Front End Engineering Design of Oil and Gas Projects: Critical Factors for Project Success : Perspectives, Case Studies, and Lessons

Quite a large number of major oil and gas projects are failures with respect to their costs, schedules, and operational performance. Owner companies and contractors are struggling with the issues causing these failures. The Front End Engineering Design (FEED) has been identified as an important factor that plays a key role in determining the success of a project. However, the FEED and the associated Front End Loading (FEL) do not get the attention they deserve from the players in the business, namely, the owner companies, FEED, and EPC contractors. While academic studies on the FEL and its failures are available, how the seeds of failures are sown during an actual project FEED remains a mystery. The details are usually buried in the rubbished computers and hundreds of files that are shelved in companies'offices. In this unique book, two experienced professionals, one from an owner company and the other from an international EPC contractor, whose interests often oppose each other, join to give their perspectives about the project lifecycle, its governance structure, gate system, complexities, contract models, and quality measurements.In the second part of the book, they present case studies of projects gone wrong, due to mismatches, errors, and inconsistencies in the FEED. These case histories reveal how avoidable gaps and errors creep into FEED resulting in project failures and how the review systems fail to detect them. Technical and business professionals seem to underestimate the importance of FEED in capital-intensive major projects, while focusing on short-term goals. The underlying causal factors need to be addressed and resolved in time properly, for ensuring success of major oil and gas projects.Written in a concise and practical style, with key takeaways at the end of each chapter, this book will be a useful guide for practicing project and engineering professionals in the oil and gas industry. Senior students and researchers will find ideas and viewpoints given in this book worth exploring further. Cover Half Title Title Page Copyright Page Dedication Table of Contents Preface About the Authors Introduction Part I: Project Lifecycle, Gate System, and Perspectives 1 Project Framework: Lifecycle and Gate System 1.1 The Main Elements of the Project Gate System Structure 1.1.1 Inputs to the Stage Gate Review 1.1.2 Review Criteria 1.1.3 Review Results 1.2 Value Identification and Front End Loading (FEL) 2 Stage 1: Identification 3 Stage 2: Feasibility and Statement of Requirement 3.1 Stage Gate 2.1: Feasibility 3.2 Stage Gate 2.2: Statement of Requirements (SOR) 4 Stage 3: Project Definitions/Front End Engineering Design (FEED) 4.1 Objectives and Key Activities 4.2 Contract Models 4.3 Project Complexity 4.4 Contracting Strategy 4.5 Stage 3.1: FEED Deliverables 4.6 Summary of Assessment Criteria 4.7 Stage 3.2: Project Endorsement and Approvals 4.8 Key Points to Note in Stage 3 4.9 View from the Other Side: Perspectives from the Bidder 5 Stage 4: Construction 5.1 Stage Description 5.2 Deliverables and Approval Cycles 5.3 Activities Toward Completion of the Project 5.3.1 Mechanical Completion 5.3.2 Pre-commissioning and Construction Completion Certificate 5.3.3 Commissioning, Endorsement of Stable Operations, Issuance of Provisional Acceptance Certificate, and Turnover Certificate 5.3.4 Capitalization of the New Asset 5.4 Key Points to Note 5.5 Perspectives – Owner Mindset and Viewpoints 6 Quality of FEED: Measuring It and Managing It 6.1 Available Tools 6.2 Additional Factors 6.2.1 Standardization 7 Overarching Issues 7.1 Project Organization and Leadership 7.2 Emotional Intelligence (EI) 7.3 Managing Studies during the Project 7.4 Interface Engineering 7.5 Project Risk Assessment 7.6 The Importance of FEED Data in Oil & Gas Projects 7.6.1 Summary of Oil and Gas Process 7.6.2 Oil and Gas Separation Process 7.6.3 Compositional Data in FEED 7.7 Value of Project Data 7.8 Lessons Learnt Part II: Case Studies and Lessons 8 Case Studies: What They Tell Us 9 The Baywater OPCU Project – A Risk Not Worth Taking 10 When Pipe Thickness Went Wrong 11 When Compressor Selection Went Wrong 12 Iron Sulfide and Project Failure 13 Provisions for Future and Associated Pitfalls 14 Heat Exchanger Selection and a Project Almost Gone Wrong 15 Too Many Unknowns – FEED Gone Wrong and Its Impacts 16 When FEED Is Uncertain, Contracting Strategy Can Help Bibliography Index