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There has been, and perhaps always will be, a desire on the part of deepwater field operators to accelerate production from these developments. Fast-track projects have been successfully executed in the oil and gas industry for decades. In defining fast-track, the term refers to a project that can normally be com-pleted and yield first production ahead of a conventionally executed project of similar size and scope. Often, schedule savings will be one to two years.

Is there a way to complete major deep-water projects faster, yet with less risk? Can this method help complete more projects in the same amount of time and with the same resources allotted con-ventionally? This discussion about fast-tracking will answer these questions by noting advantages, disadvantages, ideal candidates and ingredients needed for ex-ecuting successful projects. Ideas shared in this article are based on lessons learned from undertaking numerous fast-track projects, including four recent Gulf of Mexico deepwater developments (Fig. 1), using many techniques discussed here.

FAST-TRACK ADVANTAGESThere are many reasons why a fast-

track project makes sense. Most have to do with the economic advantages that such a project brings. The shorter sched-ule can generally be translated into lower costs. Streamlining the project’s decision process requires fewer man-hours of en-gineering time. Similarly, if construction moves ahead expeditiously as planned, it can result in lower costs and free up manpower for additional projects. Per-haps the main criterion and biggest ad-vantage to fast-tracking is that it real-izes production quicker. This realization enhances the project’s net present value (NPV), improves the cash payback and increases the value of the project’s return to company shareholders.

There could also be other scenarios that suggest the need for fast-tracking a project. In some situations inside the US or in other regions, the method might be used, where there are competing reser-voirs in close proximity to a company’s field, where production needs to get on-line quickly. Company financial interests and reserve replacement needs could dic-tate early production, as could the value of capitalizing on unique market condi-tions. Regardless of the reasons, the fast-track project can deliver results earlier.

THERE CAN BE DISADVANTAGES

Can there be disadvantages with fast-track methodology? Absolutely. Accom-modating change is one of the major disadvantages, because it works against time. The fast-track method does not al-low extended studies after the conceptual

or preliminary engineering stages. Simi-larly, process optimization of production facilities should only be undertaken early, and the earlier, the better.

Fast-tracking a project may not be compatible with a company’s standard Stage Gate process for approving capital projects. Additionally, a company’s stan-dard procedures may need to be modi-fied, to allow the project to proceed on a fast-track basis. The project plan should be developed, agreed upon and followed with only minimal modifications to the design basis. There are fewer opportuni-ties to make major alterations through-out the project. If this philosophy is not adhered to, changes can lead to schedule delays and escalating project costs.

THE BEST CANDIDATEHow do we make sure a project is

a good candidate for going on the fast

Fig. 1. Typical complexity (color-coded systems) of a fast-track project.

Taking the fast track: Streamlining major deepwater projectsWith sufficient reservoir knowledge and a previous project model, fast-tracking can work well for companies.

Daryl B. Rapp, P.E., P.M.P., Mustang Engineering L.P., Houston

Reprinted from: May 2006 issue, pgs D-97–D-100. Used with permission.

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track? First, there needs to be sufficient reservoir information about the develop-ment to proceed quickly and confidently with design and construction.

Next, there should be an atmosphere among all major stakeholders in the project—operator, partners and con-tractors—that allows decisions to be made quickly and definitively. Assuming that those decisions are reasonable, they should be allowed to stand without opti-mizing further. Empowerment and trust are keys that help unlock success for the fast-track method.

A fast-track project stands a better chance of success if it can be patterned after a “go-by,” a prior project completed with similar water depths, location and characteristics. This comparative project allows for a certain amount of standard-ization and repeatability to reduce risk, and shorten the entire schedule. It also can provide a basis for continual design improvements with only an incremental increase in engineering effort.

Lastly, there has to be an understand-ing that there will be some minor trade-offs in proceeding. Time is of the essence, pitting well-founded decisions, supported by experience, against optimization.

INGREDIENTS FOR SUCCESSTo simplify the understanding of a

successful approach to fast-track success, there are four major areas that need to be addressed and understood—alignment,

design basis, scope of work/execution plan and project team experience.

Alignment. The alignment of all partic-ipants in a fast-track project is a critical element for success. All the stakeholders have to be in agreement as to the defini-tion of the project’s goal and how it is to be reached. This alignment must be vertical within each participating orga-nization, so that its members are syn-chronized, as well as among the involved companies, themselves.

There has to be an atmosphere of open and honest communication among all parties, and a relationship whereby the working level project team mem-bers are trusted and empowered by the owner to make decisions and to resolve issues as they occur. Project participants undoubtedly will have different interests, ideas and means of communicating. For a fast-track project to be effective, how-ever, all parties must find a common ground so that the working relationship is effective.

Project goals, priorities, key philoso-phies and expected outcomes should be clearly articulated and defined, with agreement from all parties prior to start-ing work. These items may be document-ed by a project charter, client statement of requirements or other documents that are prepared by the client or contractor. Once agreed, the direction should be fol-lowed for the work. Strict adherence to

the requirements will enable project sanc-tion and development to be accelerated.

Design basis. As mentioned earlier, a fast-track candidate can be viable, when enough information is known about the field and its reservoir characteristics. Re-sults of at least one exploratory or apprais-al well are needed to provide a baseline for going forward. Anticipated pressures, temperatures and flowrates are impor-tant, especially as fields are found in ever-deeper waters. Determinations for water injection and gas lift, either in present or future plans, must be considered.

Flow assurance issues are extremely important, because they impact the sub-sea system’s design and layout. Also im-portant is the need for consideration of critical topsides payload to accommodate production heating requirements, and liquid storage and equipment for chemi-cal injection. Drilling rig requirements have to be determined, as do storage and operational needs. Product export as-sumptions must be considered, with in-formation known about the proximity of existing export pipelines or hub facilities. If possible, export contracts should be in place before the project commences.

With a fast-track project, exact require-ments, while helpful, are not mandatory to succeed. Some topsides over-design can be incorporated and, even if it adds weight, can be an acceptable trade-off for reaching first production quicker, Fig. 2. Potential challenges, however, need to be identified and understood before a fast-track project gets underway. Decisions based on the above known facts and as-sumptions should be incorporated in the project plan as early as possible, prefer-ably in the concept definition phase.

This type of project has to identify process challenges and determine the extent of existing technology issues in dealing with assumed temperatures or pressures. Can the challenges be handled with existing technologies? While adjust-ments for many issues can be incorporat-ed, a fast-track project is not one where technological innovation should be pro-posed without a mitigation plan.

Scope of work/execution plan. Based on the design basis above, and the client’s charter/statement of require-ments, a scope-of-work and execution plan need to be developed. Part of the execution plan is a contracting/purchas-ing plan that describes how to contract or enlist contractors early in the proj-

Fig. 2. A fast-track project being installed.

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ect, to avoid delays or rework to design. Among other things, that plan needs to identify contractor and vendor selection for various provided services.

The execution plan needs to address project safety reviews and risk assess-ments that are necessary to ensure that project requirements are achieved. Spe-cial attention is needed to ensure that the most appropriate reviews are specified. In some cases, a Hazard and Operability (HAZOP) safety review may be replaced with a comparable technique, such as a “check list” or “what if ” analysis while still maintaining safety as a top priority.

Because of the rapid progression of the fast-track project, there will be over-laps between engineering and construc-tion. Timing of deliverables is critical and requires expeditious gathering of vendor data for engineering to create drawings and specifications for steel cutting and fabrication. Engineering and procure-ment schedules should be finalized after alignment and agreement is reached with the fabricator on required on-site (ROS) dates for deliverables and equipment.

Design issues can be reduced, if the installation contractors already are on the team, as early discussions can mini-mize misdirection of design. Therefore, contractors need to become an integral part of the project early, so that construc-tion planning and sequencing can be ef-ficient. Stage-Gate processes that move the project from one phase to the next can be used successfully in a fast-track project, but they may be modified from their normal application. This way, stages are shorter and less-rigidly defined than with conventional use of this technique.

Contracts for fast-track projects often use a mixed strategy for compensation, combining reimbursable, unit-rate basis and lump-sum contracts. In the initial project stages, it is often advantageous to remunerate engineering services with a reimbursable rate to assure that changes will be made expeditiously at the most reasonable cost. For fabrication, unit rates are normally preferred initially, as a contract can be placed early, based on steel tonnage estimated from comparable projects. The unit rate contracts eventu-ally can be converted to a lump-sum ba-sis as the project develops, and all parties become comfortable with its progress.

With a fast-track project, realistic scheduling often is based on knowledge from previous projects. Cost estimates also can be verified early in the project by benchmarking them against previous

projects of similar scope. It also can be advantageous for both cost and schedule to consider a model of outsourcing skid-mounted modular fabrication, using high-quality specialty shops. This can be done while relying on the fabrication yard to handle the structural steel erec-tion and assembly of production mod-ules and skids.

Last, the appropriate regulatory bod-ies for project oversight must be identi-fied, and submissions given to them as soon as practical. Due to the shortened timeline, there could be more regula-tory risk, but it can be mitigated by early alignment with governing regulations and agency expectations.

Project team experience. Contrac-tor experience is truly a critical factor in advancing fast-track work. If the selected project team has had prior experience with this project type, it is easier to move forward expeditiously. Cohesiveness and consistency are major advantages for this type of approach. When there is a com-fort level among project participants, and an understanding of direction based on alignment with the project charter/cli-ent scope of requirements and previous working relationships, it can add consid-erable value to the project.

Successive fast-track projects using the same team usually can be accomplished with fewer concerns, and can continue to add value with the implementation of lessons learned from prior projects. This

was the case in the project team continu-ity on the four recent projects. After the initial projects were completed (Fig. 3), each subsequent project was able to get underway quickly with fewer unknowns. This go-by availability and continuity re-duced engineering man-hours per deliv-erable for each succeeding prospect.

FAST TRACK CAN BE THE ANSWER

Fast track does not equate to poor or lesser quality than a conventional con-struction project. Rather, a fast-track project is designed to give the client an excellent product that is fit-for-purpose. Safety and environmental consider-ations are not lessened, and can be the same or better than conventional proj-ects. When addressed early, uptime, reli-ability and flexibility of design are all as prevalent in fast-track projects as with conventional work.

Risk is present in any project, con-ventional or fast-track. In a fast-track project, experienced team members help mitigate that risk with their knowledge and established procedures for execu-tion. From a financial standpoint, risk is lessened, because of the ability to in-crease shareholder value through early production.

As an example, consider the improve-ment in net present value to shareholders when a deepwater facility, designed for 40,000 bopd, can produce at that vol-ume for at least one year ahead of a simi-larly rated conventional facility. If there is the correct alignment, known field characteristics, a sound project charter with identified and agreed-upon goals, and an experienced cadre of contractors and partners, fast-track should get strong consideration for joining the race at full throttle. WO

Fig. 3. Completed fast-track project in the Gulf of Mexico.

THE AUTHOR

Daryl B. Rapp, P.E., P.M.P., has more than 30 years’ experience in the design and project management of oil and gas facilities. His projects have included multiple types of floating offshore facilities, as well as onshore plants. He was the project manager for

four fast-track, truss spar topside facilities that have recently reached first oil in the deepwa-ter Gulf of Mexico. Mr. Rapp is a graduate of Purdue University, a Registered Professional Engineer in the State of Texas and a Project Management Professional.

Article copyright © 2006 by Gulf Publishing Company. All rights reserved. Printed in U.S.A.