Overview

Often the viability of capital projects relates to the overall life cycle cost including the capital expenditure (CAPEX), which then has direct impact to the project’s internal rate of return (IRR) and the net present value (NPV). Optimising the overall project economic including both the CAPEX and life cycle cost are often the key driver in a capital project, particularly during detailed feasibility study and early stage of Front End Engineering Design (FEED).

Value improving practices are systematic and structured techniques that have been developed and utilised as a guideline by companies in Industry Bench marking Conference, to perform value optimisation in capital projects. Value optimisation is not business as usual. They are normally value assurance activities performed out of mainstream project activities, with participant from Subject Matter Expert (SME), process designers, representatives from operation, business, and other relevant stakeholders.

This paper discusses how specific value optimisation element can be applied in a capital project, concentrating on a brownfield project with limitation in plot space and constructability. It details out a case study on tank rationalisation in a PETRONAS brownfield project to exemplify on how systematic value optimisation approaches were applied, exploring all the possible opportunities to simplify the overall process configuration via tank inventory management, product line-up study, and value engineering optimisation without jeopardising the design intent and specifications. Each proposed options were supported with careful engineering analysis, justification on the advantages and limitations covering the issues on safety, constructability etc. Value optimisation should be applied at the right stage of the project, using the right methodology with involvement of the right personnel. With this, significant cost saving can be achieved.      

Speaker

Norazliza Bt M Tahir, PETRONAS, Group Technical Solutions  

Norazliza is a technical professional (staff engineer) in Process Design (Downstream) section in Group Technical Services (GTS), PD&T division in PETRONAS. She has 15 years of experience providing technical services to PETRONAS OPUs and develop functional process packages in capital projects. She has sound experiences in various stage of FEL projects ie concept/feasibility study, FEED and detailed engineering eg PFLNG1, PP(M)SB Diesel Euro5 FEED etc. She has involved in various plant troubleshooting and optimisation study especially in Gas and LNG plant. In recent years, her work focuses on sustainability feasibility studies to deploy new specialty chemical product within PETRONAS. She has actively facilitated systematic value optimisation practice in several FEL projects to further simplify the overall process design, in order to improve life cycle cost and IRR hence maximise the chances for project viability.

Nur Baizurah Bt M Zamry, Staff Engineer (Process Design) in GTS, PD&T PETRONAS 

Nur Baizurah is a technical professional (staff engineer) in Process Design (Downstream) section in Group Technical Services (GTS), Project Delivery and Technology (PD&T) division in PETRONAS. She has more than 17 years of experience in oil, gas and LNG industry covering upstream and downstream for offshore and onshore projects. She has hold various positions as Engineering Manager, Lead Process/ Utilities & Offsites Engineer, Lead Process Operation Readiness & Safety Assurance (ORSA) Engineer, Front End Facilities Development Engineer, Commissioning Engineer and Operation Engineer. Her experience covers full cycle of engineering works covering FEL1 Business Case Development, FEL2 Detailed Feasibility Study, FEL3 FEED, Bidding, Technical Evaluation, Detail Engineering Design, EPCC and execution. She also has years of plant troubleshooting, process operation, Operation Readiness & Safety Assurance and Facilities Handover, process commissioning support and plant performance test for both downstream and upstream facilities.

The material presented in this webinar has not been peer-reviewed. Any opinions are the presenter's own and do not necessarily represent those of IChemE or the Oil and Natural Gas Special Interest Group. The information is given in good faith but without any liability on the part of IChemE.

Time

18:00—19:30 MYT (BST +7).