Successful deepwater platform execution
Authors: Knudsen Arnt , Høyby Kjell 
Published: October 2008

This paper describes the fundamentals for successful execution of deepwater platform projects, as seen from the contractor point of view. It addresses both the requirements prior to the start of the main execution phase as well as the actual EPC phase. A systematic way planning the projects with documented results is described.

Introduction

Successful deepwater platform execution has many aspects. For the Clients, normally the Oil Companies, the single most important definition of success, is startup and running of the platform facility on time. If the planning startup date is missed by major margin, the economics of the project comes into question. Further, if the startup date is missed, it normally means cost overruns as well both for the contractor and the Client. Since most projects are schedule driven, planning for this must start from day one, if in fact it needs to start well before.

In today's world of platform deliveries, the Engineering Procurement and Construction (EPC) is a common contract model. It has been used around the world, sometimes with success, sometimes with failure. Failure is normally defined as not able to deliver on time and/or major cost overruns. EPC comes in various models, however the main objective is to let the contractor be responsible for his delivery.

The Fundamentals

Based on our experience, the successful execution requires two fundaments to be in place.

One - The platform facility must be sufficiently defined before the EPC contract is signed and kicked off.

Two - The execution must follow a milestone plan where the progress (or lack of it) is constantly measured against predefined deliveries. Measuring progress against milestone is different from measuring percent (%) progress.

This paper will describe both these fundamentals.

Fig. 1. Aker Kvaerner Project Execution Model (AKPEM) compared to Client models(Available in full paper)

Most Clients and major contractors have their own project execution models. They are typically milestone or "toll gate" oriented.

Shown in the Fig. 1 is the Aker Kvaerner model compared to some others.

Prior To The EPC Phase

The first of the two fundamentals for success is the phase prior to the EPC contract kick-off. There are various words used to describe this phase, Front End Loading, Feasibility, Concept, definition, Basic engineering, Solutions and so on. For this phase to be successful basis for an EPC lump sum platform contract, the following must be addressed, analyzed and concluded.

Work scopeHSE Studies and analyses and Environment impact reportFreeze functional requirements, design basis, overall system description and layoutEquipment list, flow diagrams and Single Line DiagramLayout and unit arrangement finalizedConstruction methodsSite preparation design complete, if requiredFinalise completion execution strategies Project ManagementPre-qualification of Main ContractorsFinalize Project Execution StrategyEstablish class D cost estimateRisk assessment updated With these deliverables available and agreed it will be possible for EPC contractors to assess the scope, price it and establish a realistic schedule. The last point, the schedule is often pre-set or pre-determined by the Client. There can be several good reasons for this; however, at the end of the day it is the contractor who best can assess the best schedule and in the end, he has to live by it.