6th African Rift Geothermal Conference | ARGeo-C6 Short Course 1 | Project Management for Geothermal Development

Project Management for geothermal drilling projects

Anthony Ng’ang’a Ngigi

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Content

1. What is project management 2. Drilling project set up 3. Objectives of the drilling project 4. The triple constraints-time, cost, quality, safety 5. Managing constraints 6. Drilling project management plan

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Definition

What is project management????

application of processes, methods, knowledge, skills and experience to achieve the project objectives

ICB –IPMA Competence baseline Ver. 3.0 outlines required attributes/approach to project management

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Drilling project set up

Set up – What is the organization of carrying out the drilling project e.g. is it a contractor or a gov’t org. carrying out the drilling

Gov’t org – Laws, statutes, ordinances, directives, regulations, budgets, and policies

Contractor – independent in operations e.g. procurement

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Drilling project set up cont’d

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Drilling project set up cont’d

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Objectives of the drilling project

Drilling project aims at drilling the wells within:- Cost Time Quality Set safety standards

When the above is achieved – Success is realized

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

The triple constraint

Drilling Project

Quality/Safety Quality

Typical Project

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Managing the triple constraints

A balance between the constraints has to be established

Proper time management may control cost in most cases

Aim to drill a quality well safely,timely and within set cost

Does slow or fast drilling compromise the other constraints +vely or –vely????

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Managing the triple constraints cont’d Time can be managed by breaking down all the drilling activities

from start to finish ---> Scheduling

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Drilling project management plan

Integration of the following plans:- Interested parties management plan Project communication plan Procurement plan Contract plan Quality plan

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Drilling project management plan cont’d Interested parties management plan

Identify interested parties e.g. external and internal

External gov’t, donors, IPPs, community etc. Internal top management, drilling crews, geoscientists etc.

What are their expectations?? How do we get them involved into the

project??? Participatory approach

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Drilling project management plan cont’d Project communication plan

Who is to receive information on the project What information is to be passed level of detail When is the information going to be relayed Confidentiality of information

Management of meetings:- Preparation for the meeting The conduct of the meeting Reporting the meeting Follow up of meeting deliberations

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Drilling project management plan cont’d Procurement plan

Gov’t organizations have to follow set regulations - lengthy process

Elaborate plans need to be in place to deal with breakdowns - emergency procurement. Break downs are not planned

Proper inventory to be kept to plan ahead from rig spares, rig tools and equipment to drilling materials, PPEs

Identify in advance suppliers of specialized tools and equipment – have a running contract if possible

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Drilling project management plan cont’d Contract plan

Some of the works and services contracted in a drilling project include running of casings, casing cementing, wireline operations (logging), directional drilling, supply of fuel and cement etc.

Legal department involved in drafting the contracts The contracts should be closely monitored for their

expiry and if need be renewed in good time to maintain continuity

Proper communication during contract execution – written form preferred

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Drilling project management plan cont’d Quality plan

Quality – degree to which inherent characteristics fulfil the project requirements (ICB 3.0)

All the four (4) phases (surface, anchor csg, production csg and liner section) in drilling of wells must fulfil set quality standards – set SOPs must be followed e.g. maintain right torque for casings

The project team should participate in management of the project quality – create awareness

Permanent organization sets the quality management practices

If quality is overlooked – project objectives may not be achieved

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

6th African Rift Geothermal Conference | ARGeo-C6

Short Course 1 | Project Management for Geothermal Development

Organized by: United Nations University Geothermal Training Programme (UNU-GTP)

Financed by: Icelandic Ministry for Foreign Affairs – ICEIDA and Nordic Development Fund

Coordinator: Ingimar G. Haraldsson, UNU-GTP

Lecturers: Anthony Ng‘ang‘a Ngigi, Geothermal Development Company, Kenya

Carine Chatenay, Verkís Consulting Engineers, Iceland

Peketsa Mwaro Mangi, Kenya Electricity Generating Company, Kenya

Yngvi Gudmundsson, Verkís Consulting Engineers, Iceland