Professional Documents
Culture Documents
Revamping Projects
Oil & Gas Downstream Projects
2. Preliminary Studies
Scope:
• Confirmation of technical feasibility
• Project justification (economic and HSE)
• Technical schemes or concepts
• Execution Plan principles
Objectives:
• Select the overall technical solution
• Evaluate Project cost and schedule
• Appraise uncertainty and risks
• Prepare approval dossier to move to next step (Basic Engineering)
Phases definition
Appraisal
Development Schemes & concept
Budget and Schedule
Execution Principles
Process basis
• Base Case Process study for facilities to be built
• Plant performance tests (revamping/debottleneck)
• Utilities additional requirements, available resources
Physical configuration
• Plot Plan & Lay-out studies (particularly for Revamping)
• Structural & foundations outlines for revamping
Project philosophy
• List of possible alternates to evaluate
• Electrical & Controls impacts, philosophy
Project Reviews
• Conceptual design review
• Value Engineering / Cold Eye Review
• Safety review
• Constructability review
• Coordination review
• Economical and procurement reviews
Infrastructure
Execution
Process Environment
1. Capacity (flow rate) 1. Layout & constraints
2. Technology selection 2. Electrical Distribution & Power Management System
3. Treatment of feed 3. Control Systems
4. Fractionation 4. Buildings
5. Power Generation & Heat Integration 5. Construction & constructability
6. Utilities, catalysts, chemicals 6. Modularisation
7. Effluents, flare 7. Civil Works
8. Water Treatment & Disposal 8. Air Emissions
9. Product storage 9. Effluent Water Treatment & Disposal
10. Offsite storage, transfer, loading 10. Environmental Impact Assessment
11. Interfaces
Technology questions:
• Best gas turbine type with regard to equipment reliability/cost
Investment
100%
Major commitment Construction
generated by early Basic or FEED On-site
technical decisions engineering operations
Conceptual (Pre-FEED)
Preliminary studies
50%
studies
Actual commitments
towards suppliers
0%
Time
PRODUCTION
2 Once-through water cooling for compressor (vs air cooler) Engineering April, 2012
4 Standardization of exchangers (vs « optimized design » for each) Engineering April, 2012
5 Pump standardization: same pump casing for various impellers Engineering May, 2012
Construction Economics
Procurement Operations
New
Process Design Technology
RC - 21677_b_A_ppt_01
EP PR GES - 08169_A_A--Preliminary
Rev.1 - 18/07/2013
studies to pre-FEED 21
Project Team organization
Example of Integrated Team
Rotating
Site Manager
specialists
Project
Computer
Manager
Production resources
Legal
Drafting offices experts
Maintenance
(piping, E/I, civil)
etc.
Process Purchasing
Construction
Support Sces supervision
RPCI
RC - PR
- PR
GES
GES
- 08169_A_A
- 01338_A_A
- Rev.1
- Rev.-018/07/2013
- 14/11/2011 22
Deliverables
Preliminary studies (typical)
Basis of design (and basic design data) specification, Scope Of Work
Preliminary Study Technical Report, including documents:
• Process material balances
• Main utility requirements
• Process description, PFD, preliminary P&ID
• List of main equipment
• Preliminary plot plan
Project Review Reports
List of alternates considered, evaluation and proposed decision
Design philosophy (modularization, standardization, process controls)
Operating philosophy (principles, staffing, start-up)
Value of the Project is best reflected by the Net Present Value (NPV)
Revenues estimate
• Estimated products prices
Never heard of Has already Occurred once Several times Occurs often of
LEVEL Safety Envirt any occurrence occurrred in in company, but per year in the permanently in
in the world Petrochemicals not here company our plant
No significant No impact on
I personnel environment
injury
Low Risk
Minor injury, Slight impact,
II no long-term hard to
impact perceive
Estimate cost data breakdowns, unit costs etc. from similar recent
project units at the location, or a similar (in terms of cost) location with
corrections, escalation, and other foreseen different project conditions.
Often the estimators will use units information from several projects.
Cost information is gathered from all possible sources at the time, e.g.:
• Major equipment prices and special equipment or packages, towers,
reactors, heat exchangers, water treatment, utilities and power
equipments, etc.) from « budget » quotes from Vendors.
• Budget quotations from specialized parties (consultants, contractors..)
for infrastructure works (buildings, roads, …) or for other specific
packages (atmospheric tank storage, LPG storages, chemicals).
Cost information is gathered from all possible sources at the time, e.g.:
• Interconnecting preliminary quantities estimated by engineering from
preliminary MTOs & unit costs used from previous project at the facilities
for bulks procurement cost & for construction cost; quotations from
vendors for large pipe / piperacks
• For modules and skids fabrication, construction mhrs by ratios (volume
or weight if estimated) and mhr cost from zones used (particularly if
Company (site) has particular relationships established with given zones).
• For specific equipments like air and water treatment: budget quotes from
specialized contractors or vendors.
• Engineering, construction supervision manhours may be estimated by
ratios.
Key aspects:
• Organisation
• Execution strategy
• HSE, risks/uncertainties
Revenues
Capex Opex
Taxes
Operating period
Present
years
Investment
Year 0 1 … C … N
Discounting at a rate i 1 (1+i) (1+i)n (1+i)N
Cash Flows After-Tax CF0 CF1 … CFn … CFN
Discounted Cash Flows CF0 CF1/(1+i) … CFn/(1+i)n … CFN/(1+i)N
Net Present Value = Sum of Discounted Cash Flows
N
CFn
NPV
n 0 (1 i )
n
NPV
IRR
Discount Rate
POT
M$
0 1 2 3 4 5 6 7 8 9 10 11 12
M$ M$
300 400
200 200
100 0
0 -200
-100 -400
-200 -600
-300 -800
0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12
Année
years Année
years
Usual « Project Control » techniques will be used, with simple tools, to:
• Prepare the study budget (mobilisation bar charts on Excel to
estimate mhrs + estimates from different participants for their scope)
• Prepare the study schedule with planned progress curves (Excel or
Milestone Project), overall, management and disciplines
• Follow & control the study progress
− « Broken line » progress on the schedule
− Hourly progress: ratio of expended mhrs to planned mhrs
− Physical progress by assigning mhrs weights to the different disciplines /
deliverables-activities / milestones for deliverables-activities
− Forecast for completion
Reference
BS 6079