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QALHAT LNG PROJECT QALHAT LNG PROJECT GASTECH 2005 Mamoru Nakano, Deputy General Manager Gas Value Chain Project Division, Chiyoda Corporation Arnoud van der Post, Manager of Consultancy & Start-up Shell Global Solutions International B.V.
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Page 1: QALHAT LNG PROJECT - Fakultet for ingeniørvitenskap Conferences/2005/SDS... · QALHAT LNG PROJECT QALHAT LNG PROJECT GASTECH 2005 Mamoru Nakano, Deputy General Manager Gas Value

QALHAT LNG PROJECT

QALHAT LNG PROJECT

GASTECH 2005

Mamoru Nakano, Deputy General Manager

Gas Value Chain Project Division,

Chiyoda Corporation

Arnoud van der Post, Manager of Consultancy & Start-up

Shell Global Solutions International B.V.

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© Gastech 2005 Nakano 2

1. INTRODUCTION Chiyoda-Foster Wheeler and Company LLC (CFW), a joint venture established in the Sultanate of Oman successfully constructed the first LNG plant in Oman (2 Trains x 3.3 MTPA LNG grass root plant) in the year 2000 before the contractual completion dates of 38 and 42 months, for the first and second train respectively. After completing the project, CFW was awarded the EPC contract from Qalhat LNG S.A.O.C. (QLNG) for a single train expansion (3.3 MTPA) in January 2003. The construction site is at Qalhat near Sur, 350 km away from Muscat. The governance of the project is undertaken by an independent Owner team, referred to as the “Qalhat LNG project team”. Resources, including the Project Director (M. Merzian) are supplied by the Project Technical Advisor: Shell Global Solutions International BV. The Qalhat LNG project team manages the EPC contract with support as required from their Technical Advisor. The QLNG Project has the following special features. - Fast Track Project of 34 months with Long Lead Equipment (MCHE/ Main Cryogenic Heat Exchanger and

Refrigerant Compressors) to be ordered after the EPC contract award. - Flawless Start-Up (Trademark of Shell Global Solutions International BV). To cope with the short duration of the

Start-Up period (1 month from Plant Completion to First Shipment), QLNG has adopted a new concept of Flawless Start-Up with the guidance of QLNG and its Technical Advisor Shell Global Solutions International BV (SGSI).

- Accomplishment of high Omanisation ratio (ratio of Omani employees against total employees). 35% is adopted while 15% was applied for the previous project.

The plant construction is ahead of schedule, with a high performance of objectives and high HSE record, and will near completion in the last quarter of the year 2005.

2. FAST TRACK PROJECT

Scope of the project is as shown below: 1 x 3.3 MPTA LNG Train composed of MCHE licensed by Air Products and Chemicals, inc. (APCI), Frame-6 Propane (C3) Compressor and Frame-7 MR Compressor manufactured by GE Nuovo Pignone (NP) 2 X Frame 6 Gas Turbine Generators 1 X Sea Cooling Water System 1 X Instrument Air Compressor 1 X Air Separation Package 1 X Feed Gas Receiving Station In many LNG plant projects, since plant completion is dominated by the manufacturing duration of the Long Lead Equipment (MCHE and Refrigerant C3, MR Compressors), the clients order the Long Lead Equipment in advance of the EPC contract award and it is assigned to the contractor in order to reduce the project duration. In the case of the QLNG project, and also the previous project, this Long Lead Equipment was ordered after the EPC contract. The 1st train of the existing LNG plant took 38 months from the contract award to Ready for Start-Up (RFSU), while the QLNG Project is scheduled to be completed in 34 months. To achieve this shorter project duration, the full string tests of refrigerant compressors at the shop have been waived due to the identical design with the previous project, while the gas turbine solo run and compressor mechanical running test were performed. Extensive inspection items are reviewed and conducted in order to maintain integrity. To increase further integrity, the manufacturer’s packing information data is merged into the contractor’s site material control system (MARIAN oracle based software) with extensive packing inspection compared with the sub-supplier’s

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© Gastech 2005 Nakano 3

original design drawing. The MCHE was erected 21 months after the contract and the Refrigerant Compressor after 22 months. Comparison below with the previous project, using the parameter of remaining months after site erection to RFSU, shows that the Long Lead Equipment delivery does not adversely affect subsequent construction activities. Namely, the saved time is allocated for construction work in the QLNG Project.

Remaining Months to RFSU

Previous Project Qalhat LNG Project

Main Cryogenic Hest Exchanger 12 months 13 months

MR Compressor with Driver 9 months 13 months

C3 Compressor with Driver 10 months 14 months

The overall strategy of the QLNG Project is to save the time on engineering and procurement, fully utilizing tangible assets from the previous project during construction, without a loss in quality. Engineering was concentrated on the modification area, and vendors were selected in consideration of the impact on re-engineering in the case of new vendors’ selection. Consequently, the same vendors as with the previous project were selected, except in the case of static equipment. Lessons learned from the previous project were analyzed and categorized phase-wise. These were implemented at each EPC phase. The progress curves below show that this strategy has achieved success.

2003 2004 2005 2006JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Actual for Previous Project

Contract Plan for QLNG Project

Actual for QLNG Project

Actual for PreviousProject

Actual forQ-LNG

2003 2004 2005 2006

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Actual for Previous Project

Contract Plan for QLNG Project

Actual for QLNG Project Actual forQ-LNG

Actual for PreviousProject

ENGINEERING PROCUREMENT

2003 2004 2005 2006JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Actual for Previous Project

Contract Plan for QLNG Project

Actual for QLNG Project

Actual for Q-LNG

Actual for PreviousProject

2003 2004 2005 2006

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Actual for Previous Project

Contract Plan for Qalhat LNG

Actual for Qalhat LNG

Actual for PreviousProject

Actual forQ-LNG

CONSTRUCTION OVERALL

For construction, in order to allow a good environment and better productivity for the mechanical work, which involves higher risk activities, the joint efforts of CFW and QLNG were concentrated on earlier completion of the underground work compared with the previous project. The table below using the parameter of remaining months to RFSU, shows that this strategy is also being well achieved.

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© Gastech 2005 Nakano 4

Remaining Months to RFSU

Previous Project Qalhat LNG Project

Main Pipe Rack Completion 22 months 23 months Process area Underground Cable

Installation 14 months 21 months

Main Equipment Erection Completion except for MCHE, Refrigerant Compressors

13.5 months 15.5 months

Previous Project: 15 Months till RFSU (As of September, 1998)

Qalhat LNG Project: 22 Months till RFSU (As of January, 2004) - Amongst World Record? -

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© Gastech 2005 Nakano 5

3. FLAWLESS START-UP (Trademark of Shell Global Solutions International BV) Aiming for a short Start-Up Period (1 month from Plant Completion to First Shipment), QLNG has adopted a new concept of Flawless Start-Up, with the Guidance of QLNG’s Technical Advisor, Shell Global Solutions International BV (SGSI). This is explained below. To ensure a successful execution of the project and a successful first production cycle of the new assets Shell Global Solutions applies a proprietary methodology entitled Flawless Start-up Initiative® during project execution. This methodology entails two steps: Operations Implementation Planning (OIP) which aims to prepare the future asset operator for all aspects of the production phase. This includes but is not limited to: operations and maintenance philosophy, organization & manpower, prototype and risk assessment, competence development & assurance, manuals, check-lists and instructions, development of management system (ISO-9000 model), etc. This OIP process ensures that at the moment of asset hand-over the Plant, the People and the Procedures are in place and fit-for-use. OIP development is normally done by the future asset owner and falls outside the scope of the EPC contractor. The graph below gives an impression of how OIP develops and matures during the project preparation and implementation.

05/01/200520 04 Shell Glob a l Solutions C

How does the OIP typically develop? Development of OIP

OperationsPhilosophy

Phase I ofOIP

Phase II ofOIP

Phase III ofOIP

Final Version OIP

ReviewProjectLessons Learned

Review OIP

ProcessLessons Learned

Commission&

Start-up

InitialProduction

Phase

Development of the project

ProcurementScouting

&Feasibility

Basisof

Design

Detailed Engineering

BasicEngineeringPackages

Construction

Value improving practices

Site Management

System

Quality Execution Plan. Problems encountered during initial operation of many previous projects have been analysed for root causes which were captured in Lessons Learned databases, subdivided by relevant disciplines. These lessons learned are accounted for in all stages of today’s projects: from Basis of Design through Detailed Engineering and Procurement right through to Construction and Commissioning. Examples of these lessons learned for an LNG project include: Build Clean program, tightness (internal & external), functional testing and integrity, operability/maintainability/accessibility, etc. The execution schedule reflects the integrated execution of identified activities in construction, commissioning and start-up whilst respecting the Inspection and Test criteria. As an important feature of this Execution Plan a number of Key Success Area’s (KSA) are identified and each KSA is assigned a focal point.

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© Gastech 2005 Nakano 6

Shell Global Solutions

$$

Plant performance after Mechanical Completion

Perfo

rman

ce

tCSU - first cycle operation

Trouble-free Start-up and Operation

Expectation:What performanceshould look like

Historical :Typical plant performancecurve over time with dormant problems fromprevious project phasesnow coming to live.

Historical :Typical plant performancecurve over time with dormant problems fromprevious project phasesnow coming to live.

Improvement 2 :Preparation through Flawless®

Improvement 1 :Preparation through OIP

This structured approach of the Quality

Execution Plan has led to a first-time-right

commissioning & start-up resulting in a

considerable gain in time and money. Not only is

the contractual delivery date ensured, but early

production adds significantly to Return on

Capital Investment.

The Flawless Start-up Initiative® as described requires full involvement and commitment from the FEED contractor as well as from the EPC contractor during the project. For the QLNG project this has been the case, and a selective FSI program was devised and agreed with CFW, the details are further described in the next chapters. In addition, team members with extensive background and experience in the FSI activities were assigned to the Owner’s project organization to work with CFW on the agreed program. SGSI normally acts in a guiding role to facilitate the contractor’s work and/or assist the owner’s project team. This is done through awareness sessions, engagement workshops, detailing the Flawless program, guiding & mentoring the focal points in their role and in conducting so-called “health checks” as an independent second pair of eyes to review adequacy and compliance to the agreed Flawless Start-up program. With the guidance of QLNG and SGSI during the Engineering and Procurement phase, the modified areas from the previous project and new technologies not employed on the previous project were thoroughly investigated and identified as “Novelty Items”. Since the interval between the completion of the previous project and the QLNG project is long (three years) and there have been new technology improvements during the period, there were 79 “Novelty Items” for Engineering. These Novelty Items were fully analyzed and measures taken to ensure a smooth start-up and reliable operation. At the initial construction phase, a Key Performance Indicator (KPI) was established to monitor the achievement of Flawless Start-Up in the following categories called “Key Success Areas”. - Tightness (External & Internal) - Cleanliness - Mechanical Integrity - Electrical Integrity - Prototype - Complex System - Testing - Handover, Deliverables and Plans

In accordance with the Key Success Areas, the workshops facilitated by QLNG and SGSI were conducted in a phased manner, in accordance with the mobilization of Key Personnel to site. QLNG, CFW and Subcontractor Key staff joined the workshops.

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© Gastech 2005 Nakano 7

A part of the payments for "Change in the Work" in connection with additional activities required to achieve the selected KPIs are made in line with the level of the achievement of the KPI, as an incentive/ penalty scheme. This scheme encourages CFW and its Subcontractors to attain higher score in the KPI.

After the setting up of standard and measurable criteria, implementation at site was started. A symbol was chosen and banners, visible criteria and photos of good and bad examples were placed in many locations on the site. An incentive scheme for the workforce + supervisors has been introduced and a Daily Award and a Bi-Monthly Award are provided.

MASKING TAPE

SEAL FULLY WITH MASKING TAPE

PLYWOOD FULL PLATE COVER

Progress of FSU workshop action points

0%10%20%30%40%50%60%70%80%90%

100%

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Weeks following action plan issuance

% a

ctio

n po

ints

cl

osed

Cleanliness Tightness Mech static ElectricalInstrument Mech Rotating Outstanding TargetBelow Line Linear (Line)

During the workshops, action items are discussed and agreed. The first phase is mainly the incorporation of ITP (Inspection Test Plan) and change of MS (Method Statement) in order to achieve the KPI. The closure of workshop action items are measured continuously and the graph on the left shows that this has progressed well.

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© Gastech 2005 Nakano 8

4. SUSTAINABLE DEVELOPMENT

Accomplishment of the high Omanisation ratio (35%) has been set up as the target for the QLNG Project. Also, based on Lessons Learned from the previous project, contribution to local society has been set up as another target. Currently in the Sur area, two major projects are under execution. One is a fertilizer project and the other is the QLNG Project. The combined requirements of the Omani workforce are tabled as below.

Total Work Force Number of Omani Omanisation

Fertilizer (Start 2002) 8,000 1,600 20%

Q-LNG (Start 2003) 3,500 1,200 35%

Total 11,500 2,800

Ref. Previous Project: Peak Number of Omani; 1000, Omanisation; 15%, Number of Trained Omani; 350

Since this scale of skilled Omani workforce was not initially available, extensive recruitment and training was required to achieve the project targets.

1st Priority to "Sur" arealike neighbouring villages of QalhatAl-Gahilah etc., and Sur town

2nd Priority to Sharqiya regionother than "Sur" area

3rd Priority to other areaSur town, Qalhat, AlGhallilah etc

Sharqiya region likeIbra and Jalan.

Other areas in Oman likeMuscat and Nizwa.

1st priority

2nd priority

3rd priority

The following five KPIs were set up by CFW in order to measure the quality of sustainable development in addition to

the Omanisation ratio.

AN A LYSIS O F INSTR UM EN T DA M A G E PR O TECTIO N

0

50

100

150

200

250

Process A rea cum U tility A rea cum O ff-Site A rea cum N O .of Fail

Process A rea cum 16 32 32 48 64 81 99 117 135 135 153 171 189 207 225

U tility A rea cum 8 16 16 24 32 40 48 56 64 64 72 80 88 96 104

O ff-Site A rea cum 1 2 2 3 4 5 6 7 8 8 9 10 11 12 13

N O .of Fail 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

12/1 12/2 12/3 12/4 12/5 12/6 12/7 12/8 12/9 12/10 12/11 12/12 12/13 12/14 12/15

A daily surveillance report is prepared by the CFW supervisor, and if any adverse indication has appeared on the daily report, corrective action is taken at the initial phase. To feed-back corrective actions in a systematic manner, “Q-Slip” cards are adopted. If any non-compliance is found, the CFW supervisor writes the corrective action to the Subcontractor and if the corrective action is taken, this sheet is returned to the originator. To track this, a copy is sent to CFW “Flawless Start-up” coordinator.

For the best contribution to local society, during the recruitment a Concentric Circular philosophy was adopted. That is, at first find candidates from the region near the site, if sufficient candidates are not available, select candidates from the next nearest region. This has been achieved by the full support and close communication with the Director General of the Ministry of Manpower (MOM) in Sur.

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© Gastech 2005 Nakano 9

KPI 1. Accomplishment of 35 % Omanisation

KPI 2. Employing Omani people from neighboring villages, Sur and Sharqiya region

KPI 3. Off-the-Job training for Omani people

KPI 4. Employing Omani people graduated from Off-the-Job training

KPI 5. Local procurement and/or local subcontract from neighboring villages, Sur and Sharqiya region

CFW organized a dedicated Sustainable Development Team and an Omanisation Club with Subcontractors for bilateral communication and exchange in a successful way to improve its quality. For Off-the-Job training, which is mainly applied to the skilled workforce, the majority of Subcontractors are taking advantage of a training subsidy from the Government and sending their trainees to training institutes, and some Subcontractors utilize their own training course. The number of Omani people trained as of November 2004 exceeds 700.

Subcontractor Graduated Trainees

Under Training

Number of Total Trainees

Civil Work 76 0 76 Mechanical, Electrical and Instrumentation Work

241 110 351

Paint and Insulation Work 164 83 247

Waterfront and Marine Work 8 0 8

Heavy Rigging Work 6 0 6

Catering Service 11 0 11

Operation and Maintenance 3 0 3

TOTAL TRAINEES 509 193 702

To maintain a high HSE standard with the many new trainees entering the construction site, HSE training refresher courses for all Omanis at site were held continuously. These refresher courses were held in addition to ordinary HSE induction and specific HSE education courses. CFW introduced English and IT training courses for their Omani staff in order to increase their communication with expatriate staff and help familiarize them with office work. College graduate students were provided with on-the-job training in the company organization.

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© Gastech 2005 Nakano 10

1

-150

-50

50

150

250

350

Feb-03 . Nov-03 Oct-04

324 Interviewed (MoM)

94 drop out of trainees

20 quit site

168 Trainees

74 Trainees joined54 Working force

Interviewed Working force

32% conversion

Civil Subcontractor Omanisation Achievement

To extend the Omani employment as long as possible, work force transfer from a company to another was considered among the concerned companies in the project and some successive employment was made. Also, a list of Omani employee is submitted to the Ministry of Manpower two month prior to the demobilization from the project to enhance next job opportunity of Omani engaged in the project.

ةيزيلجنإلا ةغللا يف ةساردلا ةرود لامكإ *

ةغللا يف ةيبيردت ةرود رليو رتسوف ادويش ةكرش تدقع دقل رهشألا لالخ كلذو ينامع فظوم (50) نيسمخل ةيزيلجنإلاهتنإ دنعو ةيضاملا ةسمخلا نيبردتملل تارابتخإ تيرجأ ةرودلا ءا

ه زاتجإ دقلو هنم نورشع (20) تارابتخإلا هذ امم ديج حاجنب مهأ هل .ةيناثلا ةرودلاب قاحتلإلاو راوشملا ةلصاومل م

رتسوف ادويش ةكرشل ماعلا ريدملا) وناكن .م لضافلا روضحبوهشلا ميدقتب اروكشم لضفت دقل (رليو .نيحجانلل تادا

ه نوكي نأ اوجرنو ه اوملتسأ نيذلا نيينامعلا نيفظوملا ءالؤ هذ

هشلا .قيفوتلا مهل ىنمتنو ،ءادعس تادا

هددعو ةيناثلا ةعفدلا يف نيبستنملل ةبسنلاب امأ بردتم 70 مهو م2004 /ويام /1 تبسلا موي ةيناثلا ةرودلا أدبت فوسو اذ

همانتغإ نيينامعلا ىلع ىرخأ ةصرف كانه هنأ ينعي دجلاو اهتجإلاو ه يف دا يف ديج ىوتسم ىلع لوصحلا لجأ نم ةرودلا هذ

.ةرودلا ةداهش ىلع لوصحلا لجأ نم كلذكو ةيزيلجنإلا ةغللاه مازتلإلاو مظتنملا روضحلاو ةبغرلا نأ انه هونن نحنو نم م

,قوفتلاو حاجنلا لماوع

هشلا عيزوت لفح - ةيزيلجنإلا ةغللا ةرود نيزيمتملا ةبلطلا ىلع تادا رليو رتسوف ادويش ةكرشل ماعلا ريدملا روضحب

ةكرش هاكرشو رليو رتسوف ادويش ع.م.م.ش مهلق عورشم لاسملا يعيبطلا زاغلل تا

نيينامعلا ةكرشلا يفظوم نيب لصاوتلا ةيلمع ةلوهسل * قلطي نيفظوملا نم ةعومجم ةكرشلا تلكش بناجألا و

هم حيضوتلو ، مسإ مهيلع ه ما )نوينامعلا نودشرملا( هذةعومجملا :

هالوأ :تفيظو امو ؟نيينامعلا نيدشرملاب دوصقملا ام ؟م

ه نوينامعلا نودشرملا ةكرشلا ةرادإ لبق نم نوفلكم نوفظوم م ينامع فظوم يأ هجاوت دق يتلا تابوعصلاو لكاشملا لح مهتفيظو

ةكرشلا يف لمعلا لاجم يف.

ايناث :؟ةكرشلا يفظوم نيب لصاوتلا ةيلمع دمتعت اذام ىلع

هم ىلع ةكرشلا يف نيفظوملا نيب لصاوتلا دمتعي بطاختلا يف مهتاراةيزيلجنإلا ةغللاب)امهفو اثدحت .( نودشرملا ءالؤهل حيتأ كلذل ةجيتنو لصاوتلا ىلع نيرداق ريغلا نيفظوملا ةدعاسمو لكاشملا لح ةصرف

بناجألا نيفظوملا عم .

لبقتسملل ملعتلا ةقيرط * همل يتاذلا ملعتلاو بيردتلا ةصرف ةكرشلا ةحاتإ نإ يلألا بساحلا تاراهب هملا هباسكإو فظوملا ىوتسمب ءاقترإلا فد هنيعت يتلا ةديجلا تارا

هج لقأو نكمم تقو رصقأ يف هلمعزاجنإ ىلع . كلذ قيقحت نكمي الو ده يف نيينعملا لاؤس لالخ نم الإ . ملعتلا يف ةبغرلا ءادبإو لاجملا اذ

ه لثم ةحاتإو ام لك ذخأو هلالغتسإ نم دب ال نيمث زنكربتعت صرفلا هذلمعلا قوس يف لماعتلا هيلع لهسيل مهنم هجاتحن . ةكرشلا ترفو اذل

هقيبطتو هتسارد يف فظوملا هيلع دمتعي عجرم" تايساسأللالدب هجلا ىلع ثبعلا نم باتك لالخ نم ةسوردملا"ةوطخب ةوطخ " زا

هإو ةوجرم ةدئاف نود. تقولل اراد

ديجلا روضحلاو طابضنإلا *

هيطعي لب هفقوم نم نسحي اذهف هلمع رقم يف اطبضنم فظوملا نوك رابتعإلا نيع يف عضت ةكرشلا نأب ملعلا عم هلمعب مكحتلا ةصرف

هو هصالخإ ردقتو لمعلا يف طبضنملا صخشلا ةعمس بستكي اضيأ و يونسلا مييقتلا ةرتف يف هتأفاكم ةكرشلا تررق اذهلف ةكرشلا يف ةديج

ه سكعني فوس طبضنم ريغلا فظوملا امنيب هلمع ىلعو هيلعابلس اذهتسإلا مدع ءاجرلاف يونسلا هئادأو ىلعأ ىلإ لوصولل ءايشألا هذهب ةنا

هللا ءاش نإ لبقتسملا يف قومرملا ىوتسملا قيقحتو بتارملا. يشولبلا ةرونSD

-1 /مقر2004 ليربأ

To increase the local procurement from neighboring villages, CFW published a list of locally available materials and resources, and leaflets about the QLNG project. Based on this feedback from subcontractors and local suppliers, a local content database was prepared and the database was shared with subcontractors at the Omanisation Club. CFW/ Subcontractors made such local procurement and sublet work with an annual sum of over one million Omani Rials.

The graph on the left shows the track record of trainees starting from the stage of recruitment up to conversion to the actual workforce. In short, 32% of trainees were converted to the actual workforce. The total trainees were 168 selected from 324 candidates through MOM and trained. Among 168 training candidates, there were 94 drop-outs before graduation because of lost interest or mismatching of expectation and 74 graduated/ joined site work. During approximately one year (Nov’03 to Oct’04), 20 graduated workers quit and 54 employees finally became “experienced workers”.

CFW has a supporting system called a Sustainable Development Help Desk (SD Help Desk) for easy communication between Omani Staff and Expatriate Staff. The SD Help Desk is composed of experienced Omanis. In case of difficulty of explanation of a work request from an expatriate, the work is explained by this SD Help desk. The SD Help desk and Sustainable development team became members of the CFW SD Committee and feedback from Omani Staff and expatriate staff is discussed weekly.

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CFW received an honorable award of “Best Omanisation Company” from the Minister of Manpower in commemoration of the remarkable performance of “Omanisation” as one of the ten best companies on 9th February ’2004, under the full support of the Ministry of Manpower and QLNG.

5. SUMMARY

Currently, the Project is proceeding smoothly and we are making every effort to complete it successfully. Fortunately, the project programs for Sustainable Development and Health, Safety and Environment are progressing well, so far. CFW is performing the project to the satisfaction of the client, Qalhat LNG S.A.O.C. under the assistance of SGSI.

Leaflets introducing the QLNG project were distributed through the Oman Chamber of Commerce and Industry, Sur Municipality, the Office of the Walli and directly to shops and contractors in this region.

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© Gastech 2005 Nakano 12

CONTACT POINT: Mamoru Nakano Deputy General Manager

Gas Value Chain Project Division Chiyoda Corporation

TEL: +81 45 506 7206 FAX: +81 45 506 7029 Email: [email protected]

Arnoud J. van der Post Manager Operations Consulting Shell Global Solutions

TEL: +31 70 377 2676 FAX: +31 70 377 1550 Email: [email protected]

Maurice Merzian Executive Project Manager Qalhat LNG S.A.O.C.

TEL: +968 699 566 FAX: +968 699 552 Email: [email protected]


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