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Anatomy of a Successful LNG ProjectGastech 2008

Anatomy of a Successful LNG ProjectGastech 2008

Original Conceptual Photo of EG LNG Train 1Original Conceptual Photo of EG LNG Train 1

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- Henry AldorfRegional Vice-President Business Development

- Bonifacio MonsuyDeputy Managing Director EG LNG

- Al PaceProject Director

- Henry AldorfRegional Vice-President Business Development

- Bonifacio MonsuyDeputy Managing Director EG LNG

- Al PaceProject Director

Anatomy of a Successful LNG ProjectGasTech 2008

Anatomy of a Successful LNG ProjectGasTech 2008

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- Project Development

- Entrepreneurial Company

- Health, Environmental, Safety, Security

- Cost

- Quality – Conformance to Requirements

- Schedule

- National Content

- Project Development

- Entrepreneurial Company

- Health, Environmental, Safety, Security

- Cost

- Quality – Conformance to Requirements

- Schedule

- National Content

What Makes a Successful Project? What Makes a Successful Project?

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- Project Developed in Record Time:August 2002 Recommend LNG PlantJune 2004 EPC Contract Notice to Proceed

- EG LNG: Formed Ahead of Schedule

- Safety OSHA Recordable Rate 0.67 8.7 Million Hours without Lost Time Incident

- Project Developed in Record Time:August 2002 Recommend LNG PlantJune 2004 EPC Contract Notice to Proceed

- EG LNG: Formed Ahead of Schedule

- Safety OSHA Recordable Rate 0.67 8.7 Million Hours without Lost Time Incident

EG LNG Train 1 SuccessesEG LNG Train 1 Successes

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EG LNG Train 1 SuccessesEG LNG Train 1 Successes

- Cost: Within Budget

- Quality: Exceeded Nameplate Capacity in Plant Performance Test

- Schedule: First LNG Shipment 5 Months Ahead

- National Content: Exceeded Goals

- Cost: Within Budget

- Quality: Exceeded Nameplate Capacity in Plant Performance Test

- Schedule: First LNG Shipment 5 Months Ahead

- National Content: Exceeded Goals

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- Highly Experienced Team

- E.G. Government Placed Priority on Project

- Shareholders Aligned

- Synergy Between Gas Supplier & Train 1

- Self Financed

- Lessons Learned From Ongoing Operations

- All Offtake to One Entity

- Highly Experienced Team

- E.G. Government Placed Priority on Project

- Shareholders Aligned

- Synergy Between Gas Supplier & Train 1

- Self Financed

- Lessons Learned From Ongoing Operations

- All Offtake to One Entity

Project Development - How We Did it Project Development - How We Did it

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- Staffed with Senior People

- Managed Against a Business Plan

- Excellent E.G. Government Cooperation

- Local Business Entities Assistance

- Immediate Start with National Staffing

- Cost Control Like a Project

- Managed to a Schedule

- Staffed with Senior People

- Managed Against a Business Plan

- Excellent E.G. Government Cooperation

- Local Business Entities Assistance

- Immediate Start with National Staffing

- Cost Control Like a Project

- Managed to a Schedule

Entrepreneurial Company Building Why It Was Successful

Entrepreneurial Company Building Why It Was Successful

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- Proven General Contractor

- Proven Technology

- Proven Vendors and Subcontractors

- Serial No. 8

- Lump Sum Turn Key

- Incentives for: Safety, Schedule, National

Content, Plant Production

- Proven General Contractor

- Proven Technology

- Proven Vendors and Subcontractors

- Serial No. 8

- Lump Sum Turn Key

- Incentives for: Safety, Schedule, National

Content, Plant Production

Project Execution ModelSetting Up For Success

Project Execution ModelSetting Up For Success

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- Management Commitment and Strong Participation

- Created Culture of Safety First

- Agreed Safety Procedures Before Mobilization

- More “Boots on the Ground”

- Safety Incentives

- All Incidents Reported & Investigated, Even Property Damage

- Management Commitment and Strong Participation

- Created Culture of Safety First

- Agreed Safety Procedures Before Mobilization

- More “Boots on the Ground”

- Safety Incentives

- All Incidents Reported & Investigated, Even Property Damage

Project Execution Model Health Environmental Safety (HES)

Project Execution Model Health Environmental Safety (HES)

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- Highly Experienced TeamBoth Owner & Contractor Experience

- Owner’s PMT Resided with ContractorCenter of Gravity Shift

- Created a One Team Environment

- Highly Experienced TeamBoth Owner & Contractor Experience

- Owner’s PMT Resided with ContractorCenter of Gravity Shift

- Created a One Team Environment

Project Execution ModelProject Management Fundamentals

Project Execution ModelProject Management Fundamentals

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- Minimized Change from the FEED (AFE) Basis

- Owner’s PMT did not Question the Need for a Quick Response

- Owner Used a Variety of Subject Matter Experts

- Minimized Change from the FEED (AFE) Basis

- Owner’s PMT did not Question the Need for a Quick Response

- Owner Used a Variety of Subject Matter Experts

Project Execution Model Engineering

Project Execution Model Engineering

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- Long Lead Orders Before Financial Investment Decision

- International Procurement

- Project Specific Construction Jetty

- Considerable Owner Inspection (In Addition to Contractor’s Inspection)

- Long Lead Orders Before Financial Investment Decision

- International Procurement

- Project Specific Construction Jetty

- Considerable Owner Inspection (In Addition to Contractor’s Inspection)

Project Execution ModelProcurement

Project Execution ModelProcurement

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- Built Dedicated Facilities

- Brought in Professional Instructors (Spanish Speaking)

- Dove-Tailed Training Schedule with Construction Staffing Plan

- Built Dedicated Facilities

- Brought in Professional Instructors (Spanish Speaking)

- Dove-Tailed Training Schedule with Construction Staffing Plan

Project Execution Model Craft Training

Project Execution Model Craft Training

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Project Execution Model Craft Training

Project Execution Model Craft Training

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- Construction Participation in Design for Constructability

- Very Effective Early Works Program at Site

- Strong Early Focus on Engineering & Procurement Schedules Ensured Materials & Equipment On Site When Needed

- Construction Participation in Design for Constructability

- Very Effective Early Works Program at Site

- Strong Early Focus on Engineering & Procurement Schedules Ensured Materials & Equipment On Site When Needed

Project Execution ModelConstruction

Project Execution ModelConstruction

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- Assumed from Day 1 that Money Would be Tight

- Very Strong Emphasis on Owner’s Cost Forecasting - Schedule – Sense of Urgency from Day 1 + Incentives

- Assumed from Day 1 that Money Would be Tight

- Very Strong Emphasis on Owner’s Cost Forecasting - Schedule – Sense of Urgency from Day 1 + Incentives

Project Execution ModelProject Controls

Project Execution ModelProject Controls

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- A Great Team Effort

- Highly Motivated, Creative, Experienced Personnel

- Fundamentals Still Apply

- A Great Team Effort

- Highly Motivated, Creative, Experienced Personnel

- Fundamentals Still Apply

Closing Comments Closing Comments

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Aerial Photo of EG LNG Train 1 Aerial Photo of EG LNG Train 1