At the sharp end

Refiners implementing a project such as installing a new process unit are under immense pressure to achieve a successful outcome in as short a time as possible. There is increasing demand from investors to reduce capital and operational costs to increase profits, and to reach best possible operation in the shortest period of time.

How do refiners safely develop a project with the functionality required by the business and delivered on time? Some of the key factors are to set goals, define projects at the start and take advantage of experience and best practices.

When setting project goals, project teams should focus on clear and consistent business objectives, cost competitiveness and strong project practices. It is also important for efficient projects to have good up-front definition of the project and try to avoid making changes to the scope.

Good definition should encompass site elements such as layout and environmental impact, and engineering elements such as basis of design and front-end engineering and design. A well-defined project execution plan is also key, and should include the contracting strategy, team roles and responsibilities, an integrated schedule, and plans for commissioning and start-up.

It is also advisable to put the right team in place and ensure the stability of that team to retain their experience, and not to make changes to the team as you go along. When key team members leave, there is a significant knowledge gap that is very difficult to fill, so continuity is important.  

Executing a project on time and on budget is always a tough call for straightforward projects, but it is even more challenging for complex ones. The more interfaces there are between the different units of the plant, the more complex and the more challenging the project. Sourcing units from multiple suppliers is the traditional approach. However, there is the potential risk that units do not match at their interfaces. Sourcing from a limited number of licensors can help to avoid this.

One answer could be the recently announced alliance between Shell Global Solutions and KBR, an engineering, construction and services company, to provide technology and design packages for hydroprocessing. The alliance will take advantage of the synergies between Shell’s catalyst and operations experience and KBR’s technology and engineering expertise to provide competitive hydroprocessing solutions for their customers.

What is it like for those at the sharp end of project management? Following the announcement of the alliance, Impact spoke to two project managers at KBR to get their views on what makes a successful project.

Piya Sead, Senior Project Manager for Residue Upgrading Technology at KBR, says that the key requirement for a successful project is to have a clear understanding of the scope of work and the required deliverables. “Once I know what the deliverables are, I can put together the execution plan and share this with the project team to get alignment. Then, we can adjust the plan together to make sure the project will meet the contractual requirements.

“We also need to understand the client’s expectations in terms of the schedule,” he adds. “Project schedules are getting tighter, and clients often want to have the deliverables sooner than planned. We do our best to accommodate the client’s needs and this is where open, honest communication is important.”

During the execution, project managers need to look out for any potential issues. “You need to spot the warning signs,” says Sead. “A small variation in the budget or schedule can get bigger over time, so it is important to act quickly. Having the same set of rules and procedures helps to make sure that the licensors and the engineering contractors are working to the same standards.

“Sometimes tasks take longer than planned, so, particularly on a complex project, we need to manage that risk, because one unit behind schedule will impact on other units,” continues Sead. “It becomes rather like the domino effect, which quickly becomes difficult to manage. We need to make sure we interface with the other project managers and monitor the execution plan very closely.”

Robert Pham is the project manager for hydroprocessing technology with KBR. He agrees that the key factors for a successful project are to identify the main deliverables at the outset and to maintain good communications with the client. He says, “We need to make sure that the technology we offer to the client fits within their existing or new refinery’s process units.

"That can sometimes be a bit of a challenge. However, we can overcome this by properly defining the project deliverables, such as feed conditions or the design basis, up-front so that we meet the client’s needs for the delivery of the technology package.”

This is especially true for Pham’s area, hydroprocessing, because, in most cases, this is the final stage in the refining process. “The hydroprocessing unit produces the finished product. So it is important that this unit is properly designed to make sure the product meets the specification.”

Pham summarises the keys to a successful project as understanding the client’s expectations for the project, the key deliverables and the schedule, along with continuous communication with the client to make sure their needs are addressed. “No project is going to be 100% perfect,” said Pham. “However, clear communication with the client means that we receive feedback that identifies issues and areas for improvement so that we can constantly improve our process.”

For more information contact Dave Clark.