includes the constituent project management processes that are linked by the respective inputs and outputs where the result or outcome of one process becomes the input to another. The Process Groups are not project phases.

I.19 Project Management Process Groups and Knowledge Areas Mapping

Reference : PMBOK

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I.20 Team Management

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I.21 Project Development Management Phase

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I.22 Earn Value Management

Link : EVM

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I.23 Oil and Gas Industry Regulation

1. 2. 3. 4.

PTK-037 POD PTK-038 WP&B PTK-039 AFE All procurement activities are bound by BPMIGAS Regulation on Supply Chain Management for PSC No. 007-REVISI-2/PTK/I/2011 - Providing guideline on supply chain management, procurement of goods and services, asset management, custom, and project management in BPMIGAS/PSC/JOBTAC. In general, all purchases of goods and services are done by either tender or direct selection/direct appointment (with certain requirements) and with only suppliers which are registered locally. Highlights in the procurement (goods & services) regulation guidelines : - Tender Plan and Contract Award > $5M needs BPMIGAS approval

Non compliance to the procurement regulation will result to non-cost recovery and may lead to disciplinary action to the PSCs personnel.

Link : POD, WP&B dan AFE http://www.skspmigas-esdm.go.id/

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PART II INTRODUCTION TO PROJECT INTERFACE MANAGEMENT IN OIL AND GAS INDUSTRY

II.1 Subsea Interface Management Overview

Typical Subsea Interfaces:

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II.3 Interface Management Overview

Definition of Interface :
An interface is the place at which independent systems meet or communicate with each other.

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It is an interaction of crossproject Delivery Team members necessary to exploit the synergy that is possible by having the right people engaged in communication. This dialogue is focused on ensuring that project identifies and implements the best solutions effectively.

Multidiscipline Communication Its Colorful

Communication is the key in Project Execution

II.1 Interface Management Overview

Interface Management Plan : Its builtin & integral part of overall Project Management. Supports Project Manager for project execution ontime & within budget. The responsibility is entrusted to Project Interface Engineer. Is developed for Client, Contractor(s) and subs (suppliers/vendors). Applicable for project lifecycle : PreFEED/FEED, Detailed Engineering, Procurement, Construction, Installation (EPCI). This presentation summarizes the scope of Interface Management, procedure, systems & processes. On megaprojects, how it is implemented? Across Continents in different time zones and in multicultural environments? And, finally the . . . . Key to successful interface is frequent and effective Communication.\ Is utilized to manage the interfaces between all parties involved during project life cycle. Is employed to incorporate process, tools and organizational structure. Later in the project the interface system is developed to incorporate delivery control, status of equipment, fabrication, installation and finally the management of lesson learned.

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II.2 Interface Management vs Project Management Process

Interface Management Encompasses Entire Project Process Group :

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Interface Management Encompasses Entire Project Phases:

Interface Management Cover s Nine Knowledge Areas Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management

Project HR Management Project Communications Management Project Risk Management Project Procure Management

II.3 Interface Categories

External Interfaces: External Interfaces Occur between Contractor & Client and their external org /entities. Outside of the Contractors responsibility (If specified by Client). Cross scope boundaries of two or more Delivery Teams and/or Development Systems, (Ex. PL contractors for Export Lines, etc.)
PS : For Client and their sub-contractors these are internal interfaces.

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Internal Interfaces: Internal Interfaces Occur within work areas of Contractors responsibility. Allow flow of information, identify Receiving and Providing Occur between the disciplines, e.g., Engineering, Construction, Quality, Procurement, Project Services, Commissioning, etc.
PS : This includes Project Controls, Document Controls and any of Contractors suppliers / vendors.

II.3 Interface Types

Interface Types:

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Tangible or Hard Interfaces Have a physical connection such as a structural steel connection, pipe termination, or cable connection, Ex. TieIn Points. Intangible or soft interfaces Involve only the exchange of information such as design criteria, clearance requirements or utility needs between Delivery Teams or between a Delivery Team and an external party. Technical interfaces Are tangibles or hard interfaces that occur within structures, systems and equipment, Ex. TieIn Points. Execution interfaces Occur when different contractors conduct their scope of work in series with interfaces that are dependent on each other or simultaneous when concurrent activities impact each other. (Here Construction Manager is in lead). Organizational Interfaces Result in a significant loss/gain in schedule or capital to the originating Delivery Team or to the project in general. Critical interfaces Result in a significant loss/gain in schedule or capital, those not performing have potential to negatively impact project performance.

II.5 Interface Management Strategy

Interface Management Strategy

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Ensures all interfaces between the various parties are identified and controlled to ensure integrity between the different elements associated with the project.

Maintains uptodate Interface Registers and forms bridge between various parties involved in the execution of the Project.
Defines precisely the interface requirements associated with each party involved in a particular interface.

Defines the responsibilities for the parties involved with the interface so that individuals can be assigned and made accountable to followup the required actions.
Monitors the transfer of information relating to interfaces between the relevant parties, including Risk Identification & Mitigation Management, and VEP (Value Engineering & Constructability) Programs. Monitors the status of the interface actions to enable active followup if necessary by the Project Management Team, including potential change requests, variation requests, etc. In short, creates an environment to minimize loss of revenue.

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PART III SAMPLE CASE STUDY : CONCEPT SELECTION IN OFFSHORE DEEPWATER FIELD DEVELOPMENT

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III.1 Standard Concept Screening Methodology

Number of Wells & Plateu Rate

Well type

Vertical type

Cluster type

Offshore processing

None

Minim.Off. Treatment

Full Off. Treat.

None

Minim.Off. Treatment

Full Off. Treat.

Offshore structure

None -Subsea tie-back

SWP

SWP

FPU

None -Subsea tie-back

SWP

TLP

SWP

TLP

FPU

Final treatment location

New onshore plant

Existing plant

New onshore plant

Existing plant

New offshore

New onshore plant

Existing Plant

New onshore plant

Existing plant

New offshore

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III.2 FPU/FPSO vs SWP

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III.10 Comparison between SWP and FPU/FPSO concepts

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Characteristic Process Flowline system Expandability

SWP - NO condensate storage (Layout and safety constraints) - Longer infield flowline system

FPU - High capability for condensate storage - subsea layout more exposed to geohazards - More complex riser system - Larger deck area and load capacity permit easier expansion; - allows for storage of liquids

HSE

- Risks for personnel working offshore for long periods during hook up and commissioning activities (moreover possible SIMOPs)

- Flexible risers and umbilicals not protected from dropped objects - Flexible risers less protected from ship impact than SWP risers - Complex riser base for export line due to diameter limit on flexible riser (16 ID)

Subsea system Decommissioning Contractual scheme Schedule Operability/ piggability Constructability - 1000 days - Requires heavy decommissioning activities

- Residual value

- 800 days - Pigging of export line requires support vessel and subsea pig launcher because of complex riser base - Possible availability of existing FPU for reconversion

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PART IV PROJECT MANAGEMENT CERTIFICATION

IV.1 Project Management Professional Certifications

Professional Certifications in Project Management

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Professional Certifications in Project Management 1. IAMPI (Ikatan Ahli Manajemen Proyek Indonesia) IAMPI website: http://www.iampi.org/ 2. Project Management Institute (PMI) a. Certifies Associate in Project Management (CAPM)
A secondary degree (high school diploma or the global equivalent) AND At least 1,500 hours of project experience OR 23 hours of project management education by the time you sit for the exam.

b. Project Management Professional (PMP)

A secondary degree (high school diploma, associates degree, or the global equivalent) with at least five years of project management experience, with 7,500 hours leading and directing projects and 35 hours of project management education. OR A four-year degree (bachelors degree or the global equivalent) and at least three years of project management experience, with 4,500 hours leading and directing projects and 35 hours of project management education.

PMI website : http://www.pmi.org/ PMI Indonesia Chapter : http://www.pmi-indonesia.org

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The Deep Seafloor is The New Real Surface Offshore-Skills.com

Terimakasih Thank You

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BACK UP PROCESS GROUP

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I.18-a Initiating Process Group

Reference : PMBOK

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I.18-b PlanningProcess Group

Reference : PMBOK

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I.18-c Executing Process Group

Reference : PMBOK

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I.18-d Monitoring & Controlling Process Group

Reference : PMBOK

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I.18-e Closing Process Group

Reference : PMBOK

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BACK UP TATA KELOLA MIGAS

IV.3 Upstream Petroleum Arrangement

Upstream Petroleum Arrangements

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G B

G B

IV.4 Historical Perspective

License/Concession

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1960 -1970

G B

Production Sharing Contract

IV.5 Upstream Petroleum Contract

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*) Authors illustration - Modified from Society of Petroleum Engineers (SPE)

IV.5 Upstream Petroleum Contract

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Extra Deepwater
Extra Heavy Oil High Cost EOR Conventional E&P Development Field

Low Cost Brownfield

Technical Assistance

IV.6 The Role of NOC/SOC

Lower Risk Service Contract Iran (Buy back)

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Iraq (Technical Service Assistance) Percentage of NOC/SOC Participation?

Production Sharing Contract

Concession Royalty & Tax

Higher Risk

Indonesia Libya (EPSA) Kazakhstan

Angola Malaysia Nigeria DW

Algeria

Canada (unconv. heavy oil) Brazil Nigeria Russia Norway UK US GOM

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IV.7 Proven Reserves (By Country)

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IV.7 Proven Reserves (By Country)

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IV.8 Produksi Minyak Bumi dari KKKS 2013

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STATUS 27 JANUARI 2013 (BOPD)

Vico Ind., 15,236 PetroChina Jabung, 16,345 Mobil Cepu Ltd., 24,083
CICO, 26,910 ConocoPhillips Ind., 35,146 CNOOC SES, 36,331

41 KKKS Lainnya, 120,817

39,7%
Chevron Pacific Ind. PERTAMINA Total E&P

Chevron Pacific Ind.; 327.692

PHE - ONWJ CNOOC SES ConocoPhillips Ind. CICO Mobil Cepu Ltd. PetroChina Jabung Vico Ind.

PHE - ONWJ, 38,178

Total E&P; 64.788

PERTAMINA, 120,798

41 KKKS Lainnya

7,8%
Sumber: SKK MIGAS

14,6%
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IV.9 Profil Produksi Migas Indonesia

2000

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PEAK 1977
1683 1631 1624 15891587 1506 1519 1445 1407 1373 1336 1305 1362 1338 1288 1387 1303

PEAK 1995

Plateau stage
1575 1539 16121624 1574 1557 1537 1535 1500 1491 13971404 1364 1327 13021302 1264 1214 1316 1415 1366 1341 1586 1522 1501 14681462 1499 14981496 15001500 1460 1375

1500

1408 1373

1267 1252 1229 1147

1240

MBOEPD

1082

1056 966

1096 1062 1006 977 100010101010 949 945 902 861 830 900

1000
889 853 773 797 847 904

954

742

744

601 569 550 544 488 401 512

585

500

466

266

153 74 52 57 57 51 53 59 109 91 99

0 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Sumber: SKK MIGAS

*) Outlook per 29 Januari 2013

TAHUN

Minyak

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IV.10 Profil Produksi Migas Indonesia

2000

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PEAK 1977
1683 1631 1624 15891587 1506 1519 1445 1407 1373 1336 1305 1362 1338 1288 1387 1303

PEAK 1995

Plateau stage
1575 1539 16121624 1574 1557 1537 1535 1500 1491 13971404 1364 1327 13021302 1264 1214 1316 1415 1366 1341 1586 1522 1501 14681462 1499 14981496 15001500 1460 1375

1500

1408 1373

1267 1252 1229 1147

1240

MBOEPD

1082

1056 966

1096 1062 1006 977 100010101010 949 945 902 861 830 900

1000
889 853 773 797 847 904

954

742

744

601 569 550 544 488 401 512

585

500

466

266

153 74 52 57 57 51 53 59 109 91 99

0 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Sumber: SKK MIGAS

*) Outlook per 29 Januari 2013

TAHUN

Minyak

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IV.9 Model
Where do you apply the new model?

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New Blocks Offered

Existing Contracts

Expiring Contracts
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Deepwater Challenges in Indonesia Exploration and Exploitation : subsurface uncertainties, difficulties in seismic, geological modeling, reservoir engineering, reserve calculation Procurement : Scarcity of seismic survey vessels, deepwater drilling rigs Development : Difficulties and uncertainties in development concept selection, design and technological approaches Commercial : Huge capital investment, Economics enhancement target of production Legal : Timing of evaluation and approvals of POD are critical relative to the expiration of the exploration period
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