bp expro location: andrew project management … profiles/projectprofile...come imperative to...

Client: BP Expro

Location: North Sea - UK Sector

Scope: Design; Procurement; Fabrication; Hook-up and Commissioning; Project Management

Status: Completed 1996

AndrewPlatform

North Sea - UK Sector

Details:• Oil and gas prices were historically low and stable in the early-1990s. For the

notoriously difficult exploitation of North Sea oil and gas reserves, it had be-come imperative to achieve drastic reductions in development costs for oil and gas companies to remain globally competitive. The Andew oilfield had been discovered in 1974, and although it was one of the first oilfields discovered in the region, the relatively mid-to-small sized reserves and complicated geology meant that the conventional development of the site was much too expensive for the client to be commercially viable. The result: despite numerous plans, quotes and business models, Andrew went untapped for 20 years. KBR rec-ognized a fundamental shift in the oil industry’s contracting relationships was essential to break through the cost barrier.

• After two decades on the drawing board, the Aliance approach of cooperation and working toward the same financial goals saw the project complete within two years of it being sanctioned.

• The platform foundation (“the jacket”) was a 6,500 tonne structure built at KBR’s Nigg fabrication yard in Scotland. The topside was a 12,500 tonne mod-ule, with a 530 tonne, 72-person accommodation unit.

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How an Innovative Risk-and-Reward Sharing Approach to Contracting Delivered an Oil Rig £160m Under Budget and Seven Months Ahead of Schedule

Client: BP Expro




AndrewPlatform


Details (Continued):• Processed oil was exported through the Forties pipeline system to Cruden Bay in

Aberdeenshire, and then on to the Grangemouth refinery in Falkirk. Natural gas was exported to Teesside, via the Central Area Transmission System pipeline.

• Production capacity: 70,000 bpd of oil and 32 mmscfd of gas

Highlights:• First Field Development Alliance between client and major contractors to share the

risks and rewards of the project. The reflected benefits of cooperation would be real-ized in terms of resource sharing, less documentation and inspections, and integrated working.

• The Alliance approach spread rapidly throughout the industry in the mid-1990s.

• First time Package Management Concept is used; Submitted data was reduced by 70%.

• The project won “Major Development of the Year” in a construction industry Quality Award ceremony.

• Keeping the Alliance coordinated was facilitated by video conferencing, which signifi-cantly reduced face-to-face meetings and cost.

• The construction of the entire rig was completed onshore, dramatically reducing costs. Only two weeks were required offshore in the final stages of completion and handover to operating teams (hook-up and commissioning).

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Client: BP Expro




AndrewPlatform


Highlights (Continued)::• First gas was achieved six weeks after the deck was installed. •First oil was achieved

six months ahead of the target date.

• Andrew was completed seven months ahead of schedule, at a cost of £290 million - almost 20% below the budgeted £373 million (and saving a third - £160m - on the previous “non-alliance” estimates).

• Triton, the new 3D Cad system for structural steel design, saved 40,000 hours against traditional fabrication norms. Drawings were directly uploaded into the plate cutting machines, allowing for automated production and saving an additional 10,000 man-hours in drafting time.

• Piping spooling “Alert” system saved $6 million.

• Site queries were cut to one tenth of earlier jobs

bp expro location: andrew project management … profiles/projectprofile...come imperative to...

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