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Integrating Cost & Schedule in P6

Presented by:Stephen Airey, Caracal Energy Inc.Ivan De La Fuente, Emerald Associates Inc.

P6 & Financial System IntegrationSession ID#: 15434

Agenda

■ Introduction

■ Project Overview

■ Challenges

■ Solutions

INTRODUCTION

• Caracal Energy Inc.

• Emerald Associates Inc.

• Presenters

■ First independent E&P company to be granted PSCs in Chad▪ Exclusive rights to explore and develop ~6.4 million acres (26,100 km2) in the Doba and Doseo Basins

■ Proven ability to operate in Chad ▪ In two years, have fast tracked development of two oil fields and made two exploration discoveries

■ Currently producing and exporting light Oil▪ First Oil obtained on 30 September 2013 - Current production approximately 12,000 bbls/day gross

▪ Expect to exit 2014 at 40,000 – 45,000 bbls/d gross

■ Fully funded to develop the existing fields and exploration program ▪ Current cash on hand, GlencoreXstrata carry and funds from operations sufficient to execute the aggressive

capital program

■ High impact Exploration program in 2014 through 2016 ▪ Plan on drilling 35-45 exploration wells over the next 2.5 years.

▪ Test over 3.0 billion barrels of mean unrisked prospective resources by mid 2016

■ Strong strategic partners ▪ GlencoreXstrata and SHT - Excellent partners with strong relationships

■ Experience▪ 5th Year - Oracle Platinum Partner

▪ 20th Year - Primavera Solutions Provider

▪ Headquartered in Calgary, Canada, clients worldwide

■ Track Record▪ Serving Oil & Gas, Engineering, Construction, Utilities, Mining,

Government, Manufacturing, Health Care, and other industries

▪ Add-on, enhancement and integration (60+ tools) specialist

■ Mission▪ Innovate, integrate, streamline

▪ Lasting solutions= long term relationships=Happy Clients

Stephen Airey

■ Over 25 Years experience in International Oil and Gas Projects

■ Graduated in Control Engineering 1989

■ Lived and worked in many countries - UK, Norway, Qatar, Italy, Germany, Japan, Korea, USA and Canada

■ Moved into Project Management

■ MBA in Project Management, Cranfield, 1998

■ Moved into Information Management & Business System development▪ Agip KCO, Kazakhstan – Head of Information Management, Kashagan

Field Development

▪ Pearl GTL, Qatar – Manager, Information Management

■ Current role Project Services Manager, Caracal Energy▪ PMO, Project portfolio management, Business process and systems

development

Ivan De La FuenteB.Sc. Industrial Engineering, Implementation Specialist.

■ Completed his studies and writing his final thesis in Germany.

■ Began his career as a Facilities Designer completing his Building

Technology Degree.

■ Experienced playing diverse roles in the project process including designer,

coordinator, scheduler and project manager.

■ Instructor for an Engineering Undergraduate Program.

■ At Emerald, plays an important role in the Unifier group, developing new

custom business processes and taking part of the training sessions.

■ Creative and enthusiastic approach in developing and evaluating

alternative solutions to problems.

■ Balance between professional and personal life � Exploring the Rockies

OVERVIEW

• Republic of Chad & Caracal Energy

• Caracals Portfolio of Projects

• Drivers for P6

Republic of Chad

■ International

■ Republic of Chad

■ GDP double – within 5yrs????

■ Pipelines, facilities, roads, wells, storage…

■ Building from ground up

Caracal Energy

Caracals Project Portfolio

■ Annual spend over $800MM

■ Drill 35 – 45 Exploration wells

■ 7 Oil Fields on production by 2018

■ 500 Km Pipeline across Southern

Chad

Drivers for P6

■ One Plan – Multiple views

■ Global access

■ Visualize Progress & Cost

■ Scalable▪ Logistics forecasts

▪ Resource loading

▪ Scenario analysis

■ Maximise Automation / Minimise customization

■ Ability to attribute Activities, Projects, groups of Projects

■ Single Instance – Chad / Calgary Access

■ Scalable for future▪ Costs to Activities

▪ Resources – Rigs, Trucks

▪ Resources – People / Roles

■ Emerald Expertize

■ Emerald tool kit

■ Integration using Middle-ware Data warehouse / Cube

Caracals Challenges P6 & Emerald Ability

CHALLENGES

• Project magnitude

• Complex Logistics

• Global Telecoms & Infrastructure

Project Magnitude

■ Caracal 2014 Project Portfolio includes:

▪ 32 Projects, Over 30 Wells / 3 Rigs

▪ 200 assets,

▪ 4,000 activities,

▪ more than 10,000 cost accounts

■ 2015 adds 40 Projects, 35 – 45 wells / 7 Rigs

DRILL RIG 158

MANGARA PRODUCTION FACILITY

Complex Logistics

Ocean Freight to

Cameroon

From 6 to 8 weeks

Inland

Transportation

Around 5 weeks

Global Telecomms & Infrastructure

■ Satellite communications to N’Djamena, Chad

■ ‘Local’ satellite ‘hops’ to field work sites and to Rigs

■ Limited Bandwidth

▪ Everybody has ‘Developed world’ expectations

■ Regular Power cuts / IT impact

▪ Data integrity; Server management

Solution: STANDARDIZATION

• Project Type

• Templates by Asset

• Consistent Structure

• Reporting

STANDARDIZATION: Project & Asset Type

STANDARDIZATION: Templates by Asset

■ Asset = Template = P6 Project

Example: Infrastructure, Wells, Facilities, Pipeline,

General Services, etc.

■ Concept:

■ Level 2.5 or 3 Schedule

■ High level of attributes for Reporting

■ Assign GL Codes to Activities for Cost mapping

■ Use Steps for more detail / less than a Month duration activity

■ Level 4 / 5 Activities can be added but do not carry any cost data

STANDARDIZATION: Consistent Structure

■ What we did ▪ Corporate Hierarchy – PSC / BLOCK / FIELD / PROJECT

▪ Project codes, Activity, Activity Codes, UDFs

▪ WBS – phases

▪ Tasks – Codes, UDFs, responsibility, steps, roles

■ What we got ▪ Organization

▪ Reporting at multiple levels

▪ Usability

▪ Consistency

▪ Quality

STANDARDIZATION: Reporting■ Project Reports: WELL

■ Functional Reports: RIG MOBILIZATION & DRILLING

Solution: COST INTEGRATION

• Budget / Spending Plan

• Actuals and Field Estimates

COST INTEGRATION: Budget / Spending Plan

■ Budget Built to Reflect Projects / Cost

Centers

■ Emerald P6 Loader allows us to quickly

load and reload thousands of data points

from the Capital Report (a spreadsheet)

into P6.

PSC

EEA / EXA

Field / Area

PROJECT

Budget Item

Activity (AFE)

COST INTEGRATION: Budget / Spending Plan

■ AFE Estimates, GL Codes and GL Code

Estimated Costs Pushed onto Activity

■ Actual Costs pushed to AFE / GL code

■ Middleware Data Cube used to map, collate and

provide a structured view for Emerald Tool to

distribute costs on Activities

PSC

EEA / EXA

Field / Area

PROJECT

Budget Item

Activity (AFE)

Emerald Utility &

Data Cube / Mart

Emerald Utility &

Data Cube / MartActual Cost by GL

Estimates by GL

COST INTEGRATION: Actuals & Field Estimates

■ Emerald technical staff has created several add-ons tools,

such as Cost Elector which determine the Actual Cost based

on the field estimate cost, accounting cost (ITD) and last

updated date.

Field

Emerald Utility &

Data Cube / Mart

Emerald Utility &

Data Cube / Mart

COST INTEGRATION: SummaryPSC

EEA / EXA

Field / Area

PROJECT

Budget Item

Activity (AFE)

Expense

Emerald Utility &

Data Cube / Mart

■ Ability to pull Budget, Estimates

Forecast and Actual COSTS into a

single view next to the PLAN

showing PROGRESS - DAILY

BUDGET & SPENDING PLAN

AFE NUMBER & ATTRIBUTES

AFE & GL Code ESTIMATES

ACTUAL COST

FIELD ESTIMATE

Solution: CONNECTIVITY

• RDP

• Compression Server

• Check in / Check out

CONNECTIVITY: Technical Solutions

■ Network access from Chad to P6 Web

■ Network access using P6 Compression Server

■ Remote Desktop (RDP) access to P6 Web

■ RDP access to compression server P6 Client and web

■ RDP access to P6 Client

■ P6 Check in / Check out functionality

▪ Field / off network / no comms use of P6 on a Laptop

Field (Chad)

Headquarters (Calgary)

Compression

Server

Sun Financial System

Main Diagram

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