Hart Energy Publishing
Oil and Gas Investor
    

Brown fields need special treatment

March 1, 2006

Approximately 60% of the world's oil production is delivered from brown fields - mature fields in a state of decline. Unlike greenfield projects that can be executed in almost a "ring-fenced" manner with relatively easily controlled interfaces outside the project boundaries after basic technical and production criteria have been established, brownfield projects are far more complex in nature.
Greenfield projects allow the generic phases of engineering design, procurement, onshore fabrication and offshore installation, hook-up and commissioning, and production start-up to be either combined under one contract, or treated separately, where contractor-specific expertise determines the optimum approach.
A fundamental differentiator with brownfield projects, whether they consist of minor repairs and/or modifications or major retrofits and upgrades, is the complex interdependencies that arise when combining existing and new facilities, in physical and process terms, as well as the commissioning start-up and operations aspects. Minimizing disruption to ongoing operations is a critical factor that is not normally an issue on a greenfield project. More importantly, there are far greater safety considerations to be taken into account both from a design and an offshore implementation perspective in the brownfield project environment.
These factors radically change the focus required for successful execution of brownfield projects. There is a requirement for a "holistic" approach to execution that calls for integrating experience and competencies in engineering and design, construction, completions and commissioning, and operations and maintenance. In addition, interface with, and the role of, operations staff associated with the existing facilities is far more critical throughout all phases of the project. This is necessary to ensure that operations requirements are met and that there is a smooth integration of the modifications into the existing facilities, with minimum disruption to ongoing operations and maximum safety during execution.

Holistic approach
Amec Paragon and parent company Amec have a wealth of experience in executing some of the largest offshore greenfield projects, as well as executing large operations and maintenance asset support contracts for major operators worldwide. The parent draws on expertise gained from both arenas to offer an integrated and holistic approach that ensures brownfield project success.
Key elements of this approach include:
1. Ownership - the utilization of construction-experienced engineers during the design phase that will follow the project through to completion and take ownership for the final commissioning and start-up of the facilities.
2. "Backward-driven" design - focus on a design that is not just process optimization-motivated, but one driven by offshore integration considerations such as minimized offshore work-scope, safety, simultaneous construction & operations (simops), and minimized operations disruption.
3. Operations integration - (a) Achieving a collaborative approach actively involving operations staff as the ultimate "clients," during engineering and design and offshore execution. (b) Maximizing opportunities for increasing familiarity of operations staff with the new facilities prior to "hand-over" through participation with factory acceptance tests for equipment packages for instance and commissioning direct involvement.
4. Utilization of latest technology in both products and services to increase efficiency and safety of execution offshore - (a) Work-scope reduction and safety through such measures as minimizing/eliminating offshore welds via flanged connections. (b) Efficiency optimization through the use of 3-D laser-surveying techniques, eliminating problems resulting from "as-built" inaccuracies.
5. Proactive and flexible scheduling for offshore execution, recognizing ongoing field activities, planned shutdowns and opportunities arising from unplanned shutdowns.
6. Implementation of a total risk management process from the outset that is reviewed and maintained frequently throughout the life of the project that not only identifies risks and mitigating actions, but also opportunities for improved execution.
7. Elimination of costly offshore surprises through the use of a suite of systems and procedures coupled with a metrics database built up across a portfolio of executed projects that provides offshore work-scope definition assurance in such areas as man-hour estimates, logistics, equipment and material management requirements.

Offshore Angola
The subsidiary is currently undertaking a major project eliminating routine natural gas flaring across several fields and approximately 16 existing facilities offshore Angola. Facilities will be modified to recover low-pressure flared and vented gas. It supports the client's effort with a project team of construction-experienced engineers for offshore survey work on the facilities and the use of a "Point Cloud 3-D" laser survey technique to ensure design accuracy, tying into the as-built facilities. The value of this approach was proven: use of the as-built design data alone without laser survey verification would have resulted in approximately 30% piping rework offshore due to inaccurate or unavailable as-built data.
Being a compliance-focused project, key elements include maintaining the highest safety level and minimum disruption to ongoing operations.

North Sea
One of the many projects in the North Sea where the company's brownfield project approach was successfully deployed was on the Skene field. The engineering company was responsible for the design, engineering, procurement, fabrication, load out, offshore construction, hook-up and commissioning of the Skene gas compression module and associated brownfield scope. In addition, the company managed design interfaces with the heavy lift vessel contractor Heerema and with Halliburton Subsea, the bundle and caisson contractor. The project execution maximized onshore work scope, successfully planned and implemented simops (simultaneous operations) preparatory work to minimize production shutdown, integrated project activities with ongoing operations and achieved its safety target of zero incidents.

Gulf of Mexico
This particular brownfield project approach is currently being utilized by the company to assist in the repair of approximately 23 facilities for a major operator in the Gulf of Mexico shelf following the 2005 Katrina and Rita hurricanes. Brownfield project capability offshore in the Gulf of Mexico will play a vital role for remote operations modifications associated with hurricane preparedness, as well as enhanced reserve recovery projects.

Critical success factors
A holistic, "backwards-driven" approach enables effective decision-making that helps eliminate catastrophic cost increases or production losses that typically result when surprises are encountered during offshore construction. Brownfield projects are notorious for exceeding budget, going over schedule and disrupting operations. Nevertheless, the industry has seen the successful deployment of a solution that is focused on assuring minimal impact on existing operations and maximizing efficiency during construction Engineers are using this integrated approach to help operators take the uncertainty out of traditionally unpredictable and costly brownfield projects.
In conclusion, the following critical success factors should be placed in the forefront when approaching offshore brownfield projects:
Front-end engineering and design definition - ensuring the right focus for brownfield work that targets the interaction between the new plant and existing facilities.
Brownfield certainty - using the experience and knowledge available to establish what the uncertainty spread means in terms of offshore man-hours.
Set targets that are realistic and based upon the knowledge and consequences of failure.
Platform interactions - recognizing simops requirements and avoiding unnecessary loss of production while actively involving operations personnel.
Capabilities and accountabilities - establish who is best suited to manage particular work and risks.
Do the right work offshore - minimize offshore work-scope, maximize efficiencies.
Effective risk management - implement a system that is comprehensive and potent.