Canadian Heavy Oil Association Presentation November 10 th, 2011 A Different View of Project Execution
SAGD Construction Project Timelines
Background in SAGD Deer Creek Energy - Joslyn Pilot Plant
Background in SAGD Deer Creek Energy - Joslyn Commercial Facility
Background in SAGD Connacher Oil and Gas – Pod I Commercial Facility
Background in SAGD Connacher Oil and Gas – Algar Commercial Facility
Current Projects Pengrowth Energy Corporation – Lindbergh Pilot Plant Currently Under Construction Scheduled for Startup in Q1 of 2012 Southern Pacific Resources – McKay River Commercial SAGD Currently Under Construction Scheduled for Startup in Q2 of 2012 N-Solv Corporation – McKay River Pilot Project Currently undergoing Engineering Scheduled for Startup in Q4 of 2012
Typical Project Algar Commercial Facility – Early Road Construction
Typical Project Algar Commercial Facility – Road Construction Complete
Typical Project Algar Commercial Facility – Plantsite Civil Preparation
Typical Project Algar Commercial Facility – Pile Driving
Typical Project Algar Commercial Facility – Day 30
Typical Project Algar Commercial Facility – Day 150 – Evaporator Lift
Typical Project Algar Commercial Facility – Typical Module Installation
Typical Project Algar Commercial Facility – Day 240
Typical Project Algar Commercial Facility – First Steam
Project Execution Process Design Detailed Process Review Early Involvement of Operations Ability of the Team to quickly evaluate process options incorporating input from all stakeholders & to implement decisions rapidly Ability of the Team to recognize unit operations that have been successfully utilized in similar applications and not waste time in re-evaluation unless justified Contracting Strategy & Risk Management Best scenario for a successful project is where the goals of the Owner, Project Managers, Vendors, and Contractors are all aligned. Lump Sum for Engineering Contractor based on a % of +/- AFE Sole Source Supply where justified Detailed bid process where justified Time and materials based contracts Field contracts a mix of fixed price and hourly
Project Execution Shop Fabrication Procurement Onus heavily on Engineering Contractor Schedule of IFC drawings determines the project schedule and predicted cash burn Management of Change Attention to detail & very rigorous shop inspection Constructability Logistics and Transport Difficulty of the Transportation Corridor Close communication between Shop Coordinators, Field Supervisors, and Transport Contractor $/km contract for transport Flexibility of field contracting strategy
Project Execution Field Construction Under this execution strategy this area presents the greatest risk for cost control Success is highly dependent on accuracy of engineering contractor – stuff has to fit Primary Mechanical Contractor on hourly Secondary Mechancial Contractor on hourly Typical to go lump sum of E&I Flexibility for Field Supervisors System in place to closely monitor Cash Burn vs Productivity.
Specific Techniques Tight Spooling
Specific Techniques Pipe Modules
Specific Techniques Pouring Pod I Tank Base
Specific Techniques Algar - Pile Supported Steel Tank Floors
Specific Techniques Pod I Grade Beam, Floor, Supports, & Mod Installation
Specific Techniques Algar Grade Beam / Piles
Specific Techniques Algar Equipment Setting
Closing Remarks “It’s about the People, not the process” Neal Gartner, Engineering Manager, AMEC BDR October 2011