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Integrating Cost & Schedule in P6
Presented by:Stephen Airey, Caracal Energy Inc.Ivan De La Fuente, Emerald Associates Inc.
P6 & Financial System IntegrationSession ID#: 15434
Agenda
■ Introduction
■ Project Overview
■ Challenges
■ Solutions
INTRODUCTION
• Caracal Energy Inc.
• Emerald Associates Inc.
• Presenters
■ First independent E&P company to be granted PSCs in Chad▪ Exclusive rights to explore and develop ~6.4 million acres (26,100 km2) in the Doba and Doseo Basins
■ Proven ability to operate in Chad ▪ In two years, have fast tracked development of two oil fields and made two exploration discoveries
■ Currently producing and exporting light Oil▪ First Oil obtained on 30 September 2013 - Current production approximately 12,000 bbls/day gross
▪ Expect to exit 2014 at 40,000 – 45,000 bbls/d gross
■ Fully funded to develop the existing fields and exploration program ▪ Current cash on hand, GlencoreXstrata carry and funds from operations sufficient to execute the aggressive
capital program
■ High impact Exploration program in 2014 through 2016 ▪ Plan on drilling 35-45 exploration wells over the next 2.5 years.
▪ Test over 3.0 billion barrels of mean unrisked prospective resources by mid 2016
■ Strong strategic partners ▪ GlencoreXstrata and SHT - Excellent partners with strong relationships
■ Experience▪ 5th Year - Oracle Platinum Partner
▪ 20th Year - Primavera Solutions Provider
▪ Headquartered in Calgary, Canada, clients worldwide
■ Track Record▪ Serving Oil & Gas, Engineering, Construction, Utilities, Mining,
Government, Manufacturing, Health Care, and other industries
▪ Add-on, enhancement and integration (60+ tools) specialist
■ Mission▪ Innovate, integrate, streamline
▪ Lasting solutions= long term relationships=Happy Clients
Stephen Airey
■ Over 25 Years experience in International Oil and Gas Projects
■ Graduated in Control Engineering 1989
■ Lived and worked in many countries - UK, Norway, Qatar, Italy, Germany, Japan, Korea, USA and Canada
■ Moved into Project Management
■ MBA in Project Management, Cranfield, 1998
■ Moved into Information Management & Business System development▪ Agip KCO, Kazakhstan – Head of Information Management, Kashagan
Field Development
▪ Pearl GTL, Qatar – Manager, Information Management
■ Current role Project Services Manager, Caracal Energy▪ PMO, Project portfolio management, Business process and systems
development
Ivan De La FuenteB.Sc. Industrial Engineering, Implementation Specialist.
■ Completed his studies and writing his final thesis in Germany.
■ Began his career as a Facilities Designer completing his Building
Technology Degree.
■ Experienced playing diverse roles in the project process including designer,
coordinator, scheduler and project manager.
■ Instructor for an Engineering Undergraduate Program.
■ At Emerald, plays an important role in the Unifier group, developing new
custom business processes and taking part of the training sessions.
■ Creative and enthusiastic approach in developing and evaluating
alternative solutions to problems.
■ Balance between professional and personal life � Exploring the Rockies
OVERVIEW
• Republic of Chad & Caracal Energy
• Caracals Portfolio of Projects
• Drivers for P6
Republic of Chad
■ International
■ Republic of Chad
■ GDP double – within 5yrs????
■ Pipelines, facilities, roads, wells, storage…
■ Building from ground up
Caracal Energy
Caracals Project Portfolio
■ Annual spend over $800MM
■ Drill 35 – 45 Exploration wells
■ 7 Oil Fields on production by 2018
■ 500 Km Pipeline across Southern
Chad
Drivers for P6
■ One Plan – Multiple views
■ Global access
■ Visualize Progress & Cost
■ Scalable▪ Logistics forecasts
▪ Resource loading
▪ Scenario analysis
■ Maximise Automation / Minimise customization
■ Ability to attribute Activities, Projects, groups of Projects
■ Single Instance – Chad / Calgary Access
■ Scalable for future▪ Costs to Activities
▪ Resources – Rigs, Trucks
▪ Resources – People / Roles
■ Emerald Expertize
■ Emerald tool kit
■ Integration using Middle-ware Data warehouse / Cube
Caracals Challenges P6 & Emerald Ability
CHALLENGES
• Project magnitude
• Complex Logistics
• Global Telecoms & Infrastructure
Project Magnitude
■ Caracal 2014 Project Portfolio includes:
▪ 32 Projects, Over 30 Wells / 3 Rigs
▪ 200 assets,
▪ 4,000 activities,
▪ more than 10,000 cost accounts
■ 2015 adds 40 Projects, 35 – 45 wells / 7 Rigs
DRILL RIG 158
MANGARA PRODUCTION FACILITY
Complex Logistics
Ocean Freight to
Cameroon
From 6 to 8 weeks
Inland
Transportation
Around 5 weeks
Global Telecomms & Infrastructure
■ Satellite communications to N’Djamena, Chad
■ ‘Local’ satellite ‘hops’ to field work sites and to Rigs
■ Limited Bandwidth
▪ Everybody has ‘Developed world’ expectations
■ Regular Power cuts / IT impact
▪ Data integrity; Server management
Solution: STANDARDIZATION
• Project Type
• Templates by Asset
• Consistent Structure
• Reporting
STANDARDIZATION: Project & Asset Type
STANDARDIZATION: Templates by Asset
■ Asset = Template = P6 Project
Example: Infrastructure, Wells, Facilities, Pipeline,
General Services, etc.
■ Concept:
■ Level 2.5 or 3 Schedule
■ High level of attributes for Reporting
■ Assign GL Codes to Activities for Cost mapping
■ Use Steps for more detail / less than a Month duration activity
■ Level 4 / 5 Activities can be added but do not carry any cost data
STANDARDIZATION: Consistent Structure
■ What we did ▪ Corporate Hierarchy – PSC / BLOCK / FIELD / PROJECT
▪ Project codes, Activity, Activity Codes, UDFs
▪ WBS – phases
▪ Tasks – Codes, UDFs, responsibility, steps, roles
■ What we got ▪ Organization
▪ Reporting at multiple levels
▪ Usability
▪ Consistency
▪ Quality
STANDARDIZATION: Reporting■ Project Reports: WELL
■ Functional Reports: RIG MOBILIZATION & DRILLING
Solution: COST INTEGRATION
• Budget / Spending Plan
• Actuals and Field Estimates
COST INTEGRATION: Budget / Spending Plan
■ Budget Built to Reflect Projects / Cost
Centers
■ Emerald P6 Loader allows us to quickly
load and reload thousands of data points
from the Capital Report (a spreadsheet)
into P6.
PSC
EEA / EXA
Field / Area
PROJECT
Budget Item
Activity (AFE)
COST INTEGRATION: Budget / Spending Plan
■ AFE Estimates, GL Codes and GL Code
Estimated Costs Pushed onto Activity
■ Actual Costs pushed to AFE / GL code
■ Middleware Data Cube used to map, collate and
provide a structured view for Emerald Tool to
distribute costs on Activities
PSC
EEA / EXA
Field / Area
PROJECT
Budget Item
Activity (AFE)
Emerald Utility &
Data Cube / Mart
Emerald Utility &
Data Cube / MartActual Cost by GL
Estimates by GL
COST INTEGRATION: Actuals & Field Estimates
■ Emerald technical staff has created several add-ons tools,
such as Cost Elector which determine the Actual Cost based
on the field estimate cost, accounting cost (ITD) and last
updated date.
Field
Emerald Utility &
Data Cube / Mart
Emerald Utility &
Data Cube / Mart
COST INTEGRATION: SummaryPSC
EEA / EXA
Field / Area
PROJECT
Budget Item
Activity (AFE)
Expense
Emerald Utility &
Data Cube / Mart
■ Ability to pull Budget, Estimates
Forecast and Actual COSTS into a
single view next to the PLAN
showing PROGRESS - DAILY
BUDGET & SPENDING PLAN
AFE NUMBER & ATTRIBUTES
AFE & GL Code ESTIMATES
ACTUAL COST
FIELD ESTIMATE
Solution: CONNECTIVITY
• RDP
• Compression Server
• Check in / Check out
CONNECTIVITY: Technical Solutions
■ Network access from Chad to P6 Web
■ Network access using P6 Compression Server
■ Remote Desktop (RDP) access to P6 Web
■ RDP access to compression server P6 Client and web
■ RDP access to P6 Client
■ P6 Check in / Check out functionality
▪ Field / off network / no comms use of P6 on a Laptop
Field (Chad)
Headquarters (Calgary)
Compression
Server
Sun Financial System
Main Diagram
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