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The Malampaya Project

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Overview of Malampaya:

The trailblazing Malampaya Deep Water Gas-to-Power project represents the largest and most significant industrial investment in the history of the Philippines. It heralds the birth of the country’s natural gas industry that will enable the supply of clean, environment-friendly fuel slated to provide 2,700 megawatts of power to Luzon for a period of 20 years starting January 2002. This meets 30% of the whole country’s power generation requirements

Currently, the Philippines relies heavily on imported fuel for majority of its domestic and industrial power requirements. The US$4.5 billion Malampaya project of the Philippine government, the upstream component (costing $2 billion) of which was developed and is currently being operated by Shell Philippines Exploration B.V. (SPEX) together with joint venture partners ChevronTexaco Malampaya LLC. and PNOC-EC, will largely reduce this dependence and improve the country’s energy matrix.

Malampaya paves the way for high economic benefits to the Philippines, providing the country a considerably long-term revenue stream of approximately US$8-10 billion to the government over the life of the project, in addition to foreign exchange savings of the same magnitude.

The project was formally inaugurated by Her Excellency Gloria Macapagal-Arroyo at the Malampaya on-shore gas plant in Tabangao, Batangas. 

Malampaya Deep Water Gas to Power Project Description:

The Malampaya Deep Water Gas to Power project entails the extraction of gas from 3,000 meters below the sea level which will flow through five subsea wellheads to a manifold in 820-meter water depth, through two 30-kilometer flowlines to a shallow water production platform where the gas is dried. The dried gas is then transported through a 504-kilometer subsea pipeline from the platform in offshore Palawan to the on-shore gas plant in Batangas where gas is further processed with the removal of hydrogen sulfide and finally delivered to three combined-cycle gas turbine power plants.

The Malampaya Planned Maintenance Optimization Project:

Complete Maintenance Strategy Review, Development and Implementation utilizing the Planned Maintenance Optimization Process (PMO) developed by OMCS International … through SAP Validation / Implementation … this involved all trades; Controls, Electrical, Mechanical and Support … 20,000 Assets were covered during this project ….

Project Timeline Summary:

July 09 / 2006 - October 27 / 2006

SAP / PMO data preparation …

Commencement of formal PMO Workshops; CALM, Electrical Master Asset Library, Controls Master Asset Library, Mechanical Master Asset Library, Rotating Machinery Master Asset Library …

January 31 / 2007 - December 21 / 2007

February 05 - 16

2006 Review; Master Asset Library Review and Refresher Training …

February 19 - March 14

Commence Session I Workshops; Methanol, Flash Gas, Electrical Generation, Air, N2, HVAC, Seawater, Potable Water …

March 15 - April 10

Commence Session II Workshops; Fire and Gas, Fire Water, Export Compressor, Condensate Export, Closed Cooling Water, Control Systems, Trips and Test …

April 11 - May 05

Commence Session III Workshops; Process, Personnel Safety Systems, Condensate Drains, Vent Flare, Lifting Equipment …

May 07 - May 31

Commence Session IV Workshops; Fuel Gas, Helicopter Fuel, Hot Oil, Produced Water, Diesel, Structure, Telecoms …

June 01 - October 01

SWP Task Analysis completed (3-1/2 Months / 31 Systems) … commence Technical Authority Approvals …

October 02 - December 21

Commencement of Task Grouping and involvement in Maintenance Integrity Execution / SWP PMO Communications development …

January 04 / 2008 - May 30  / 2008

Continuation of Task Grouping and turnover for SAP Validation … MIE / PMO Roll-out Communications; “Sticky Bun Sessions * 2”, SPEX Local Staff Engagement, MIE Poster Session, Crew A and B PMO Training …

Project Scope:

PMO Workshops 

Collation, Preparation and Review of Existing Data 

PM Optimization Workshops

Development Of Equipment Maintenance Strategy Documents

Development Of Preventive Maintenance Routines

Spares Review

Review of Critical Spares

Administration

Project Management and Quality Assurance

Project Close Out and Data Handover

Provision Of  Software Tools 

Training and Living Program

Training in PM Optimization

Assist In Establishing An Ongoing Maintenance Review Process 

Project Deliverables:

Full review of all Functional Locations and Updates

Comprehensive FMEA Library of common SWP components and major equipment types

Project Management and Quality Assurance through May 39, 2008

Assisted in establishing an ongoing Maintenance Review Process through active participation in the SPEX MIE Program

Analysis handover through development of a comprehensive Approvals Database that provides for detailed asset “drill down” on all  analysis data

PMO processed on thirty-one (31) systems 

PMO training provided to all Technical Authorities and both Platform Crews

Project Challenges:

Project Analysis (numbers):

Planned Maintenance Optimization Defined:

The activity of defining and reviewing a maintenance program is one that is generally very poorly done. Not surprisingly, done properly, this process alone can be the most effective means of generating company profits through greater output from the same assets. It is a fact that no amount of clever planning and scheduling can account for a low value-adding maintenance program. In reality completing 100% of a poor program can drive a company backwards particularly if it contains the wrong type of maintenance.

The problems usually start in the design or acquisition phase where the definition or consideration of maintenance programs is poorly funded. Equipment is often delivered and commissioned without a formal maintenance program at all. In some cases one is provided, but it has been done in an inappropriate fashion and is worthless. During the following years of operation, the maintenance program develops. This often happens in an “ad hoc” manner and results in a program that lacks focus and is inefficient. Without some means of reviewing this situation, organisations can find themselves uncompetitive either because maintenance costs are too high, or the plant is unreliable.

The review of maintenance programs and failure history is an activity that most organisations undertake and no doubt have undertaken since formal maintenance was first performed. Some organisations do this continuously whilst others do so in large chunks as needs arise. Unfortunately, some organisations do not perform any reviews whatsoever. The problems of most attempts at review are that the review is done in an informal manner with little or no set procedure and an absence of useful decision logic.

Until now, the only accepted means of defining a maintenance program was to use RCM. However, there is now a realisation that RCM is a tool designed for use in the design phase of the equipment life cycle (Ref RCM II Moubray 1997 2nd edition page 19) and not for use where equipment is already in use. OMCS’s pmOPTIMISATION methodology (PMO2000™) is specifically designed for reviewing maintenance programs and failure history for equipment that is in use and has a formal or informal system of maintenance albeit misdirected. For this reason PMO2000™ is also very effective at defining the initial maintenance program for new equipment where similar equipment is in use somewhere.

If you have any further questions on the Malampaya Project or the Planned Maintenance Optimization Process, please drop me an email … or visit our corporate web site: WWW.OMCSINTERNATIONAL.COM

PMO Project Overview (download)

Malampaya Project Photographs:

I spent 2-1/2 years of my life on this project, living out of a hotel room … as one would expect, there were highs and lows … I was fortunate to work with some amazing, dedicated and extremely hard working people … it was hard work, not allways without error … it was a massive undertaking … but in the end we met project objectives (+) … photographs here are from beginning to end … for most, will not be of interest … to those close to the project, will be of interest (perhaps) … 

PMO Project Group Photo (download)

This is a photograph of all project participants; top management down …

Daily PMO Work (download)

Photographs of the daily working activities … and the “crew” which I had the privilege of working with for 2-1/2 years …

PMO Training (download)

I conducted more training sessions than I can remember, had to be upwards of 50 in all … these photographs are from Crew A Training …

MIE PMO Poster Session (download)

Maintenance and Integrity Execution process, whereas Effective Assurance Task Management depends on efficient and timely Maintenance Execution … the poster sessions were a communications vehicle used to “get the information” out to local staff … local staff would attend, spending 15 minutes at each MIE Process Booth for a presentation … I was actively involved in the “PMO” MIE implementation process … fascinating it was ….

MIE PMO Step It Up! Campaign (download)

The “MIE Big Launch” … have never seen one company put so much effort into change as Shell … amazing … we did a “skit” in this session … using the process of “baking a cake” to show the how the process of PMO works … I was one of the bakers … and was embarrassed to say the least … though a great experience to be involved in such …

The following photographs are from various lunches, birthday feeds and going away lunches / dinners … throughout the 2-1/2 years I spent on this project, I saw people enter the project, got older, spent time in the hospital, left the project, get married and to top it all off, Jeng is now expecting her first child (congratulations) … an amazing project … 

PMO Lunch at Leslie’s (download)