Project Management – Continuous Learning...

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The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.

Project Management – Continuous Learning atWilliams MidstreamJohn Connelly, PE Director Technical Services

Knowledge and Project Management Symposium August 13, 2009


Our Operations


About Williams

� Williams gave more than $10 million in 2008 to help meet community needs across the country

� 4,600 total employees in 27 states, along with Canada and Venezuela

� 1,200 of these employees are based at the company’s headquarters in Tulsa, Okla.

� Also have major offices in Denver, Houston and Salt Lake City

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Project Management at Williams Midstream

� Developed PM Process – Project Life Cycle – in 1999 to focus on minor expansion projects

� Major project opportunities in Deepwater Gulf of Mexico began in 2000

� Currently, project opportunities of all sizes in multiple regions – Gulf of Mexico, West, Pennsylvania

� Challenged to continuously improve project management on minor expansions, operations improvement, and major projects simultaneously


Midstream Project Life Cycle

Identify multiple options to satisfy Customer and Company needs and agreement to pursue opportunity

Iterative process to select the best option and sufficiently define the project to obtain approval and commitment

Final approval and execution of critical documents

Design, procure, construct, and start-up the assets as committed

Transition new asset to Operations: Gas Control, Safety, Staffing, SCADA, Measurement, Environmental, Maintenance, Regulatory, Tech Services


Devils Tower Project

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Deepwater Projects – Risk Management Focus

� New business entry

� New technology

� International contractors and vendors

� Unique weather risks

� Long project development cycles

� Capital intensive projects

� Complex commercial contracts

� Primarily turnkey construction contracts


Devils Tower Hull Leaving Batam, Indonesia


C ategory 1 H urricane C laudette at M atagorda B ay

Hurricane and Loop Current Risks

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Devils Tower Topsides Installation


Devils Tower Completed SPAR


Deepwater Pipe Reel Lay Vessel at Mobile, AL

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Deep Blue Installation Vessel Pipe Spools


Subsea Junction LayoutSubsea Junction Layout

The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.Gunnison SCR installation

Gunnison Steel Catenary Riser Installation

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Deepwater – Project Management Impacts

� Contract with critical vendors and suppliers during project development

� Link commercial and technical risks in contracts

� Time for project development is critical

� Statistical cost analysis can improve risk understanding and cost performance

� Project Management process provides “footprints” to continue on next project


The Growth Wave in Projects

� Continue deepwater projects

� Begin expansion in West

� Ensure reliability of existing assets

� Multiple projects across regions requires robust Project Management process to sustain success


Willow Creek Gas Processing Plant - Colorado

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Willow Creek Gas Processing Plant - Colorado


West Projects – Learning Project Controls

� Complex stakeholder relationships – customers, multiple regulatory agencies, multiple governmental agencies, public, contractors, vendors

� Cost increase pressure from peak project activity levels

� Seasonal weather windows

� Remote locations

� General Contractor strategy

� Contract Management and Project Controls capabilities for large projects need improvement


Midstream Projects – What We Learned

� As an operating company our project process starts with a concept and continues through operation and maintenance of the assets

� PM Process must be scaleable and flexible

� Project definition is very iterative

� PM Process requires continuous improvements and updates instead of a massive effort every few years

� Standardized work processes reduce reliance on institutional memory and heroic work efforts

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Midstream Projects – What We Learned

� Project Management is a separate discipline from Engineering requiring soft skills to supplement technical skills

� PM training has been successful with training developed for a specific audience

� Front-End Loading produces the best results but may not be feasible to meet customer needs

�Critical processes are risk management, project controls, and contract management


Midstream Project Types

�Maintenance Projects• Manage through existing System Integrity Plan practices

� Tactical Projects• Tactical projects involve two primary stakeholders (Operations and

Technical Services) to complete projects with minimal impact to existing operations.

• Tactical projects are typically small and involve staff that are all part time on the project.

�E&C Projects• Large scale growth projects with complex stakeholder and contractual

requirements• Highest risk factors


Midstream Projects – Knowledge Management Impacts

� One version of standards and practices

� Project file, document, drawing, and construction record retrieval and search

� Community of Practice for Project Management

� Implementing lessons learned

Project Management – Continuous Learning...

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