execution of a wind farm project - norcowe for web/ss2015-presentasonar/exec… · bay du nord...

Norcowe Summer School

Execution of a wind farm project

Offshore wind strategy Create value on O&G legacy

3

• Become one of the leading players

in the offshore wind segment world

within 2020

• Build material and industrial position

• Seek partnerships

• Flexible approach to funding

• Continuously optimize portfolio

Classificati

on: Internal

2013-08-22

4

Green field and

consenting

Project development

Project construction

and installations

Operations and

maintenance

Power trading

Value creation in renewables - offshore wind Creating value from superior O&G experience

Value chain

Current Portfolio

Project pipeline Starting to expand our business case

2009- 2012- 2017

2.3MW

Sheringham

Shoal Hywind

Demo

317MW

1.11 Twh / yr

Hywind

Commercial

Park

Increase Portfolio

Hywind

pilot park

402MW

1.7 Twh / yr

Dudgeon

30MW

0,14 Twh / yr

1200MW each

project

Dogger

Bank

In operation In operation Concept selection FID

Construction and

installation phase

2017- 2020-

Japan

US

North West Europe

Adding volumes to Peregrino

GINA KROG

Supporting the Sleipner area strategy

Start up 2017

VALEMON

Short term production contribution

Start up 2014

GUDRUN

Short term production contribution

Start up 2014

AASTA HANSTEEN Pioneer in deep water area

Start up 2017

What is a project and why is it important Major projects

ÅSGARD SUBSEA COMPRESSION A step change in technology

Start up 2015

Increased recovery Extended lifetime Fast-track

Ambitious directions for offshore wind

DUDGEON WIND PARK

Door opener to a new core area

World class discovery

Start up 2019

JOHAN SVERDRUP JOHAN CASTBERG

Start up 2021 Start up 2017

PEREGRINO II

Start up 2018

Door opener to international deep water

TANZANIA OFFSH.

Start up 2021

Door opener to a new area

BAY DU NORD

Start up 2022

MARINER

Heavy oil field project

Start up 2017

Objective of the Lecture

• Present and discuss the main principles and the work related to

in developing a offshore wind farm – floating and fixed

• Give an insight in how we develop and mature a project through

the different project phases, what the important issues are and

reflect on the main challenges

• Give an insight in how we structure our project strategically in

order to handle risk, reduce uncertainty and manage potential

consequences

• Give an insight in the internal and external process related to the

assert and project development work

Classification: Internal 2013-08-22 7

Structure of the lecture

1. The capital Value Process, the project Phases

and the management decision process

2. The main components in a offshore wind farm

3. Risk management and project execution

strategy

4. Typical cost, schedule and organization of a

offshore wind project







strategy




The Capital Value Process

The Capital Value Process (CVP) is our stage gate decision process for

investment

1

1

-

Classificati

on: Internal

2011-05-04

What to remember before starting a new CVP Phase

Business case alignment

Overall strategic link, business drivers, business case objectives and execution strategy

Stakeholders and their requirements

Main decisions and milestones, governance structure and requirements

Alternatives for concept selection

Risks (threats and opportunities)

Alignment of work

Implementation of CVP elements (SC, Risk Management, Benchmarking, Corporate project review)

Main deliveries - DGSP and Decision memo

Organisation and interfaces

Main principles for project assignment(s)

Schedule and budget

Premises for Start-up (operation)

1

2

-

Classificati

on: Internal

2011-05-04

Overall deliverables BCSR to DG1

Commercial model and agreements • Application for Grid Connection (if appl.) • Application for Lease (if applicable) • Financial structure • MOUs’

Risk overview • Top 10 risk list • Country risk assessment • Social risk assessment

O&M • O&M Principles • Preparation for operational plan • Manning studies and recruitment plan • HSE risk

Cost estimates • Cap Ex (Class B) • Op EX (Class B) • System for cost control • Benchmarking

Governance structure and stakeholders • IDD and CSR plan • Communication strategy • Stakeholder and auth. management plan • Governance structure • Authority Matrix • QA plan

Concept description • Feasibility report on one concept • Technology Assessment and TQP • TORG and Design Basis • Consent application • Technical risk assessment • Constructability and installation analysis

Evaluation of value chain alternatives • Value chain assessment • Concept evaluations • Grid assessment?

Business Case Definition • Business case execution strategy • Business Model • CSR Report • Partner models

Product market assessments and competitive considerations

• Market assignment • Support and tariff regimes • Competitor analysis

Resources and income potential • Wind Assessment • Production Estimate • Preliminary layout and park design • Measurement plan • Site assessment

Profitability and economic analysis •Economic analysis •Sensitivity analysis

Execution of project • Project master schedule incl risk • Organization of project (MPP) • Project Management System • HSE Program • EIA program and plan

1

3

-

Classificati

on: Internal

2011-05-04

DGA DGB DG0 DG4 DGC

Feasibility

Concep

t Pre-eng

Project

execution

Operations

Screening

Bid

prep Negotiation Bus. case

Project planning Business development

DG3 DG2 DG1

WBD

WBD

WBD

WBD

WBD

WBD WBD

WBD

WBD WBD

WPR/WBD

WBD WBD

Business Case

Definition

Commercial Model

and Agreements

Product market

Assessment and

Competitor Analysis

Cost Estimates

Concept Description

Resource and Income

Potential

Evaluation of value

chain alternatives

O&M

Risk overview

WPR

WBD

WSR

WBD

NA

WOP

WPR

WOP

Governance Structure

and Stakeholders

Profitability and

Economic Analysis

Project Execution

WPR WPR WPR WPR WPR WPR WPR WPR

WPR

WBD

WPR

WBD

WPR

WBD

WPR

WBD

WPR

WBD

WPR

WBD

WPR

WBD

WSR

WBD

WSR

WBD

WSR

WBD NA

WPR

WOP

WOP

WOP WOP WOP WOP WOP WOP WOP WOP WOP

WOP WBD WBD WBD WBD WPR WPR WPR WPR

AN

WOP

WPR WPR WPR

WSR

WBD

WSR

WBD

WSR

WBD

WSR

WBD

WPR WPR WPR WPR WOP WBD WBD WBD WBD

WOP

WPR WPR WPR WPR

NA

NA

WOP

WBD

WOP

WBD

WOP

WBD

WOP

WBD WOP

WPR

WOP

WPR

WOP

WPR

WOP

WPR WPR WPR WPR

WPR

WOP

WPR

WOP

WPR

WOP

WPR

WOP

WPR

WOP

WPR

WOP

WPR

WOP

WPR

WOP

WBD WBD WBD WBD

WPR

WPR WPR WPR WPR






strategy




Dudgeon Offshore Wind Farm

Facility HSE Average 12m (Target)

SIF 0.0 (0.4)

TRIF 0.0 (3.0)

FOF 0.0 (0.7)

Key figures (Facilities 100%)

Statoil equity interest 70%

Statkraft equity interest 30%

Number of wind turbines 67

Facility Capex DG2 (MGBP) 1431

Facility Capex FC (MNOK)

Facility Target cost DG3(MNOK) ????

Progress (actual/planned) (%)

Main contractors:Siemens, ABB, SHL

Main Milestones Date

DG3 01.07.14

Start fabrication 1Q 2015

Start offshore installation 4Q 2015

Production start-up March 2017

DG4 Q4 2017

Facilities description

• Development of a 402MW wind park offshore Norfolk. 55 km2

• 67 off 6 MW Siemens wind turbines on monopile foundations

• 32 km to shore in water depths 18–25 m.

• 42 km offshore + 47 km onshore cable length.

• One offshore substation, onshore substation in Necton

• Foundation challenge with large variations across the site including

chalk of variable stiffness from 10 m below mud line and very stiff clay

in some areas.

• Grid access 2016

Main challenges and mitigating actions

Opportunities:

• Optimized monopile design

• Industry standards reflected in project system specifications

• Improved efficiency of marine operations and logistics

• Optimized electrical system infrastructure

• Reduced requirement for pile drilling

• Maximize onshore completion

Threats:

• WTG supply constraints

• Vessel availability

• ESI maturity and execution

• HSE performance by contractors not familiar with O&G safety culture

• Risk of UXO in park area and cable route

Other information (phase dependent)

Status

• Acquisition agreement signed 16 October 2012

• DG2 December 2013

• Wind Turbine Generator, marine export cable and WTG foundations and

substation installation contacts awarded

Classification: Internal 16

Statoil and Statkraft acquired the Dudgeon offshore wind project in October 2012.

Statoil is 70% owner and operator. Joint project development team.

Sheringham Shoal Dudgeon

Award UK R2 UK R2

Area 35 km2 35 km2

Water depth 17-23 m 18-25 m

Average wind speed 9.2 m/s 9.55 m/s

Mean waves, Hs 0.9 m 1.1 m

Installed capacity 317 MW 402 MW

Distance to shore 20 km 45 km

Onshore cable length 22 km 45 km

Turbine Siemens SWT-3.6-107 Siemens SWT-6.0-154

Foundation Monopile Monopile or Jacket

Dudgeon – Short background

Dudgeon in large numbers

• 55 m2 park area and 32 km cable route

• 67 off 6 MW turbines on XL monopiles

• 402 MW installed capacity

• One offshore substation

• Energy production 1.73 TWh/year, 50% more than Sheringham

• Approx 90 km to onshore connection

• More than 90 000 mt structural steel

• Approx 25 000 mt equipment

• Approx 500 heavy lifts

• Approx 30 000 offshore lifts Potential for significant reduction!

• More than 5000 vessel days

External Stakeholders

Classification: Internal 2013-01-30

1

8

Probability

Manage closely The Crown Estate

Marine Management Organisation (MMO)

Department of Energy and Climate Change (DECC)

National Grid

Eastport UK

Great Yarmouth Borough Council

Breckland Counsil

North Norfolk District Counsil

Landowner – not satisfied

Wells&District Fishermen Organisation

North Norfolk Fishermen’s Society

Independent Fishermen’s Organisation

Independent Fishermen

Blue Transmission ShSh Ltd

National Air Traffic Services (NATS)

Contracors and suppliers

Ofgem

Keep satisfied MPs (North Norfolk, Mid Norfolk, Breckland, Great Yarmouth)

Labour Unions wrt UK content/Key industry forums/UK suppliers

Local business forums

Health and Safety Executive

Highway Authorities/Highway Agency

Norfolk County Council

Natural England

Joint Nature Conservation Committee (JNCC)

Ministry of Defence

Royal Society for Protection of Birds (RSPB)

CEFAS

Maritime & Coastguard Agency

Trinity House Lighthouse Services

County Archeologists

English Heritage

Norfolk Wildlife Trust

Landowners - satisfied

Minimum effort

UK media

Norwegian media

Business Forums etc in the area

National Trails

Keep informed

General Public

Local community including Parish Councils

Local media

Trade media

Scira

Wells Harbour

The Greater Wash Developers

Fishery Local Action group

Perenco, ATP

Degre

e o

f im

pact

High

Hig

h

Lo

w

Low

The remaining landowner

20 Classification: Internal

Dudgeon

Offshore Wind

Farm

Substation at Necton

Landfall at

Waybourne Hope

Park layout

Facility Development

Onshore substation Export cables Foundation WTG Offshore substation

1. Conceptual design is standardized modules, which are parameterized to fit specific asset project sites e.g. weight of WTG tower

Monopile

Jacket w/

piles

Jacket with

suction

bucket

Floating

Spar

TRL 6 at DG3

Sta

ndariz

atio

n

Qu

alific

atio

n

Infield cables

5 MW G

6 MW DD

6 MW G

7 MW MS

8 MW MS

Floating

Semi

Monopile

suction

bucket

GBS

33 AC

66 AC

DC

33/132/220

AC/AC

DC

String

Mounted

AC

132/220

AC

HVDC

GIS

Project Planning and Execution

Measurements Layout Access O&M Model Surveys

1. Conceptual design is standardized modules, which are parameterized to fit specific asset project sites e.g. weight of WTG tower

TRL 6 at DG3

Sta

ndariz

atio

n

Qualific

atio

n

Foundation

installation

CM

Remote

Ops

High Speed

PTV Helichopter

Spar

Offshore

Assembly

Horizontal

Installation

Floating

LIdar FUGA

Met Mast

O&M Logistics

Fixed Lidar

Wind Pro

WASP

Ansys

Wind

Modeller

SOWFA

CPT Monopiles

Jack Up

Monopiles

Floating

Jacket

Jack Up

Spar

Inshore

Assembly

PTV’s

SOV

Boatlanding

Gangway

5 year

Service

Agreemeent

2

Wind Turbine - Bigger is better. New technology is becoming available



Foundation concepts being evaluated

At present different concepts are being

evaluated

Monopile

4 legged jacket with sleeve and pile

4 legged jacket with suction bucket

Classificati

on: Internal

2012-04-24

25

Classificati

on: Internal

2012-04-24

26

Classificati

on: Internal

2012-04-24

27

Classificati

on: Internal

2012-04-24

28

http://scira.co.uk/newsdownloads/multimed

ia_construction.php

http://scira.co.uk/newsdownloads/multimedia_construction.php

http://scira.co.uk/newsdownloads/multimedia_construction.php






strategy




Sheringham Shoal Experience

• Robust installation vessel

• Cable installation

• Access to foundations

• Foundation design must be improved

• In operation – to much down time of turbines(?)

• The offshore wind industry is immature – Design

Basis and follow up important



HSE - Sheringham Shoal Experience

Main risks

• Dropped objects - more that

40 000 lifts, 1 500 heavy lifts

• Repetitive work

• Personnel Transfer from vessel

to turbine foundation

Dudgeon - Main risks

• WTG foundation design

− Fail to document short embeded pile design selected for 11 high density

and rock chalk locations (risk reduced for 10 locations)

− Optimization continuing 56 locations OK, 11 in last batch

− Phased delivery of AFC drawings (OK for SIF/Smulders)

• Delayed delivery of offshore substation

− Mobilized on construction site

− Close follow-up of engineering phase – minimize change – involve operations early

− Secure jack-up as flotell for hook-up and commissioning

• Project improvement program

− Optimize WTG foundations, material quality, weight

− Optimize installation, hook-up and completion activities

− No change

2015-

03-19


Key risks at FID

2015-

03-19







strategy




Project Organisation DG1-DG3


Asset Owner

Asset Manager

Representative Facilities PFO

TPD PRO MPR RE WOP

Stakeholder mgm Consenting HSE

Classification: Internal

Project Organization DG1 – DG3

Engineering

HSE

WTG Marine

Operations

Procurement

QRM

Project Control

Facilities Manager

Completion & Commissionin

Substructure

Technical interface

El- infrastructur

MPP DG1- DG2

Facilities team 31 FTE

37

Point of departure – Cost Spilt

3

8

-

CAPEX OPEX

Cost Overview

Cost reduction is about improving Cost of Energy –

not only about Cap – Ex….however

4

1

-

Cost of Electricity = CAPEX + OPEX

YIELD

The callenge is to reduce investment and operation costs and increase

yield - and capture the value added

The Concept

2014-

04-14


LCoE Model UK Benchmark German Benchmark Hywind Scotland Thoughts for Future

PROJECT AND SITE - INPUT

1) Includes also electrical loss calculation 2) Project parameters: Installed capacity, number of turbines, spacing

COE -ENGINE COMPONENTS - INPUT

Electrical lo

ss

SUB

STRU

CTU

RE

4 YIELD

7 COE

5 OPEX

EL. INFR

ASTR

UC

TUR

E

WTG

Techn

ical A

vailability

Wind conditions

Turbine design

Metocean cond

Project life

An

nu

al p

rod

uctio

n

Discount rate

Turbine design Metocean cond

Metocean cond.

Substructure type

sub

structu

re

design

Turbine design

An

nu

al O

PEX

CA

PEX

In

vest

3 INSPECTION & MAINTENANCE

Fabricatio

n

cost

T&I co

st

Soil cond. & depth

sub

structu

re

design

Pro

du

ction

p

rofile

1 DESIGN & FABRICATION𝟏 (1.1 SUBSTRUCTURE - 1.2 EL INFRASTRUCTURE)

El. infra.

design

El. infra.

design

2 TRANSPORT & INSTALLATION

Voltage levels Dist. Shore and grid

Distance to T&I port

I&M

Co

st

Grid connection & land lease

Dist. to O&M port

Project parameters2

Project parameters2

Project parameters2

Project parameters2

Project parameters2

PR

OJEC

T

Turbine design

Project parameters2

6 CAPEX

SITE

2014-

04-14


LCoE Model UK Benchmark German Benchmark Hywind Scotland Thoughts for Future

Concept Realized

• Invest in Technology

Development

• Broad Industrial

Cooperation

• First Movers

• Long Term Commitment &

Short Term Results

• Industrial Approach

Going forward – Success Criteria

Objective of the Lecture

• Present and discuss the main principles and the work

related to in developing a offshore wind farm – floating

and fixed

• Give an insight in how we develop and mature a project

through the different project phases, what the important

issues are and reflect on the main challenges

• Give an insight in how we structure our project

strategically in order to handle risk, reduce uncertainty

and manage potential consequences

• Give an insight in the internal and external process related

to the assert and project development work


Jan Fredrik Stadaas www.statoil.com

48 Classification: Internal 2013-10-14 © Statoil ASA 2013

This presentation, including the contents and arrangement of the

contents of each individual page or the collection of the pages,

are owned by Statoil. Copyright to all material including, but not

limited to, written material, photographs, drawings, images,

tables and data remains the property of Statoil. All rights

reserved. Any other kind of use, reproduction, translation,

adaption, arrangement, any other alteration, distribution or

storage of this presentation, in whole or in part, without the prior

written permission of Statoil is prohibited. The information

contained in this presentation may not be accurate, up to date or

applicable to the circumstances of any particular case, despite

our efforts. Statoil cannot accept any liability for any

inaccuracies or omissions.

Jan Fredrik Stadaas

Technology Manager

[email protected]

Tel: +47 41 44 00 46 www.statoil.com

execution of a wind farm project - norcowe for web/ss2015-presentasonar/exec… · bay du nord...

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