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Integrated Operations for Oil & Gas Industry using a Project Management Office concept to simplify work processes & data management by Harjono Zainal Abidin, Syed Mohd Alwi & Ramly Khairuddin - Subject Matter Experts at MESINIAGA Bhd - Presented at SPE Applied Technology Workshop 27 March 2012.
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SPE Applied Technology Workshop (ATW)“Integrated Project Management: Innovative Approaches for a New Era ”
25 – 28 March 2012 ● Phuket, Thailand
Project Planning – Challenging the Limits
By Harjono Zainal Abidin, Syed Mohd Alwi & Sharazain Noordin
1
PMO INTEGRATED OPERATIONS (IO) FOR E&P
By Harjono Zainal Abidin, Syed Mohd Alwi & Sharazain Noordin
Oil & Gas Business Systems Group
MESINIAGA BHD
THIS CASE STUDY:
Business model
� NewCo E&P
– Multi-party JV
� Marginal Oilfield
– RSC
Project Environment
RISKS?
Volatile market
$
Oil price?
� Fast-track to production
– 12 months?
2
What’s different with:
� Oldco E&P
� PSC Shallow/Deepwater
� Development …
� 5 or 10 Years to production
$
Currency?
Adopt
Program & Project Management
Applied to:
Exploration & Production
Oil/Gas field Development
By NewCo operator
P2M
PROGRAM
MANAGER
Key Issues:
� People!
– Organization & Structure
– Leadership & Teamwork
� Process!
– Planning, Monitor & Control
– Contracts & Procurement
� Technology?
PROJECT
MANAGER
Production
PROJECT
MANAGER
Development
PROJECT
MANAGER
Exploration
Silo’s?
Program Manager’s Point of View
PROJECT
A
PROJECT
B
PROJECT
C
4
Code CONTROL METRICS A B C
Scope OK OK X
Time X OK X
Cost OK OK X
JOB NO SCOPE START END COST 1 2 3 4 5 6 7 8 9
PROJECT A $
Geological Data $
Field Dev Plan $
Drilling $
PROJECT B
Conceptual Eng
Detailed Engineering $
Procurement $
PROJECT B $
Fabrication $
MASTER PLAN Level 1 Program
FORECAST
Potential delay!
Fabrication $
Platform A $
Platform B $
Platform C $
Installation $
PROJECT C $
Production $
1st Oil
5
P2M
Project Manager’s Point of View
EXECUTE
PROJECT LIFECYCLE
6
INITIATE
PLAN
EXECUTE
CLOSE
TIME
RE
SOU
RC
ES
Project
Charter
Archive
Project
Documents
Accept
Project
Deliverables
Project
Management
Plan
Project
Data
CONTROL
Metrics
JOB NO SCOPE START END COST 1 2 3 4 5 6 7 8 9
INITIATION
Geological Data $
Field Dev Plan $
Drilling $
PLANNING
Engineering $
Procurement $
EXECUTION
Fabrication $
MASTER PLAN Level 2 - 3 Project
Project Data
Granularity
Level 4 – 5?
How to manipulate data
& forecast
performance?
Platform A $
Platform B $
Platform C $
Installation $
Hook-up &
Commissioning
$
Handover to
production
$
CLOSE-OUT
Review As-Builts $
Archive $
7
IO Data Framework
MASTER PLAN
Based on contractual commitments
CONTRACT DOCS
Purchase orders
DATA:Drawings
3D
8
3D
2D
SPECIFICATIONS
PROCEDURES
Vendor Data
Progress Reports
Daily
Monthly
Quarterly
Forecasts!
IO Contractual Framework
MONITOR & CONTROL IN DETAIL!
Level 1
Owner
Level 2
Consultants
Design & Construction
Engineering
Sta
nd
ard
Pro
ject
Co
ntr
act
Tota
l Pro
ject
Co
ntr
act
Eco
-sys
tem
In Reality Fast-Tracking requires
Command & Control!Fast-tracking has performance limits!
Impact on Safety …
Steep
9
Engineering
Level 3
Contractors
Specialized Vendors
Level 4
Sub-contractors
Level 5
Vendors/Suppliers
Sta
nd
ard
Pro
ject
Co
ntr
act
Tota
l Pro
ject
Co
ntr
act
Eco
Steep
Progress
S-curves
indicate
likelihood of
Safety
incidents
Program Management Office
1. People
2. Process
3. Technology
Real time Info - Structure
IO Program Management Office…
Legal
Project
ManagerEXPLORATION
FinanceCloud
Computing
Key Features
� Collaboration
� Communication
� Data Management
– Automation
– Process Orchestration
– Analytics
• Trending/Data Mining
10
PMO
EXPLORATION
Project
ManagerDEVLOPMENT
Project
ManagerPRODUCTION
Contracts
Procurement
SAFETY
