Mumbai High North Project by Larsen & Toubro

Group 6

Pankaj Kumar PGP/20/095

Satya Syamala RVS PGP/20/175

Sourav Roy PGP/20/184

Aakash Arun PGP/20/193

Varun M Srinivas PGP/20/305

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ABSTRACT
Todays world with many upcoming projects sees both risk and growth going in parallel
and the end result would either make or break the objective of the project taken up. So it is quite
important to understand the flow and sequence of the project and risks associated with it.

This report talks about how a project is classified as, how the resources are scheduled and
how its flow goes throughout its life. It also talks about the critical project management
components and measures that are considered to decide the success of the project. It also
describes how the life cycle of project goes on, how the timelines are scheduled and logistics are
arranged.

Apart from the key areas and operations of the project, the contingent needs that are to be
met, viz. the risks associated with the project and how the risk management is done which is the
most crucial part of the project that has to happen throughout its life.

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Contents
ABSTRACT...................................................................................................................................................... 2
INTRODUCTION: ............................................................................................................................................ 4
Project Highlights: ..................................................................................................................................... 4
Industry Overview- Oil Exploration: .......................................................................................................... 5
Current Scenario: ...................................................................................................................................... 5
Report Objective: .......................................................................................................................................... 5
Project Objectives of Mumbai North High:................................................................................................... 6
Project Scope: ............................................................................................................................................... 7
Project Scope of Mumbai High North Project: ......................................................................................... 8
Work Break Down Structure: ........................................................................................................................ 8
WBS of Mumbai High North: .................................................................................................................... 8
TIME CONSTRAINED PROJECT:...................................................................................................................... 9
RISK MANAGEMENT: .................................................................................................................................... 9
Technical Risk: ......................................................................................................................................... 10
External Risk: ........................................................................................................................................... 10
Organizational Risk: ................................................................................................................................ 10
Project Management Risk: ...................................................................................................................... 10
Project Control Systems in Mumbai High North Project: ........................................................................... 11
Schedule Control: .................................................................................................................................... 11
Steps undertaken to monitor schedule: ................................................................................................. 11
Cost Control: ........................................................................................................................................... 12
Risk Control: ............................................................................................................................................ 12
Document Control: ................................................................................................................................. 13
Stakeholder Management in Mumbai High North Project: ........................................................................ 13
Key activities undertaken for Stakeholder management: ...................................................................... 14
Procurement management in Mumbai High North Project: .................................................................. 14
Analyzing through NTCP framework : ......................................................................................................... 15
Project closure and Benefits ....................................................................................................................... 16
Intangible benefits: ................................................................................................................................. 16
Documenting Lessons learned: ............................................................................................................... 17
CONCLUSION:.............................................................................................................................................. 17

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INTRODUCTION:
Mumbai High is an Oil Field with a massive potential of more than oil wells and 33 gas
wells located in the Arabian sea, about 160 km West of Mumbai coast. It is operated by Oil and
Natural Gas corporation and is the largest producer of oil and natural gas corporation in the
country. After the mishap of 27th July, 2005, when the oilfield was gutted in devastating fire,
ONGC took up the decision of reinstating production facilities that are lost and building new
facilities as a part of MHN Complex.

With stiff competition from many international players, the project bid was won by L&T
with its unique point as noted being extensive experience in engineering, procurement, installation
and commissioning. The project was valued at 1.1 bn dollars, and is one of the most sophisticated
projects in the world.

The contract is a coalition of construction of a few platforms for processing of oil and
natural gas those include three process gas compression modules(PGC), Mumbai living quarter
for safe operational and life support requirements and a platform for residual gas that comes during
extraction of oil from crude petroleum.

Project Highlights:
The engineering and fabrication of a massive offshore process platform with a topside
(commonly known as the deck) weighing 26,500 tons.
Construction of 13 large pre-fabricated modules, with around 21,000 tonnes, integrated
offshore into a single MNP platform topside.
Largest living quarters in indian offshore industry, that can accommodate 150 people is
constructed
Construction and installation of a 137-meter bridge, the longest bridge in Indian offshore.
Laying submarine electrical cable to interconnect 26 well head platforms, electrical
submersible pumps (ESP) 81 wells and associated surface facilitates are the components
of grid interconnectivity. The ESP will assist in oil production from high water cut (90-
95%) wells of Mumbai high field.

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Industry Overview- Oil Exploration:
The oil and gas division is among the six center ventures in India and has a necessary
impact in affecting the arrangements for the various essential segments of the economy. India is
relied upon to be one of the biggest supporters of non-OECD oil utilization development
comprehensively. Add up to oil imports rose 4.24 for every penny year-on-year to US$ 86.45
billion in April-March 2016-17. India's oil utilization grew 8.3 for every penny year-on-year to
212.7 million tons in 2016, as against the worldwide development of 1.5 for each penny, along
these lines making it the third-biggest oil expending country on the planet.

State-claimed Oil and Natural Gas Corporation (ONGC) commands the upstream fragment
(investigation and creation), and delivered around 1,847 thousand metric tons (TMT) of unrefined
petroleum, as against the nation's 2,939 MT oil yield in April 2017. The organization additionally
represented 57 percent of the nation's local unrefined petroleum generation in 2016-17. Its essential
boring site is the Mumbai High Basinprior it was the Bombay High. The site is seaward. Be that
as it may, this bowl and different bowls have turned out to be develop. They've seen creation
decays.

Current Scenario:
The prior piece of 2016 was an intense year for the oil business, as the capital spending in
the upstream portion stayed under extraordinary weight. The cost has been swaying a great deal
over the most recent couple of years and achieving a new low in 2015. The troublesome condition
in the business prompted unions and conservation. This likewise affected the midstream fragment
that kept up a holding design as conservation in the upstream section lessened the necessities for
new pipeline speculations. In the downstream segment there were many issues with the refiners
yet was as yet a decent year for the downstream players. This was for the most part because of
expanded residential request in new markets and refined items and raw petroleum sends out.

Report Objective:
The oil and gas segment is among the six center ventures in India and has a necessary
impact in affecting the arrangements for the various essential areas of the economy. India is relied
upon to be one of the biggest supporters of non-OECD oil utilization development all around.

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 The report objective is to examine the Mumbai High North venture and dissect the venture
administration strategy. Mumbai High is an oilfield with huge potential and Located in the Arabian
Sea around 160 km west of the Mumbai drift, Mumbai High has more than 551 oil wells and 33
gas wells, and is worked by Oil and Natural Gas Corporation Ltd. (ONGC), the biggest maker of
oil and petroleum gas in the nation.

State-possessed Oil and Natural Gas Corporation (ONGC) rules the upstream fragment
(investigation and generation), and created around 1,847 thousand metric tons (TMT) of unrefined
petroleum, as against the nation's 2,939 MT oil yield in April 2017. The organization additionally
represented 57 percent of the nation's residential unrefined petroleum generation in 2016-17. Its
essential boring site is the Mumbai High Basinprior it was the Bombay High. The site is
seaward. Be that as it may, this bowl and different bowls have turned out to be develop. They've
seen creation decays.

Mumbai High seaward field is being created through 7 process and 110 well stages. The
field began generation in 1976 and has substantial number of creation stages, subsea pipelines and
different offices created throughout the years as a piece of field advancement. Altogether, there
are 7 process buildings and more than 110 well stages.

This report aims at understanding the nuances of the project and analyzing the scope,
work breakdown structure, risk management and project control system.

Project Objectives of Mumbai North High:

To achieve a total well fluid handling capacity of 270,000 barrels of liquid per day and 6.9
million metric standard cubic meters per day of compressed gas and a total oil handling
capacity of 50,000 barrels of oil per day.
For operational safety, the new living quarter platform would be separate from the
production and accommodation facilities.
It would include safety accessories, support systems, a switchgear room, an integrated
control system, transformers, utilities, and an emergency diesel generator
All the new platforms would be interconnected and the new facilities connected with the
existing platform, commonly referred to as the Mumbai North West (MNW) platform

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 Additional facilities for the MNW platform, such as an additional survival craft for rescue
operations and a new 15 metric tonnes capacity overhead crane, removal of 2.9 km of
existing subsea pipeline, and a new mooring facility for supply boats

Project Scope:
Project scope defines the boundaries of the project, develops responsibilities for each team
member and jots down procedures for verification and approval of the completed project work.
The scope statement also provides with guidelines for making decisions about change
requests during the project for the project team leader or facilitator. The project management
depends on the better scope definition at the beginning as it is natural for it to change along the
way. When documenting a project's scope, stakeholders should be as specific as possible in order
to avoid scope creep, a situation in which one or more parts of a project ends up requiring more
work, time or effort because of poor planning or miscommunication.

Project scope definition is the most important factor when it comes to project
requirements. In order to successfully enter into an agreement with the client it is vital for service
providers to define the scope of the project. In addition to this, an idea to the services provider
about the estimated cost of the project is provided by the scope of the project. Therefore, profit
margins are wholly dependent on the accuracy of the project scope definition.

Project Scope includes the following:

Project objectives
Goals
Sub-phases
Tasks
Resources
Budget
Schedule

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Project Scope of Mumbai High North Project:
The engineering and fabrication in India of a massive offshore process platform with a
topside (commonly known as the deck) weighing 26,500 tonnes
Construction of 13 large pre-fabricated modules, weighing a total of approximately 21,000
tonnes, integrated offshore into a single MNP platform topside
Construction of an MNP platform jacket of 13,500 tonnes fabricated and loaded out within
a record timeframe of 10 months from L&T's Modular Fabrication Yard at Sohar,Oman
Construction of the largest living quarter (weighing 4,000 tonnes) in the Indian offshore
industry with a capacity to accommodate 150 people
The fabrication and loading within 18 months of a total of 35,000 tonnes of structures from
L&T's Hazira manufacturing facility
Construction and installation of a 137-meter bridge,the longest bridge in Indian offshore

Work Break Down Structure:

A work breakdown structure (WBS) is a key project deliverable that organizes the
team's work into manageable sections. the work breakdown structure as a "deliverable oriented
hierarchical decomposition of the work to be executed by the project team." by the Project
Management Body of Knowledge (PMBOK) . The work breakdown structure visually defines
the scope into manageable chunks so that the project team can understand, further definition and
detail is done by each level of the work breakdown structure.

Potential risks in a given project can also be identified by Project work breakdown
structures. Scope definition risk is represented if a work breakdown structure has a branch that is
not well defined. These risks should be tracked in a project log and reviewed as the project
executes. The project manager can also identify communication points and formulate a
communication plan across the project organization by integrating the work breakdown structure
with an organizational breakdown structure.

WBS of Mumbai High North:

1. Pre-engineering survey
2. Engineering
3. Engineering review
4. Procurement

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5. Fabrication
5.1. MNP & MLQ jackets
5.2. MNF1 & MNF2 jackets, MNP topsides, MLQ topsides, flare stacks, bridges
6. Load-out
6.1. MNP & MLQ jackets
6.2. MNF1 & MNF2 jackets, MNP topsides, MLQ topsides, flare stacks, bridges
7. Transportation
7.1. launch barge
7.2. cargo barge
8. Installation
8.1. jackets in Phase 1
8.2. MNF2 jacket & MLQ deck
8.3. topsides in Phase 2
9. Hook-up sub-contractor
10. Inspection & quality control
11. Marine warranty survey

TIME CONSTRAINED PROJECT:

This is a time constrained project. The time frame set for the project was 39 months which
was not spared even due to the delay in evaluating and tendering processes.so to meet the deadlines
it was cut down to 33 months. It was a very crucial element. Integrated project schedules,
identification of critical tasks, progress reports on monthly, weekly and daily basis and reviews to
adopt time management well.

RISK MANAGEMENT:
As this is a development project, risks associated would be of higher level and also
probability of occurrence of risk is also way higher. So future has to be planned to be dynamic to
handle the risks associated.

The major risks that can be identified are:

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Technical Risk:
As project estimates were based on inputs and the size/area of the platform, there could be
quite a few engineering problems. This would include the rescheduling of resources allotted. One
of the cases, where they have faced such a problem is that an extra area of 45% more was required
to incorporate all facilities on the platform. This led to the substantial increase in the weight of the
process platform andproc an increase in the number of splices. In effect, the MHN complex layout
turned out quite different from what it looked like. Engineering stage had to be modified and this
led to changes in scope of work which affected the schedule.

External Risk:
The major purpose and goal to reconstruct the entire project was an external risk that has
been realized. The other major problem in this is to manage cost schedule. There is a high scope
to invite cost related risk as it is a trade-off that has to be maintained between time, cost and scope.

Organizational Risk:
Co-ordination, complexities, innovations, work conditions, and human resource deployment
among the L&T group companies and its national and international partners for the project
demanded synchronization and sequential execution of high level project management activities
at all times.

Project Management Risk:

Managing large quantities of material proved a Herculean task, involving quality
management, storage, material tracking, and allocation of resources. It was also necessary to
ensure timely availability of inputs at each phase of the project. Difficulties included holding fast
to the customer's recommended vendors, global sourcing, advancement of new sellers for
convenient obtainment and conveyance of merchandise, and creating bigger bundles in house. To
deal with the issues with procurement, procurement challenges were handled through procurement
control charts.

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Project Control Systems in Mumbai High North Project:
Project control system consists of four areas cost, schedule, risk and document control.

Schedule Control:
The project's initial execution timeframe of 39 months was reduced to 33 months due to an
extended tendering and evaluation process. ONGC also incorporated fundamental changes in the
design, which lead to change in L&T schedule

Steps undertaken to monitor schedule:

Micro planning of load-out and sail-out activities with continuous monitoring to avoid any
schedule slippage
Comparison of the master schedule depicting planned tasks versus actual schedule reports,
forecasts and catch-up schedules helped keep a check on schedule progress

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 Integrated project schedules, identification of critical tasks, progress reports on monthly,
weekly and daily basis, and management reviews were some of the measures adopted to
manage time well
Use of advanced technology to save time was used in order to adhere to the schedule
Extensive use of software to track project schedule. Software such as Primavera, a planning
tool that helped integrate the overall project schedule.
Broad use of MS Excel and MS project to track large number of deliverables

Cost Control:
Measures undertaken to monitor cost:
Engineering deliverables were prioritized as per procurement and fabrication requirements
to minimize impact on overall project progress. Overall engineering was delayed due to
various external factors. However, the impact on the later stages was minimized due to
prioritization. This also helped avoid the standby cost on fabrication resources
Monthly cost report helped in controlling cost of project to a great extent.
Cost monitoring of the project was at detailed Work Breakdown Structure (WBS)
Continuous comparison of cost incurred, commitments made to vendors through letters of
intent, purchase orders, and balance costs with WBS-level budget cost
A proper hierarchical system in place for cost approval in place in case of any deviation
from the plan
Continuous process improvement to reduce the cost and increase productivity

Risk Control:
Steps undertaken to control project risk:

Monitoring activities on the critical path on weekly basis and identify any risk which can
delay the critical path
Use of a risk matrix ensured timely risk identification and classification at all stages of the
project and helped build a competent mitigation plan
Maintaining a risk register to recorded all the new risks identified during project execution
and then using risk management plan was used to track the status of the risks according to
their severity and probability

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 Regular review with the board of directors or senior management was conducted every
three months to address and mitigate these risks.

Document Control:
Steps undertaken for document control

Online document management system and knowledge management system called

KnowNet to institutionalize the learning resulting from this infrastructural feat, including
technical process improvements, so that other project teams are benefited
The document control index consisted of all the drawings and designs to be delivered by
engineering with their scheduled start and end dates, review dates, and client approvals

Stakeholder Management in Mumbai High North Project:

Key Stake holders:

Sr. No. Project Function Description Name of Stakeholder / Company

1 Pre-engineering survey Fugro, India
2 Engineering L&T Valdel, Bangalore
3 Engineering review Aker Solutions, Malaysia
4 Procurement L&T Upstream Procurement Department
5 Fabrication - MNP & MLQ jackets L&T MFY- Oman
6 Fabrication - MNF1 & MNF2 jackets, MNP topsides, L&T MFF- Hazira
7 Load-out - MNP & MLQ jackets Mammoet, UAE
8 Loadout - MNF1 & MNF2 jackets, MNP topsides, Lift & Shift, India
9 Transportation of launch barge Saipem, Malaysia
10 Transportation of cargo barge Cashman, Singapore
11 Transportation of cargo barge Posh, Singapore
12 Installation of jackets in Phase 1 L&T Sapura Offshore, India
13 Installation of MNF2 jacket & MLQ deck Mcdermott, UAE
14 Installation of topsides in Phase 2 Seaway Heavy Lift (SHL), Netherlands
15 Hook-up sub-contractor PCTS, Mumbai
16 Inspection & quality control L&T - QA/QC and Bureau Veritas, Mumbai

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 17 Marine warranty surveyors Matthews Daniels, Dubai
18 Gas turbine driven process gas compressors Kawasaki Heavy Industries,
Japan with Solar, USA
19 Gas turbine power generator Solar, USA
20 Gas dehydration and gas sweetening package NATCO, Japan
21 Living quarter & building module architectural Speciality Services,
Dubaiand HVAC contractor

Key activities undertaken for Stakeholder management:

Tracked and monitored all materials and every drawing starting at the engineering phase
and looping all the stakeholders involved to maintain transparency during work flow
With multiple stakeholders involved, coordination was critical for project progress. Senior
project managers and coordinators were primarily responsible for team formations and
interface management
Interpersonal skills were continuously monitored
Regular meeting to identify bottlenecks and new challenges and brainstorming session in
coordination with stakeholders to meet the expectation level
Monthly meeting with all stakeholders to discuss integration progress and a repository of
same was created. This repository was accessible by all stake holders

Procurement management in Mumbai High North Project:

Procurement management defined as the purchasing or acquiring of resources from
outside the project team to get the work done, was very well implemented in case of the Mumbai
high project. Initially when the project was started there were many hurdles to an effective
procurement process. Challenges included:

Sticking to the vendors as suggest by the clients or go ahead with different vendors.
Sourcing the requirements globally or look for local resources.
Aligning with the vendors to ensure timely procurement and subsequent delivery of
goods.

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 The larger packages were to be fabricated in-house
Safe transportation and timely availability of multiple logistics and other resources.

These challenges if not managed effectively could lead to unnecessary risk for the project. The
four steps needed:

Plan procurement
Conduct procurement
Administer procurement
Close procurement

In this project the challenges were met through maintaining material control charts. All the
materials starting from the drawing at the engineering phase were tracked and monitored at the
same time involving the stakeholder for greater transparency. The process was well documented
with request for quotation, negotiation documentation and purchase orders. Due diligence was
there while procuring from new and old vendors. Standard procedures were followed and the
schedules were made according to the project requirements like : there was a priority based order
for engineering deliverables as per the fabrication requirement to have minimal impact on the
project.

Analyzing through NTCP framework :

1. Novelty The project was perceived as one of the largest of its kind over the world. There
were international competitors competing for the project which ultimately was won by
L&T.
2. Technology Employing superior technology and innovative methods helped L&T to do
work quickly and efficiently for example 45% increase in size of the platforms were
managed by them without exceeding timelines. Softwares like Hysys, PDS, SmartPlant,
and SACS were used for engineering purposes. Integration of overall project schedule was
done through Primavera, a planning tool. Large number of deliverables were tracked
through MS Excel.
3. Complexity The project was a sophisticated one. Scheduling and integrating such a large
sized project was not easy. Procurement from different vendors and aligning them with in-
house fabrication schedules was a complex task. Heavy platforms suited for float-over

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 installation were to be done beside complex network of sub-sea pipelines. Assembly of
huge resources and coordination among workers were challenging.
4. Pace The time frame was reduced from 39 months to 33 months due extended evaluation
process. Thus there was pressure to complete work fast to be in time. Some structural
changes also altered the schedule but extensive utilization of technology helped them to
maintain time frames.

High NTCP levels has its benefits and risks associated with it and requires a careful adoption.
Undertaking a new project can always offer a first mover advantage to exploit the market but it
may lead to copying by competitors which will hurt in future. Employing high tech tools to solve
problems will definitely improve performance and functionality with huge cumulative benefits but
required skills need to be available. Complex projects may pose problems regarding integration
but has higher payoffs to offer. Going at a higher pace may lead to mistakes which can have a huge
cost later. It helps in gaining early markets and gives quick response capability.

Adaptive project management features:

This approach focuses not only doing the job and being rigid but to add value by achieving goal
through adaptive management. The project management improvised on its past experience to
assess the challenges and its mitigation. They were adaptive and innovative in exploiting
innovative technologies to solve modern day problems or changes in scope and time frames.

Project closure and Benefits

Tangible benefits:

The MHN platform now generates 15 crore revenue a day for ONGC.
Increased fuel production help India save on imports.

Intangible benefits:
Involving local contractors, vendors and consultants have helped contribute to jobs and
retain wealth within the country.
Process improvements for example in fire-proofing and adopting assembly line approach
for fabrication and design.

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Documenting Lessons learned:
Online document and knowledge management system to institutionalize the learning
from the infrastructural feat so that others project can benefit from the same.
Detailed analysis of scenarios and safety aspects during the project execution done
simultaneously when two major operations were going on.
Technical process improvement resulting from the extensive use of innovative
technologies where documented.

CONCLUSION:
A combination of technical tools, innovative construction methods, mature project
management processes to monitor and manage change and a team experienced in managing
projects sticking on to the deadlines led to the success of the project. The finished MHN stage,
with its upgraded fuel and gas dealing with and pumping limit, now produces incomes of over
Rs.15 crore ($ 2,426,550) a day for ONGC. The expanded fuel creation is helping India to
enhance its vitality security. By including more nearby temporary workers, sellers, and experts
from India, the venture held a noteworthy level of riches inside the country. By reestablishing a
formerly crushed stage, L&T helped ONGC recover control over and adapt a key resource in this
fuel rich locale. L&T has likewise made an online report administration framework and learning
administration framework called KnowNet to systematize the taking in coming about because of
this infrastructural accomplishment, counting specialized process enhancements, so that other
venture groups are profited. The procedure upgrades that L&T presented have helped spare time
and diminish costs as well as have additionally enhanced efficiency, subsequently upgrading the
nature of administrations gave to the customer. Numerous different procedure enhancements
were actualized in territories, for example, insulating, appropriation of the mechanical production
system approach for spool creation, enhanced weld groove plan and backing strategies, and laser
mapping for dimensional control. Thus a whole project stands as an outstanding example of good
project management.

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References:ct Management Excellence on Display in

Project management excellence on display Mumbai High North Project by Larsen &
Toubro (L&T), Project Management Institute
http://www.oswindia.com/mohammed_shadab_feature.html
http://www.pmi.org.in/manageindia/volume5/issue05/cover.story.html
http://www.lnthydrocarbon.com/media/34271/offshore-ep-development.pdf
http://www.larsentoubro.com/media/28165/ongcorder3809.pdf

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