Khalda’s Qasr Compression Project: Monthly Progress Report (November 29 to December 27, 2013)

Project Description
Qasr is a large, normally pressured gas-condensate reservoir located in the Western Desert, approximately 525 km west of Cairo. The field is operated by Khalda Petroleum Company (KPC), a joint venture between Apache Khalda Corporation and Egyptian General Petroleum Corporation (EGPC).

Field production is initially handled at the Start of Line (SOL) Qasr plant. After initial treatment (cooling and water removal), the gas/condensate is exported to a combination of the Salam, Tarek and Obaiyed gas plant for further treatment. The Qasr gas and condensate currently freely flows from the wellheads through the Qasr Phase I and Phase II facilities and export pipelines to the SHAMS manifold and Salam gas plant under reservoir pressure. As the reservoir pressure declines, the peak gas rate of 800 mmscfd will no longer be achievable.

The Qasr Compression Project is designed to improve recovery as the reservoir production rate and pressure decline. Its starting date is December 10, 2012, and completion date March 16, 2015.

Project Scope

  • Gas turbine driven compressor sets
  • Inlet and discharge scrubbers
  • Discharge coolers
  • Condensate suction drums
  • Condensate export pumps
  • Instrument air system
  • Nitrogen generation system
  • Fuel gas system
  • Closed drains
  • Utility systems
  • Expansion to power generation and control system
  • Fire fighting, detection and alarm system
  • Permanent camp
  • Tie-in to existing flare system, cold vent; water degassing systems and diesel supply system

Project Background

  • In order to achieve the overall project targets, and the above-mentioned process, utilities and infrastructure as a result of the recommendation from the evaluation team and EGPC, and shareholders agreement, KPC awarded the EPC phase activities to Enppi.
  • Project budget, including EPC contract price, is USD 310,700,000.
  • Project period is 27 months from December 16, 2012.
  • Expected arrival time of process gas centrifugal compressor at site is 17 months from Purchase Order (PO) dated February 20, 2013.
  • Expected arrival time of pressure vessels at site is 11 months from Fax or Commitment (FOC) dated July 30, 2013.
  • Initial operation period is three months after project completion.
  • Overall project progress: plan: 40.79% – actual: 37.81%.

Executive Summary


  • No lost time incident.
  • During the report period, two near misses have occurred.
  • During the report period, one medical treatment case has occurred – finger cut (scratch).
  • Site safety induction completed for all project contractors.

Key Highlights

  • Project document reviews continuing.
  • Enppi continues the issue of documents for design and construction (IFD & IFC).
  • Enppi issued Material Request Quotations (MRQ) for heat tracing material.
  • Enppi issued Request for Quotations (RFQ) for potable water pump.
  • Enppi received bids for SIMOP study and aluminum bronze gate valve.
  • Enppi completed Commercial Evaluation (CER) for oxygen analyzer, Salam CCR DCS Modification and HVAC.
  • Enppi issued Material Request Purchasing (MPR) for oxygen analyzer.
  • Enppi issued Fax and Commitment (FOC) for oxygen analyzer, Salam CCR DCS Modification and HVAC.
  • Enppi issued Purchase Orders (PO) for nitrogen compressor package, Salam CCR DCS Modification and Oxygen analyzer.
  • Vendor Start of Fabrication (VSF) for electrical cables, piping ball valve, AC & DC UPS, extension of LAN/PABX system, fire and gas cable tray and venturi meter, pressure and temperature gauges.
  • Delivery at site for instrument cable tray.
  • Major construction highlights:
    • Excavation of LER foundation completed.
    • Excavation of social building completed.
    • Excavation is ongoing for pipe rack A1-A2, B1-B2.
    • The new route of the cable passing through the construction area to the telecom tower area has been approved and in progress.
    • Rough grading for fire-fighting area is ongoing.
    • Shuttering and reinforcement of compressor D, C, A foundation is ongoing.
    • Installation is ongoing for temporary fence.
    • Shuttering plain concrete for villa 1.
  • Close out of Client Document Review Forms (CDRF) ongoing with PMT and Enppi.
  • EGAS meeting held on December 2, 2013.
  • Meeting held on December 3, 2013, to review piping Q1 2014 tie ins.
  • PMT attend project monthly meeting on December 18, 2013.
  • Gas compressor string test has been conducted for the first compressor, attended by KPC engineers in the US.
  • PMT attend senor management meeting with Petrojet, held on December 16, 2013.
  • PMT attend procurement status meeting (brainstorming).

Issues requiring attention

  • Enppi remain behind the project overall plan. Following PMT request, Enppi has produced and issued revised recovery plan. Enppi expect to be back on plan by the middle of February 2014.
  • Project tie-ins remain a concern. Total number of piping tie-ins has increased from 88 to 107. Meetings ongoing to finalize tie-ins and types of shutdowns required.
  • CDRFs and documents:
    • Closeout of CDRFs by Enppi is still slow and further improvement is required.
    • Review meetings are ongoing.
    • Enppi is reissuing some but not all documents following closeout of CDRFs.
  • Enppi internal communication and coordination needs to be improved. The issue continues to be seen during the review of documents. This has been brought to Enppi attention during weekly progress meetings and via comments made in the CDRFs.
  • Enppi ability to maintain the planned IFC baseline schedule dates. The current status and the level of completeness of the civil engineering and design deliverables, if not improved, may not be able to feed into IFC documents as planned.
  • 60% 3D model: An intermediate review has been held to enable civil drawings to be released AFC. Enppi has been requested to report on progress of closing 60% of model review tags. PMT are concerns with the quality of the model and clash checking.
  • Aluminum bronze gate valves (substitute for ductile iron gate valves) – subject of re-enquiry (KPC raise the comment on June 16), commercial evaluation expected to be completed on January 3, 2014. PO is expected January 14, 2014. May have schedule impact.
  • TCF accommodation is not ready for occupation due to a number of issues with the site kitchen, a joint inspection was carried out and a punch list raised by KPC Safety and Administration, Enppi did not fulfill the re-auditing date of December 15. KPC advised Enppi that such delay is not acceptable as it affects the safety and execution of the construction phase of the project.
  • Project schedule critical (float 0-30 days) items for delivery include: piping bulks (CS & duplex), pumps (condensate export BB5, centrifugal VS4), valves (piping ball valves, cast & forged gate, globe, check valves), manual valves (required for tie-ins), PV, ultra sonic flow meter. LER & camp HVAC and emergency diesel generator.
    KPC issued two letters (70 and 74) regarding pending drawing related to camp networks (TV and telephones) and PABX system included in Enppi’s scope of work.
    Enppi pending reply for KPC’s various requests to conduct HAZOP session for various design package required.
  • Calibration of the Petrojet concrete batch plant report under Enppi review.
  • Temporary fence marking both green and brown fields’ boundaries still not complete.
  • Excavation for workshop building has not started. Planned to start December 25, 2013.
  • Total number of equipments and manpower mobilized to site do not comply with constructability plan rev. 02.
  • Pipe rack prefabrication still pending due to late-issued AFC drawings (37 days in delay).
  • Vessel delays: six from 16 vessels ordered now have a forecast delay at site of 4-8 weeks, with a further four vessels with a forecast delay of 2-4 weeks. Enppi expecting Petrojet to improve delivery dates. Six vessels are forecast to arrive at site earlier than the PO contract date.  Petrojet advised that air freight is not foreseen due to increased cost. However, fabrication schedule has been reduced from 18-20 weeks to 14-16 weeks. KPC requested Petroject to issue revised schedule for review. Further meetings with Petrojet senior management to be arranged by KPC Project Manger.

Progress Status

  • Due to the weighting factor of procurement, any delays in placing PO will have a major affect on the overall project progress.
  • Enppi remains behind the project baseline plan. The variance decreased from last month. This was expected during December based on recovery schedule details issued by Enppi.
  • Overall progress slippage has decreased by 2.15%, from -5.13% to -2.98%.
  • Procurement slippage has decreased by 3.01%, from -7.34% to -4.33%.

 Reporting by Wael Elserag


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