Project Management for Main Pass 299 Sulphur and Oil and Gas Facilities

ABSTRACT Describes Project Management techniques used to organize and execute a major sulphur-oil and gas project located in the Gulf of Mexico. Project Management program elements include project definition, fast-track program, organizational structure, relationships and responsibilities, coordination, planning and scheduling, cost control, design criteria, quality assurance and status reporting. INTRODUCTION The Main Pass Sulphur/Oil and Gas Project is a joint venture of Freeport-McMoRan Resource Partners, Limited Partnership (affiliate of Freeport-McMoRan, Inc.), IMC Fertilizer, Inc. and Homestake Sulphur Co., a Homestake Mining Co. subsidiary. The sulphur deposit on Main Pass was discovered by Freeport-McMoRan in 1988 and is located in the Gulf of Mexico 20 miles east of the mouth of the Mississippi River in Main Pass Block 299. The sulphur deposit is estimated to be 67 million long tons and the oil and gas deposits are estimated to be 35 to 50 million barrels of recoverable oil and 8 billion cubic feet of gas. In April 1989, Walk, Haydel & Associates (Walk, Haydel) was named Project Manager of the Main Pass sulphur deposit development, and in April 1990 the oil and gas facilities were added to Walk, Haydel's work scope. The initial Project Management task was to coordinate the preparation and publishing of the Feasibility study. This study was completed in September 1989 and subsequently presented to the boards of the Joint Venturers for approval. The Feasibility Study included three volumes: Volume I, Executive Summary; Volume II, Technical Details and capital Estimate; and Volume III, Commercial Documents. The major participants in the preparation of the Feasibility study, Freeport-McMoRan Resource Partners, Walk, Haydel & Associates, Inc., Waldemar S. Nelson & Co., Inc., and McDermott, Inc., were all subsequently named to provide continuing services after project approval. The initial sulphur development facilities will consist of 15 platforms connected by 13 bridges measuring more than a mile in length. The oil and gas production facilities will consist of two drilling/production platforms and one production/processing platform. The water depth at the site is approximately 210 ft. An operations base will be built at Venice, Louisiana (near the mouth of the Mississippi River) and two liquid sulphur vessels will be built for transport. The estimated total project cost is $804 million. Basic parameters established with Freeport-McMoRan for Project Management and related services for the Main Pass project are:The project must be fast-tracked and conflicts of cost versus time must be brought to Freeport-McMoRan for resolution as soon as they are detected.Freeport-McMoRan resources, expertise and personnel must be used to the maximum extent possible.The team approach must be emphasized so that the combined knowledge, cooperation and interest of all participants is realized.A participative management style is required. Procedures and organizational structures must not restrict or discourage full participation of any team members.Each participating firm should be allowed to use their own special expertise and proven work practices.