Utilization of High Value Engineering Center (HVEC) in Execution of a Major Capitol Project, Gorgon

Abstract

Listen

Translate article

Abstract The Chevron-operated Gorgon Project is located off the north-west coast of Western Australia and encompasses a number of mega-projects including an all-subsea upstream development of the Greater Gorgon gas fields, a greenfield gas processing facility including a 15MTPA liquefied natural gas plant and a 300TJ/d domestic gas plant and the world’s largest commercial scale carbon dioxide injection project. The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (approximately 47 percent), ExxonMobil (25 percent) and Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent). Due to its sheer size, scale and complexity, in addition to a number of unique characteristics, the Gorgon Project has required an extraordinary level of project management and one of the key project management strategies employed has been the appointment of a High Value Engineering Center (HVEC) in Jakarta. This paper explores the benefits of using the HVEC concept; the evaluations performed on the HVEC; the challenges associated with the execution; the execution planning utilized and the tactics utilized in executing the work, which have all enabled the successful delivery of the engineering phase of the Gorgon Project. The HVEC concept is not new to the oil and gas industry. But execution success tends to vary based on numerous criteria and variables associated with the HVEC centre. The conclusion is that the HVEC concept works and has a place in the execution of Major Capital Projects. The concept can be very successful with the following in place: Thorough evaluation of the HVEC capabilities, with a feed back into the HVEC execution plan.The HVEC project execution receives appropriate oversight from the main Execution Center (EC).Highly competent and motivated management present at the HVEC level.Robust procedures and processes in place to provide required guidance to the HVEC personnel.A detailed HVEC execution plan and implementation of the execution plan.Transition of the work scope from the main EC to the HVEC in accordance with the execution schedule, at an adequate level of maturity. Although the HVEC concept is not new to the oil and gas industry, execution success tends to vary based on numerous criteria and variables associated with the individual HVEC utilized, its experience and its relationship with the managing EC.