Optimising Turnarounds to Achieve Asset Integrity

Transcription

1 Optimising Turnarounds to Achieve Asset Integrity OIL PETROCHEMICAL AND ENERGY RISKS ASSOCIATION (OPERA) Conference 2012 Jacobs Consultancy Steve Mabey 30 October 2012

2 Jacobs Consultancy Petroleum, Chemical & Energy Leading technical and business consultancy: Due Diligence & Valuation Merger, Acquisition & Divestiture Analysis Independent Technical & Market Consulting Asset Management, Reliability, Integrity, Maintenance & Turnarounds Process Safety Management Environmental Planning, Permitting & Management

3 Agenda Business impact of a Turnaround Factors influencing effective turnarounds for process plant Delivering an effective Turnaround

4 BUSINESS IMPACT OF A TURNAROUND

5 What is a Turnaround (TAR)? A planned and scheduled event for conducting all necessary operational, maintenance, and improvement tasks required to enable safe, reliable operation at the desired performance for the next campaign.

6 Jacobs Asset Management Work Process Deliver across complete Asset Life Cycle Strategic through to Retirement Turnarounds Strategic and Opportunity Conceptual Definition (FEED) Detailed Design Construction Start-Up Operation & Maintenance Asset Life Extension Asset Retirement AM Work Process integrated into Engineering Work Process Modules defined for specific activities across phases Driven by Total Lifecycle Cost optimization. Produce Most Product for the Longest Time at the Lowest Cost.

7 Turnarounds have a major impact of downtime The turnaround is one of the major contributors to downtime But getting the turnaround right, will impact on longterm reliability Generic numbers which shall vary by Region, Industry and Company On-Stream Availability = Measure of Production (Profit Opportunity)

8 Lost opportunity from Turnaround For a typical total oil refinery turnaround: $US90million Lost Opportunity + $US30million Turnaround Costs = $US120million Immediate Cost to Business Lost Opportunity for a 15 MMTA refinery >$120Million 1 day of Turnaround = $2-3Million Major incentive to provide resources and management effort Losses for outages outside turnaround can be far greater

9 Different people Different needs Head Office Executive s view: Is it really necessary? Will it affect the share price? Can I use this money else where? Plant Manager s view: I have so many other initiatives. Will it distract our Operation? Where will I find the resource? How will I achieve my targets? Turnaround Manager s view: Will the scope fit the budget? Can I find a competent contractor? This is stressful and traumatic! Need alignment

10 Key drivers for turnaround success Safety Duration Cost Key metrics are Safety, shorten Duration & reduce Cost But Quality is fundamental to integrity Quality Defects introduced or retained, within asset, system or process Greatest impact on integrity, reliability, availability and profitability Issues seen many months / years after completion of the TAR

11 FACTORS INFLUENCING EFFECTIVE TURNAROUNDS

12 Factors influencing Turnarounds 3 factors that influence success: People Plant Process Delivering a successful Turnaround requires aligned strategies during Design / Operation / Maintenance Process People Turnaround Success Plant

13 Some example issues influencing 3 factors People Turnaround Success People Technical capability deficit Contractor resources Plant Aging plant management Corrosion Under Insulation Process Integrated Business Strategy Process Plant

14 Technical Capability Issues: Result: Operating companies lost / lack technical competency High dependency on Contractor workforce Ineffective training programs to develop new talent Insufficient management of technical / aging plant issues Potential Improvements: Develop competence improvement for technical staff Targeted use of industry specialist for critical issues Process People Turnaround Success Plant

15 Contractor Resources Issues: Significant resources needed for TAR execution Short duration events Skilled contracting resource-pool shrinking Lack of skills in the market place New build work is more attractive Result: Integrity issues missed or introduced Improvements: Appropriate contracting strategies Make events smaller Process People Turnaround Success Plant

16 Aging Plant Management People Turnaround Success Issues: Many assets exceeded original design life Metallurgical / corrosion / erosion issues Result: Potential hidden failures Unplanned capital replacements Improvements: Understand equipment life Focus inspection plans on failure mechanisms Deploy risk based methodologies Process Plant

17 Corrosion Under Insulation (CUI) People Turnaround Success Issues: Result: Major cause of loss of containment Insufficient scope, planning, time to mitigate Missed opportunity to address plant issues during Turnaround Improvements: CUI Management is possible using structured risk based strategies Conduct pre-shutdown assessments Adequate planning and funding Process Plant

18 Business Strategy People Turnaround Success Issues: Result: Desire for extended cycles Misaligned business process Bow wave of asset replacement Deferred decisions Increased risk profile Short term decision process and inadequate planning resulting in untimely action Improvements: Risk based methodologies to extend cycle times Alignment of Business Process Optimised Investment Decision Support (ODIN) Process Plant

19 DELIVERING AN EFFECTIVE TURNAROUND

20 Effective Turnarounds People Scope Freeze Process Turnaround Success Plant Months Start End Strategy Planning Schedule Execute Post Review Apply a structured Turnaround Management Process Opportunity to improve performance Mitigates for resource and skill shortages Quality & Reliability built into work process Detailed planning is critical to address known and unknown problems

21 Turnaround Timeline: Planning is key People Turnaround Success Process Plant Months Start End Strategy Planning Schedule Execute Post Review Spend The time to influence turnaround efficiency and effectiveness is during the Strategy & Planning Influence

22 Our support - Turnarounds Readiness Assessment Best practice activity to deliver successful events in the industry Objective: Assess turnaround preparation Provides assurance Identify risks Mitigation Enable sharing and transfer of best practices across the company Assess improvement areas using a collaborative approach Execution Tracking Handover Emerging work Resource Planning Cost Planning Turnaround Effectiveness Strategy Development Post Event 25 Organization & Management Objectives & Metrics Data / Document Management Scope Management Planning & Scheduling Operational Planning Contract Strategy Materials & Logistics Quality, Security & HSE XXXXXX, Russian Federation Best Practice Benefits: Management assurance Early identification of problems Unbiased view

23 Jacobs Consultancy s recent Turnarounds engagements Year Location Activity 2012 Russia Refinery TAR Readiness Assessment and Implementation support 2011 Russia Refinery TAR Critical Path Review 2011 Caribbean Refinery & Power Plant TAR Assessment 2011 KSA Petrochemicals TAR Critical Path Review 2011 KSA Petrochemicals TAR Readiness Assessment 2006 UK Single Unit Readiness Assessment 2011 Russia Refinery TAR Readiness Assessment and Implementation support 2010 Russia Refinery TAR Scope Optimisation 2010 Russia Refinery TAR Readiness Assessment & Critical Path Assessment 2010 Russia Refinery TAR Readiness Assessment and Implementation support 2009 USA Petrochemicals TAR Readiness Assessment 2009 Ukraine Refinery TAR Readiness Assessment and Improvement Road Map 2007/08/09/10 Czech Republic Refinery TAR Readiness Assessment, Improvement Road Map, Implementation support

24 Summary Turnarounds are a major business opportunity Opportunity to address aging plant issues Clarity of TAR strategy is critical for success During event and next campaign A structured TAR Management Process ensures planning and preparation is achieved TAR Readiness Assessment identifies issues early

25 Steve Mabey Director of Asset Management Jacobs Consultancy 226 Tower Bridge Road London, SE1 2UP Tel: Web: jacobsconsultancy.com