The changing oil and gas environment is driving companies to re-evaluate the way they execute projects. This paper covers the approach taken in the delivery of the Azeri, Chirag, Gunashli (ACG) development, in Azerbaijan. These Caspian Sea fields, located 130km east of Baku offered a number of interesting challenges to effective project delivery. Executed in phases, following a regional concept of barge launched jackets with float over decks, production climbed from 400 kbopd after phase 1 to 800 kbopd after phase 2. The next phase will take the production capacity for ACG to over 1 million bopd.
The theory behind production line delivery requires alignment through all stages of asset delivery; Engineering, Supply Chain, Construction and Installation. Standard designs supported by repeat order capability feeds construction teams with familiar, predictable, reliable designs and materials.
An innovative organisational model was deployed based on the emerging principles of programme execution as opposed to multiple single projects. This organisational concept in turn fosters a culture of effective teamwork underpinned by continuous improvements in the programme delivery processes. The design team has remained constant throughout the programme maximising the benefits of repeat designs. Fabrication required the development of new in country sites capable of handling the load out of 16,000 tonne structures. All this was complemented with an effective local content programme. ACG actually expended 80% of the man hours in Azerbaijan.
Project delivery within this production line framework has produced remarkable results; savings in build cost of up to 24%, construction schedule improvements of over six months, a 34% improvement in hook up and commissioning time are amongst some of the benefits. These production line benefits were also replicated in the supply chain. The automation supplier managed similar cost and schedule improvements whilst delivering complete, tested systems incorporating many lessons learnt.
The ongoing successful delivery of this programme has been used to inform a new approach to project execution within the company. Sharing standardised concepts and components is not limited to a programme arrangement. Standardised components are now being used for single projects with great effect.