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Mega-Project M
M    P j t Management in th Oil & G Industry
                    t i the       Gas I d t
Improving Collaboration, Managing Costs & Delivering Results

Guy Barlow                               Kirk Blanchard
Industry Strategy                        Project Controls Specialist
Power Energy & Process Industries        Performance Contractors, Inc,
Oracle Primavera Global Business Unit
Agenda


• “Mega-Project” Overview
• What are the Key Challenges?
• Resolving the Challenges


• Motiva Project Overview
• T 5 Challenges
  Top Ch ll
• Moving Forward

• Q&A and Wrap-up
• Exit Survey
Mega-Project Overview
Managing Complex Coordination


                                                                  Owners
 Participant Activities                                           General Contractors
 • Fi
   Financing
          i          • R l t
                        Regulatory                                Construction Mgrs
 • Insurance         • Legal
                                                                        Architects
                                                                        Engineers
                                                                        Subcontractors
 Supply Chain Activities
   pp y
 • Eng. to Order  • Logistics                                              Labor Pool
 • Manufacturing  • Procurement                                            Suppliers
                                                                           Operators




                                              Impact
                              •   Poor Financial Performance
                              •   Reduced Operational Capabilities
                              •   Increased Legal Exposure
                              •   Greater Political/Regulatory Issues
What are the Key Challenges?
5 Distinct Pain Points


Document Control
Are we efficiently managing the thousands of documents?


Performance Reporting
How are we measuring and reporting project metrics?


Change Management
    g      g
Are the hundreds of change orders a growing liability?


Risk Management
Who’s managing project risk and what’s the mitigation strategy?


System Turnover
Are we able to easily transition to a start-up environment?
Resolving the Challenges
Collaborative, Integrated & Optimized

 Capital Plan / Project   Change Control
                                                                Operate & Maintain
 Bid Phase



                                                                            Project Close




                                                        Project Execution
      Plan, Design
      & Procure




                                           Business
                                           Management
Resolving the Challenges
Collaborative, Integrated & Optimized

Capital Plan / Project           Change Control
                                                                                  Operate & Maintain
Bid Phase



                                                                                              Project Close
                           P6 Analytics / P6 ERD / BI / Reporting

                              Business Process Management
                                                   g

                                                       Contract                  Portfolio
     Risk Analysis                  P6
       Quantitative Risk     Project Management       Management                Management
           Analysis           Risk Management        Change Management
                                                          g       g            Propose, Prioritize &
       Quantitative Risk      Project Scheduling     Contract Management         Select Initiatives
                                                                         Project Execution
         Management         Resource Management       Claim Management       Review, Track & Adjust
     Plan, Design                                     Issue Management               Portfolio
     & Procure
                           Oracle Universal Content Management
                                (or other content management system)

           Integration with other core applications (ERP, EAM, AutoVue, etc.)
                                                 Business
                                                     Management
PERFORMANCE Contractors
Kirk Blanchard, Project Controls Specialist




              Office Locations - Baton Rouge, Lake Charles, Freeport & Mobile
              Current States License Held to do Business
Communication
                                           Schedule and Cost
                                           Resource Management
                                           Information Management
                                           Timely Project Close-out




MEGA Projects are cross functional events which require
                    cross-functional events,
a great deal of communication and resources. There are
a number of fundamental task that must be in-place to
ensure that information is effectively prepared and
fundamental procedures are in place to execute the
p j
project.




                                                           Contractors
PERFORMANCE Contractors
H-Block Project Overview (Motiva Refining, Port Arthur Texas)




   H-Block Consist of Hydrocracker, Power Station, Naphtha, and
   Cat Feed Units
   • MOTIVA (Owner) Bechtel/Jacobs, (MC) PERFORMANCE
     Contractors (GC)


   MOTIVA + Bechtel/Jacobs + PERFORMANCE + Sub-Contractors

   • Bechtel/Jacobs Joint Venture, Managing Contractor

   Manpower Projections, 2000 Project Personnel on Site for H-Block
   including Sub-Contractors
             Sub Contractors
   • PERFORMANCE Contractors, LLC.
Top 5 Challenges
Massive, Complex & Risky

                       • Procedures
    Document Control   • Communication
                       • Control

                       • Quality
      Performance      • Timely
       Reporting       • Consistency
                         Co s ste cy

                       • Initiation
        Change         • Estimate
      Management           pp
                       • Approvals

                       • Guidelines
    Risk Management    • Monitoring
                       • Mitigation

                       • Completion
     System Turnover   • Final Inspection
                       • Pre Commission / Start-up
Moving Forward
       Best Practices & Lessons Learned




Risk Management         Best Practices    Desired Outcome
• Scope Creep           • Processes       • Safety
• Labor                 • Analysis        • Quality
• Schedule              • Reporting       • Schedule (Cost / Duration)
Moving Forward (continued)
         Best Practices & Lessons Learned




                                  P6 Analytics / P6 ERD / BI / Reporting


                                      Business Process Management

Risk Management                        Best Practices                          Desired Outcome
• Scope Creep                           • Processes              Contract • Safety            Portfolio
                                           P6
• Labor Risk Analysis                   • Analysis
                                   Project Management           Management Quality
                                                                          •                  Management
     Quantitative Risk Analysis
• Schedule                              • Reporting                           • Schedule (Cost / Duration)
                                                              Change Management       Propose, Prioritize & Select
                                    Risk Management
          Quantitative Risk                                   Contract Management             Initiatives
                                    Project Scheduling
           Management                                          Claim Management         Review, Track & Adjust
                                  Resource Management
                                                               Issue Management                Portfolio


                                  Oracle Universal Content Management
                                        (or other content management system)

                    Integration with other core applications (ERP, EAM, AutoVue, etc.)
<Insert Picture Here>



                                                 Quote Attribution
                                                   Title, Company


                                       “We are what we repeatedly
                                        do. Excellence, then, is not
                                        an act but a habit....”
                                                               Aristotle

For More Information Contact Kirk Blanchard
Performance Contractors, LLC.
Baton Rouge, Louisiana
225-751-4156
Q&A and Wrap-Up
Mega Project Management In The Oil &amp; Gas Industry

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Mega Project Management In The Oil &amp; Gas Industry

  • 1. Mega-Project M M P j t Management in th Oil & G Industry t i the Gas I d t Improving Collaboration, Managing Costs & Delivering Results Guy Barlow Kirk Blanchard Industry Strategy Project Controls Specialist Power Energy & Process Industries Performance Contractors, Inc, Oracle Primavera Global Business Unit
  • 2. Agenda • “Mega-Project” Overview • What are the Key Challenges? • Resolving the Challenges • Motiva Project Overview • T 5 Challenges Top Ch ll • Moving Forward • Q&A and Wrap-up • Exit Survey
  • 3. Mega-Project Overview Managing Complex Coordination Owners Participant Activities General Contractors • Fi Financing i • R l t Regulatory Construction Mgrs • Insurance • Legal Architects Engineers Subcontractors Supply Chain Activities pp y • Eng. to Order • Logistics Labor Pool • Manufacturing • Procurement Suppliers Operators Impact • Poor Financial Performance • Reduced Operational Capabilities • Increased Legal Exposure • Greater Political/Regulatory Issues
  • 4. What are the Key Challenges? 5 Distinct Pain Points Document Control Are we efficiently managing the thousands of documents? Performance Reporting How are we measuring and reporting project metrics? Change Management g g Are the hundreds of change orders a growing liability? Risk Management Who’s managing project risk and what’s the mitigation strategy? System Turnover Are we able to easily transition to a start-up environment?
  • 5. Resolving the Challenges Collaborative, Integrated & Optimized Capital Plan / Project Change Control Operate & Maintain Bid Phase Project Close Project Execution Plan, Design & Procure Business Management
  • 6. Resolving the Challenges Collaborative, Integrated & Optimized Capital Plan / Project Change Control Operate & Maintain Bid Phase Project Close P6 Analytics / P6 ERD / BI / Reporting Business Process Management g Contract Portfolio Risk Analysis P6 Quantitative Risk Project Management Management Management Analysis Risk Management Change Management g g Propose, Prioritize & Quantitative Risk Project Scheduling Contract Management Select Initiatives Project Execution Management Resource Management Claim Management Review, Track & Adjust Plan, Design Issue Management Portfolio & Procure Oracle Universal Content Management (or other content management system) Integration with other core applications (ERP, EAM, AutoVue, etc.) Business Management
  • 7. PERFORMANCE Contractors Kirk Blanchard, Project Controls Specialist Office Locations - Baton Rouge, Lake Charles, Freeport & Mobile Current States License Held to do Business
  • 8. Communication Schedule and Cost Resource Management Information Management Timely Project Close-out MEGA Projects are cross functional events which require cross-functional events, a great deal of communication and resources. There are a number of fundamental task that must be in-place to ensure that information is effectively prepared and fundamental procedures are in place to execute the p j project. Contractors
  • 9. PERFORMANCE Contractors H-Block Project Overview (Motiva Refining, Port Arthur Texas) H-Block Consist of Hydrocracker, Power Station, Naphtha, and Cat Feed Units • MOTIVA (Owner) Bechtel/Jacobs, (MC) PERFORMANCE Contractors (GC) MOTIVA + Bechtel/Jacobs + PERFORMANCE + Sub-Contractors • Bechtel/Jacobs Joint Venture, Managing Contractor Manpower Projections, 2000 Project Personnel on Site for H-Block including Sub-Contractors Sub Contractors • PERFORMANCE Contractors, LLC.
  • 10. Top 5 Challenges Massive, Complex & Risky • Procedures Document Control • Communication • Control • Quality Performance • Timely Reporting • Consistency Co s ste cy • Initiation Change • Estimate Management pp • Approvals • Guidelines Risk Management • Monitoring • Mitigation • Completion System Turnover • Final Inspection • Pre Commission / Start-up
  • 11. Moving Forward Best Practices & Lessons Learned Risk Management Best Practices Desired Outcome • Scope Creep • Processes • Safety • Labor • Analysis • Quality • Schedule • Reporting • Schedule (Cost / Duration)
  • 12. Moving Forward (continued) Best Practices & Lessons Learned P6 Analytics / P6 ERD / BI / Reporting Business Process Management Risk Management Best Practices Desired Outcome • Scope Creep • Processes Contract • Safety Portfolio P6 • Labor Risk Analysis • Analysis Project Management Management Quality • Management Quantitative Risk Analysis • Schedule • Reporting • Schedule (Cost / Duration) Change Management Propose, Prioritize & Select Risk Management Quantitative Risk Contract Management Initiatives Project Scheduling Management Claim Management Review, Track & Adjust Resource Management Issue Management Portfolio Oracle Universal Content Management (or other content management system) Integration with other core applications (ERP, EAM, AutoVue, etc.)
  • 13. <Insert Picture Here> Quote Attribution Title, Company “We are what we repeatedly do. Excellence, then, is not an act but a habit....” Aristotle For More Information Contact Kirk Blanchard Performance Contractors, LLC. Baton Rouge, Louisiana 225-751-4156