Ensuring Competitive Project Delivery in a Megaproject World

Transcription

1 Ensuring Competitive Project Delivery in a Megaproject World Mike Illanne President, Chevron Project Resources Co. October 3, 2011

2 2010 Major Incident Study (MIS) Frame October 1, 2009 December 31, 2010 Scope Consequences Cited in Incident and MVC Reports Recordable/ First Aid, 2% Total Incidents reported to Corporate Near Miss, 33% DAFW, 25% MVC, 9% Environmental 17% 216 Incidents included in the MIS Major COI, 10% Fire / Explosion, 2% Fatality, 2% 2

3 Leading Root Cause Categories 0% 10% 20% 30% 40% 50% 60% 70% 80% Procedures & Safe Work Practices Risk Recognition and Assessment Design (Scope and Review) Training / Competency Supervision / Oversight 3

4 Our Megaproject World Challenges and Solutions Rising energy demand and greater complexity Managing safety and risk Improved execution maximizing value from project systems Investing in people Owner team role 4

5 All Energy Sources Must Deliver to Meet Demand Global Energy Demand Set to Grow ~40% by 2035 All Energy Sources Grow But the Mix Stays Constant Million Barrels of Oil-Equivalent per Day % Renewables 6 % Nuclear 29 % Coal % Natural Gas 28 % Oil Source: IEA WEO 2010 Current Policies Scenario 5

6 Massive Investment Will Be Required To Satisfy Global Energy Demand Global Cumulative Energy Investment ($ Billions Year 2009 Dollars) 721 Coal 8,053 16,606 7, $32,816 Billion in Total Oil Natural Gas Biofuels Power Generation Source: OECD/IEA World Energy Outlook

7 Energy Megaprojects Deeper & More Complex

8 Energy Megaprojects Deeper & More Complex 8

9 Larger Projects & MCP Portfolio Emphasizing Standards to Improve Performance Projects >$1B each BBLT SGI/SGP Agbami Tahiti Gorgon 2011 More than 30 Projects >$1B each Angola LNG CPC Expansion Big Foot Jack/St. Malo Chuandongbei Platong II Escravos Gas Papa Terra, To Liquids Usan, Perdido Projects >$10B Gorgon Wheatstone AOSP Expansion 1 Note: Includes projects starting up or reaching final investment decision between

10 The Megaproject Complexity Gorgon LNG Jansz Field Subsea tie-backs to Barrow Island North West Shelf AUSTRALIA PERTH Gorgon Field LNG Exports 3 x 5mtpa LNG trains & CO 2 Injection on Barrow Island Karratha Future Domestic Gas Connection to the mainland Existing Domestic Pipeline 0 N 50 Onslow Kilometers 10

11 Build on Partnership to Improve Project Performance Safety Risk Management Execution Investing in People Owner Role 11

12 Total Recordable Incident Rate (TRIR) Days Away From Work Rate (DAFWR) Partners in Safety Improvement Total Recordable Incident Rate (TRIR) & Days Away From Work Rate (DAFWR) Over Time Chevron Relative to Industry Benchmark* CVX *American Petroleum Institute s Benchmarking Survey of Occupational Injuries, Illnesses, and Fatalities in the Petroleum Industry data are used as industry benchmarks benchmark data were not available at the time of publication. 12

13 Project Risk Management Operational Excellence Health, Environment & Safety Process Safety Management Personal Safety High Risk / High Consequence Spill Prevention Business Performance Project Risk Management System All project risks captured, mitigated, and tracked in project risk register Execution Performance Project Development & Execution Scope & Technology Execution Planning Labor Productivity Logistics & Transportation Quantities & Prices Quality 13

14 Construction Management & Workface Planning Driving Craft Productivity in Nigeria 14

15 System Completion & Transition to Operations Achieving Production Attainment Goals Unit 73B PMT ASU/ Utility Process POT Unit 73B Unit 71.F -14 RISK Opportunity RFSUF-F st RFC Available Latest Comp. SOSU 22-Apr May Jul Sep Oct Nov Feb Mar-13 5-Apr Apr-13 SOBO Unit 71.F Unit 90.6 Unit 71.1 Unit 75.1 Unit 90.6 Unit Unit 75.1 Unit Unit RFC Unit Unit 92.4 Unit Unit 92.1,2&4 Unit 94 - DCS Nov-10 Unit 94 - DCS Unit Unit 83 Unit 77.3 Unit Unit 77.1 Unit 77.1 Unit Unit 75.3 Unit 75 Unit 75.3 Diesel Demin Fuel Gas 1st Steam & Power Water Available & Available Available Pkg Boilers Reformed 26-Jan Feb-12 5-Jun Jun-12 8-Sep Jun Nov-12 Unit Unit 75.6 Unit 72.2 Unit 73 3&4 Unit 73. 3&4 Unit Unit Unit & 11 Unit Unit 78.1 Unit 82 Unit 82.3 Unit Unit Unit 74 B&A Unit 74B&A Unit Unit 77 Unit Unit 77.4&5 Unit 73 A Unit 73 A Unit Unit 92 Unit 92 Unit Unit 78 Unit 73B Unit Flare Wax & Permanent System Available Gas Condensate Power Unit 73 B&C Unit 75 Dist2 Unit 5.1 Unit 5 Unit 75 Unit 72 Unit 72 A&B Unit 60 Available Unit Unit Unit Unit Unit Unit 83 C Unit Unit Unit 83 C Oxygen Unit Unit Unit 5 Unit 5 Unit 20-7 Unit 72 Unit 35 Unit 35 Available Unit Unit Unit 45 Unit Available 17-Oct-12 Unit 87 Unit 87 Unit 83 Wax Treatment Available 9-Feb-13 Unit 50 Unit Unit Unit Unit st GTL Diesel Product 22-Jan-13 Planning in Engineering Execution of Systems Completion Transition Facilities to Operations 15

16 Organizational Capability Challenge Transfer of Competencies to New Leaders Example of the US Workforce Source: US Dept of Labor 16

17 Investing in People Building PRC Organizational Capability Horizons Program Pathways Program Technical & Professional Competency Development Competency Maps PM Org Capability Major Capital Project Leadership Development Project Management Academy 17

18 Structure for Success Centers of Expertise Organization PRC President & General Manager Project Execution Teams Operational Excellence/HES Organizational Capability Project Management System Consulting Project Contracting & Procurement Project Execution CoE Business Management Strategic Contractor Relations Construction Management Engineering Management = Recently Formed = Recently Changed Risk & Interface Management Quality Management System Completion 18

19 Ensuring Competitive Project Delivery In a Megaproject World Manage robust portfolio, increasing project scale, technical and execution complexity Close gaps in Project Management Systems Partnering to improve execution Aggressive focus on mitigating risks Drive standard approach for managing core areas of practice Prepare next generation of project leaders 19

20 Questions Answers 20