INNOVATIVE E-ENABLED BUSINESS MODELS FOR L&T

HYDROCARBONS ENGINEERING

By
SHIRUY DAVER

J-009

CHAARUL CHANDRA

J-006

SAAD KHAN

J-042

ANUJA MAJUMDAR

J-022

HARMEET SINGH NAGPAL

J-024

COMPANY PROFILE:
LTHE operates as a wholly owned subsidiary of Larsen and Toubro Limited.
LTHE has integrated its strengths in process technology, basic and detailed Engineering,
modular fabrication, procurement, project management, construction and commissioning.

LTHE delivers 'design to build' world-class engineering and construction solutions on

turnkey basis in oil & gas, petroleum refining, chemicals & petrochemicals and fertilizer
sectors.

BASIC THEORY OF THE PROJECT:

There are three major sectors in the oil and gas industry:

Upstream: this involves exploration, drilling of exploratory wells, subsequent drilling and
production of crude oil and natural gas. This is referred to as the exploration and
production (E&P) business sector.

Midstream: this involves the transportation of oil around the world and the refining of
crude oil.

Downstream: this involves distributing the by-products of the refined oil and gas to
retail level.

LTHE OFFERINGS:
Hydrocarbon business sector consists of the following:

Hydrocarbon Upstream:
o Hydrocarbon Upstream business delivers services of a 1,500 strong professional
group dedicated to Engineering, Procurement, Installation and Construction,
(EPIC) services for the upstream offshore E&P industry, through the Strategic
Business units, subsidiary and JV company.
o L&T has successfully delivered EPIC services for many projects in the upstream
hydrocarbon sector over the last two decades, in India, Middle East, Africa,
South-East Asia and Australia to reputed international companies like ONGC,
British Gas, Songas, Qatar Petroleum, GASCO, Petronas, Shell, MODEC, Technip,
Maersk Oil and Bunduq.

Hydrocarbon Mid and Downstream:

o Hydrocarbon Mid & Downstream SBG provides a wide range of EPC solutions for
turnkey projects green fuel / fuel quality up-gradation, residue upgradation;
cracker complex, polyolefins & aromatics projects for petrochemical industry;
hydrogen, fertilisers, gas processing, reformers & cracking furnaces; crosscountry oil & gas pipelines, gas gathering stations and crude oil terminals.
o Range:

Refinery Projects

Petrochemical Projects

Fertilizers

Gas processing projects

Modular Process Plants

Hydrocarbon Construction and Pipelines:

o HCP Strategic Business Group is one of three SBGs of Hydrocarbon Business of
L&T.
o HCP undertakes turnkey construction of:

Refinery, Petrochemicals, Chemical Plants,

Fertilizers, Gas Gathering stations,

Underground Cavern storage system under Process Plant Construction

Business Unit

Oil and Gas Cross-country Pipelines & Terminals under Pipelines BU.

Modular Fabrication Facilities

E-ENABLING:
With the advent of new technologies and innovation under the same, organizations are
investing in best practices to continuously make a move towards simple operations one step at
a time.
With the recent boost in the Internet technology, LTHE has had a share of these by leveraging
the opportunities provided by integrating CAD, Enterprise Resource Planning (ERP), Project
Scheduling and other systems.
The Key business critical application LTHE uses is:

SAP ECC6.0
PRIMAVERA
KNOWLEDGE MANAGEMENT
PROJECT CORRESPONDENCE APPLICATION (ECNORR)
EALPS+(SITE/CONSTRUCTION MANAGEMENT)
Centenary

ENGINEERING PROCUREMENT CONSTRUCTION (EPC):

EPC stands for Engineering, Procurement, and Construction and is a prominent form of
contracting agreement in the construction industry.

Companies that deliver EPC Projects are commonly referred to as EPC Contractors.
The engineering and construction contractor will carry out the detailed engineering
design of the project, procure all the equipment and materials necessary, and then
construct to deliver a functioning facility or asset to their clients

Normally the EPC Contractor has to execute and deliver the project within an agreed
time and budget, commonly known as a Lump Sum Turn Key LSTK Contract. An EPC LSTK
Contract places the risk for schedule and budget on the EPC Contractor.

The Project Owner or client to the EPC Contractors will normally have a presence in the
EPC Contractors offices during the execution of the EPC Contract.

ENGINEERING PROCUREMENT CONSTRUCTION (EPC):

ENGINEERING PROCUREMENT CONSTRUCTION (EPC):

Following are the components of this section:

Process simulation, process flow diagrams

Equipment identification-material requisition
Structural designs-equipment layout drawings
Instruments and control-Process control system
Electrical-Electrical distribution, Electrical control system
Safety-Fire and gas detection layout

ENGINEERING:
Following are the components of this section:

Process simulation, process flow diagrams

Equipment identification-material requisition
Structural designs-equipment layout drawings
Instruments and control-Process control system

 Electrical-Electrical distribution, Electrical control system

Safety-Fire and gas detection layout

PROCUREMENT:
Following are the components:

Inquiry/call for tender

Short listing
Bid analysis
Clarifications
Negotiations
Purchase Order
Expediting- to ensure project is delivered on schedule
Inspection
Delivery- manage logistics of delivering on site
Warranty period

CONSTRUCTION:
Following are the components:

Earthworks
Pipeline
Buildings
Civil work
Underground Network
Plant erection
Equipment installation
Field instrumentation installation

 Electrical equipment connection

Cable connections
Control room consoles installation
Testing
Commissioning

PAST SEQUENTIAL EXECUTION:

TODAY CONCURRENT EXECUTION:

PROJECT MANAGEMENT IN AN EPC PROJECT:

Due to the simultaneous execution of functions in the 3 phases, managing an EPC project
has become more complex.

The EPC contractor bears the full cost of a delay in the project, and failure to deliver as per
contract terms.

Thus, it is of utmost importance to include a separate project manager, who ensures that
the risk factor in projects is reduced.

A well-managed EPC project results in higher efficiency and better productivity.

PRIMAVERA PROJECT MANAGEMENT:

Oracle offers best-in-class project portfolio management solutions focused on the missioncritical requirements of project-intensive industries.
Features:

Balance resource capacity

Plan, Schedule, and Control complex projects
Allocate best resources and track progress
Monitor and visualize project performance vs plan
Conduct what-if analysis and analyze alternative project plans
Primavera solutions help oil and gas companies upstream, downstream, midstream and oil
field services to succeed in this competitive market and be able to quickly adapt to change,
while carefully managing projects, optimizing resources, and controlling project costs and risks.

STAAD PRO:
STAAD.Pro allows structural engineers to analyze and design virtually any type of structure
through its flexible modeling environment, advanced features and fluent data collaboration.

World's #1 3D Structural Analysis & Design Engineering Software

The commercial version STAAD.Pro is one of the most widely used structural analysis and
design software. It supports several steel, concrete and timber design codes.

It can make use of various forms of analysis from the traditional 1st order static analysis,
2nd order p-delta analysis, geometric non-linear analysis or a buckling analysis. It can also
make use of various forms of dynamic analysis from modal extraction to time history and
response spectrum analysis.

INTOOLS (SMARTPLANT INSTRUMENTATION):

SmartPlant Instrumentation the industry-leading instrumentation solution helps EPCs
better design plants.

Owner operators can prevent failure by better managing and storing the history of your
instrumentation and control system as well as prevent unscheduled shutdowns by better
planning maintenance.

This solution also assists in planning plant expansions or control system modernizations.
The main purpose of this software is to manage a database of all the instruments of your
plant, in it you can handle, data sheets, calculations, loop drawings, bill of materials,
maintenance, Management of Change, etc.

FLARENET:
FLARENET enables the engineer to perform steady-state design, rating or debottlenecking
of single or multiple flare and vent systems.

A typical model of the flare or vent system may comprise of several hundred interconnected elements including relief valves, control valves, piping, connectors (including
expansions, contractions, standard/sweep tees and orifice plates) separators and flare tips.

The program can calculate minimum sizes for new flare systems or evaluate alternatives to
remove bottlenecks in existing relief networks.

Graphical user interface with network drawing

Interfaces to Excel, Access, and drafting packages
Design violation report summarizing all cases where the design constraints have been
exceeded.

@RISK:
@RISK performs risk analysis using Monte Carlo simulation to show you many possible
outcomes in your spreadsheet modeland tells you how likely they are to occur.

It mathematically and objectively computes and tracks many different possible future
scenarios, then tells you the probabilities and risks associated with each different one.

This means we can judge which risks to take and which ones to avoid, allowing for the best
decision making under uncertainty.

@RISK also helps you plan the best risk management strategies through the integration of
RISK Optimizer, which combines Monte Carlo simulation with the latest solving technology
to optimize any spreadsheet with uncertain values.

CITRIX:
The diversity in todays workforce has forced multiple desktop, mobile, application and data
infrastructure purchases that each require its own management and support.

Citrix Workspace Suite addresses this challenge with a single, flexible solution that can
streamline application and desktop deployment and lifecycle management to reduce IT
costs.

Citrix Workspace Suite delivers secure access to apps, desktops, data and services from any
device, over any network to empower mobile workers with the freedom and flexibility to
choose how they work.

Citrix Workspace Suite is the most complete, integrated mobility solution for helping people
and business become more productive with an on-demand mobile workspace.

SOLUTION RISK MANAGEMENT MODELRISK INDUSTRIAL:

ModelRisk is a Monte Carlo risk analysis and Optimization add-in for Microsoft Excel.
It offers a quantum leap in the development of risk analysis software.
Key features not available in @risk:
o Correlation Fitting

o Database Connectivity
o Extreme Value Modelling
o User Defined Functions Error Analysis
o Free Report Viewer

SOLUTIONS MOBILITY AUTODESK BIM 360 GLUE & FIELD:

Anywhere, anytime access to the most recent project models and data throughout the
project lifecycle, BIM 360 helps review projects and resolve coordination issues faster, while
advancing the construction layout process.

Provide field layout personnel with the most up-to-date coordinated model to conduct
layout activities.

Easily communicate and share issues collected in the field directly in the coordinated model
for action by the VDC team in the back office.

 Create and automatically distribute work-to-complete lists for trades and other parties.
Compile quality, safety, or commissioning checklist results for specific trades, areas of work,
and/or time periods.

BOOMING TECHNOLOGY INTERNET OF THINGS (IOT):

The invention of advanced sensing devices combined with the connectivity technologies,
smart systems and machine to machine integration is building the Internet of Things.

A high degree of system reliability is needed for EPC projects and the ability to predict
potential faults or breakdowns will undoubtedly provide valuable insight on time and
resources.

By using smart sensors that can communicate with the manufactures cloud based analytics
system, the product vendor would be able to assess the working condition and service
requirements of equipment in advance.

 Routine replacement of parts as per scheduled maintenance cycles, such as once in two
years, can be avoided as long as the equipment functions at optimal level.

SAP R/3 ENTERPRISE CENTRAL COMPONENT (ECC) 6.0.:

The Project Owner or client to the EPC Contractors will normally have a presence in the EPC
Contractors offices during the execution of the EPC Contract.

SAP ECC 6.0 harmonizes your business strategies and processes to meet the most
demanding market and industry standards and goals

It cover functions such as Finance, Materials Management, Warehouse Management,

Production Planning, and Environment Health & Safety & Business Warehouse 7.1.

This ensures that collaborative design, reduced transaction cycle time and better service
levels.

E-PROCUREMENT:
Web based application
Enables L&T Hydrocarbon buyers to carry out online procurement transactions with its
suppliers using SAP ECC 6.0 as the backend.

Enables authorized suppliers to view the Request For Quotations (RFQs) along with
attachments, submit their offers along with attachments, access purchase orders and give
order acceptance remotely using this website.

It can be viewed and accessed only by the authorized users only and thus ensuring
confidentiality of data.

GLOBAL SOURCING SYSTEMS:

Enables L&T hydrocarbons to create their Own Procurement Workflow according to the
need

Provides extensive database with pricing history

 Identify low-cost competent suppliers, leverage purchase volume.

MARKET LEADERS:
Procurify is the current market leader which not only make the procurement process easy
but also give benefits like budget management, fraud prevention and real time tracking

Fraxion offers engagement as it empowers management to have visibility of indirect spend

across the entire procurement lifecycle: from sourcing to invoicing

Identify low-cost competent suppliers, leverage purchase volume.

SOLUTION-HANA (HIGH PERFORMANCE ANALYTIC APPLIANCE):

Revolutionary platform thats best suited for performing real-time analytics, and developing
and deploying real-time applications.

Used to check on material availability in real time at exploded-view level.

This will help company to better understand the production pattern and can use this
knowledge to improve the procurement process.

STRUCTURAL MODELLING:
Prosteel
o Enables you to create or import a complete 3D model (columns, beams, footings,
walls, slabs, etc.) for any kind of structural projects

Xsteel
o 3D building information modeling software used in the building and construction
industries for steel and concrete
o The software enables users to create and manage 3D structural models.
o Guides them through the process from concept to fabrication manage a
database of all the instruments of your plant

 Frameworks
o Add value to your modeling process by integrating structural tasks with the plant
creation process
o Enhances the capabilities of Micro Station because it automates many structural
design and engineering functions

PIPE STRESS ANALYSIS:

CAESAR II
o Used within the piping industry to define and evaluate system models gather
accurate data from your design through strong bi-directional links to CADWorx
piping CAD software.
o Graphics allow you to view animated displacements for any stress load case
o Analyze response to deadweight, thermal, and pressure loads
o Measure the effects of support settlement, wave and seismic loads, and wind
o Select proper springs for necessary support
o Evaluate support lift off, friction, and gap closure

PIPING MODELLING:
PDMS (Plant Design Management System)
o Customizable, multi-user and multi-discipline, engineer controlled design software
package for engineering, design and construction projects
o Not limited to offshore and onshore

SOLUTION - IFS:
Large corporations have the multi-national, multi-language, multi-site, multi-currency and
multiple sets of accounting and tax-rule capabilities they need

IFS Applications manage the entire construction

 is a flexible, component-based industry solution that can be deployed standalone,

integrated with existing corporate enterprise systems, or as a comprehensive IFS
Applications deployment

SOLUTION - PENTA:
Oil and Gas companies often require contractors to obtain daily customer authorization of
work performed, including labor, equipment and materials

It manages the complete daily LEM process cycle, from field data collection, customer
approval via Sharepoint site, to daily performance analysis.

SOLUTION - PLANGRID:

SOLUTIONS: