Pre-Engineered Standardized Turbomachinery Solutions: A Strategic Approach to Lean Project Management

2021 ◽  
Author(s):  
Adel Khalaf ◽  
Maher Ayed ◽  
Gianni Acquisti ◽  
Emanuele Rizzo
Keyword(s):  
Project Management ◽  
Swot Analysis ◽  
Oil And Gas ◽  
Cost Effective ◽  
Chain Process ◽  
Gold Plating ◽  
Oil Companies ◽  
National Oil Companies ◽  
Success Stories ◽  
Management Concepts

Abstract Effective project management plays a crucial role to the success of organizations via resilient execution of activities, in terms of performance and efficiency. Due to the recent market dynamics and its associated uncertainties, affecting several segments in the oil and gas (O&G) industry, utilization of innovative contracting schemes such as Front End Engineering Design (FEED) competition, and value engineered products are becoming of great importance to achieve the project's goals optimally. This paper discusses the competitiveness and strategic benefits of employing the vendor's pre-engineered and standardized turbomachinery equipment/solutions, to meet the required functionality while maintaining the highest levels of quality and safety. Several project management concepts and tools were employed, such as SWOT analysis, to discuss the benefits of supplying vendor's pre-engineered high value and long-lead turbomachinery equipment within projects, as a cost-effective solution, in place of customized products. A Requirements-to-Implementation Mapping (RIM) exercise was also carried out to benchmark the pre-engineered solutions with the industry practices while considering the packaging requirements from well-known international and national oil companies. This paper also presents success stories of implementing pre-engineered solutions that strongly contributed in improving the management of projects from engineering to operational phase. This study works in line with the recent O&G operators’ initiatives in promoting agile approach to mitigate the forces that are impacting the industry and in turn the economy, such as COVID-19 pandemic. The study analysis, employing semi-quantitative approach, revealed that the pre-engineered solution brings to customers an improved value proposition in terms of cost, delivery, quality, safety, and aftermarket support, which contributes greatly in minimizing gold plating to achieve leaner projects. Standardized equipment is also found to be effective in minimizing the risks associated with changes and therefore improving the control on project constraints as well as simplifying the purchasing management of strategic equipment. In this respect, the use of standardization and pre-engineered activities could lead to a reduction of lead time up to 30%. The reliability of the standardized equipment will also be increased due to the proven frozen designs which have been repeatedly manufactured, tested, and supplied and therefore ensures successful and seamless project close-out. The proposed approach of mixing pre-engineered commodities to customized and configurable features based on site conditions provides the proper flexibility required by O&G industry while, simultaneously, maximizing the benefits of standardization. The strategic benefits of pre-engineered turbomachinery packages in the context of project management and supply chain process is not well recognized. This study explains these benefits to increase the customer's confidence level in utilizing this approach and benefit from its values, especially during the changing dynamics of the O&G industry.

Low oil prices put pressure on China's energy policy

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
International Market ◽  
Domestic Demand ◽  
Energy Prices ◽  
Content Type ◽  
Oil Companies ◽  
National Oil Companies ◽  
Financial Pressure ◽  
Difficult Time

Subject Effect of low oil prices on China. Significance China is the world's second-largest oil user and imports nearly 60% of its annual requirements. If oil prices remain below 50 dollars per barrel, China's import bill for crude oil will fall by tens of billions of dollars in 2015, while the national oil companies (NOCs) face a difficult time as their profits from oil production are squeezed. However, the consequences are not straightforward due to the government's role in setting energy prices and the mix of commercial and state objectives of the NOCs. Impacts Financial pressure on China's NOCs will not be as great as on their international counterparts. The NOCs are likely to embark on a spree of buying overseas oil and gas assets. With contracted gas supplies exceeding domestic demand, Chinese LNG importers will sell surplus on the international market.

Entrepreneurial implications of Nigeria's oil industry local content policy

2011 ◽  
Vol 5 (3) ◽  
pp. 223-241 ◽  
Author(s):  
Ugwushi Bellema Ihua ◽  
Olatunde Abiodun Olabowale ◽  
Kamdi Nnanna Eloji ◽  
Chris Ajayi
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
General Level ◽  
Gas Industry ◽  
Content Type ◽  
Oil Companies ◽  
Local Content ◽  
National Oil Companies ◽  
Indigenous Entrepreneurs ◽  
Entrepreneurial Activities

PurposeThe purpose of this paper is to investigate the efficacy of Nigeria's oil and gas industry local content (LC) policy, with particular reference to how the policy has enhanced entrepreneurial activities and served as panacea to resolving some of the country's socio‐economic challenges within the oil‐producing Niger Delta region.Design/methodology/approachSurvey data were randomly obtained from a questionnaire sample of 120 indigenes in Bayelsa, Delta and Rivers states; and subjected to factor‐analysis using varimax rotation to identify the most crucial factors likely to influence the success of the policy. Cronbach's α was also applied to ascertain the reliability of the data and overall agreement amongst respondents.FindingsThe study reveals a general level of indifference amongst the respondents, and an insignificant level of entrepreneurial implication, regarding the LC policy. Notwithstanding, the need to create business prospects, jobs opportunities, and establish special quota arrangements to benefit indigenes of the oil producing host‐communities were found to be most crucial in their assessment of the policy's efficacy.Practical implicationsIt is expected that the policy should stimulate and open up more channels for budding entrepreneurial activities, job opportunities and wealth generation. These would mitigate situations of unwarranted militant activities, social disorder and disguised criminalities such as kidnapping and destruction of oil installations, resulting from perceived marginalisation, massive unemployment and poor living standards experienced within the region.Originality/valueThe study provides insights into how the LC policy, if properly harnessed and judiciously implemented, can generate win‐win outcomes for the nation, multi‐national oil companies, host communities and indigenous entrepreneurs.

scholarly journals National oil companies: business models, challenges, and emerging trends

2013 ◽  
Vol 11 (1) ◽  
pp. 713-722 ◽  
Author(s):  
Saud M. Al-Fattah
Keyword(s):  
Business Models ◽  
Joint Venture ◽  
Oil And Gas ◽  
Oil Companies ◽  
National Oil Companies ◽  
Emerging Trends ◽  
Challenges And Opportunities ◽  
Oil Company ◽  
Gas Supply

This paper provides an assessment and a review of the national oil companies’ (NOCs) business models, challenges and opportunities, their strategies and emerging trends. The role of the national oil company (NOC) continues to evolve as the global energy landscape changes to reflect variations in demand, discovery of new ultra-deep water oil deposits, and national and geopolitical developments. NOCs, traditionally viewed as the custodians of their country’s natural resources, have generally owned and managed the complete national oil and gas supply chain from upstream to downstream activities. In recent years, NOCs have emerged not only as joint venture partners globally with the major oil companies, but increasingly as competitors to the International Oil Companies (IOCs). Many NOCs are now more active in mergers and acquisitions (M&A), thereby increasing the number of NOCs seeking international upstream and downstream acquisition and asset targets

scholarly journals Renewed energy in Asia's upstream

2019 ◽  
Vol 59 (2) ◽  
pp. 582
Author(s):  
Gero Farruggio ◽  
David Dixon
Keyword(s):  
Solar Wind ◽  
Service Sector ◽  
Oil And Gas ◽  
Oil Companies ◽  
National Oil Companies ◽  
Grid Connection ◽  
New Energy ◽  
Operational Expenditure ◽  
And Storage

Upstream is enjoying a renewed optimism in pricing and project developments, and the growth outlook is positive. That said, current investment in upstream across Asia is less than half that of renewable projects, which accounted for over US $180 billion in 2018. Got your attention? It certainly has for national oil companies and regional oil and gas players as companies explore the opportunities presented by lowering solar and storage costs. In this paper we analyse capex trends and forecasts across both sectors in Australia and the region. Will this growth continue, who is set to gain and by how much? We explore the growing role of renewables in the oilfield service sector. Australia is not alone in experiencing a renewables boom; the trend continues across Asia, with government initiatives more often than not being the catalyst and the boom then fuelled by a seemingly endless supply of insatiable investors. Australia is experiencing a frenzy of activity; developers are rushing to grab land and be the first past the post on grid connection. What can we expect as the renewable energy target transitions to the national energy guarantee, to whatever comes next? We compare the corporate landscapes across the upstream and new energy sectors, and explore what is driving them closer each year as miners and upstream operators turn to solar, wind and storage to reduce operational expenditure and boost field economics. Adani has one of the largest solar pipelines in Australia; will Woodside follow suit? Finally, we compare returns for recently commissioned renewable and upstream projects.

The decommissioning of oil and gas fields: Egyptian law and policy

2019 ◽  
Vol 12 (4) ◽  
pp. 287-293
Author(s):  
Mostafa Elshazly
Keyword(s):  
Oil And Gas ◽  
Legal Framework ◽  
Legal Aspects ◽  
Regulatory Framework ◽  
Oil Companies ◽  
National Oil Companies ◽  
Oil And Gas Fields ◽  
Law And Policy ◽  
Legal Challenges ◽  
Gas Fields

Abstract Legal issues around the decommissioning of oil and gas fields have generally been given insufficient attention by energy lawyers in most jurisdictions worldwide. Oil and gas lawyers, and other stakeholders in Egypt, face the same challenge. This article discusses the topic of the decommissioning of oil and gas fields in the context of the legal aspects and the regulatory framework for decommissioning in Egypt, demonstrating the main challenges relating to the legal framework for decommissioning arrangements in the country. At the heart of the legal challenges associated with the decommissioning of oil and gas fields in Egypt lies the most important question: who should pay the associated costs, and when? This article also presents some recommendations to enhance the current regulatory framework for the decommissioning of oil and gas fields in Egypt, to maintain the balance of interests between international oil companies and national oil companies active in Egypt.

The rise of the national oil companies and impact on Australia

2009 ◽  
Vol 49 (2) ◽  
pp. 591
Author(s):  
Brent Steedman
Keyword(s):  
Oil And Gas ◽  
Price Volatility ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Oil Companies ◽  
Service Companies ◽  
National Oil Companies ◽  
Current Period ◽  
Service Contracts ◽  
Emerging Issues

The oil and gas industry is facing a period of major transition as national oil companies (NOCs) improve their operating capabilities and change their investment models KPMG’s Global Oil and Gas Centre of Excellence has commissioned a report which analyses this changing environment, interviews senior executives from major NOCs to understand their views and offers our insights into emerging issues for the oil and gas industry. NOCs are moving outside their national boundaries, partially privatising their assets and demanding more from potential partners and investors. The key findings from this survey are as follows: the growing capabilities of NOCs the definite shift from the use of ownership to service contracts; the success of service companies; international oil companies are responding to the changing landscape; and, investment in people and skills is a top NOC priority. The potential impact of the above findings on the Australian oil and gas sector are significant, and include: reduced access to international service companies; shortage of skills increased opportunities for Australian service companies; and, increased focus by international oil companies on upstream opportunities in Australia. KPMG’s report was prepared during a period of rising oil prices. Even during the current period of price volatility, the majority of findings continue to be relevant for participants in the oil and gas industry.

scholarly journals Development of an imperialist competitive algorithm (ICA)-based committee machine to predict bit penetration rate in oil wells of Iran

2015 ◽  
Vol 37 ◽  
pp. 173 ◽  
Author(s):  
Ayub Abbasi Garavand ◽  
Gholamreza Esmaeilian
Keyword(s):  
Oil And Gas ◽  
Real Data ◽  
Cost Effective ◽  
Imperialist Competitive Algorithm ◽  
Oil Field ◽  
Engineering Project ◽  
Committee Machine ◽  
Oil Companies ◽  
Competitive Algorithm ◽  
Intelligent Models

Drilling operation of a well is one the most expensive and time consuming procedures of oil and gas exploitation. Oil companies are always seeking for safe and cost-effective techniques for drilling. The main goal and motivation of drilling optimization is achieving the highest efficiency of work. Optimization and minimization of operational costs is one of the most important prerequisites of any engineering project. Rate of penetration is a crucial factor n drilling controlling cost and time of drilling. In the current research, capabilities of single independent intelligent models are employed for developing a hybrid committee machine that can predict bit penetration bit with high accuracy. To get this goal, three single intelligent models, including neural network, fuzzy logic and neuro-fuzzy, are trained. In the second step, the outputs of these models are integrated by imperialist competitive algorithm (ICA). Finally, a linear equation is achieved which gets outputs of single models as inputs and integrate them somehow the final results is closer to the actual value. The developed ICA-based committee machine is tested by 145 real data points gathered from the drilled wells in an oil field. Correlation of actual and predicted value of ROP obtained from committee machine shows that the model predicts ROP with accuracy of 88 percent. Such model can be used for optimization of drilling parameters in future drilling operations.

Optimized Technical and Commercial Strategy for Marginal Field Re-Entry – A Case Study

2021 ◽  
Author(s):  
Onyeka Onwuemene
Keyword(s):  
Niger Delta ◽  
Oil And Gas ◽  
Effective Means ◽  
Cost Effective ◽  
Green Energy ◽  
Capital Outlay ◽  
Oil Companies ◽  
The Face ◽  
Marginal Field

Abstract This paper examines an optimized strategy and approach for executing a marginal field re-entry in the face of harsh global economic realities in the oil and gas sector. With dwindling and depressing oil prices driven by demand & supply volatility with root causes traceable to some factors such as the prevalent health pandemic, clamor for green energy, climate change discussions, geopolitics etc, the operating model for oil companies will need to drastically change to reflect current realities. Due to rapid global urbanization and increasing population amongst other factors, there is a corresponding huge appetite for oil to meet energy demands. This has led to exploration in unconventional terrains, utilization of the full extent of primary and secondary recovery mechanisms to attain high RFs in already producing fields and in some extreme cases, the development of marginal fields. In the Niger Delta area of Nigeria, marginal fields usually given up by Oil majors or abandoned following production exigencies and government laws are acquired and operated by indeginous companies. These indigenous players look for the most cost-effective means to produce these assets as it becomes the only way to make profit. A case study for field re-entry in the Niger Delta, which emphasized relatively/comparatively reduced capital outlay dependent on the technical approach is examined. Lessons learnt are drawn to aid enlightened go-forward actions and that will ensure a go-to template for similar future marginal field re-entry projects.

Vertical Integration Strategy Implementation Through Hybrid Upstream and Downstream Concession Agreements

2021 ◽  
Author(s):  
Dr. Abdulla Al Jarwan ◽  
Fathesha Sheikh
Keyword(s):  
Vertical Integration ◽  
Value Chain ◽  
Joint Venture ◽  
Oil And Gas ◽  
Strategy Implementation ◽  
Oil Companies ◽  
National Oil Companies ◽  
Integration Strategy ◽  
Production Sharing ◽  
Host Government

Abstract Upstream developments in prolific oil and gas fields are highly profitable and hence attract various investors/partners, whereas Downstream developments profitability is margin based and challenging under certain situations to receive similar interest for investment in the same location. Vertical Integration Strategy implementation through hybrid upstream and downstream concession agreements can help address this issue. The seventies witnessed major changes in the oil industry's structures and strategies resulting from the nationalization of oil and gas reserves. This ultimately led to a separation between the upstream sector with national oil companies (NOCs) controlling most of the world reserves and crude production, and the downstream sector with the international oil companies (IOCs) controlling the largest share of the refining and marketing aspects in the main consuming countries. In the recent past, NOCs have started forward integration of its upstream sector with downstream sector to take advantage of the synergies and increase profitability. This paper takes the strategy a step more forward by exploring the possibility of developing oil and gas assets through a hybrid upstream/downstream concession agreement that can be awarded by the host government. The model hybrid agreement is built by integrating a typical upstream concession agreement with downstream equity-based joint venture (JV) agreement. It also takes the learnings from Production Development Production Sharing Agreement (DPSA) applied in the development of a Gas-To-Liquids (GTL) asset or Liquefied Natural Gas (LNG) asset which are usually developed as an integrated upstream and downstream business model. It is also feasible to build the hybrid agreement based on upstream Production Sharing Agreement (PSA) instead of a Concession Agreement. The paper will discuss how the hybrid upstream and downstream concession agreement is built and how it will distribute the risk and rewards across the entire value chain for investors, expand the scope of investment and support in the economic development of the host country.

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