annual report - oilweb.oilindia.in 5 of 29 2. secondary tank farm, (tank capacity 40, 000kls)...

ANNUAL REPORT

PROJECTS DEPARTMENT 2017-18

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1.0 PREAMBLE

The Projects Department is renamed Dept of earlier Production Project

department from 1st January of 2017 was created in 1982 with the core

purpose of providing infrastructural support to all three Assets to meet

their respective targets of Crude Oil & Natural Gas Production and their

Evacuation. From last 35 years, Projects Department has been

continuously providing infrastructural support in the form of

construction of OCS, EPS, WIS, Dehydration plant and Pipelines so that

produced Crude Oil and Natural Gas, after proper separation and

treatment, reaches OIL’s valued Customers, thereby fulfilling

Company’s business target.

2.0 MISSION To complete projects on time through “networking, collaboration and

engineering skills” and to enhance the level of excellence and

professionalism in the fields of E&P business by adopting new

technology and best practices to uphold OIL’s cherished goal to

become the fastest growing Energy Company with highest profitability.

3.0 OBJECTIVE

Create wealth for stakeholders with uncompromising quality and

safety standards.

Develop core competencies in the field of project management to

avoid cost and time over run while executing projects.

Respect for community and compliance to all safety, health and

environment norms.

Passion for excellence and willingness to learn, unlearn and

relearn.

Develop and sustain a culture of TEAM WORK (Together

Everyone Achieve More).

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4.0 ACTIVITIES OF THE DEPARTMENT

The various activities may be broadly classified as under –

i) Preparation of techno-economic feasibility report for new

projects related to Crude Oil & Natural Gas Production,

Transportation and Storage.

ii) Planning, Process Design , Feasibility Study, Front End

Engineering Design(FEED), Detail Design, Tendering &

Construction of Early Production Set-up (EPS), Oil Collecting

Station (OCS), Water Injection Station (WIS), Bowser

Unloading Station (BUS), Tank Farms, Effluent Treatment

Plants (ETP), Gas Compressor Station (GCS), Group Gathering

Station (GGS), Cross Country pipelines etc.

iii) Liaise with client to clarify technical issues and understand

client’s requirements.

iv) Prepare specifications for materials / equipment /

machineries required for above installations and thereafter

indenting, technical scrutiny, technical query generation and

consolidation, testing of materials, document checking.

v) Preparation of lay out drawings, contractual documents,

internal estimates etc. for finalization of contracts for

construction of above installations & cross-country pipelines.

vi) Engineering support (Clarify inter – discipline query, trouble

shooting and solve problem during construction etc)

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vii) Preparation of documents for obtaining permission from

statutory bodies like DGMS, Assam Pollution Control Board

(APCB) etc. for setting up new installations / modifications /

expansion of existing installations etc. Also, preparation of

necessary documents and liaison with Central / State

Government authorities to obtain permission to lay pipelines

for crude oil and natural gas transportation while crossing

Railway track, PWD roads, Bridges, River embankment etc.

viii) Capacity augmentation of existing production installations by

installation of additional separators, crude oil storage tanks

etc.

ix) Construction of crude dehydration facility for improvement of

crude oil quality.

x) Liaison with Land, Administration department and District

administration for resolving issues relating to land acquisition

and other administrative problems.

xi) Adopting necessary measures for control of Environmental

pollution.

xii) Participate in HAZOP & HAZID Studies.

xiii) Necessary cost control measures for overall profit of the

organization.

xiv) Ensuring all deliverables from department complies with

clients and company’s procedures and specifications.

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5.0 ACHIEVEMENTS

Following projects were completed / commissioned during the year

under review

(Up to March’ 17)

INSTALLATION LOCATION DATE OF COMPLETION / COMMISSIONING

1. MBLAL Project Duliajan, Moran, Jorhat & Tengakhat

Commissioned on 31/08/2016

2. Enclosed Ground Flare System of gas burning capacity of 2,81,000 SCUMD with automatic operation

Makum Commissioned on 31.01.2017

3. LPG Fire Fighting Duliajan Commissioned on 28.02.2017

6.0 PRESENT AND FUTURE PROJECTS Following are some major projects under execution/ various stages of

completion during the year under review

PROJECT LOCATION PRESENT STATUS AS ON 31.03.2017

1. Capacity Augmentation Project at ITF Tengakhat ( 2 nos. of 20000 Kls capacity floating roof crude oil storage tanks with associated facilities)

Tengakhat

Overall Progress :93.2%

Boundary wall - 98 % completed

Dyke wall - 98 % Internal Roads: 54%

Boilers Erection: 85 % Piping Works: 91%

completed Erection of Pump House:

94% Electrical Sub-Station:

98% Electrical & illumination

Works: 70 %

Tank : T-210: 97% completed T-209: 92 % completed

Process Hook-Up jobs: 55% completed

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2. Secondary Tank Farm, (Tank Capacity 40, 000KLS)

Madhuban 30.56%

3. Construction of Effluent Plant (Capacity-5000KLs)

Tengakhat Overall: 15%

4.

Construction of Group gathering Station (Capacity: 2000KLPD Crude, 5 MMSCMD NAG)

Baghjan Overall: 9.2% EPC Tender floated

5 Construction of Gas Compressor Station (Capacity: 0.45 MMSCMD Gas Boosting & Lifting facility)

Makum Overall:9.0% LSTK Tender for Construction of the installation: under bid evaluation. Project Management Consultancy: Tender floated

6 Water Injection Station Dikom Overall: 5%

7 Loc. HNE(Makum) to CGGS, Madhuban Gas Pipeline

Makum/ Madhuban

Overall: 14%

8 Gas Transmission Line from Baghjan to CGGS

Baghjan/ Madhuban

Overall: 2%

9 Oil Collecting Station at Nadua and Group Gathering Station, East Khagorijan

Nadua/ Khagorijan

Overall: 2%

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7.0 BRIEF NOTE ON COMPLETED PROJECTS:

A. IMPLEMENTATION OF SAFETY MEASURES AS PER REVISED OISD-117 AS WELL AS MB LAL COMMITTEE RECOMMENDATIONS FOR OIL’S TANK FARMS IN ASSAM:

Name of

the

Project

Implementation of Safety Measures as per

revised OISD-117 as well as MB Lal

Committee Recommendations for OIL’s Tank

Farms in Assam

Location DULIAJAN, Tengakhat, Moran, Jorhat

EPMC Engineers India Limited

EPC

Contractor Fabtech Projects & Engineers Ltd., Pune

EPC LOA

CCO/CF/121/2013 dated 16.8.2013

(Contract No: OIL/CONT/GLOBAL/8364/2013 -

SAP No. 6205228)

Scope

Detail Design, Engineering, Procurement, Site

Fabrication, Civil works, Piping works, Fire

protection system, HOT cranes, modification and

alteration works

Project Cost Rs. 151.68 Crores (approx.) with approved change

orders

Completion

Period

12 months from date of LOA for completion

CDD: 16.08.2014

Actual Completion Date: 31.08.2016

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Objective:

• To Implement the MB LAL committee recommendations & revised OISD

117 guidelines in Four tank farms of OIL

• Improved Safety - 100% compliance to prevalent industry statutory

norms with respect to process safety management system in our old

tank-farms

• Operational convenience – Adoption of latest state-of-the-art technology

in process control and safety

• Accurate Reporting - Centralized control room based operation with

dedicated online tank farm management system for inventory reporting

and control

Project Details:

Project Cost: 210 Crores. (APPROX.)

Mode of Execution:

• Considering the high safety implications, the project was taken up

with due importance across the organization.

• It was a brown field job and there was little space to place the new

facilities. Hence, some existing facilities within Tank Farm boundary

but not connected to the Tank Farm operations, were required to be

shifted from the old installations.

• M/s EIL was engaged as EPMC for the complete implementation of

these recommendations from study of the existing facilities,

formulation of the EPC contract for augmentation of the old safety

features of the Tank Farms to the level of the new requirement

including site supervision during project execution.

• M/s FPEL was appointed as the EPC for the project.

• Some important items viz. Rim seal fire protection system, High

velocity Long Range Monitors (HVLRM), Medium expansion Foam

Generators (MEFG) and some components of the Emergency Kit were

procured internally by OIL.

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Expected Benefits:

Apart from complying with the statutory recommendation’s the newly

built up facilities after project completion has enhanced process safety

standards and has also brought in operational excellence to a great

extent. Manpower required to operate the tank-farms has been

optimized, information management system for production reporting

has become scientific, and certain benchmark for operation has been

established as per industry standards. This all has benefited OIL in

enhancing the operable life of these old tank-farms to a large extent

and has brought down the risk level of the nearby installations

B. ENCLOSED GROUND FLARE SYSTEM AT MAKUM OCS COMMISSIONED DURING 2016-17:

At present, the flare gases of Oil Collecting Stations are burnt in open

pit flare where the flame is visible from outside. It has inherent heat

and light radiation problem which causes OIL to pay compensations to

the nearby farmers for damage of crops etc. So, in order to offset these

drawbacks and to comply with the latest environmental norms, the

enclosed ground flare system with automation had been installed at

Makum OCS with R&D budget. This technology has been adopted for

the first time for burning of flare gases in an Oil Collecting Station.

The flare system has the following benefits over the conventional open

pit flare:-

a. Flame is smokeless

b. Flame is not visible from outside.

c. It has low noise level as per OMR/ OISD regulations.

d. Flame is eco-friendly (low NOx, CO emission) and thereby

reducing carbon footprint.

e. Low heat radiation as the flare enclosures are having inner

ceramic refractory lining.

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f. It has liquid knock out facility with auto dumping which

separates entrained oil thereby saving wastage of crude oil.

g. It has Water Seal Drum at the upstream of the flare stack which

acts as a flash back arrester.

f. Operationally very safe as it can be operated from Local Control

Panel as well as Remote Control Panel located in control room.

g. It has automatic gas detection and pilot ignition system which

allows the system to run in auto mode.

i. It has burner staging valves which ensures efficient combustion

of flare gases.

h. Accurate real time data like gas flow, liquid level, pressure and

temperature etc. are displayed in the control panel located in the

control room.

Project Details:

Project Cost: Rs. 3.69 Crores

Contractor: M/s Combustion Research Associates, NOIDA

Mode of Execution: Turn Key Implementation of Design, Engineering,

Fabrication, Supply and Installation & Commissioning of Non-

luminous enclosed ground flare system at Makum OCS.

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Process Area of Flare

Local Control Air Compressor for auto valve operation

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C. LPG FIRE FIGHTING SYSTEM:

Objective: Hiring of services for Supply, erection, testing &

commissioning of overground fire protection system of LPG Recovery

Plant and LPG Filling Plant in OIL, Duliajan

Project Details: The above project job of replacement of underground

fire protection pipelines to over ground along with the additional jobs

required to meet various relevant OISD guidelines was handed over to

Projects Department in the month of March 2015. After transfer of the

instant work to Projects Department, it was felt prudent to have a

detailed discussion with the consultant, members from LPG, Fire and

PP department and also a member from M/s EIL. During the discussion

it was also observed that the calculation done by consultant for the fire

water requirement for LPG recovery & filling plant is on a higher side as

compared to the Fire water requirement for CTF evaluated by M/s EIL.

Therefore, it was opined that the LPG plant fire water requirement

needs to be vetted/crosschecked by a third party preferably M/s EIL as

M/s EIL are already executing an EPMC works for similar firefighting

facilities in OIL’s tank farms under MB Lal projects and they are fully

aware of OIL’s existing facilities and. The Fire water adequacy study

Remote Control Panel

Real time Process Data at

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was done by M/s EIL for the fire fighting up gradation at LPG and their

report vide letter no. A345-101-16-47-TR-0101 Rev0 has been found to

be acceptable to OIL. It was recommended that Fire water & pumping

requirement built by OIL for CTF under MB LAL Project is fully

adequate to cater fire water demand of entire complex of OIL at

Duliajan i.e. CTF, LPG RP, LPG FP & LPG Storage. They suggested that

Tapping from CTF (existing 12inch built under MB LAL Project) is

adequate to cater fire water demand for LPG Plant area.

M/s EIL was then engaged as an engineering consultant for Preparation

of Technical input & Review of Drawings/Documents after award of job

to Successful contractor/bidder.

The scope of work of this contract involves design, engineering, Supply

of materials, preparation of construction drawings, obtaining approval

from Owner/ Owner representative, construction, fabrication, erection,

installation, integration with the existing system wherever required,

testing, painting, pre-commissioning, commissioning, equipment,

transportation, labor, consumables, tools and tackles etc. Residual

design, engineering, supply and laying of new fire water hydrant system

for the entire LPG plant area. This system mainly includes entire fire

water piping network both underground (U/G) and above ground (A/G),

fire hydrant, water monitor, Deluge Valve system, High Volume Long

Range Monitor (HVLRM) using foam, Hose and Hose boxes/Hose

Cabinets (with all accessories inside), Hose Reels with all accessories,

all type of valves (Gate valves, butterfly valves, drain valves etc.), RCC

pipe supports (Spacing of pipe support shall be as per OISD-116, 3rd

amendment) , composite pipe supports, Supports for Hose boxes &

Hose Reels. This works shall be carried out by the Contractor on Lump

sum basis for Engineering, Procurement and Construction (EPC) as

single point responsibility covering the erection of Free Issue Materials

(FIM). The following fire protection measures are envisaged:

Firewater header with hydrants, monitors, HVLRMs, sprays system etc.

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Hose cabinets (Type-II) and accessories

Automatic (Deluge operated) medium velocity water spray system LPG

plant

First Aid Fire protection (Fire extinguishers) and Personal Protective

Equipment are provided as per OISD.

A/G and U/G Fire water header are being laid as per guideline given in

OISD-116, 3rd amendment.

Corrosion protection tape coating are being provided for all

underground carbon steel fire water pipes up to 500mm above finished

ground level/ Existing ground level.

Above ground fire water piping & fire hydrant, are being painted with

“Fire Red” Paint to shade no. 536 of IS: 5.

All fire water networks have been hydro tested to a pressure of 18

g/cm2 (g).

10% of all welded joints have been radio-graphed and found in order.

50% of welded joints selected for radiography are field joints

Contractor to hook the proposed system with the existing pump house

of LPG plant. This shall be in normally closed situation and shall be in

addition to the new system.

Existing deluge water spray network for LPG mounded bullet area shall

be extended to provide water spray coverage for the flanges in the LPG

mounded area.

Reuse of Existing Deluge valve as specified elsewhere in the tender.

Project Cost: 15.41 Crores (APPROX.)

Mode of Execution: EPC/LSTK Mode.

Expected Benefits: To meet various relevant OISD recommendations

and comply with other statutory requirement.

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8.0 PHOTOGRAPH OF MILESTONE SUCCESS OF VARIOUS PROJECT Some of the Snapshots of Present Status of ITF Augmentation Project:

Tank-210 (painting completed)

Piping Hydro test Pressure Recording

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Successful completion of hook-up job at TP-2

Boiler House with Chimney as per PCB norms

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Crude oil circulation pump house

Tank MOV Manifold outside dyke wall

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Electrical Sub-Station

Booster Pump House

Internal Road Work

Sludge Pit

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SNAPSHOT OF SUCCESS: MBLAL PROJECT

Fire Water Pump House Duliajan

Pressure Reducing Station for tank steam supply

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Fire Water Tank Duliajan

Switch Room Duliajan

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Fire Water Pump House Tengakhat

Switch Room Tengakhat

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Air Instruments Shed Tengakhat

Fire Water Pump House Moran

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Fire Water Tank Moran

Existing Tank Farm Moran

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Fire Water Tank Jorhat

Hydrant Line Jorhat

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Instrument Shed Jorhat

10.0 CAPEX UTILIZATION

PROJECT LOCATION PROJECT OST VS CAPITAL EXPENDITURE ( in Rs)

1. Capacity Augmentation of Intermediate Tank farm (2nos. of 20,000 KL capacity each, 50mtrs. dia crude oil storage tank.

Tengakhat Project Cost: 70.78 Crore

Expenditure: 54.82 Crore

2. Secondary Tank Farm, (Tank Capacity 40, 000KLS)

Madhuban Project Cost : 438.84 Cr

Expenditure : 72.79 Cr

3. Construction of Effluent Plant (Capacity-5000KLs)

Tengakhat

Project Cost : 139.10 +50.0 Cr.

Expenditure : NIL.

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4. Construction of Group gathering Station (Capacity: 2000KLPD Crude, 5 MMSCMD NAG)

Baghjan Project Cost : 349.0 + 2.96 Cr.

Expenditure : 0+0.86 cr.

5.

Construction of Gas Compressor Station (Capacity: 0.45 MMSCMD Gas Boosting & Lifting facility)

Makum Project Cost : 120.00 Cr Expenditure : NIL

6 Water Injection Station Dikom

7 Loc. HNE(Makum) to CGGS, Madhuban Gas Pipeline

Makum/Madhuban Budget Available: 25.60 Cr

8 Gas Transmission Line from Baghjan to CGGS

Baghjan/ Madhuban Project Cost : Under process

Expenditure : NIL

9 Oil Collecting Station at Nadua and Group gathering Station, East Khagorijan

Nadua / Khagorijan Project Cost : Under Process

Expenditure : NIL

11.0 COST SAVING MEASURES

Delay in timely completion of projects is one of the single most cost

escalation factors. Efforts have been made to complete all projects in

time, despite various constraints both internal & external. The concept of

Project Management is exercised by the Project Team and will prove to be

effective in terms of minimizing time delay. OIL Management has taken

action in this regard and few initiatives are on hand to make the Projects

Department a self-contained unit. This effort will definitely bring down

time delays and eventually minimize cost overrun of the Projects to a

great extent.

Control of external factors beyond control has been a major factor in

delay in execution of Projects but substantial results have been achieved

as an outcome of dedicated team effort by way of constant Liaison with

District Administration, NGOs etc.

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Implementation of methodologies: Engineering Project management

Consultancy (EPMC) Service for Basic Design, FEED, Tender preparation

and Project Management, Engineering Procurement & Construction

(EPC) contractor for Detail design, procurement and construction of

projects is cost saving measure for the ensuring quality, cost control of

the projects.

The introduction of Engineering, Procurement, Construction

Management (EPCM) methodology in the project execution shall lead

more efficient project management and cost control. This methodology is

being implemented in construction of the proposed EPS at Nadua &

Group Gathering station at Khagorijan.

12.0 ACCIDENTS

No accidents (minor, serious, fatal) occurred during the year under review.

13.0 ENVIRONMENTAL PROTECTION AND POLLUTION CONTROL

In line with the norms of MOEF, State pollution control board, OISD

guidelines & Mines Regulations, all possible measures adopted for

protection of environment, without compromising safety during all stages

of construction of pipelines & new installations. Some of the measures

are as below –

i) Creation of green belt at newly constructed installations.

ii) Sound barrier for generating sets, compressors, crude oil dispatch

pumps to prevent sound pollution. Use of acoustic generating sets.

iii) Construction of ground flare as per Environmental Protection Act

has been initiated for new OCSs & GGS.

iv) Construction Ground Flare system at Makum OCS.

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14.0 ORGANISATION & MANPOWER

Existing Nos.

Executive 15

Employee 06

Executive on Contract 04

15.0 TRAINGING ATTENDED

FINANCIAL YEAR

2016-2017 STRENGTH 15

IN HOUSE IN COUNTRY OVERSEAS EXECUTIVE 01 01 NIL

FINANCIAL YEAR

2016-2017 STRENGTH 9

IN HOUSE IN COUNTRY OVERSEAS EMPLOYEE 01 0 NIL

16.0 TRANSFER & RETIREMENT

No. of executive transferred during 2016-2017

03

No. of work person transferred during 2016-2017

Nil

Executive retired during 2016-2017

01

Work person retired during 2016-2017

Nil

No. of executives resigned during 2016-2017

01

No. of work persons resigned during 2016-2017

Nil

No. of executives joined during 2016-2017

07

No. of work persons joined during 2016-2017

Nil

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