IPTC 16556

Platong Gas II Project –World Class Project Execution Through Processes

and People
R. Maleevat, S. Sae-Seai, Chevron Thailand E&P Ltd.; K.S. Werner, Chevron Corp

Copyright 2013, International Petroleum Technology Conference

This paper was prepared for presentation at the International Petroleum Technology Conference held in Beijing, China, 26–28 March 2013.

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Abstract

In October 2011, Chevron Thailand Exploration and Production Limited (CTEP) reached an important milestone
with the commissioning and start up the Platong Gas II Central Process Platform (CPP). The CPP is able to deliver
up to 420 MMSCFD of natural gas and 22,000 BPD of condensate with full water injection facilities. This
represents a 20% increase in total gas production from CTEP operated assets, as well as a 10 % increase in the
overall gas production for the Kingdom of Thailand. Importantly, this was achieved without compromising large
base business operations which deliver up to 1600 MMSCFD of natural gas to Thailand. The $3.1 billion project
was successfully delivered by the project team after overcoming many challenges which could have adversely
impacted both cost and schedule. Significant challenges included: the hi-jacking of structural steel, high casing
wear in wells during drilling and development, and a pipeline integrity event.

In the face of these challenges, the project went from Final Investment Decision (FID) in March 2008 to full
production in October 2011 with “best in class” on safety, project execution and reserve discovery performance.
With the largest float over topside ever installed by Chevron (19,200 tons) and the initial 4 remote production
platforms with 92 drilled wells, the project team achieved a flawless, world class start up to full production within
two weeks.

Each of the challenges faced by this project was overcome by delivering high performance through people and
processes aligned with the Chevron Way. The execution plan focused on putting the right mix of experienced
people together so subject matter experts (both internal and external) from engineering and base business
operations could effectively combine and successfully deliver the project. The value placed around collaboration
with the asset team and offshore operations team ensured a seamless transition to operations. Standard
processes employed included the disciplined application of reservoir management best practices, leading drilling
technology, well head platforms and pipelines fabrication and installation, and Chevron’s MCP project
management tool kit. Together, people and processes led to a safe and world class project and positioned Platong
Gas II as a model of Chevron Project execution via an integrated multifunctional team.
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Project perspective - Increasing domestic gas supply by 10% to the Kingdom of Thailand

Platong Gas II project is an extension of existing Platong oil and gas processing facilities in the Gulf of Thailand.
With the planned installation of a third gas export pipeline by PTT an opportunity was created for Chevron Thailand
to increase gas sales. In late 2007, a Production Period Extension was negotiated (to 2022); and in December
2007, a Gas Sales and Purchasing Agreement (GSPA) was executed. The signing of the GSPA committed
Chevron Thailand to first delivery of gas no earlier than December 2010, but no later than December 2011.
PLCPP2 is designed to take associated gas from existing oil production at approximately 160 MMSCFD and
supplement that with new gas reserves from the project to meet the contractual obligation of 380.

The project scope includes one central processing platform (PLCPP2), one living quarter platform (PLLQ2), 31
well head platforms (WHPs) over the life of the field, bridges connected to existing LQ and Oil processing platform,
in-field flow lines and major trunk lines and brown field modification. The brown field scope was mostly related to
revamp of oil process platform number 2 (PLOCPP2) and existing hub platform modification. Figure 1 shows the
overall Platong complex including the new facilities PLCPP2 and PLLQ2.

The PLCPP2 is a float over design with separation equipment, gas compression facilities, gas dehydration unit,
turbo expander, mercury removal unit and sales gas metering with gas export capacity of up to 420 MMSCFD.
The liquid treatment facilities include a condensate separation and stabilization system with a capacity up to
22,000 BPD. There is a produced water pre-treatment and full water injection facility of 60,000 BPD.

Figure 1 – the overall Platong complex facilities, showing PLCPP2 connected to existing oil and gas processing platform and PLLQ2

Platong Gas II resulted in an approximately 20% increase in total gas production from Chevron operated assets
and a 10 % increase in the overall gas production for the Kingdom of Thailand. Importantly, this was achieved
without compromising large base business operations which deliver up to 1600 MMSCFD of natural gas to
Thailand.

The Date of Commencement of Delivery (DCD), which is effectively the contractual first gas date, was mutually
agreed by Chevron Thailand and PTT as 1st November 2011. However, the project was successfully exporting gas
on 20th October 2011, 11 days ahead of the contractual milestone. In terms of safety performance, according to
the Independent Project Analysis (IPA) assessment during close out evaluations, the project is rated significantly
better than industrial standard. The recordable incident rate was 0.22 against industrial average of 0.80. On the
cost side - the design basis of structure part that was designed to withstand 10,000 years-storm event, safety in
design specification and challenging in fabrication aspect contribute the relatively higher than industrial average on
cost. Nevertheless, the facilities cost growth turned out to be 7%, which is below the industrial average of 13%.
The project schedule was benchmarked against the industrial average, and reveal that it was 6% longer than
industrial average due to the global economic downturned during the time of execution, the structure steel piracy
and the customer pipeline interruption during the starting up.
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The Team Development Index (TDI) measures processes that enhance team performance, improve project
definition, increase Value Improvement Process (VIP) and drive project outcomes. The project was rated as “good”
against the “fair” industrial benchmark. This TDI equally weighs the four components – project objectives, team
composition, roles and responsibilities and risk analysis, and project implementation process.

Subsurface development – Adjusting the program for total value management

The Platong Gas II subsurface team worked within the existing asset teams and leveraged the same processes
that have made the Gulf of Thailand Wellhead factory so successful. At the time that Platong Gas II was drilled,
eight rigs were active for Chevron throughout the Gulf of Thailand. Four of the rigs were used to drill Platong Gas
II projects. Each of the Platong Gas II projects was scheduled so that they provided gas “just in time” for startup
requirements and projects finished drilling within months of the startup date.

Figure 2 – Typical geological map showing Platong Gas II well head platform locations and the pipeline network in Platong field

Structurally, the Platong Gas II area lies at the junction of several north-south trending graben systems. The
graben systems correspond to both the hydrocarbon kitchen (from local coals) and the trapping system.
Thousands of reservoirs are located along structural highs associated with normal faults associated with the
grabens. The reservoirs are associated with fluvial deposition and lie between approximately 6000 ft tvdss and
10,500 ft tvdss. This is presents a significant challenge: to image reservoirs with the current seismic data and drill
“high and tight” wells with a regular spacing along trapping faults. Reserve estimates are also a challenge given the
large number of reservoirs. Over 500 reservoirs were penetrated in the 92 drilled wells.

In Early in 2009 the scope of the project changed due to the adoption of a different well head platform design for all
Chevron Gulf of Thailand projects. The standard Gulf of Thailand platform design went from 20 to 24 slots
platforms. The original AFE was written assuming 100 wells would be required for start up from 5 platforms. The
new platform design allowed Platong Gas II to reduce the number of start-up platforms and drill only 4 fewer wells.
Estimated reserves and deliverability from 96 wells versus 100 wells were sufficient to proceed with one less
platform deferring significant cost. In addition, 4 more wells were dropped in order to allow other assets to use the
rig during a time of high gas demand. This is unique situation of Thailand operation of which the development of
new projects, with ongoing base business are dynamically managed to ensure that the total value chain of
business will be maintained and sustained.

The results from the drilling campaign have been excellent. The first of 92 wells drilled from four well head
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platforms spud in December, 2010. The team safely finished drilling the last well less than a year later in October,
2011. The wells were drilled to an average depth of 13,000 ft MD and 9750 ft TVDSS and the total Platong Gas II
footage drilled in less than a year exceeded 375 km.

Actual total reserves came within 1% of expected reserves based on the original AFE. Actual capacity of the wells
to deliver gas exceeded expectations and the gas quality exceeded requirements. Average predicted deliverability
of wells was 3.5 MMSCFD and actual deliverability came in 4.3 MMSCFD. Success in reserve estimating can be
attributed to Chevron’s statistical approach which estimates reserves based on actual performance of analogous
wells drilled in similar geologic settings. Finally, wells were drilled in less time than expected thanks to fit of
purpose pressure logging, optimizing TD on later wells, and using LWD triple-combo when possible.

Technology and Challenges – Leverage best practices and embedded safety in design

On the surface side – The project has been using the most up to date technology and leveraged operating
experiences in the gas and oil processing. During the design, the 3-Dimension piping and structure modeling were
consistently used during the FEED and detailed engineering design.

Figure 3 – The Gas II 3 Dimension piping and structure model

The facility is designed to accommodate slugging from the pipeline via inlet separation capacity up to 4 times of
riser volume, or 105 cubic meters. Several workshops were held to improve design. For example, because of the
Value Improvement Process (VIP) workshop multi-cyclone separators were added to the design, in order to
prevent wax accumulation to downstream process equipment. In addition, from the Energy Conservation
workshop, a decision was made to use the waste heat from the gas turbine exhaust to heat up the close circuit
synthetic heating media (called Hot Oil) used for the whole processing platform.

A fully automatic control system was employed for the project. The segregation between Process Control System
(PCS) and Safety Instrumented System (SIS) ensure high integrity of control and safety system. The Foundation
Field Bus (FFB), which is the all digital communication system, was used for the PCS to support complexity and
expandability of current and future operation, and enhancing system safety. This will allow the facility to be viewed
and control from onshore, as a part of onshore Equipment Decision Support Center (EDSC).

PLCPP2 is currently the largest float over topsides ever installed by Chevron and its design focus is on safety and
reliability. Critical structural members and pressure vessel supports and saddles were coated with Passive Fire
Protection (PFP) material, the blast protection wall was designed to sustain up to 1 bar blasting pressure – these
are major parts of the project fire and gas design philosophy. The company standard on Safety in Design (SID)
was the foundation of surface design development, For example, the mechanical handling philosophy which
focuses on the accessibility to major equipment to ease maintenance during normal and major overhauls. In terms
of reliability and availability, the PLCPP2, year to date reliability performance of the facility is 98% (up to July
2012).
IPTC 16556 5

Adopting efficient processes that allow for factory-style production allowed Platong Gas II project to meet and
exceed expectations on technical and project execution metrics. . The Platong Gas II project benefited from the
many years of experience in the Gulf of Thailand drilling hundreds of wells every year for small reservoirs and
applying a consistent, repeatable approach while continually making small improvements to the process. Figure 4
below illustrate the simplified “just in time” well factory model associated with production planning, and the generic
drilling performance which yield the faster and cost effective wells.

Figure 4 – The well factory model associated with planning system and drilling performance in the Gulf of Thailand

On the subsurface side, the biggest challenge that the subsurface team faced during the drilling phase was
unusually high casing wear. During the drilling of two Platong Gas II platforms, unusually high amounts of metal
shavings were identified. Caliper logs were run showing varying degrees of wear of the intermediate casing, and in
some instances casing was pulled and wellbore sections were re-drilled. The drilling, procurement and subsurface
teams worked together to solve the issue and complete a root cause analysis. Guidelines were put in place to
monitor the amount of shavings and stop drilling, if necessary. Best practices to prevent casing wear have been
adopted including running pre-drill casing wear simulation, using thicker intermediate casing, and using smooth
hard-banding drill pipe.

An interesting secondary challenge that the subsurface team faced was related to mitigating water injection hazard
from a nearby platform. Ongoing produced water injection into wells of a nearby platform had caused elevated
pressures in a number of wells. The team recognized this risk from look-back reports of other drilling projects. The
subsurface team worked with offshore personnel to shut in higher pressure wells and monitor bottom-hole
pressures for those wells. In addition, the subsurface team worked with drilling to identify potential intervals with
increased pressure and planned the first batch of wells to investigate the area where pressure might be an issue.
During the drilling campaign, several wells did indeed encounter high pressure water sands that extended 7 km
away from the injection wells and 800 ft downdip, quite far for a fluvial environment.

Project execution – Excellent safety performance in the volatile situations

The project was constrained by two external factors; the limit on the gas off take rate - dictated by the space
availability in PTT’s pipeline and the limit on the production period - dictated by the end of Chevron’s concession in
2022. While schedule was an important value driver for the project, achievement of quality was also a key concern.
The Gas Sales Contract is a “take or pay” agreement and thus reliability of the production operations is essential.
Achieving schedule at the expense of quality would be a losing proposition. The project team established (in
priority) the drivers for the project to be Quality, Schedule and Cost. As always, Safety is a “given”, and is much
more important than priorities - it is a core value.

Front-End Engineering Design (FEED) commenced in November 2006, and was completed just 12 months later.
To ensure schedule preservation, commitments were made for long-lead items in September 2007. In addition a
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letter of authorization (LOA) was issued to the Engineering, Procurement, Construction and Installation (EPCI)
contractor in November 2007 to permit FEED verification to commence and allow for the transition into detailed
design prior to committing to the full EPCI contract. Final decision Investment (FID) was achieved on 5th March
2008, and exactly 3 weeks later the EPCI contract was formally executed.

The table below identifies the main locations for each of the component parts of the project.

Table 1
Platong Gas II Project Components
Component Part Location
Front-End Engineering Design Melbourne Australia
PLCPP2/PLLQ2 Design & Procurement Singapore
Brown Field Design & Procurement Singapore & Thailand

PLCPP2/PLLQ2 Fabrication Indonesia

Drilling and Completions Thailand
Well Head Platform Design, Procurement, Fabrication & Installation Thailand
Flowline / Pipeline Design, Procurement, Fabrication & Installation Thailand

Brown Field Fabrication and Installation Thailand

PLCPP2 & PLLQ2 Hook-up and Commissioning Thailand
Asset management for subsurface Thailand

Project Safety Performance:

The Platong Gas II Project safety performance was truly world-class. The LTIFR was significantly below the
industry average. The performance of the project team was recognized at the highest levels within the Chevron
Corporation. The project was the recipient of the Contractor of the Year Award 2 years in a row: –2010 and 2011.
The project implemented the Incident and Injury Free (IIF) program of which yield the safety culture establishment
both inside and outside the fabrication yard. There were safety initiatives put in place and the community
engagement e.g. helmets for kids; building homes; gas tank campaign; driving lessons for school kids. The table
shows the safety performance at 2011 year end as well as benchmarking to the industrial

Table 2
Platong Gas II Project Safety Metrics as of 2011 year end

Safety Performance: 2011 Current Year To Date Project To Date

Metrics Month

Days way From Work Rate (DAFWR) <0.038 0 1/0.07 2 / 0.02

Motor Vehicle Crash (per 1mm miles) 0.06 0 0 0
Total Recordable Injuries (TRIR) <0.24 0 3 / 0.21 8 / 0.09
Total Workforce Hours* 7,300 2,925,308 17,194,374

*Total summary = FEED + Chevron PMT + Contractors + Other = 115,047 + 640,703 + 16,418,247 + 20,377 = 17,194,374
IPTC 16556 7

Table 3
Platong Gas II Project Safety Metrics Summary*
Platong Gas II Project
Industry
Outcome Metric Estimated at
Actual Average
Authorization

Safety ( per 200,000 field hours)

1
Recordable Incident Rate 0.24 0.22 0.80
2
DART Incident Rate Not applicable 0.25 0.31

*
Draft Close out evaluation of the Platong Gas II project – Independent Project Analysis, Incorporated – December 2011
1
Industry safety metrics are as reported at the March 2011 annual meeting of the Industry Benchmarking Consortium (IBC 2011). The IBC is a
voluntary association of owner firms in the pharmaceutical, consumer products, petroleum, chemicals, and minerals processing industries
similar to the UIBC.
2
DART: A work-related injury or illness resulting in days away from work, restricted duties, or job transfer.

EPCI Contract Strategy

Due to the finite term of the current concession agreement coupled with off take constraints, delays to the first gas
date would impact project economics. As such, it was clear that a unique contracting strategy would be required to
capture this opportunity.

Following a detailed qualification and review process during FEED, which included site visits, 2 EPCI contractors
were identified as being capable of completing the entire EPCI scope of work (creating the potential for a simplified
and accelerated contracting strategy). However, before limiting the field to only the 2 potential EPCI contractors,
there had to be a certainty that acceptable contract conditions could be achieved. Consequently, negotiation of
Terms and Conditions (Ts & Cs) commenced with the 2 potential EPCI contractors prior to issuance of the
Invitation to Bid (ITB) documents. A consequence of this engagement activity was that the Ts & Cs were being
negotiated in a very competitive environment – assurance that a contract could be expeditiously executed was a
prerequisite for receiving a proposal. As a result of these efforts, the project team believes the contract language
represented the best achievable terms given the market conditions at the time.. This belief was confirmed by IPA
which identified the Platong Gas II contracting strategy as the most appropriate for the existing market conditions.
The Platong Gas II Project Appropriation Request was successfully reported on 5th March 2008, and the EPCI
Contract was executed with the successful contractor just 3 weeks later on 26th March 2008. A mixed contract
strategy was employed to appropriately apportion the risk between the parties as detailed in the table below:

Table 4
Platong Gas II Contracting Strategy
Scope Compensation Rationale
Ensures Client gets desired level of engineering and that it is
Detailed Design Reimbursable
not cut short, as may occur on LS contract
Client can select suppliers. No driver for Contractor to buy
Procurement Cost Plus
cheap, as may occur on LS contract
Client assumes quantity risk, Contractor assumes productivity
Fabrication Unit Rate
risk
Contractor vessels are LS, so they take the risk. Third Party
Transportation Lump Sum / Cost Plus
vessels are cost +, so Client takes risk
Contractor vessels, equipment & personnel are LS, so they
Installation Lump Sum / Cost Plus
take the risk. Remainder is with Client.
Contractor vessels, equipment & personnel are LS, so they
HUC Lump Sum / Cost Plus
take the risk. Remainder is with Client.

To preserve project schedule, an interim Appropriation Request was endorsed in August 2007, to allow the
procurement of structural steel and critical long-lead equipment packages by Chevron, such as Gas Compressors
and Turbine Generators. This proved very successfully with the equipment being delivered to site in time to meet
the contractors need date and erection sequence. These funds were committed prior to the project attaining Final
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Investment Decision, which showed the commitment of Chevron and the Partners to bring this project to fruition to
meet the growing energy demand of the Kingdom of Thailand.

An LOA was issued to the eventual EPCI contractor in November 2007 which ensured that the project remained in
a position to achieve the earliest possible 1st gas date, and allowed the integrated Client and Contractor teams to
make a seamless transition into detailed design. By being able to perform engineering work under the LOA, the
project was in a position to avoid significant increases in steel prices. Commitments were made for the vast
majority of the structural steel under the LOA, which avoided an increase in the region of $14 million, with the
intention of essentially removing structural steel as a schedule concern.

Prior to entering the execution phase, IPA conducted a Front-End Loading (FEL) assessment of the project, which
is effectively a readiness review, and is mandated within Chevron to obtain approval to move into the next phase.
The Platong Gas II Project attained Best Practical (or beyond) rating in all categories, confirming the project team’s
assesment that the project was well-placed for success and ready to move into the execution phase

Table 5
Platong Gas II IPA Benchmark
Gas II Best
IPA FEL
Project Practical
Asset (Best Practical) 4.43 4.25 – 4.75
Facilities Definition (Best Practical) 4.55 4.25 – 4.75
Well Definition (Beyond Best Practical) 4.85 5.00 – 6.00
Reservoir Definition (Beyond Best Practical) 4.11 4.50 – 5.50

Key Project Execution Challenges

Hijacked Steel: In November 2008, approximately 6,200 metric tons of steel (with an approximate value of $15
million) was hijacked by pirates in the Gulf of Aiden, off the coast of Somalia. This was only 1 month after 1st steel
cutting in the fabrication yard. This event had significant potential to derail the project and severely impact the first
gas date; however the integrated project team took immediate remedial action and ordered replacement steel
whilst decoupling the contractual discussions and legalities of who was responsible. The original steel was
eventually released by the pirates, and arrived at the fabrication site in advance of the replacement steel, although
it was still around 4 months late. This had a significant impact on the erection sequence, as there were now no
available slots in the rolling mills due to other client’s steel being rolled. The project teams jointly worked the issue
to obtain rolling mill slots and subcontracted some of the rolling. In the end, the impact was not entirely mitigated,
but sufficiently so to allow gas export to occur in advance of the contract requirement.

Fabrication Productivity: The productivity in the yard was lower than expected by the Contractor and Chevron.
While Chevron was protected from the financial impact due to utilizing unit rates, Chevron was not protected from
the impact of schedule slippage. The project team worked closely with the Contractor’s senior management and
supervisors to identify opportunities to improve the productivity in the yard with some success. In addition,
recovery plans were implement to ensure additional manpower was available to negate the impact of the
substandard productivity.

Contamination: Due to inadequate preservation in the yard, some equipment was contaminated during the
fabrication process, but it particularly impacted a significant number of valves. Working together, the Contractor
and Chevron employed a specialist subcontractor to manage the valve contamination and leak test and repair
valves as required. This was a huge undertaking, and had the potential to delay the 1st gas date by several
months. However, working as a unified team, it was possible to turnaround valves in a very tight time frame and
allows gas export to occur ahead of the contractual obligation.

Flooding in Thailand: Flooding in most parts of Thailand especially in Bangkok, in late 2011, forced most of the
team to work from remote locations. Some had to work from home or temporary resident while dealing with the
situation. The whole team remained engaged, focused and worked through this difficult situation. This is a
reflection of professionalism and high degree of commitment of all Chevron project team.
Pipeline interruption: It was an unforeseen situation on our customer’s pipelines leakage incident. This impacts
the sale gas pipeline schedule for Platong GasII, managed by our customer. Chevron fully supported and assisted
our customer on recovery plan both engineering support onshore and offshore operation such as pipeline
dewatering and drying activities.
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Despite the numerous setbacks throughout the project and the costly mitigations that had to be put in place, such
as procuring additional structural steel and employing subcontractors to gas test and repair a significant number of
contaminated valves, the total project cost came in at 107% of the Appropriation Request (AR).

Project Integration – Embracing the processes, delivering via people

A single-team approach was taken from the inception of the project. This was, instrumental to the the final success
of the project. An integrated project team was established in early 2006, which comprised of project management
experts, discipline engineers and specialists from within the Asia South Business Unit. The integrate team model
was used throughout the project journey, in particular, during the startup where all functions are co-located and
work shoulder to shoulder. The “Integrated Gas II Governance model” as exhibited in figure 5 describe and build
up the awareness of all stakeholders on how crucial their individual contributions are and how they deliver relates
to others. Platong Gas II Governance consists of 4 major parts: Gas II processing platform (PLCPP2), gas feed to
PLCPP2, ability to maintain gas deliverability on existing Chevron gas sales agreement (Tranche 2) and additional
condensate storage at Erawan FSO.

Good communication among teams has been critical to the success of the project. Regular meetings including
daily operations meetings, weekly governance meetings, and monthly meetings with management are examples of
team alignment and engagement at all levels and helped overcome a number of challenges. The management
team stayed engaged during the course of the project, especially during the start up where the “Live from offshore
CPP2 news” – shared insights of offshore activities to help Chevron management understand the progress and
clearing any barriers for the team success.

Figure 5 – Platong GAS II governance model showing major pieces of works and cross functional integrated team structure

1. Gas II CPP – cover all aspects of CPP managed by project management team (PMT), including the EPCI
scope and start up of the facility until operate in normal condition (handover to base business team). This part
mainly involved Facility Engineering on both major capital project (MCP) and base business including offshore
Operation. Existing Platong facilities and PLCPP2 are tied together in some processes; therefore, both existing
Platong CPP and PLCPP2 had to ensure the project proceeded as scheduled and not interrupt the existing
business simultaneously.

2. Gas feed to Gas II CPP: two sources of gas to process at PLCPP2 and sales as Tranche 3 (new Gas Sales
Agreement for PLCPP2). The first one comes from 4 new drilled well head platforms; the second comes from
associated gas from oil production at existing Platong platforms. Prior to PLCPP2 startup, existing Platong
platforms gas were fed to existing Platong facilities (140-160 MMSCFD) and routed to Satun CPP (about 80-
100 MMSCFD). Those are sold as Tranche 2 (existing active Gas sales Agreement). Since PLCPP2 startup,
most of the gas routed to Satun CPP has been diverted to PLCPP2 with plans to increase the rate up to 120-
140 MMSCFD, while still maintaining gas deliverability fed to existing Platong facilities to meet Gas Sales
Agreement of Tranche 2 & 3. This second part of the governance mainly involved subsurface team, drilling and
completion team to develop new Gas II platforms offshore operations team to support platform startup activities
by prioritization with other field activities, Commercial and Metering team to support on obligation
requirements.
10 IPTC 16556

3. Tranche 2 Gas Sale Agreement (GSA): Tranche 2 GSA consists of existing Platong CPP (PLCPP1), Satun
CPP, Funan CPP & Jakrawan CPP. Routing 100 MMSCFD of gas to PLCPP2 was required from three fields
outside Platong, to build up capacity in advance to compensate gas volumes diverted to PLCPP2 to meet
obligations for Tranche 2. In order to compensate the gas capacity, Satun condensate facilities debottleneck
was required to handle additional condensate from gas increase. Thus, PLCPP2 startup schedule was the
linkage information to continuously update to plan and complete facilities upgrade in timely manner. This third
part involved the synchronization of other working pieces on existing facilities across assets. The Metering
Team worked as focal point to strategically prepare gas nomination for each Tranches, while the Planning
Team was in charge of scheduling the drilling projects to meet the production business plan.

4. Condensate pipeline (P/L) to Erawan FSO: The majority of hydrocarbon liquid produced from existing
Platong platforms are oil and stored at nearby floating storage unit located in the Platong field. Scenario of
blending oil from existing Platong platforms with condensate from new Gas II platforms were evaluated as the
unfavorable alternative due to economic erosion from oil price degradation caused by changing oil API quality
(API), which did not favor to the market. The preferred alternative for Gas II platform condensate storage was
to route to a centralized condensate floating storage unit called “Erawan FSO”, located in Erawan field
approximately 70 kms south. Additional condensate volume forecast, and timing was communicated and
updated to Erawan team to develop operation plan to prepare adequately handling capacity for daily
condensate from other existing fields plus Gas II condensate. Overloading capacity at Erawan FSO will risk
shutting down the whole Chevron Thailand offshore operation. Simultaneous operations, prioritization and
communication among Major capital project group and relevant assets impact from the schedule had
conducted to achieve overall objectives.

The success of Platong Gas II project in the face of numerous challenges was a reflection of the dedication of
the team, the team integration, and the spirit of ONE team ONE goal – the commitment to safely deliver the
facilities and supply the energy to the Kingdom of Thailand. The strong, effective project management
processes and the proven success base business model were fully integrated, embraced and effectively
utilized resulting in the world class delivery of a major capital project.

About the authors:

This paper comes from consolidating data and input from key members of the project team of which now being work for Chevron across
the globe.

Alan Scott – Worked as Deputy Project Manager, Platong GasII Project. Currently, Alan is the Project Manager – Rosebank Facilities, Houston,
Texas, USA.

Ken Werner – Worked as Earth Science Team Leader, Platong Gas II Project. Currently Ken is the Earth Science Team Leader for Pailin Asset
- Bangkok Thailand.

Thittawee Tangcharatwong - Worked as Petroleum Engineer Team Leader, Platong Gas II Project. Currently Thittawee is the Reservoir
IPTC 16556 11

Engineer, Frade field - Rio de Janeiro, Brazil.

Sakchai Sae-Seai – Worked as Engineering Coordinator, Platong Gas II Project. Currently Sakchai is the Field Superintendent, Platong Field -
Bangkok Thailand.