Canadian Heavy Oil Association
Presentation
November 10th, 2011
A Different View of Project Execution
SAGD Construction Project Timelines
Background in SAGD
Deer Creek Energy - Joslyn Pilot Plant
Background in SAGD
Deer Creek Energy - Joslyn Commercial Facility
Background in SAGD
Connacher Oil and Gas – Pod I Commercial Facility
Background in SAGD
Connacher Oil and Gas – Algar Commercial Facility
Current Projects
Pengrowth Energy Corporation – Lindbergh Pilot Plant
• Currently Under Construction
• Scheduled for Startup in Q1 of 2012
Southern Pacific Resources – McKay River Commercial SAGD
• Currently Under Construction
• Scheduled for Startup in Q2 of 2012
N-Solv Corporation – McKay River Pilot Project
• Currently undergoing Engineering
• Scheduled for Startup in Q4 of 2012
Typical Project
Algar Commercial Facility – Early Road Construction
Typical Project
Algar Commercial Facility – Road Construction Complete
Typical Project
Algar Commercial Facility – Plantsite Civil Preparation
Typical Project
Algar Commercial Facility – Pile Driving
Typical Project
Algar Commercial Facility – Day 30
Typical Project
Algar Commercial Facility – Day 150 – Evaporator Lift
Typical Project
Algar Commercial Facility – Typical Module Installation
Typical Project
Algar Commercial Facility – Day 240
Typical Project
Algar Commercial Facility – First Steam
Project Execution
Process Design
• Detailed Process Review
• Early Involvement of Operations
• Ability of the Team to quickly evaluate process options incorporating input from all stakeholders &
to implement decisions rapidly
• Ability of the Team to recognize unit operations that have been successfully utilized in similar
applications and not waste time in re-evaluation unless justified
Contracting Strategy & Risk Management
• Best scenario for a successful project is where the goals of the Owner, Project Managers, Vendors,
and Contractors are all aligned.
• Lump Sum for Engineering Contractor based on a % of +/- AFE
• Sole Source Supply where justified
• Detailed bid process where justified
• Time and materials based contracts
• Field contracts a mix of fixed price and hourly
Project Execution
Shop Fabrication Procurement
• Onus heavily on Engineering Contractor
• Schedule of IFC drawings determines the project schedule and predicted cash burn
• Management of Change
• Attention to detail & very rigorous shop inspection
• Constructability
Logistics and Transport
•Difficulty of the Transportation Corridor
•Close communication between Shop Coordinators, Field Supervisors, and Transport Contractor
•$/km contract for transport
•Flexibility of field contracting strategy
Project Execution
Field Construction
• Under this execution strategy this area presents the greatest risk for cost control
• Success is highly dependent on accuracy of engineering contractor – stuff has to fit
• Primary Mechanical Contractor on hourly
• Secondary Mechancial Contractor on hourly
• Typical to go lump sum of E&I
• Flexibility for Field Supervisors
• System in place to closely monitor Cash Burn vs Productivity.
Specific Techniques
Tight Spooling
Specific Techniques
Pipe Modules
Specific Techniques
Pouring Pod I Tank Base
Specific Techniques
Algar - Pile Supported Steel Tank Floors
Specific Techniques
Pod I Grade Beam, Floor, Supports, & Mod Installation
Specific Techniques
Algar Grade Beam / Piles
Specific Techniques
Algar Equipment Setting
Closing Remarks
“It’s about the People, not the process”
Neal Gartner, Engineering Manager, AMEC BDR
October 2011