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Commissioning, Transforming R isks into S uccess F actors Specialized C ommissioning Contractor, a Key F actor for Capital Project Success Presented by: Riad Faour, Eng. CEO Progesys International. TOPIC.
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Commissioning, Transforming Risks into Success Factors Specialized Commissioning Contractor, a Key Factor for Capital Project Success Presented by: Riad Faour, Eng. CEO Progesys International
TOPIC Present some of the commissioning best practices and showhow hiring a Specialized Commissioning Contractor when capital investment decision are made to build new processing capacity, will result in reducing costs, enhancing overall quality of the project and a better, faster, transition from construction to safe and efficient operation
WHY COMMISSIONING? Progesys made the choice more than 12 years ago to specialize in Plant Commissioning Why? • Noticed that it’s a major challenge for project owners • We perform in thisintenseenvironment • Implemented best practices and methodologies that work • Commissioning requires capacities in both technical and management know-how • Commissioning managers must be leaders
WHY COMMISSIONING? Commissioning is a crucial part of every Industrial Project Any industry Worldwide
WHY COMMISSIONING? Requires specialized know-how
WHY COMMISSIONING? Can be properly performed only by specialized resources fit for the task
WHY COMMISSIONING? Involves all stakeholders: Engineering, Procurement, Contractors, Vendors, Project Owner team, and Operation team
WHY COMMISSIONING? It’s intense, often caught between construction delays and start-up milestones
COMMON CONTRACTUAL STRATEGY FOR COMMISSIONING • Often the EPC or EPCM consultant is hired for the commissioning phase also • Commissioning is a small part of the awarded service contract • It’s a later phase so it’s not the immediate focus of management • EPC contractors are often not specialized in commissioning and focus on Engineering and Construction being the major parts of contract budgets • Assigned commissioning manager answers to the construction manager • Often assigned late and during the construction phase • Lack of know-how and best practices • Difficulty of EPC contractors to retain specialized commissioning professionals
What happen when a Specialized Commissioning Contractor is contracted for Commissioning 1- Focus is put on that critical phase from day one of hiring the specialized contractor since he is dedicated to that task 2- Dedicated resources are specialized in commissioning and not there because of availability only 3- Commissioning is the core of the service contract for the Commissioning Contractor and his only measure of success 4- Commissioning Contractor answers to the Project Owner Team and not to the Construction team 5- Applies commissioning know-how and best practices 6- Often positively received by all project stakeholders including EPC and construction contractors
SPECIALIZED COMMISSIONING CONTRACTORS Master: Scope of work A proven methodology Defined deliverables Coordination of stakeholders Leadership from mechanical completion to ramp-up
SPECIALIZED COMMISSIONING CONTRACTORS Master: The application of a health and safety program that is adequate for the sources of risks and energies present during commissioning phase The use of specialized electronic tools to manage the flow of work from Mechanical completion to the ramp-up phase. Progesys uses a proprietary software (CMS ) to manage mechanical completion, pre-commissioning, commissioning, start-up and ramp-up.
ECL / NALCO Project : ARS1 and ARS2 of AngulSmelter Angul, Orissa, India • Year of realization: 2010 – 2011 • Project Value: USD 50M$ • Services offered by Progesys: • Construction Management services for the plant ARS1 and ARS2 hiring local contractors and implementing best practices for construction and HSE • Direct supervision of manpower and training of welders and tradesmen • Installation and operation of Electrical substations for both plants • Heavy lifts for chimneys in difficult plant areas • Engineering during plant construction and engineering for heavy lifts and final equipment installation
VALE MALAYSIA MINERALS Project : Vale Malaysia Minreals Project Lumut, Malaysia • Year of realization: 2012 – ongoing • Project Value: USD 1.3 Billion • Services offered by Progesys: • As a commissioning contractor Progesys is responsible for all pre-commissioning and commissioning activities • Scope all facilities by systems to enable smooth transfer from EPC to Owner operation team • Definition and implementation of POVT roles and responsibilities matrix • Overview of construction key milestones and planning of vendors on- site for pre-commissioning activities • Preparation of an POVT execution Plan for owner team • Direction and Execution of all POVT and commissioning activities • Planning of Plant systems turn-over to owner
CANADIAN ROYALTIES Project : Nunavik Nickel Mine Nunavikregion, NorthernQuebec, Canada • Year of realization: 2012 – ongoing • Project Value: USD 900 Million • Services offered by Progesys: • Detailed planning of pre-commissioning and commissioning activities • Scope all facilities by systems to enable smooth transfer from EPC to Owner operation team • Definition and implementation of POVT roles and responsibilities matrix • Overview of construction key milestones and planning of vendors on- site for pre-commissioning activities. • Preparation of an POVT execution Plan for owner team • Review and prepare all verification forms of Equipment and Systems test details • Planning of Plant systems turn-over to owner
OSISKO MINING CORPORATION Project: OSISKO MALARTIC GOLD MINE PROJECT Malartic, NorthernQuebec, Canada • Year of realization: 2011 – 2012 • Project Value: USD 1 Billion • Services offered by Progesys: • Detailed planning of pre-commissioning and commissioning activities • Scope all facilities by systems to enable transfer from EPC to Owner operation team • Preparation and implementation of a pre-commissioning and commissioning execution plan and Planning of Plant systems turn-over to owner • Overview of construction key milestones and planning of vendors on- site for pre-commissioning activities. • Perform pre-commissioning and commissioning activities • Handover of systems and equipment to operation team and assistance during Ramp-up
CONSOLIDATED THOMPSON Project : Bloom Lake Iron Ore Mine Fermont, Côte-Nord Region (Quebec) Canada • Year of implementation: 2009 – 2010 • Project value: USD 400 Million • Services offered: • Construction Management services for plant erectionincluding Construction Supervision, Contract Administration, Deficiencies Management and reporting to owner • Management of the pre-commissioning & commissioning phases of project • Plan, manage & sign-off equipmentcommissioning by selectedvendors • Plant systems turn-over to client
QATALUM Project : Qatalum Aluminum Smelter Qatar • Year of implementation: 2008 – 2010 • Project value: USD 5.6 Billion • (Contractorproject value USD 1.5 Billion) • Services offered: • Planning of pre-commissioning services • Pre-commissioning management and execution • Mechanicalcompletion for the overallpotroom and general services contract • Commissioning management
ECL – ECL SERVICES FRANCE Project : EmiratesAluminumSmelter - EMAL Anode Roding & Hot Bath Treatment Plant Taweelah, Abu-Dhabi, United ArabEmirates • Year of implementation: 2007 - 2010 • Project value: USD 5.7 Billion • (Contractorproject value USD 100 Million) • Services offered: • Pre-commissioning supervision and assistance • Auditing of existingpre-commissioning & commissioningprocedures • Technical assistance on site
Rio Tinto Alcan • Expansion of the Rio Tinto Alcan Alma smelter – Alma 2 project • Alma (Quebec), Canada • Year of implementation: 2008 • Project value: 1B$ • Services offeredwithinownerproject team: • Project management • Risk Management • Overall management of projectcontrols • Estimate • Planning
Rio Tinto Alcan • Spent Pot Lining Treatment Pilot Plan • Year of implementation: 2006 – 2008 • Project value: 210 M$ • Services offered: • Management and execution of pre-commissioning and commissioning work for the plant • Planning and supervision of vendors work on site • Site logistics and construction assistance • System turn-over to client and start-up assistance • Management and implementation of all Health and Safety procedures
Windalco (now Rusal) • Bauxite mine and Alumina refinery • Nain, Jamaica • Year of implementation: 2003-2004 • Project value: 25M$ • Services offered by Progesys as consultants through EPCM team: • Engineering services to identify solutions and low-cost alternatives • Project estimating • Construction Management and supervision of contractors for construction and commissioning execution • Technical assistance to client team • Training for maintenance and operation teams
Hydro Quebec • Rehabilitation of the Beauharnois Hydroelectric Dam • Beauharnois (Quebec), Canada • Year of implementation: 2003 • Project value: 20M$ • Services offered by Progesys within general contractor team: • Construction management • Planning and supervision of project progress • Technical assistance to site and coordination with engineering and fabricators • Pre-commissioning management and supervision
Rio Tinto Alcan • Coke Sulfur Dioxide Treatment • Arvida (Quebec), Canada • Year of implementation: 2008 • Project value: 30M$ • Services offered by Progesys within general contractor team: • Construction management • Planning and execution of precommissioning and commissioning acitvities • Technical assistance to site and coordination with engineering and vendors • Plant systems turn-over to client
VALERO ENERGY (Ultramar) Project : Ultra-low sulphur diesel St-Romuald refinery (Quebec) Canada • Year of implementation: 2004 - 2006 • Project value: USD 400 Million • Services offeredwithinowner team: • Technical management of engineering teams in Calgary and Quebec City • Project controls management and supervision • Procurement management includingcontractualstrategydefinition • Purchasing, expediting, inspection planning and shop auditing • Overallplannng of projectactivities and implementation • Risk management – identification, assessment and mitigation of risks • Review and analysis of constructabilitystudy • Supervision and management of EPCM contractorwork • Management and execution of pre-commissioning and commissioningwork • Site logistics and construction assistance
CONCLUSION Specialized commissioning contractors like Progesys are necessary for project success. They master a crucial phase of the project cycle and dedicate for it specialized human and material resources. Owners pre-qualify and hire the best Engineering firms for EP contracts, the best Construction Contractors for the Construction phase and they benefit if they do the same when it comes to the crucial commissioning phase.