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P O G 3 5 1

2014

PROJECT MANAGEMENT-HEALTH &SAFETY IMPROVEMENT PROGRAMME

NAME- CHIOMA AMOBI

ROYAL DUTCH SHELL PLC

Introduction

Oil and gas companies must ensure all its operations are carried out in a safe and reliable manner. It is important to apply Health,

Safety and Environmental Management system in all divisions when carrying out all Oil and Gas projects. Some important areas of

improvement are Health and Safety, Environmental and Communication issues.

As a group we decided to have a look over the health and safety issues of Shell. We produced a project management scheme to sort out the

problems currently faced by the oil company. Tin order to sort out the problems a sponsor funded £1 million so that the oil company

improve its effectiveness. A time scale of maximum 2 years was given to complete the project. Our group presented the sponsor with the

project managing ideas and they were approved. We started working on the time needed to complete the health and safety improvement

project, keeping in mind the budget given to us. Also bearing in mind the constraints that could occur and how to mitigate the risk.

Health and safety equipment needed for our offshore project was detailed and explained on how it is going to increase the efficiency

of our operations in a safe manner. Time was estimated to the nearest accuracy. Many risks were listed and also the Stakeholders analysis

were explained. The final report will be presented as a group. We believe our report was satisfactorily produced.

There are various accidents which could happen both offshore and onshore which could injure or even kill the individual involved. It

is important to prevent accidents and provide a safe working environment in order to ensure that employers are protected.

The main aim of this project is to prevent accidents and provide a safe working environment for all Shell’s employees. A safety

improvement programme will be setup which will be adhered to by all staff in order to prevent any injury and curtail any hazard to

property and location during oil and gas operations.

Our mission statement will be “All oil and gas activities will be completed with zero injuries to people and also zero damage to

equipment, property and environment”.

Shell will have to move faster than their competitors through implementing changes in order to be more sustainable. Safety is of

prime importance in all oil and gas proceedings and this is a major factor to Shell’s operations.

The main objectives of the project will be to:

a. Identify safety problemsb. Discuss and review the problemsc. Develop a Safer working environment

Target audience : a. Staff b. Employees c. Contractors d. Sub-contractors

The desired outcome will be:

a. If the following tools are applied it will be useful to mitigate accidents and improve safety performances that result in achieving effective cost control and quality control.

b. The safety improvement program will have a continuous improvement process

c. Eliminating injuries by providing rigorous risk mitigationprocess

d. HSE performance will be visible throughout the organisation

Key elements of the project:

a. To conduct every service activity and operations with all risks identified

b.Costc.Qualityd.Timee. Management roles and responsibilities are allocated

Budget – £800,000

Timeframe- 10months

Sponsor- Management of Shell

In milestone 2, we were able to identify 3 possible areas that needed to be improved in our organisation. The main areas being:

a. Health and safety issuesb. Communication issuesc. Environmental issues

Health and safety issue

This is paramount in all oil & gas operations.a. Several leaks causing major accident hazards

Because of these drawbacks, Shell have recognised the need to be more proactive. This was achieved through giving adequate

training to staff and also introducing numbers of inspection in order to ensure continuous improvement.

Through taking the following steps:a. Small bore Connections (SBC)b. OPEP (Oil Spill Prevention and Emergency Preparedness)c. Accredited Responders Managementd. Oil Waste Managemente. Oil Spill Modelling

Communication issue

Off shore communication skills in Shell is one of the main areas that has to be tackled and improved in order to increase effectiveness.

At the present moment radio microphones are used for the workers and colleagues to communicate between each other as quick means of

correspondence. The more accurate, advanced, time saving techniques are introduced, it can help to speed up oil & gas

operations. Communication at every step and level is important and vital for the company’s effective operation. Therefore

communication is one area which has to be updated also better technology has to be introduced for smooth operations to take place.

Effective communication during an emergency evacuation, shut-down or man- down alarm is a clear instance were the right wireless

communications technology is required. A wireless communication is also a tool that will be used to help protect investments and

personnel against criminal or even terrorist threat. However, today criminal are tech-savvy, thus any system must be secure

against potential mis-use if it falls into the wrong hands. With a typical oil pipeline pumping more than $3million worth of oil an

hour, effective communication are essential in keeping the revenues flowing.

Through ensuring the following:a. Flexibility &Scalabilityb. Efficient communicationsc. Reliability & System availabilityd. Data communicationse. User Environment & Interfacef.Operations

Environmental issues The extraction of hydrocarbon involves various risks to the general

environment.

More importantly, is the public negative perception about the environmental degradations that is associated with the oil and gas

operations which needs to be improved for organisation'seffectiveness.

In order to be efficient the organisation must adhere to the following factors:

1)  Environmental Policy : A company policy should be set up which clearly explains the provision for compliance with environmental

requirement 2) Operational Control : All the operations and activities should be

performed according to standards with a view to minimise environmental pollution.

3) Corrective and Preventive Action and Emergency Procedures : The organisation should establish and maintain documented procedure

for preventing, detecting, investigating, promptly initiating corrective action by imploring the modern technological techniques

(both internally and externally in accordance with the country'slaw)

4) Continuous Evaluation and Improvement : The organisation should endeavour to apply periodic documented and objective auditing of

the organisation's performance in regards to environmental issues, for example gas flaring, venting, carbon emissions.

At milestone 3 , the chosen project was Health and Safety. This was chosen because in oil and gas operations, safety is very important.

It is important to reduce the number of accidents that occur through leaks of hazardous substance. This will be achieved by installing small bore tubing. Small bore tubing is useful in providing a leak-

free connections. However an incorrect connections could result in pipes splitting or joints of individuals bursting which is a major

accident. It is important to use the correct fixtures and fitting when erecting a small bore tubing. It is important to prevent

leakage to small bore pipework.

Diagram of Small Bore Tubing (SBT)

The industry and health and safety executive in the North Sea estimate that 50-70% of hydrocarbon releases have caused linked in

part or in whole to human factors. This means that a large proportion of releases are not due to “spontaneous” failures of equipment, but to things people do or it could be due to designing, maintaining and

operations.

The approach to be used are:

a. Identify the plant items that are most associated with leaks. For example: small bore tubing is a regular source of leaks. It

requires trained and competent personnel who understand the stresses and vibration issues that can lead potentially to

large hydrocarbon releases.b. Management, design, installation and maintenance of SBT should

be consideredc. E-learning course “Compression Fittings and Small Bore Tubing

In comparison to other piping system, the tubing systems are lighter. This means that tubing systems are easy to install and support. There is ease of installation due to the fact that it requires no threading, flaring, soldering or welding. There is also

lower pressure drop hence discontinuities of piping systems are not present in the gradual bends are smoother within the diameter of the

tubes. This bending will lessen the amount of necessary connections and also possible leak points. This is to say that the tubing is very

adaptable and can be bent to fit around many obstructions. The tubing also has a better strength to weight ratio due to its full

wall thickness and it can contain pressure since no threading is necessary. This is because threading tends to reduce effective wall

thickness in piping. Due to the lighter weight of the tubing, it is easy to transport, is easier to assemble, and occupies less space.

Another important aspect of the tubing is that it is Leak Tight, this means that at high pressures pipe connections tend to leak, but with

Tubing systems, they are leak-tight. They tend to compress the air, hydrogen, or hydraulic oil in refinery. It involves different

process, some of which are; assembly, testing, disassembly, rework and reassembly.

It is important that all small bore connections (SBC) are welded between smaller pipers (0.5” and 2”) and also main line pipes. The

welded connections are sometimes prone to vibration induced fatigue failures and could account for the majority of pipework fatigue cracks.

By Milestone 4, the feasibility study was carried out on the Health and Safety Project

This report will be based on the improvement project of Health and Safety offshore operations. This feasibility study will ensure

that Time management, Scope and Quality is considered to ensure the success of this project and this will be beneficial to all the

stakeholders concerned. (Burke, 2010) .

STAKEHOLDERS ANALYSIS

Projects involve a wide range of people who have different needs and expectations. (Burke, 2010) . It is important for project team

members to create an environment where stakeholders areencouraged.

STAKEHOLDERS

POSITION NEEDS ANDEXPECTATIONS

INTEREST

POWER

Management Owners,Decision-Makers

Owners, Decision- Maker. Economic,

Technical and Schedule feasibility.

High High

Government Legal, Rules and

Regulations

Safety guidelines and standard quality

operations and

Medium High

. environmentalregulations.

Employees Team members.

Project siteworkers

Task allocation, Respectful treatment, Individual welfare

and Health & Safety procedures, Defined

role andCommunication.

Medium Low

ProjectLeader

Supervisor and Task

allocator

Coordinator, Communicator between

the project progress and the management and the workers.

High Medium

Environmentalist

Greenpeace Concerned about theenvironment

Low Low

Health and Safety

Executives

Supervisors In-charge of Health & Safety Procedures.

Concerned about worker’s welfare.

High Low

Sponsor Financiers and

financialdepartment

Project to be delivered within the

budget

High High

Engineers Expertise &Specialist

Provide all the technological know-

how and completion of the project at the

proposed date.

High High

Suppliers Suppliers Delivery of all the specified equipment

on time

High Low

Table 1

CONTRAINTS

The report has identified all the anticipated internal and external constraints that could add pressure on this project. An action plan

that could mitigate the risk and the constraints will be considered. Working with the constraints to actualise the project as planned is

important. Below is the analysis of the constraints on the project.

PROJECT CONTRAINT TABLE

Constraints

Action Plans Internal

External

AlternativeOptions

Budget Ensure that project’s schedule

and scope is aligned to the overall

benefits .The budget must not be

exceeded

Yes Manage budget in a realistic manner

Weather Alert to weatherupdates

Yes Prepare for unforeseen events

NewRegulations

Adhere to government’s new

rules andregulation.

Yes Ensure all products used meet

statutory health and safety

regulationsInflation Research about the

economy and marketsYes Check variety of

prices available in order to get the

best priceDelays Outsourcing with

reliable suppliers and also have

alternative suppliers at

standby

Yes Change the

suppliers if they do not deliver

Transportation

The most efficient and effective

transportation will be used

Yes Use the reliable transportation and

also alternative transportation

when necessary Team

Dynamics Managing team dynamics in a

practical manner.

Yes The team should be managed in a strict

manner and adhere

Be open to new ideas from team members

to all rules

Cash Flow Monitor dailyExpenditure

Yes Manage cash flowappropriately

Technical Expertise Engineers with Technological

knowledge

Yes Ensure there are variety of

specialist skills to carry out the

projectEnvironmental

The project must operate in a

specific environment (either

winter or summer)

Yes The team should be prepared for all

conditions

Quality Use of standard quality. All

suppliers must implement an

approved quality management system

which can be audited

Yes Change the poor quality

immediately

Time Manage time to meet the target. No

procrastination

Yes Work with realistic time.

Risk Plan for contingencies,

Manage risk

Yes Yes Avoid, leave, monitor, move and mitigate the risk

Communication

Manage communication

properly in an organised manner

Yes Yes Ensure all staff use the modern

communication equipment in order

to ensure efficient

communication

Schedule The project has to be carried out in a

specific date.

Yes Yes The project should commence on the

agreed date andtime

Basic pay rate for Project

SKILLS Per week Rate/hr

hrs No ofdays

Perannum

Project Manager 400 50 8 5 96000 Safety &ReliabilityEngineer

280 35 8 5 67200

Health & SafetyEngineer

240 30 8 5 57600

Team A(10 WORKERSX80) 800 10 8 5 96000 Team B(10 WORKERSX80) 800 10 8 5 96000

Total 2124 135 40 25 412800

Equipment cost £

Erection of small bore tubing 25000 MyCom Compressor 3900

Drager PARAT 4700 Industrial escape hood 500 Drager X-plore 7300 @ 300 X10 3000

Flood Lights 1,000 Transport allowance 15000

Total 48400

Total cost of project Workers Pay (412800) + Equipment Cost (48400) = 461200

Overall Budget Analysis

Totalcost

25%Overhead margin

Totalcost

25% Profit Margin

Totalcost

461200 115300 576500 144125 720625

It is important to use specific tools and techniques for all modern project in order to capture all project deliverables and milestone.

The installation of Small bore tubing system require a detailed approach and hence presents complex responsibility to the project

team. A Gantt chart and critical path was used to plan and control task in order to ensure successful completion of project.

Critical Path Method (CPM) is important because they identify and

present the logical relationship between project activities and it

identifies the critical activities that determine the duration of

the project. There are two basic relationships one of which is

activities that occur in Series and activities that occur in

Parallel. Activities that occur in series are carried out one after

the other, whilst Activities that occur in parallel can be performed

at the same time. The blue arrow emphasizes the critical path. The

task are shown in a sequence as illustrated below;

Critical Path Diagram

The CPM table above enables one to determine the Early start(ES)on the top left which is the earliest date by which an activity can

start, assuming all preceding activities are completed as panned. The top right number is the early finish (EF) which is the earliest

date by which an activity can finish, assuming all preceding activities are completed as planned, while the bottom left side is

the late start (LS) which is the latest date an activity can start to meet the planned completion date while the bottom right side is the

late finish (LF) which is the latest date an activity can finish to meet the planned completion date. Forward pass was used to calculate

the early start and early finish whilst the backward pass was used to calculate the late start date and late finish date of each activity.

Activity flow is also referred as Slack which measures the project’s flexibility.

Activity Logic- Tabular Reports

The activity relationships can be presented as a tabular report. The first activity is the training which is a start activity as there are

no preceding activities. When the activity A is complete, then activity B can begin, and then Activity C, followed by activity D,

then Activity E&F can happen. Also Activity duration are known to be the trade-off between the amount of work, the resources available, and the calendar.

Work BreakdownStructure (WBS)

subdivides the Scope of work into

more manageable work packages and

checklists which are easier to

Activity

Description Star tDate

Number ofDays

Precedent

A Training 01-Jan

7 -

B Survey 08-Jan

15 A

C Design 30-Jan

45 B

D ApprovalMeeting

16-Mar

3 C

E R. O. S 21-Mar

14 D

F Procurement 21-Mar

60 D

G Installation

26-May

90 E

H Reconnectio n & Testing

24-Aug

5 F & G

I Commissioning

30-Aug

1 H

plan, monitor, control and it is assigned to the right person ordepartment.

Gantt Chart is an excellent tool for communicating the What, When, and Who ( Scope, Schedule and Responsibility) . The Gantt chart

contains a list of activities and sequence. The calendar time scale is presented in days. The scope of work known as WBS is presented

against a time scale.

In conclusion, in order to ensure the success of this project, Shell team members all worked together through effective communication

and adhering to the company standards. The project was managed through adhering to rules and regulations, using the best products.

However, there will also be a continuous improvement program to ensure Health & Safety standards are met at all times. The planning

and control system enabled our project team to develop procedures and work objectives which was tailored to specific needs of the

company. Also the performance of the current project will form the estimating data base for future projects. Risk and Uncertainty

Continuum is important in considering how to reduce risk that occur in projects. In order to reduce risk, the management will have to

ensure good communication, detailed scope management, adequate project cash flow and quality management. It is important to

identify, quantify and prioritize the risks. The required response will be to eliminate and mitigate the risk.

Reference

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Burke, R., 2010. Fundamentals of Project Management. UK: BurkePublishing.

Hilyard, J. F., 2012. The Oil & Gas Industry , A nontechnical guide. 1st ed. Oklahoma: PennWell.

MASS, P., 2009. CRUDE WORLD. LONDON: PENGUIN BOOKS.

SMIL, V., 2008. OIL: A BEGINNERS GUIDE. LONDON: ONEWORLD.

Yergin, D., 1992. The Prize: The Epic Quest for Oil, Money & Power. New York:Touchstone.