Benefits of Modularization, Engineered Solutions, and Vendor Partnerships

Transcription

1 Benefits of Modularization, Engineered Solutions, and Vendor Partnerships Presented by: Jeremy Olson (DNOW) and Dan Norris (Hess) CASPER, WY GREEN RIVER, WY SALT LAKE CITY, UT DENVER, CO BILLINGS, MT DICKINSON, ND SAN ANTONIO, TX TULSA, OK

2 Agenda Introduction: Power Service/Hess Collaboration: Strategic Partnerships Design Work and Changes Benefits of the Work Questions

3 Introduction 65 years in the oil and gas business Vertically integrated company Engineering Drafting Design Procurement Fabrication Electrical and Automation QAQC Trucking Service Fabricator and distributor combined: a complete solutions provider

4 Hess Ohio Facts Prime acreage is in the heart of the wet gas window Implementation of Lean manufacturing principles have been key to advancing Hess operations in the Utica Goals: reduce waste, bolster efficiency, and eliminate defects at a fast pace

5 Optimized Modular Facilities Process

6 Collaboration: Strategic Supplier Relationships Collaboration between the two teams Combining technical knowledge Implementing improvements Creating feedback loops for continued improvement Results in Optimized Modularization

7 Collaboration: Strategic Supplier Relationships Power Service Review Processes Implement Changes Review Benefits with Field and Eng Hess Feedback Loop

8 Collaboration: Strategic Supplier Relationships Production schedule sharing (both parties) Greater visibility with both Fabrication and on site needs Just-in-Time delivery on site reduces costs and storage

9 Collaboration: Strategic Supplier Relationships Share and Review Schedules Adjust Schedules to Match Lean Processes and No Surprises Just in Time Deliveries Track Schedule Accuracy Find Areas for Improvement

10 Collaboration: Strategic Supplier Relationships Value engineering: Opening design books for review together Harvesting cost savings and lead time saving options Also allows all parties to sit together and work through problems (Operations, Engineering, Fabricators, etc.) Power Service Operations Engineering Review Processes Implement Changes Review Benefits with Field and Eng Safety/Supply Chain

11 Original Facilities Design

12 Design Work: PSI and Hess Teams collaborate to modularize design GPU: stack line heater and separator Optimize size of vessels for increased efficiencies PLC, MCC, generator, and air compressor to one skid Consolidate Electrical Components, reduce field installation costs Additional improvements VRU/FGC combined to one skid Reduced SIMOPS during facility construction Optimized storage tank design

13 Modularization Integration of: Separator Line Heater Generation Measurement of each Phase All Electrical Completed and Controlled via Remote I/O Facility Electrical and Control Instrument and Utility Air

14 Well Site Process Simulations and Optimization By taking a detailed look at actual well conditions, the benefit of Modular Packaging is further enhanced by optimizing component design. Smaller Vessels Optimized Process Reduction in Components Reduced Heat Input Smaller Footprint Component Cost Reductions Wellhead Separation Control Valves

15 Facilities Design with Optimized Modularization

16 Original Design Modularized Design

17 Benefits of the Work Reduced on site construction time Better quality control Optimized crane use, less trenching, reduced welding, and electrical Standardization Increased installation and operation efficiencies Decreased lead time Created purchasing efficiencies More efficient design Increased availability and reliability Reduced footprint

18 Hess Facility Costs Cost Savings After initial switch: 13% savings total installed cost per well (first 3 pads) After 5 more pads: 29% savings from initial total installed cost per well Installation time reduction: 24 days on average Table 1: Breakdown of % Savings After Initial Switch

19 How can this process be used elsewhere? Vette suppliers and find strategic partners Review current equipment and processes together Seek out solutions to field problems as well as optimizations Implement changes on future units Use a planned feedback loop to continue improvement Find and Vette Suppliers Review Processes Implement Changes Review Benefits with Field and Eng Feedback Loop

20 Questions?