A New Spin on Shutdowns - Mark Banham Shutdown Manager - The Canadian Institute
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
A New Spin
on Shutdowns
Mark Banham
Shutdown Manager
CONOCOPHILLIPS CANADA
Thinking Outside the Box
A Different approach to Shutdowns
Mark Banham
Shutdown Manager, ConocoPhillips Canada (CPC)
In this session I will share a new approach to plan shutdowns with a
plan to significantly reduce labour requirements and hours worked.
• How is the planning stage different from
the past approach to shutdowns?
• How is the shutdown coordinated and
executed over a longer period of time?
• What are the anticipated skilled/craft
labour requirements?
• What is the impact of taking the plant
down in smaller chunks?
• What are the challenges and what are
the expected outcomes of this
approach?
2
Safety Moment: Piper Alpha
• 167 men died as a result
of the explosions and fire
on board the Piper Alpha,
including two operators
of a Fast Rescue Craft.
• 62 men survived, mostly
by jumping into the sea
from the high decks of
the platform.
• Between 1988 and 1990,
the two-part Cullen
Inquiry established the
causes of the tragedy and
made recommendations
for future safety regimes
offshore.
• 106 recommendations
were made which were
subsequently accepted
and implemented by the
offshore operators.
The resultant inquiry changed the Oil and Gas Industry in the United
Kingdom and influenced changes in safety process globally.
3 November 29, 2016
Timeline Overview
On 06 July 1988, work began on one of two condensate-injection pumps, designated A
and B, which were used to compress gas on the platform. A pressure safety valve was
removed from compressor A for recalibration and re-certification and two blind flanges
were fitted onto the open pipework. The dayshift crew then finished for the day.
4 November 29, 2016
Verification
• Permits don’t mean the work is
being completed safely.
• Verification and a chronic sense of
unease around any work within a
live plant is a must.
• How does this impact your next
major shutdown?
• What will you do differently?
5 November 29, 2016
My Bio: Early Career - The 80”s
1980 Left School. Trained as a Electrician
1982 Start of England soccer team revival
1985 Roger Moore hands over 007 to Timothy Dalton
1987 My First Oil & Gas Job. (below)
July 1988 Piper Alpha accident resulting in 167 people losing their lives.
Lord Cullen Report fourth Edition 1989, OIM by 28 years old
6 November 29, 2016
The 90’s
England beaten by Germany in World Cup semi-final’s !
1994 Move Overseas to the Egyptian desert
1994 Pierce Brosnan becomes 007
1996 Point Noire, Congo,
Christmas Day on the Rig.
7 November 29, 2016
90’s Continued
Off to Singapore to build a new rig. 1996 England out on Penalties to Germany again!
West Menang semi submersible tender.
8 November 29, 2016
Back to the North Sea
Formation of AJS- One Gas contract, Shell, AMEC, Jacobs , Stork.
Responsible for 50 SNS Assets and 1 onshore Gas Plant.
Greenfield and Brownfield projects. Major Shutdowns EPC ( Direct Construction ).
1998 Beckham Sent Off Against Argentina!
9 November 29, 2016
2005 Kuwait
Saddam is Captured
Kuwait want to expand their production.
PMC Contract setup to expand production
From 2.2 million barrels / day to 5 million
2006 Wayne Rooney sent off
and England go home Early Again!
10 November 29, 2016Kuwait • In three years we executed 60mmh with a TRIR of 0.4 a Gulf record. • Developed a culture which included the Kuwait nationals as part of the team. • Completed Greenfield and Brownfield expansions across 20 facilities. • 14 Major shutdowns in six months, • Peaking at 11,000 directs 2005 Daniel Craig the New James Bond! 11 November 29, 2016
2008 Canada
Early Works at Kearl
12 November 29, 20162011 Canada
• BHP Billton
• Pot- Ash
• Jansen Site
• Saskatchewan
13 November 29, 20162012 Canada
• Kearl Expansion
• England Draw Against USA!
14 November 29, 20162013 - Present
• ConocoPhillips Canada.
• Surmont Brownfield Manager.
• Surmont Shutdown Manager.
• Not talking about Iceland beating England!
15 November 29, 2016Shutdown Management: Planning
To be successful in a shutdown you need to plan to the minutest detail, from resources
to equipment to materials you must perform to the highest level.
Ops & Maintenance & CapEx Characteristics
Integrated with Maintenance Planning Processes “Subjective” Scope 30% of Shutdown
Driven by SAP Notifications into the Shutdown
Scope
Planning group.
Variable scope depending upon Budget/need.
Follows the Scope Freeze/collection/validation O&M
process (subjective / debate / challenge). &
CapEx
Asset Integrity / Regulatory Scope “Objective” 70% of Shutdown
Characteristics Scope Scope
Integrated with Regulatory Compliance Requirements
(ABSA).
Objective in nature. Must be done to maintain
Regulatory Compliance.
Need not follow the Scope Asset Integrity
Freeze/Collection/validation process (objective & not
up for debate).
Regulatory Scope
Opportunities to challenge Regulatory compliance
Inspection Intervals based upon a solid go forward
plan & historical data.
“Regulatory Scope” - The Basis of the PlanShutdown Management: Execution
So we looked at how we could turn the tables on this type of work by reviewing the plant design
and looking for options to take down the equipment in smaller pieces.
If the Regulatory compliance rules/guidelines
Then is it not possible to
for equipment are known years out..
plan ~70% of Shutdown
scope into your
…and ~70% of OpEx Shutdown Scope is
compliance program
Regulatory driven, and ‘must be done’
plans?
to maintain compliance..
Validation
The
Consultants
Agree !!!
17Shutdown Management: Execution
Fortunately a SAGD plant does lend itself to this philosophy, however I would say this approach
could be utilized across all types of plants if you also look at opportunities for completing scope
online. A example would be completing regulatory work on Pressure Relief Valves or
opportunities to do online cleaning with the latest technology and equipment we have at our
disposal.
• Why do this? Well if you plan your work across a longer duration you can level load your
resources required to execute this work. The indirect costs savings result in a number between
33-50 percent. ( depending on original manpower requirements)
18Driving Down Cost Through Scope Mgmt. & Shutdown Planning
For Alberta to compete on the
Global scale we have to drive our
costs down.
Oil maybe down at $35 for longer
than we would like to think.
Why would we not look at better
ways to improve our HSE and Cost
performance.
19Shutdown Management: Driving down Costs
Reviewing the design of the plant and opportunities to take on inspection work online is still to
be realized. But industry commonly lands on between 30-50% as a indirect cost savings.
Equipment Outage Program Barrels Saved
Indirect and Direct
Implementation of a Equipment Labor
Further Cost
Outage Strategy.
Saving ?
Opportunity 33% - 50%
Cost Saving Shutdown Optimization Program
Opportunity Targeted Management Team:
SMS (Shutdown Management
10% System)
20% Organizational Structure Projectize your shutdown work to
Scope Management achieve these cost savings
Risk Management
Contractor Performance
70% Management
20Shutdown Management: The Value Proposition
Value Levers What & Why Benefits:
Apply a strategy that reduces
• HSE becomes manageable with a reduction in contractor
HSE plant shutdown requirements
resources across short durations/high volumes of work.
and durations.
• Reduce or eliminate contractor onboarding time
(permitting etc.).
Shutdown • Drive productivity and performance through familiarity of
Load Level resources
Resourcing & the site.
throughout the year.
Productivity • Reduce risk of tracking/managing performance – easier to
manage small scopes of work throughout the year.
• Load level resources with Capital Project scope.
• Capture Direct & indirect cost savings.
Evaluate financial rewards in
Financial • Capture lost production through reduction in plant
application of this strategy.
shutdowns.
Strategically remove
• Resource Requirements do not present market risk.
Market ConocoPhillips from the major
• Continue to execute work with a focus on repeatedly
Drivers shutdown campaign in
seizing opportunities to further reduce costs and risks.
Alberta.
21Shutdown Management: Projectize Your Work
Shutdown Management: Develop a Program Plan
Major Train Major CPF and Train Train Major Major
Shutdown Shutdown Major Shutdown Shutdown Shutdown
Event Event Event Event Event
2017 2018 2019 2020 2021
Work Work Work Work Work
Packages Packages Packages Packages Packages
Complete Complete Complete Complete Complete
for 2018 for 2019 for 2020 for 2021 for 2022
Scope Freeze Scope Freeze
for 2018 Execution Scope Freeze Scope Freeze for 2022
Work Packages begins 2018 EO for 2020 for 2021 Execution For
completed for Scope Freeze Execution for Execution for EO
shutdown for 2019 2019 EO 2020 EO
event
23Shutdown Management: Planning Strategy
• Develop robust planning packages to improve execution efficiency
• Build program flexibility through early planning and material availability
• Integrate execution contractors in planning and estimate process
• Apply DIBM to your planning packages
Scope frozen
360 Days Shutdown Event
Schedule developed
Shutdown Planning
Complete
180 Days Shutdown Event
Equipment Outage
and PSV Planning 90 Days Equip Outage Event
Complete
Ensure you capture your actual costs at the end of the event and update your packages
24Shutdown Management - Philosophy
• The old philosophy was to have entire Old Shutdowns Planning
facilities down for a period of time.
• The new philosophy is to change the culture
and make a step change in the industry
moving from a shutdown mentality to
implementation of an equipment outage
program based over regulatory cycles.
• Leverage your facility to not become a cost
burden in maintaining equipment, but a cost New philosophy: Equipment outage
opportunity to execute scope more
Surmont Maintenance Shutdowns
efficiently.
Facility 2017 2018 2019 2020 2021 2022 2023 2024 2025
• This will realize savings both in indirect and
Surmont 1 X X X
Surmont 2 Train A X X
direct labor and lost barrels.
Surmont 2 Train B X X
Surmont 2 Train C X X
Surmont 2 Common X X
Well-Pads 3 3 5 3 3 3 5 3 3
25Shutdown Management: Challenges • Step Change in philosophy needs careful communication to get everyone onboard. • The scope we discussed today was asset integrity and planned maintenance that has to be completed in certain durations. Other groups like Capital Projects need to be onboard and integrated into the plan to optimize opportunities with any future developments or debottlenecking. • Data is limited on the indirect cost savings so although the theory is robust the practice has yet to be demonstrated. 26 November 29, 2016
Imagination is more important than knowledge.
The important thing is not to stop questioning.
Curiosity has its own reason for existing.
Anyone who has never made a mistake has never
tried anything new.
Questions
27You can also read
