scholarly journals Evaluation of an OBCE Conversion Contract in a Large-scale Oil and Gas Project

2020 ◽  
Vol 312 ◽  
pp. 02006
Author(s):  
Ruveyda Komurlu ◽  
Akin Er

Billion-dollar investments are quite common in oil and gas industry and owners generally prefer engineering, procurement, construction (EPC) contracts since they would like to minimize their risks and guarantee the most consistent project cost and shortest timeline scheme. Considering the size of contracts, owners are unsurprisingly seeking an ideal tender awarding method to avoid deviation from project schedule or budget and get the maximum benefit for them. They may prefer to award the EPC contract directly (i), have a front-end engineering design (FEED) study done first and award the EPC contract afterwards (ii), or set up a convertible contract and convert it to EPC after an open book cost estimate (OBCE) process (iii). It is a question of concern which option for large-scale oil and gas projects is the most favourable. As a case study, outcomes of a project which was administrated with a conversion type of contract will be reviewed in detail, and a number of principles based on lessons learned will be listed. Thus, the authors aim to provide a verifying approach for the interpretation of EPC conversion type contract management based on analysis of the distinguishing features of large-scale oil and gas projects.

2013 ◽  
Vol 13 (1) ◽  
pp. 83-97 ◽  
Author(s):  
A.M. de Britto Pires ◽  
F. Lima Cruz Teixeira ◽  
H.N. Hastenreiter Filho ◽  
S.R. Góes Oliveira

Since 1996, Petróleo Brasileiro S.A. – Petrobras, the biggest oil company in Latin America, has been supporting a programme for the design, customization, and implementation of tri-lateral collaborative arrangements called the Centres and Networks of Excellence (CNE) Programme, in areas which are critical to the company's competitiveness. This programme is aligned with the Open Innovation proposal, as it is designed to intensify the inflows and outflows of information and technology, from internal and external sources, in the RD&I activities of the participating organizations. This article presents qualitative research based on the case study of the Centre of Excellence (CE) in Engineering, Procurement and Construction (EPC), a hybrid organization which brings together oil companies, EPC companies, universities and technical schools, government entities, professional associations and industry bodies, in an effort to make the Brazilian EPC sector related to the oil and gas industry sustainable and competitive worldwide. The principal objective was to investigate the governance elements and managerial mechanisms that support or hinder collaboration among the parties. The work included the identification of collaborative activities within the organization and aspects of trust. Qualitative data was collected by means of in-depth interviews with staff and executive members of the CE-EPC. The case study highlighted the potential of the method to help set up hybrid collaborative initiatives among parties from different institutional spheres. However, the research identified some barriers to the full accomplishment of CNE. A weak culture of collaboration was the greatest difficulty found in the CE-EPC case. The lack of positive previous cooperation experiences together with a lifelong practice of market relations make it hard to get members to focus attention on a new work logic. Yet, despite the high asymmetry among members and the weak network culture, the results indicate that the CE-EPC has accomplished significant positive results in twenty months of operation and that its internal environment is supportive and favours the improvement and consolidation of the organization.


2017 ◽  
Vol 2017 (1) ◽  
pp. 657-677
Author(s):  
Thomas Coolbaugh ◽  
Geeva Varghese ◽  
Lau Siau Li

ABSTRACT Following the Macondo Incident, the international oil and gas industry spent significant time and effort analyzing lessons learned and implementing key projects to ensure that critical response and preparedness issues that were identified are addressed to improve response capabilities. The Global Dispersant Stockpile (GDS) was established as part of a post-Macondo Joint Industry Project through Oil Spill Response Limited (OSRL), recognizing that delivery of sufficient quantities of dispersant is a key element for a successful dispersant operation, especially during the initial phases of a large scale response to an event such as a subsea well blowout. Taking into account the global approval status and proven effectiveness on a range of crude oils, three key oil dispersants, Finasol® OSR 52 (Total), Corexit® EC9500A (Nalco) and Slickgone® NS (Dasic) were selected for the Global Dispersant Stockpile. A total of 5,000 m3 of these dispersants are now stored and ready to be deployed from five strategically positioned global locations. For example, sizable volumes of two of these products (total volume = 700 m3) are located at OSRL’s response base in Singapore, which can be quickly mobilized to support a response in the Asia Pacific region. An ongoing effort associated with the management of the GDS is to enable the pre-approval of at least one of the three products for countries in the region where spill response may be required. At present, this is not the case in the region for a variety of reasons, e.g., toxicity concerns and biodegradation processes of dispersed oil. A particularly cautious approach by regulatory authorities following the Macondo incident, coupled with a number of other specific regional concerns, has exacerbated the issue of obtaining and maintaining dispersant approvals in the region. The aim of this paper is to identify and discuss the existing regulatory framework governing the dispersant product approval process and dispersant use authorization for countries in Asia Pacific. The paper will detail the present status of regulations related to dispersant use for a number of countries in the region, the potential challenges associated with achieving permissions in countries with no regulations and a discussion of strategies to address identified obstacles. Additionally the activities that are being undertaken to expand regulatory approvals will also be addressed. It is anticipated that a greater understanding of the reasoning behind the GDS will facilitate a positive regulatory perspective and the potential for dispersant pre-approval in the region.


2021 ◽  
pp. 239496432110320
Author(s):  
Francesca Loia ◽  
Vincenzo Basile ◽  
Nancy Capobianco ◽  
Roberto Vona

Over the years, value co-creation practices have become increasingly more important by supporting collaborative interactions and the achievement of sustainable and mutual competitive advantage between the ecosystem’ actors. In this direction, the oil and gas industry is proposing a sustainable re-use of offshore platforms based on value co-creation and resources exchange between the actors involved. According to this consideration, this work aims at re-reading the decommissioning of offshore platforms in the light of value co-creation practices, trying to capture the factors that governments and companies can leverage to pursue a sustainable development of local communities. To reach this goal, this work follows an exploratory approach by using, in particular, the case study. Specifically, one of the most notably projects in the Italian context have been chosen, the Paguro platform, in order to provide empirical insights into the nature of these value co-creation processes. Five value co-creation practices have been identified which highlight the importance of synergistic efforts of institutions, companies and technology-based platforms for improving the ability to co-create and capture value in the process of decommissioning. This exploratory work establishes a foundation for future research, and offers theoretical and managerial guidance in this increasingly important area.


2021 ◽  
Author(s):  
Nouf AlJabri ◽  
Nan Shi

Abstract Nanoemulsions (NEs) are kinetically stable emulsions with droplet size on the order of 100 nm. Many unique properties of NEs, such as stability and rheology, have attracted considerable attention in the oil industry. Here, we review applications and studies of NEs for major upstream operations, highlighting useful properties of NEs, synthesis to render these properties, and techniques to characterize them. We identify specific challenges associated with large-scale applications of NEs and directions for future studies. We first summarize useful and unique properties of NEs, mostly arising from the small droplet size. Then, we compare different methods to prepare NEs based on the magnitude of input energy, i.e., low-energy and high-energy methods. In addition, we review techniques to characterize properties of NEs, such as droplet size, volume fraction of the dispersed phase, and viscosity. Furthermore, we discuss specific applications of NEs in four areas of upstream operations, i.e., enhanced oil recovery, drilling/completion, flow assurance, and stimulation. Finally, we identify challenges to economically tailor NEs with desired properties for large-scale upstream applications and propose possible solutions to some of these challenges. NEs are kinetically stable due to their small droplet size (submicron to 100 nm). Within this size range, the rate of major destabilizing mechanisms, such as coalescence, flocculation, and Ostwald ripening, is considerably slowed down. In addition, small droplet size yields large surface-to-volume ratio, optical transparency, high diffusivity, and controllable rheology. Similar to applications in other fields (food industry, pharmaceuticals, cosmetics, etc.), the oil and gas industry can also benefit from these useful properties of NEs. Proposed functions of NEs include delivering chemicals, conditioning wellbore/reservoir conditions, and improve chemical compatibility. Therefore, we envision NEs as a versatile technology that can be applied in a variety of upstream operations. Upstream operations often target a wide range of physical and chemical conditions and are operated at different time scales. More importantly, these operations typically consume a large amount of materials. These facts not only suggest efforts to rationally engineer properties of NEs in upstream applications, but also manifest the importance to economically optimize such efforts for large-scale operations. We summarize studies and applications of NEs in upstream operations in the oil and gas industry. We review useful properties of NEs that benefit upstream applications as well as techniques to synthesize and characterize NEs. More importantly, we identify challenges and opportunities in engineering NEs for large-scale operations in different upstream applications. This work not only focuses on scientific aspects of synthesizing NEs with desired properties but also emphasizes engineering and economic consideration that is important in the oil industry.


2021 ◽  
Vol 73 (08) ◽  
pp. 60-61
Author(s):  
Chris Carpenter

This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper SPE 201272, “Lessons Learned in Developing Human Capital for the Oil and Gas Industry in Kazakhstan,” by Zhassulan Dairov, SPE, KIMEP University and Satbayev University; Murat Syzdykov, SPE, Satbayev University; and Jennifer Miskimins, SPE, Colorado School of Mines, prepared for the 2020 SPE Annual Technical Conference and Exhibition, originally scheduled to be held in Denver, Colorado, 5–7 October. The paper has not been peer reviewed. The World Economic Forum’s (WEF) Human Capital initiative has been implemented at Satbayev University (SU), Almaty, Kazakhstan, during the last 2 years. Participating in this effort are Chevron, Eni, Shell, and the Colorado School of Mines (Mines). The complete paper assesses the effectiveness of project components, such as industry guest lectures, summer internships, and program improvement, and provides lessons learned for human-resource-development initiatives. Introduction In most cases, the industry/ university alliance is intermittent, short-term, and underdeveloped. The engagement of three stakeholders, such as government, industry, and the university, is the most-successful model of joint performance. This approach allows all participants to create competitive advantages in the achievement of common objectives. Moreover, the role of governmental agencies is critical alongside professional organizations in facilitating such cooperation.


The distinctive feature of petroleum businesses is its wide scope. After crude oil or gas extraction, resulting semi-products undergo dozens of transformation stages in supply chains to reach the final customer. Combination of quantity and quality multiplied by external market factors produce price fluctuations that are challenging for world economics. In this regard process management might be carried out to improve supply chain performance and assure the maximum business predictability. However, for such large-scale organizations it requires big effort in operational analysis, process enhancement and process control via information systems which successfully support traditional management in function-oriented organizational structures. This chapter explores the developed engineering matrix that embraces potential methods and tools applicable for oil and gas industry. Additionally, it reveals industrial peculiarities and delivers case studies about Iranian and Hungarian petroleum companies.


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