How to avoid Major Accidents,
Contractors in the Oil and Gas Industry.
Project Director Jan-Tore Elverhaug
November 2012
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EPC focus
2
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Kværner Work scopes:
•All scope is related to new plants and units/modules for the oil and gas
industry, prior to installation for operations.
•Work is performed according to clients specifications.
•Scope can consist of:
•Feasibility and concept studies
•System definition and detailed engineering
•Procurement
•Construction and assembly
•Commissioning. (normally assistance to clients)
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ED&S September 2008 Slide 4
How we work
Kvaerners Project Execution Model (K PEM) is based on best practice from
many of the industry’s most challenging projects
K PEM ensures efficient project execution and risk management, for
deliveries on time, on budget and with the agreed quality
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© Kvaerner 2011 5
1A 1B 1C 1D 2A 2B 2C 3A 3B 3C 3D 4A 4B 4C 5A 5B 5C 5D 6A 6B 6C
Op
po
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nit
y A
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rais
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Fe
as
ibil
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tud
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Co
nc
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ele
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on
Co
nc
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efi
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Sys
tem
De
fin
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Sys
tem
Des
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& L
ayo
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De
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Glo
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Deta
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Wo
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Pre
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Clo
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Pro
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Ta
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Pro
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Tra
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Ins
tall
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Me
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As
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Tra
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Fab
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System
Definition Feasibility &
Concept
Detailing &
Fabrication
System
Completion
Assembly &
Erection
1A 1B 1C 1D 2A 2B 2C 3A 3B 3C 3D 4A 4B 4C 5A 5B 5C 5D
Milestone
Stage A
ltern
ati
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en
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Feasib
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Co
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Cri
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ain
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rozen
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Desig
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Pre
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Pre
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& P
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Insta
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Mo
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reassem
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Mo
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Assem
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Take
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Co
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Clo
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Co
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Contract
Completion
Se
rvic
e &
As
sis
tan
ce
Ag
ree
me
nts
(o
pti
on
al)
Wa
rra
nty
, In
su
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& L
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Ha
nd
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Ac
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on
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Clo
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-ou
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6A 6B 6C
Serv
ice &
Assis
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sta
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Warr
an
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Insu
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Leg
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han
dlin
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Wo
rk a
ccep
ted
an
d C
on
tract
clo
sed
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Focus area related to Major accidents Risk identification and Risk reduction Experience and knowledge transfer
Involvement from all participants in the project
Focus on highest risk and most efficient risk reduction activities
– Design, Product and Technology development
– Planning and execution of activities.
– Choose the correct subcontractors / suppliers
Gate review to identify status on activities prior to proceed.
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Concept selection
Which alternative is the preferred?
Considering potential for major accidents, natural environment, working environment?
Concept definition
The basis for an inherently safe design is made: segregation of the facility info safe and hazardous areas, location of LQ/evacuation means, escape route design, process design, ventilation solution, type of power generation etc.
Concept risk analysis assesses the major accident risk potential
Risk reducing measures (ALARP process) will be assessed continuous
Activities reated to
Major accident prevention
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System Definition
Hazard Identification (HAZID) Systematic review to reveal potential
hazards related systems/areas
HAZOP – Hazard and Operability study Systematic review of each sub part of
process systems to evaluate hazards and operability
Quantitative risk analysis (QRA)
ALARP (As low as reasonable practicable) process
SIL (safety integrity level) and reliability analysis
Human factors analysis
Establish/develop safety philosophies and strategies
Establish/develop performance standards for safety critical barriers
Design of safety barriers
BAT (Best available technology) process
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6-
Nov-
12
Slide 9
Major hazard management - FPSO Example
Compr. gas turbines (ign. source)
Main power
generation
Potential ignition
source (turbine air
intake)
Wind direction
Turret (fire/ explosion potential)
LQ
Process area (fire/ explosion
potential)
Before
After
Utility area serves
as a barrier
between
turret/process
areas and LQ
Potential ignition
sources located
upwind process area
Electric compressors
(reduces ignition
probability)
Wind direction
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10
Project Management
•Fabrication drawings and work
preparation for prefabrication
completed (prefab. job cards) .
Project Execution
•Production of fabrication
drawings
•Preparation of jobcards/work
packages
•Material take off finalised and
bulk material top up orders
placed
•Completion requirement
incorporated in fabrication
documentation
•Issue Isometrics IFC
•Materials on site for use
Project Management
•Implementation of
subcontractors HSE & QA
programs reviewed
Project Execution
•Engineering databases
complete
•All fabrication Bulk Material
delivered
•Shop engineering detailing and
work preparation for fabrication
•Pipe spools, Steel sections and
Concrete sections
prefabricated.
•Deep/major foundations &
trenches completed.
•Construction site temporary
facilities completed
•Hook-up/Commissioning
Subcontracts awarded
Project Management
•HSE program for construction
updated to include Assembly/
Erection phase
•Management Plan documents,
schedules and budgets updated
for next phase (HSE, Scope,
Time, Cost, Quality, People and
Team, Communication, Risk
and Procurement &
Subcontracting)
•Project Management Plan
updated (for next phase)
•Milestone Review held
Project Execution
•Layout and 3D Model as built
mark up of part
assemblies/modules
•All Bulk Material available to
support the Assembly / Erection
sequence
•Part assemblies and
modules/package units
fabricated and mechanically
complete
•Commissioning commenced on
selected systems
Project Management
•HSE program for construction
and completion defined
•Milestones and Detailed
Construction Schedule verified.
•Team Alignment program
continued
•Updated Project Mgmt Plan
implemented
Project Execution
•HSE risk assessment complete
•Close out HAZOP action items
•Final vendor information from
all PO’s incorporated in System
and Area Engineering
•Layout / 3D model
documentation issued for
construction
•Relevant System Engineering
documentation issued for
construction
•Material take off finalised and
bulk material top up orders
placed
•2nd priority FC Subcontracts
awarded
•Hook-up/Commissioning
Subcontracts inquired
•Issue P& IDs IFC (QL4)
Complete 3D model / Layout
design
Prepare and check fabrication
drawings, material, job cards/work
Orders
Complete prefabrication work
Receive and check equipment
Shipment of preassembly/test
mounting
Module fabrication
Module transportation to assembly
site
Commissioning according to
Completion method.
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Project Management
•HSE requirements for Assembly & MC
stages established & implemented
•Work permit system established
•Cost, schedule & risk program updated
•Team Alignment program continued
•Updated Project Mgmt Plan
implemented
Project Execution
•Temporary Services & Power
Distribution in place and Site roads
complete up to sub-base.
•Major equipment, Pre- assemblies &
modules transported to site and final
positioned.
•On site fabrication and erection of
major vessels and process equipment.
•Main Structures & Bridges Complete
Project Management
•Implementation of HSE requirements
verified
Project Execution
•Major equipment, Pre- assemblies &
modules assembly installed.
•Install Balance of Plant Equipment and
interconnecting piping systems.
•Minor structures, E & I installation and
Main insulation complete.
•Final Labelling & Identification started.
•Operation & Maintenance Manuals
available.
Project Management
•HSE program for system completion
phase established
•Management Plans, schedules and
budgets updated for next phase (HSE,
Scope, Time, Cost, Quality, People and
Team, Communication, Risk and
Procurement & Subcontracting)
•Project Management Plan updated (for
next phase)
•Phase close-out Milestone Review
Project Execution
•Relevant as built mark-up complete
•Construction work mechanical complete
& quality records available.
•Categorised Punch lists for all systems.
•All systems ready for commissioning
and commenced in accordance with
system completion schedule
•Final Insulation, Labelling &
Identification complete.
Transport and final install the
modules and all components and
pre-assemblies into a complete
Topside, in accordance with the
installation method.
The work is performed at the
assembly yard / onshore plant.
The Topside is MC completed,
ready for commissioning.
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Project Management
•HSE requirements implemented
•Relevant documentation
(LCI/DFI/DFO) updated with As-
built and commissioning
information
•Team Alignment program
continued
•Updated Project Mgmt Plan
implemented
Project Execution
•Perform and finalise all
commissioning activities.
•Preparations for start-up
•Temporary items removed.
•Relevant documents updated with
“as commissioned” information
•Punch List cleared for start-up
Project Management
•HSE requirements implemented
Project Execution
•Preparation for sail away
•Perform tow out
•Complete installation of
substructure / moorings / tethers
•Complete installation of the
production facility
•Document offshore
installation/hook-up work MC
complete
•Offshore commissioning
Project Management
•Total HSE program implemented
•Service assistance agreement
established
•Operational responsibilities (if any)
formalised
•Delivery protocol executed-project
contract object handed over
•Mobilise and maintain resources
for Contract Close Out Phase
Project Execution
•All project work completed to
enable issue of delivery protocol
•Punch lists at delivery time
established including identification
of carry over work including POs
and subcontracts
•Method and schedule to close
punch lists (COW) agreed with
Client
Project Management
•Establish agreements on
execution of post start-up
performance and HSE measure-
ments and rectifications
•Management Plan documents as-
built, with lessons learned
•All As-built and LCI documentation
handed over
•Key experience figures
summarised and transferred to
BU/BS
•Issue of Delivery Protocols and
commercial closing of POs and
subcontracts
•Final Account established
•Final revenue/net margin report
issued
•Relevant documentation, BGs /
PCGs and systems handed over to
warranty organisation
•Completion Certificate established.
•Project Close-out report issued
Project Execution
•Punch list / COW including PO
and subcontractor scope
completed
•Complete and release hand-over
documentation
•Subcontractor and third party
invoices closed out
•Completion of Sub-contracts and
POs Final Accounts and
Completion Certificates
•POs assigned to Client if
requested
•Experience/lessons learned
reports issued
Perform onshore commissioning
of the systems in a safe manner,
in accordance with pre-defined
commissioning plans and
procedures.
Transport, Install and hook-up
the Topside and perform
necessary offshore
commissioning.
Perform the hand-over to
operation and close-out the
Project.
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ED&S September 2008 Slide 13
How we work
Kvaerners Project Execution Model (K PEM) is based on best practice from
many of the industry’s most challenging projects
K PEM ensures efficient project execution and risk management, for
deliveries on time, on budget and with the agreed quality
© Kvaerner 2012
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6-
Nov-
12
Slide 14
Activities/systems to verify a safe design
PEM – Project Execution Model
Quality Management system
IDC - All relevant documents/drawings shall be reviewed by relevant
disciplines
Design verifications (internal)
Design reviews (internal)
HAZOP
Risk analysis including HAZID
Other verifications (e.g. SIL)
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Copyright and disclaimer
Copyright
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Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable
acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.
Disclaimer
This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results
to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions
of the regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations,
estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that
could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that
are or will be major markets for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates,
fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its
expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results
will be as set out in the Presentation. Kværner ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the
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