mega project 2

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11/08/2011 1

PLANNING FOR SUCCESSPresentation by Ali H. Husaini



While many people think of Thanksgiving day as a day of celebration andtogetherness, it can be a dangerous day for kitchen accidents. "Cookingfires are more likely to happen on Thanksgiving than any other day of theyear," according to the National Fire Protection Association.

The Hazards and Safety Practices of a Busy Kitchen

1. Slips, trips and falls2. Collisions3. Burns and scalds4. Heat illness

5. Cuts from knives or other sharp kitchen tools

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"Mega“ implies the size of the task involved in developing, planning, andmanaging projects of significant magnitude.

The US Federal Highway Administration defines megaprojects as:

Major infrastructure projects that cost more than US$1 billion

Projects of a significant cost that attract a high level of public attention orpolitical interest

Substantial direct and indirect impacts on the community, environment,and budgets

311/08/2011



Bent Flyvbjerg's research on megaprojects identifies this "megaprojectsparadox" and examines its causes and possible cures.

Benefit shortfalls

Regional and economic growth effects

Environmental impacts and risks Forecasting

Optimism bias

Strategic misrepresentation

Risk assessment and management

Accountability Democracy, and new governance structures for megaprojects in city and

regional development

Reference: Bent Flyvbjerg Professor, Research Director, Dr. Techn., Dr. Scient., and Ph.D.

411/08/2011



Gorgon gas project, Australia

Athabasca oil sands, Canada

Corrib Gas Project, Ireland

Hibernia oil field, Canada

Nord Stream, Europe South Stream, Europe

Sakhalin-1, Russia

Trans-Alaska Pipeline System, United States

Peregrino, Brazil

Jamnagar Refinery, India Nabucco pipeline, Europe

Troll A platform, Norway

Ormen Lange pipeline, Norway

511/08/2011



Motiva Enterprises LLC is building an epic expansion at its Port Arthur

Refinery.

Increase current capacity to 600,000 BPD On completion it will be the largest refinery in the U.S. One of the top 10 in the world.

Who is Motiva: Motiva Enterprises LLC was formed in 1998 as a joint venture between

affiliates of Shell and Saudi Aramco. Operations, located primarily in the eastern and southern U.S., include

three refineries with a combined capacity of 740,000 barrels per day, andapproximately 7,700 Shell-branded gasoline stations.

Epic Project: Contracted with a joint venture of Bechtel Corporation and Jacobs

Engineering Group to design and construct this refinery expansion. Started site preparation in 2006 Peak construction craft at 13,000 Production in 2012www.motivaexpansionproject.com

611/08/2011

http://www.motivaenterprises.com/

http://www.motivaexpansionproject.com/

http://www.shell.com/


http://www.saudiaramco.com/




http://www.jacobs.com/

http://www.bechtel.com/





http://www.bechtel.com/





http://www.motivaenterprises.com/



Community Benefits Continue to be an active partner in the community, and strive to improve

the quality of life of our neighbors.

Expected to generate more than $17 billion in new economic developmentin Port Arthur, Jefferson County, and the Golden Triangle of SoutheastTexas.

Through August 2010, the Motiva Port Arthur Expansion Project spentmore than $2.1 billion in the local community via:

Goods and services

Payroll for nearly 5,000 employees

Charitable donations

Property taxes

Commercial property leasing

Medical services

Police and security support

Municipal services

www.motivaexpansionproject.com711/08/2011



Largest construction project in North America (2008-2011)

1st U.S. Refinery built in 35 years

Integration with 104 yr old refinery

Construction while operating at its current capacity of 275,000 BPD

RFSUs – spread over 3 years 890 + interfaces between units

300 + modules – 3 U.S + 1 Mexico shops

World Wide procurement

Project initiated during peak demand (2006-2007)

Extended lead times Lack of materials, shop space, qualified workers and inspectors

Staffing, Engineering offices. Utilize high value Centers

2008 Global economic breakdown

Shift from Schedule to Cost focus (2009)

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A glimpse of the amount of materials used to build this expansion:

61,175 piles for a total of 4,500,000 linear feet based on an average lengthof 75' (852 miles) -- wider than Texas or nine times the distance from PortArthur to Houston,

285,000 cubic yards of concrete -- enough to make a towering block 170

feet high if you poured it on a football field 3,100,000 linear feet of pipe (600 miles) 5,600,000 linear feet of cable -- enough to stretch from Port Arthur to the

south edge of Chicago Almost 2,000 pieces of equipment -- ranging from a crude column 284 feet

high and 30-foot diameter weighing two million pounds empty, to small

vessels three feet high and two feet in diameter 78,000 tons of structural steel (156,000,000 pounds)

www.motivaexpansionproject.com

911/08/2011





11/08/2011 10

Motiva CEP

CMT/PMT

Motiva / MC Structure

MotivaOperations

Commissioning/ Startup

Owners

S&B

JacobsBechtel

BECON

Customer Flow



2007

Crude VsGasoline:

Jan: $56.31/$2.3

Dec: $95.98/$3.0

2008

Crude VsGasoline:

Jul: $145.08/$4.0

Dec: $44.60/$1.74

2009

Crude VsGasoline:

Jul: $65.63/$2.5

Dec: $79.36/$2.6

2010

Crude VsGasoline:

Jul: $76.09/$2.7

Dec: $91.38/$2.9

1111/08/2011



11/08/2011 12

Motiva CEP

CMT/PMT

GC 1/2 CommonHBlockTanksGC4GC3 East Block

MultipleLocations

HCU2CTFHNPCPS4

CrudeCokerSBU2

PowerCCB

IBCRacks

PH27Flare

Turner TetonISC

Turner

PalaTitanWyatt

BECON PerformanceS&B

GC8

PH57FGP

Austin

Motiva / MC Structure

Motiva OperationsCommissioning/Startup

Owners

MC

MC

MCMCMCMCMCMC

Customer Flow



A BECHTEL JACOBS JOINT VENTURE

Motiva Enterprises, LLC is building an epic expansion. The Port Arthur Crude Expansion Project, a project that when complete will establish theMotiva Port Arthur Refinery as the largest in the USA. Safety is our guiding value. The goal isn’t just “zero incidents”-we strive to go “beyond zero.”

That means safety isn’t just for the workplace; it’s a way of life.

www.motivaexpansionproject.com 1311/08/2011



11/08/2011 14

PHASE 1

IDENTIFY &Assess

Opportunities

• ClearlyFrame Goal

• Test forStrategic Fit• Preliminary

Overall Plan• Preliminary

Assessment• ~ 1%

Engineering• Phase 1Estimate

PHASE 2

SELECT fromAlternatives

• GenerateAlternatives

• PreliminaryDevelopmentofAlternatives

• DevelopExpectedValue

• IdentifyPreferredAlternative

• Phase 2Estimate

PHASE 3

DEVELOP Preferred

Alternative

• Fully DefineScope

• DevelopDetailExecutionPlans

• RefineEstimate

• SubmitFunding forApproval

• ~25%Engineering

• Phase 3Estimate (±10%Accuracy)

PHASE 4

EXECUTE (Detail EPC)

• ImplementExecutionPlan

• Min Changes• Finalize

OperationPlan

• BusinessPlan forPhase 5

• ProjectReview

PHASE 5

OPERATE &Evaluate

• Operate Asset• Monitor and

EvaluatePerformance

• Identify NewOpportunities



1511/08/2011



Prepare a Realistic Cost and Schedule Estimate

Conduct Sufficient Front End Planning

Define Scope of Work Properly

Develop Alternatives and then Select the best Alternative

Consider a proper risk analysis and management with contingenciesfor both Tactical and Strategic risks

Develop an appropriate Contracting Strategy

Apply a proper Project Controls system (Schedule, Cost, Safety andQuality)

Implement Robust Change Management Program

Pay Attention to Labor Productivity Familiarize yourself with the Contract

Identify Schedule Effect (Time Impact Analysis, Schedule ChangeNotices)

Qualify Change Orders (Wait for Work Authorization before Proceeding)

Maintain Job Records (Minute of Meetings, Daily Reports, Force Reports)

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The objectives of Project Risk Management are to increase the probability andimpact of positive events, and decrease the probability and impact of eventsadverse to the project.

The Project Risk Management processes include the following:

Risk Management Planning.

Risk Identification

Qualitative Risk Analysis

Quantitative Risk Analysis

Risk Response Planning

Risk Monitoring and Control

11/08/2011 17



• Weekly Progress Dashboard• Monthly Commercial Dashboard• Monthly Milestone Schedule• Key Commodity Curves

• Monthly Critical Paths• System Turnover Skylines• Contingency Drawdown Report

• Earned hour Progress Report• Discipline Productivity Report• Commodity Level Progress Report• Open Commitment Report•

Monthly Cost Report

• Manpower Histogram• All-in Crew Rate• Field Non-Manual Staffing Plans• Change Request Log•

Risk Register

• WBS Structure• Code of Accounts• Daily Installed Quantity Reports• Productivity Reports

• Daily Craft Force Report• Work Phase Planning• Schedule Activity Report• Equipment Utilization Report

11/08/2011 18

AreaManagement

Field / UnitManagement

SeniorManagement



Reference:

1. Wikipedia

2. Motiva website: motivaexpansionproject.com3. www.historyorb.com

4. www.nyse.tv

5. www.eia.gov

6. Academic Analysis of Cost Overruns on Mega Projects by George F. Jergeas P.Eng., PhD, Project

Management Program, University of Calgary

7. Project Management Body of Knowledge, Third Edition, v1.3

1911/08/2011

http://www.historyorb.com/

http://www.nyse.tv/

http://www.eia.gov/

http://www.eia.gov/

http://www.nyse.tv/

http://www.historyorb.com/

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