petro-canada refinery conversion project...
TRANSCRIPT
PetroPetro--Canada Refinery Conversion ProjectCanada Refinery Conversion Project
Presentation to AACE, CalgaryPresentation to AACE, Calgary
November 9, 2005November 9, 2005
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TLM MOMENTTLM MOMENT
•All Losses are important and represent an opportunity to improve• Health• Safety• Environmental• Quality
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BUILDING ON SUCCESSBUILDING ON SUCCESS
RCP IS IN THE HOMESTRETCHExecution phase is culmination of over 10 years of work
RCP completes transformation of Edmonton Refinery & is critical to the continued economic success of Petro-Canada’s downstream businessTank farm, SIG, EDD & GOT projects have built and continue to build a foundation of success for RCPCollectively, Petro-Canada, Bantrel, Jacobs & their subcontractors will cap off the conversion journey with a successful RCP project!
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PETROPETRO--CANADA CONTINUES TO PURSUE A FULLY CANADA CONTINUES TO PURSUE A FULLY INTEGRATED OIL SAND STRATEGYINTEGRATED OIL SAND STRATEGY
26,000 bpdpurchased
sour synthetic
135,000 bpdrefined products
to market
27,000+ bpdbitumen
22,000+ bpdsour synthetic
Edmonton Refinery
~50,000 bpdsweet synthetic
crude
2008+
35,000 bpdpurchased
bitumen blend 26/9
30 - 40,000 bpdIn Situ II
SuncorMacKay River
In Situ
Syncrude
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DESULPHURIZATION & DESULPHURIZATION & RECONFIGURATIONRECONFIGURATION
Edmonton Refinery – Pre Low Sulphur Fuels OperationEdmonton Refinery – Infrastructure Support (Tank Farm 1 - 2001)Edmonton Refinery – Infrastructure Support (Tank Farm 2 - 2003)Edmonton Refinery – Sulphur in Gasoline (SIG - 2004)Edmonton Refinery – Edmonton Diesel Desulphurization (EDD - 2006)Edmonton Refinery – Refinery Conversion Program (RCP - 2008)
Tank Farm 1
Tank Farm 2
Refined Products to Market
LightCrude Conventional
Crude & Vacuum Unit
Sulphur Plant
Hydrogen Plant
Secondary
Units
&
Product
Blending
Synthetic Crude Unit
SweetSynthetic
BDS (Naphtha & Distillate)
Delayed Coker
Gasoil Hydrotreater
EDD Hydrogen
Plant
Distillate Hydrotreater
RCP Hydrogen
Plant
Sour Crude & Vacuum Unit
Sour Syn& Bitumen
16.6 KBPD Delayed Coker
RCP Sulphur Plant
Naphtha Hydrotreater
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PROJECT SUCCESS CRITERIAPROJECT SUCCESS CRITERIA
PROJECT GOAL:
To safely deliver a first quartile facility that will utilize bitumen derived feedstocks to meet the product demands as forecasted.
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PROJECT SUCCESS CRITERIAPROJECT SUCCESS CRITERIA
Project Critical Success Factors:Zero harm to all who work on the projectAcceptable project economics achieved by: • Optimizing project execution - Execution excellence• Delivering the FEED scope inside $1550MM• Mechanical Completion by Q2 2008• Full nameplate capacity in < 45 days after mechanical completion
Zero production impact on the existing facilities during commissioning
People make projects workCommunicate – often, openly, & contracting for action
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REFINERY CONVERSION REFINERY CONVERSION PROJECT PROFILEPROJECT PROFILE
• Conversion of the Edmonton Refinery to Process 85,000 BPSD of heavy oil and Bitumen by 2nd Quarter 2008
• ScopeCrude UnitVacuum UnitDelayed CokerRevamp of Existing UnitsSulphur ComplexAssociated U&O, Automation and Site Prep
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RCP PROCESS AREASRCP PROCESS AREAS
Coker
Sulphur Complex
Plant 63 Revamp
Crude / Vacuum Plant 2-4
RevampDelayed Coker
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CRUDE/VACUUMCRUDE/VACUUM
Crude Tower
Vacuum Tower
Desalter
Vacuum HeaterCrude Heater
Substation & I/O
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DELAYED COKERDELAYED COKER
Coke Drums
Coker Fractionator
Coker Heater
Rail Car Handling System
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REVAMPS REVAMPS –– PLANTS 1, 2 & 4PLANTS 1, 2 & 4
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REVAMPS REVAMPS –– PLANT 63PLANT 63
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SULPHUR COMPLEXSULPHUR COMPLEX
Amine Pump-house & Surge
Tank
Amine Regeneration
Area
Sour Water Stripping
Units
Sulphur Recovery
Units
SuperclausUnit
Sulphur Storage
IncineratorAmine Regeneration
Area
Sour Water Stripping
Units
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UTILITIES AND OFFSITESUTILITIES AND OFFSITES
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PROCESS AUTOMATIONPROCESS AUTOMATION
OBJECTIVES:Provide fully integrated process control system integrating existing and new units
Ensure all areas of system design and execution comply with existing standards and are consistent across areas
SCOPE CAN BE DIVIDED INTO 2 PARTS:Upgrade existing control system to new Experion® operating Platform
Process Control implementation
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PROCESS AUTOMATIONPROCESS AUTOMATION
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CURRENT STATUSCURRENT STATUS
• Feed completed• Long lead equipment order placed• Stage Gate Review completed• Baseline established• Petro-Canada Board approval received • Execution Phase Kick-off – November 7th, 2005
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PROJECT BASELINEPROJECT BASELINE
• Capital cost $1.55 Billion• Schedule completion April 2008
Project Approval – October 2005Site Prep complete March 2006Construction start – April 2006Engineering 80% complete November 2006Module fabrication commences March 2006Construction completion in Shutdown April 2008Full production 2nd Quarter 2008
• Zero Harm, Zero Loss, Zero Impact
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ESTIMATE BREAKDOWNESTIMATE BREAKDOWN
Sour Crude/Vacuum
Sulphur Complex
Delayed Coker
Existing Plant Revamps
U&O (including Site Prep &AutomationOwners Cost
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EXECUTION STRATEGYEXECUTION STRATEGY
• Petro-Canada Managing Contractor• EPC Silo Execution (Jacobs and Bantrel) • Sub-contractor and DFL Construction• Supplier of Choice Agreements• Work Package approach to E P & C• 80/100 strategy for construction packages• WBS supports Execution Plan• Bag and Tag approach to Revamp work• RFO integral part of Project Team• Site preparation to be completed in early 2006
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PROJECT SILO STRUCTUREPROJECT SILO STRUCTURE
RCP
Coker AutomationCrude Vac
Bantrel Bantrel Bantrel
Sulphur Complex RevampsF&I U&O
Bantrel Jacobs Bantrel Bantrel
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PROJECT EXECUTION STRUCTUREPROJECT EXECUTION STRUCTURE
Construction Facilities and Site Infrastructure, F&I
Crude/ Vaccume
Delayed Coker
Utilities &
OffSite
RevampSulphur Complex
General Automation Contractor, GAC
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EXECUTION STRATEGIESEXECUTION STRATEGIES
Scope is defined – robust FEED packageFunds are allocated – the resources are availableTeams are experienced - and know how to do it
They know the Refinery, its people and requirementsThey have the systems, structures, methodologies, procedures and lessons learned
RCP will “Build on Success” of recent successful projectsRCP is larger than EDD, it is much more complex
Market conditions, complexity, site congestion, integration…
We will take it to the next level!
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EXECUTION STRATEGIESEXECUTION STRATEGIES
The Project participants are working together to further a culture of cooperation, no surprises and no changes.
Open and honest communicationRegular and frequent contactClear expectations of roles and responsibilitiesDiscussion and alignment with success criteriaAdherence to procedures and execution plansIdentify potential issues when they arise
• No SurprisesProactive versus reactive
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PROJECT CHANGE CRITERIA PROJECT CHANGE CRITERIA
Scope is definedExecution Plan has been optimized by the team
Non-discretionary changes affecting design, only if:It is not safe or environmentally acceptableIt won’t workIt’s not operable or maintainableIt doesn’t meet regulatory requirements
Discretionary change:Return on investment > 50% / 1 year payout for proposed scope versus design specificationsNo schedule impact
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COST & SCHEDULECOST & SCHEDULE
ScheduleSchedule basis is backward driven from RFO completion
Level 3 FEED is baselined
Cost ControlSanction is $1550 Million, including Owner’s cost
The project is cost driven and must deliver
Trend surveillance, especially on quantities, as design progresses is the key
The projects needs everyone to play a role
Progress MeasurementKey quantities and deliverables updated on a regular basis
IFCs must be linked to the schedule
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CONSTRUCTION EXECUTIONCONSTRUCTION EXECUTION
ZERO HARM, ZERO REWORK, ZERO IMPACTBasis for construction sequencing is Systems Handover priorities
This drives engineering IFC issuesEngineering planning is driven back from RFO handover
PRE-COMHYDROFLUSH
REINSTATEPIPE
INSTALLEWP-CWP-
IWP HANDOVER
Management of Interfaces across the silos is key to successful RCP construction completion
U & O Team to leadRCP Team to make Edmonton Refinery the site of choice for Trades
THOR
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PROCUREMENT EXECUTIONPROCUREMENT EXECUTION
The very hot market makes it critical that we complete vendor awards quickly with quality packages and control changes
This requires diligent inspection in the vendor shop throughout the process
Expediting and Quality control starts with the order and continues until the material is satisfactorily delivered at siteProcurement Quality – on schedule, meets specs and completePC has established Supplier of Choice (SOC) agreements for key bulk piping materials that will be used by the EPCs
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ENGINEERING EXECUTIONENGINEERING EXECUTION
Maintain the 80/100 rule with all deviations processed through the MOC Procedure Engineering execution is quality and timely delivery adhering to the scheduleEnsure data is received early to support design
Consider all avenues to advance required vendor information
Early planning reviews have been conducted for:ConstructabilityOperabilityMaintainabilityConstruction sequencing
Regular quantity trending as design progresses
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MOVING FORWARDMOVING FORWARD
To meet Petro-Canada’s expectations, the project is focusing on the road ahead with energy, vigor, rigor and diligenceThe FEED package is robust.The project has a very experienced project team However, we have risks…
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SIGNIFICANT RISKSIGNIFICANT RISKTO SUCCESSTO SUCCESS
Competitive Market PlaceHome office personnel availability Equipment cost and delivery scheduleBulk material cost and availabilityFabrication shop loadingSubcontractor availabilityLabour cost and availability Construction supervisionConstruction equipment availability
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BUILDING ON SUCCESSBUILDING ON SUCCESS
QUESTIONS ?