Brownfield Projects Cost & Schedule Optimization

Abstract

Abstract The brownfield projects deal with existing facilities/assets to upgrade or modify. These projects can be minor (e.g., change a few cable trays) to major (e.g., remove an old gas turbine). These projects are smaller in Capex spending compared to new greenfield projects, and sensitive to completion schedules, because of the facility's operational/production state. Normally some of the work is performed during shutdown of the facility, so there is economic pressure to resume operations as soon possible. Eighty percent of these projects are schedule-driven, and cost is relatively high if benchmarked with green field projects, which are usually cost-driven projects. There is a need to plan and execute these projects to optimize the cost and schedule, to achieve company's financial goals and production targets simultaneously. These strategies may vary from project to project, and there are many common actions that can be applied to all brownfield projects. It is a challenge for the project management team (PMT) to execute a brownfield project within the planned budget and schedule, due to uncertainties and constraints. In this paper we will discuss the risks and challenges faced by brownfield PMTs, and how to mitigate risks with planning and execution strategy at different stages of the project life cycle: i.e., concept selection, FEED, detail engineering, project proposal, contract award, execute construction, and commissioning of the facility.