Brownfield Construction Projects in Downstream Oil and Gas: Key Steps for Success
Brownfield construction projects in refineries integrate existing infrastructure with new equipment and/or process units, demanding meticulous planning, monitoring, and control to achieve success in scope quality, schedule, and cost. These three crucial project output dimensions affect project outcomes and benefits (1) (2). Herein follows a breakdown of key steps for each phase, highlighting its impact:
1. Detailed Planning for Seamless Integration (Quality, Schedule & Cost)
Confirming and Building a Compelling Business Case with Clear Outputs, Outcomes and Benefits: Develop a clear and concise project charter that outlines the project's objectives, expected outputs, desired outcomes, and benefits to stakeholders, assuring alignment with corporate strategy (Quality). Develop a robust financial model with realistic cost and schedule estimates (Cost & Schedule). Assure you have a good sponsor with technical and business expertise able to support and guide project development (Quality) (3).
Front-End Engineering Design (FEED): Prepare to develop FEED on good front end loading (FEL) through business-engineering alignment meetings (BEAM) to ensure every party involved is "on the same page" about what needs to be achieved (Quality) (4). Extensive 3D modeling facilitates clash detection, minimizing costly rework during construction (Quality). A detailed schedule is developed, considering existing plant operations and potential shutdowns (Schedule).
Procurement Strategy: Long lead items like critical equipment are identified and procured early, mitigating delays due to extended lead times (Schedule). Bulk materials are sourced based on existing specifications and compatibility with current equipment class (Quality). The alternative of acquiring long lead items separately (in a split contract strategy) must consider factors as per the relevancy in terms of overall scope and cost, technology maturity, owner operational experience, and other. The early acquisition of long lead items by the owner will demand integrating effort and tight interfaces controlling. This alternative can provide gains in schedule, will reduce the risk transferred to contractor, and can reduce the negative effects from technical and commercial arbitrage (Cost & Schedule). No matter what contracting strategy adopted (e.g., Split x EPC contracting), it is key to keep strong integrating capability. The issues and drawbacks tend to grow when project management and owner teams stay far from integrating. These two agents must be well integrated and well positioned and informed to practice a hands-on approach (Cost, Schedule & Quality) (5).
2. Proactive Monitoring for Course Correction (Cost & Schedule)
Construction Monitoring: Real-time progress tracking identifies deviations from the plan. Quality control measures ensure adherence to specifications (Quality), while cost control procedures track expenditures, allowing for early intervention if budgetary constraints and/or deviations arise (Cost).
Risk Management: Proactive identification and mitigation of potential risks, like unforeseen site conditions, labor shortages due to concurrent activities and/or works, weather conditions, and other, minimizes schedule disruptions and cost overruns (Cost & Schedule).
3. Integrated Commissioning and Start-Up for Optimal Performance (Quality & Cost)
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Mechanical Integration: Testing and verification procedures ensure seamless integration of new equipment with existing systems (Quality). Clear communication with operations ensures a smooth transition to full production (Schedule). Meticulous planning and risk management are critical in brownfield projects once existing operations cannot be entirely halted, necessitating detailed shutdown planning to minimize production downtime (Schedule).
Performance Optimization: Commissioning activities thoroughly test new equipment and processes, ensuring functionality and adherence to design specifications (Quality). This optimizes long-term operational efficiency, minimizing future maintenance costs (Cost). Compatibility with existing equipment and processes is paramount to ensure smooth integration and optimal performance (Quality).
4. Additional discussion