Capital project lifecycle management for oil and gas pdf

Opentext provides a fully integrated suite of oil and gas industry solutions designed to manage the complete engineering content lifecycle, from capital project creation through handover and commissioning, to asset operations and maintenance management integration. The science of project planning has something of a tenuous reputation. Asset management is challenge that remains and how to improve production output and oil recovery factors given the current environment and impending risk. This project set the tone for cloughs future, and today the company has a track record of oil and gas project delivery spanning 50 years.

Benchmarking data in the oil and gas industry for example. Maximo for oil and gas brings together traditionally separate business functions onto a single, integrated platform, and then adds a layer of. Archibald1 ivano di filippo2 daniele di filippo3 abstract a holistic systems perspective of projects and programs is required today to achieve the full benefits of. This is also available for download as a pdf 78 kb, pdf. Oil and gas infrastructure refers to the building facilities, installations, and equipment required by energy companies to run their operations. The vibrant upstream oil and gas industry is investing large amounts of capital, and investment which will lead to huge payouts in the future. Professional evidence and applied knowledge services helpdesk request short guide summarising the oil and gas industry lifecycle for a nontechnical audience emily darko overseas development institute october 2014.

Title 1 1 timelines and actors in the oil and gas industry lifecycle 1. The current oil and gas project management approach focuses on the critical path and increasingly detailed planning. Petroleum project changes and claims workshop ppcc. In this process we need to enter the life cycle which the project is going to follw during its operation. There are five phases to the life cycle of upstream oil and gas industry. To plan for global expansion in exploration and capital projects, oil and gas companies must be able to effectively screen initial proposals. Use sap software for the oil and gas industry to supply the worlds energy with greater control and help drive sustainable economic growth. The use of projects and project management in the oil and gas industry is becoming more and more important for all kinds of organizations. The imperative for a successful handover of capital projects the industry continues to struggle with the management of large capital projects, with budget and schedule overruns being all too common. In several cases, companies have built data standards into their eam system. Data are crucial across the lifecycle of the oil and gas industry.

Of course, budget and schedule overruns are not a new. For example, suppose you have a choice between two boiler units for your factory. Life cycle management for oil and gas water treatment solutions. Asset management plans amps define the implementation activities necessary to. The sixphase comprehensive project life cycle model including the project incubationfeasibility phase and the post project evaluation phase russell d. Jan 14, 2017 capital project lifecycle management for oil and gas6 a closer look at the focus areas for effective capital project life cycle management since the beginning of the upturn, oil and gas companies are demonstrating an increased focus on the entire life cycle of a project, including a deeper commitment to beginning the planning process earlier. Whereas project deployments can take anywhere from a few months to a. Project versus product life cycle management and models. The current period of low oil prices has led to increased sensitivity around escalating development costs and called into question the commercial viability of many projects.

Costs and productivity in oil and gas making the most of. Case study the client as it developed a new mining operation, this. Significant areas for improvement in large capital project management in the oil and gas industry were identified by a study idc energy insights conducted around the maturity of it systems adopted to manage said projects. Project planning is part of the capital investment cycle as set out in the capital project lifecycle. The exploration and production life cycle of oil and gas. Digitally transforming offshore oil and gas production. In light of this, oil and gas companies must consider refreshing their hr strategy and rethinking their hr operating. Information management strategy oil and gas authority. Opportunities to improve productivity exist all along the development and construction cycle. Professional evidence and applied knowledge services helpdesk request short guide summarising the oil. Mar 03, 2008 leveraging on soa, these capital asset management processes can be integrated and enabled on a single platform for the benefit of all players.

Project management for engineering and construction fpm22. It answers the fundamental questions about a project. The capital project lifecycle is defined by financial decision making, technical design and rigorous. The multitude of stakeholders involved in these complex. The entire project lifecycle benefits from the digital twin, starting at its inception during the customers concept development process. Managing capital projects with eppm for sap s4hana sap blogs. Data and information management lifecycle services optimize device performance in your. Management practices and digital technologies used by other industries can help oil and gas companies boost capital project productivity. This lifecycle can be defined by the user as a setup in the projects module. The oga has identified a route to improve performance across the lifecycle, as outlined in figure 1 below. Project management methodology and tools for oil field. Oil and gas megaproject development ey united states. The recently released iso 55000 series of standards for asset management clearly defines the importance of asset management plans. While defining the life cycle we need to specify the various phases the project is going ti go through in its life cycle.

Oil and gas project management training at jk michaels will equip delegates with the tools and techniques needed to deliver a successful oil and gas project. Oracles worldclass solutions for data management, business intelligence, asset management, project management, and supply chain, integrated in jd edwards enterpriseone, are transforming the oil and gas business. As oil and gas capital projects become increasingly complex and unpredictable, the tools and procedures used to plan and execute. Ernst and young 2012b capital project life cycle management for oil and gas. The oil and gas industry is using plm technology to help establish a flexible. Boiler a uses oil and boiler b can use either oil or natural gas. As a response, project hurdle rates across the industry have been recalibrated to the market expectation of a lower for longer oil price outlook. Project efficiency in oil and gas ey united states. Roger haddad, pe, pmp, is a certified project management professional with 30 years experience in project development and execution in the oil and gas and chemical sectors. This will become reality with unified engineering a new way to leverage your epc 4. Success story employees at marathon oil needed to be able to create, find and share. How often do large oil and gas capital expenditure capex projects really come in according to plan. Learn and share insights through blogs, discussions, and events and find out how sap can help your oil and gas business run better. Against the backdrop of a decline in both global economic conditions and corporate revenues, stakeholders are demanding improved return on investment, reduced risk and.

Evidence from capital projects in the process indus tries. Production in the oil and gas industry is the last but one phase during which hydrocarbons are extracted from an oil or gas field and then first money or revenue comes from selling the oil or gas. Within a framework of the capital management process, organizations have adopted new. Oil and gas enterprise management postgraduate taught. Dnv gl supports the oil and gas industrys leading players in identifying and controlling risk, enhancing safety and performance, and assuring reliability and efficiency at every stage of a projects development and operation. Life cycle management services are aimed at the entire lifecycle of a project, from frontend engineering and epc support to postcommissioning services during plant operations for years to come.

Project management training in the oil and gas industry managing the complexity of major capital projects in todays oil and gas landscape has never been more critical. Short guide summarising the oil and gas industry lifecycle for a non. We are able to mobilise from a wide technical discipline base, but also project management, cost estimation and delivery, that enables us to work in the owners engineer role on a short or longterm basis. In financial management, consideration of options within capital budgeting is called contingent claims analysis or option pricing. Oil and gas capital projects service offerings deloitte us. Specifically, the study focused on analyzing business practices.

Mike was previously contracted to eskom where he developed and managed the project life cycle model for new build capital projects. As oil and gas capital projects become increasingly complex and unpredictable, the tools and procedures used to plan and execute them should evolve. This paper was born out to critically identify and evaluate the depth of the project management triangle concept applied in the execution of p r o j e c t s tendered by the oil and gas companies. Figure 2 new capital project value destruction source. As oil and gas capital projects become increasingly complex and. However, achieving leadingclass oee scores has been shown to help dramatically improve bottomline results in capitalintensive industries like oil and gas production. What is the best way to create such a business platform that can be leveraged by all players in capital asset management business. Capital projects in todays oil and gas industry has a certain degree of. We offer scalable project quality management and risk solutions for owners and operators of oil, gas and chemical assets to help them reduce costs associated with construction while improving productivity, confirm predictable and competitive project performance, verify construction progress and results and reduce schedule variance and delays resulting in.

Stay up to date on the latest innovations, trends, and solutions by joining other oil and gas stakeholders. Every asset within an organization is acquired for specific business objectives. Taken together, the industry disruptions and fundamental changes to hr across industries described have deep implications for oil and gas companies hr functions. Infrastructure planning and delivery capital project lifecycle. This enables us to apply our cost management expertise to identify cost saving opportunities at all stages of the project lifecycle the table on the right showcases how we bring our expertise to bear at all. Assets go through various stages over its life cycle and in each of these stages it generates lot of data from operations, maintenance and condition monitoring systems. Implications for hr strategy and operating model in oil and gas. Asset management guidance and best practices managing utility assets in new jersey introduction the njdep is responsible for evaluating, managing and protecting new jersey s water resources to ensure that a safe, adequate, and reliable water supply is available to the public and to restore, enhance. Developing asset management plans life cycle engineering. Project management training in the oil and gas industry.

Integrated capital asset management for oil and gas sap blogs. This intensive fiveday course will be about the application of project management techniques and knowledge for the effective estimating, planning, managing, and control of a project. Upstream oil and gas producers need infrastructure to explore and extract energy resources. It is concerned with the establishment of the business need and all preplanning involved in developing a capital project. The development of any country depends on the development of the energy reserve through investing in oil and gas projects through onshore and offshore exploration, drilling, and increasing facility capacities. That should be relatively easy to accomplish since oil and gas companies are increasingly embracing digital capabilities such as machine learning or analytics to boost performance across the organization. Managing how data are collected, interpreted and published, and determining compliance with regulatory obligations is vital. Managing capital projects with eppm for sap s4hana. Indeed, 30% of respondents to a 2018 pwc survey said they had experienced cost overruns of 10%50% on their middle east capital projects. Oil and gas projects have special characteristics that need a different technique in project management.

Full project lifecycle services for oil and gas projects. Inappropriate project strategies for the project mega oil sands environment. Should it be driven by enterprises owning oil and gas assets. How to reduce costs and manage risk in the upstream oil. Project management institute and the boston consulting group, executive sponsor engagement, pulse of. Engineering, project management and specialist staffing solutions provider, providing innovative management and engineering consulting solutions for complex and highrisk operations and project types. Oil and gas megaproject development project development to fid the current period of low oil prices has led to increased sensitivity around escalating development costs and called into question the commercial viability of many projects. Executing capital projects in the mena energy industry much to. Project lifecycle management solutions, such as enterprise project portfolio. Decisions on how to implement hfe on any project is left to the discretion of the project management, provided the project has been assessed for hfe risk by someone with the. Oracle s cloud and onpremise portfolio management and project delivery solutions support best practices and improve outcomes across the asset lifecycle for such industries as oil and gas, utilities, nuclear, natural resources, and chemicals. If you are a facilities engineer, we refer you to our project management for engineering and construction fpm22 and project management for upstream field development fpm2 courses. Abs group datadriven oil, gas and chemical solutions. Life cycle management for oil and gas water treatment.

Exploration and production personnel with a background in geoscience, petroleum engineering or drilling should attend. Information lifecycle management in the upstream oil and gas. By making the right information available at the right time, ecm can help owneroperators, engineering. Certain traditional planning methods often result in poor project performance, and outside intervention is required to get back on track. Two digital enablers are particularly relevant for capital project acceleration. Delivering innovative, safe and reliable products and operations.

Covering all aspects of project management, primavera project portfolio management applications enable oil and gas companies to identify and select the right projects. In our management of projects, our capacity for innovation using tried and tested expertise. So here we can see that we have selected a template for a capital project as shown in the. Jun 29, 2016 in conclusion, the exploration and production life cycle of an oil field passes through various stages and each stage requires financial and technical commitment to realize the full potential of these projects for development. The msc oil and gas enterprise management is taught by industrybased experts, who bring with them the latest industry trends and techniques to ensure that what you learn on this programme is relevant to the needs of the upstream oil and gas industry today. Using the pdri methodology will help your project teams improve scope definition, become better aligned, and provide transparency on. Midstream producers have infrastructure to refine and process fuel. In order to be successful they must overcome these challenges and aim for business excellence. Over time the company has developed a reputation as a specialist in the delivery of technically and logistically challenging projects. How the oil and gas industry can improve capitalproject performance. However, achieving leadingclass oee scores has been shown to help dramatically improve bottomline results in capital intensive industries like oil and gas production. Teams need to track project schedules, resource allocations, customer specifications and all of the productprocess knowledge generated by the distributed value chain.

A billion dollar growth engine energy demand is expected to climb 30 percent by 2040, due largely to population and income growth, especially in the developing world. Project management suite that supports project roles for long to shortterm planning. Operational excellence in the oil and gas industry. The sixphase comprehensive project life cycle model including the project incubationfeasibility phase and the postproject evaluation phase russell d. The sixphase comprehensive project life cycle model. Project management total global homepage oil, natural gas. In oil and gas, if a compressor goes down, it reduces production, but the dynamics are more complex, so it is more difficult to measure the impact. Productivity has not developed in decades the average capital project schedule lags by 20 months and goes over budget by 80%. And in both instances they represent a longterm view of project economics and project portfolio management. Using the pdri methodology will help your project teams improve scope definition, become better aligned, and provide transparency on identified gaps.

Pdf project management in the oil and gas industry emmanuel. Oil and gas may have been slow to realize the potential of iot and digital. Sap eppm will support you to manage your projects more easily than ever before in an increasingly connected world. The british standard for project management bs6079. Managing capital projects with eppm for sap s4hana sap. Rogers professional career started in structural engineering and progressed through engineering and construction management, project management, and capital program. Original capital project with commissioned y2000 with honeywell scada 4000 km, 107cm dia, 15bm3 yr, 12 mpa.