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The Oil & Gas Shutdown, Turnaround and Outage (STO) Services ...

The Oil & Gas Shutdown,

Turnaround and Outage (STO)

Services Market 2011-2021

3. The Global Oil & Gas Shutdown,

Turnaround and Outage (STO) Services

Market

The global market for oil & gas shutdown, turnaround and outage

(STO) services is one that is comprised of a multitude of different

companies offering a variety of services. For the purpose of this report,

the forecast of the market will look at the key engineering,

procurement and construction (EPC) firms, consultancies and software

providers who specialise in tailor made STO services.

3.1 Global Market Size and Projected Growth

The global oil & gas STO services market will reach in 2010;

an improvement from the slight growth experienced in 2010 – Table

3.1, 3.2 and Figure 3.1 demonstrate the growth expected in the market

from 2010-2020. The market grew by just in 2010, as the IOCs

and NOCs stalled, waiting for global economic conditions to improve

and for demand to rise. However, in 2011 the market will grow by

and then by and in 2012 and 2013, thanks largely to

the amount of projects that were put on hold and will be re-started and

new on stream capacity, particularly in the Middle East and Asia-

Pacific.

There will also be new industry focus on raising HSE standards and

improving cost and performance efficiencies. Growth will then slow

from 2014-2017, even declining by in 2016, thanks to a rebound

in demand from the period of growth experienced beforehand and a

delay in pick-up of services in non-OECD regions. However, this will

be short lived and the market will continue to grow by in 2018 and

between until 2021.

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The Oil & Gas Shutdown,

Turnaround and Outage (STO)

Services Market 2011-2021

6. STO Case Studies

6.1 IBM and Statoil, Norwegian North Sea

International oil company Statoil and multinational computer specialist

IBM have been working together on improving the performance of

Statoil’s turnarounds in the North Sea. Statoil performs in the region of

turnarounds a year on its Norwegian installations offshore, with

a typical turnaround lasting between weeks. In 2006 the two

companies joined forces to develop business processes and decision

support tools, with three key objectives in mind. Firstly, to improve

turnaround and shutdown preparedness and performance; secondly,

to optimise turnaround and shutdown frequency and duration for a

single installation; and thirdly, to optimise turnaround frequency and

duration across interdependent installations.

The outcome of the joint operation has resulted in three new software

packages: the TAR (turnaround) Preparedness and Performance

Monitor, the TAR Analyzer and the TAR Optimizer. The TAR

Preparedness and Performance Monitor measures turnaround

preparedness in the planning phase in accordance with a turnaround

management model. The performance of turnarounds and shutdowns

is then monitored in the execution phase relative to a series of key

performance indicators (KPIs) that are aligned with corporate KPIs.

The TAR analyzer is used to identify the effects of different turnaround

and maintenance strategies for a specific production installation,

identify key shutdown drivers, evaluate the effect of changes such as

modifications on the production, and set realistic production efficiency

(PE) target for the installation. The TAR Optimizer can be used to

synchronise turnaround plans across interdependent installations

and/or subsystems of an installation.

The TAR Preparedness and Performance Monitor is currently being

rolled out to

of Statoil’s installations offshore Norway, while the

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The Oil & Gas Shutdown,

Turnaround and Outage (STO)

Services Market 2011-2021

TAR Risk Analyzer was piloted on one installation in 2008. The two

companies will continue to work together on developing these

packages after experiencing “inspiring results”, with ongoing R&D

being made into the services.

6.2 TNK-BP, Ryazan Refinery, Russia

TNK-BP announced in May 2010 that it had completed ahead of

schedule the planned turnaround on eight of its processing units at the

Ryazan Refinery, which is part of the TNK-BP Group. The refinery has

returned to the normal targets in terms of its throughput.

The scope of the project was to replace worn-out equipment, with all

tasks completed within the turnaround period, which included

investment projects and significant equipment replacements or

upgrades. Over contractor employees were engaged in the

turnaround operation. For the turnaround period the refinery had built

up necessary stocks of oil products to ensure that customers would

see no disruptions to their requirements.

Leonid Rozenberg, Vice President, Refining Operations, TNK-BP,

said: "Overall the turnaround proved a success, with no work-related

injury being recorded.”

6.3 Shell Canada, Muskeg River Mine and Scotford

Upgrader, Alberta

Shell Canada announced in June 2010 that it had successfully

completed the turnaround at the Muskeg River Mine and Scotford

Upgrader, both part of the Athabasca Oil Sands Project (AOSP).

Speaking at the time, Shell executive vice president (heavy oil), John

Abbott, said: "This was a huge undertaking for Shell and we are proud

of what the teams at our heavy oil sites accomplished. The complexity

of safely and efficiently managing such a large scope of work between

two distinct but integrated facilities is a major undertaking.”

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