The Future of the Canadian Oil Sands

Engineering & Project Management Advances

Peter Madden, President, AMEC Oil Sands

Presented to: World Energy Congress

Date: September 14, 2010
Agenda

Safety
Oil Sands – Background & Facts
Engineering & Technology
Project Management
Lost Time Injury Frequency Rate
Comparison

CAPP – Canadian Association of Petroleum Producers

MSHA – Mine Safety and Health Administration
Total Recordable Incident Rate
Comparison

6
5.05

4 3.22
TRIR

1 0.35
0.2
0
0
A lberta* Oil Sands* A M EC Oil Sands Oil & Gas** Oil & Gas**
Co nstructio n P ro ducers P ro ducers
Industry Co nstructio n Co nstructio n
A verage P acesetter
























!

"















 AMEC’s Health, Safety, Security and
Environment (HSSE) Vision
Management Systems

Beyond Zero is our vision of

what we need to do and where
we need to go to achieve
sustainable, world-class HSSE
performance throughout all our
global operations
 AMEC’s Health, Safety, Security and
Environment (HSSE) Vision
Protecting our Work Force

Beyond Zero is our vision of

what we need to do and where
we need to go to achieve
sustainable, world-class HSSE
performance throughout all our
global operations
 Global Resources

300

264

250 53%

200
47%
billion barrels

175

150 136
115
102 99
100 92

60
50 44
36
30
21

Source: Oil & Gas Journal, December 2009

Growth Case – Western Canada Oil Sands &
Conventional Production

Source: CAPP – Crude Oil Forecast, Markets & Pipeline Expansions, June 2010
Mineable Oil Sands

Mining – 20% of the oil sands resource is less than 200 feet deep
In Situ Oil Sands

In Situ – 80% of the oil sands resource is more than 200 feet deep
Cold Flow
Low capital investment
Only works well where the oil (bitumen) is fluid enough
Recovery is only 5-10%
In Situ Oil Sands

Cyclic Steam Stimulation (CSS) Steam-assisted Gravity Drainage (SAGD)

Recovery rate: Recovery rate:

LP
20-25% up to 60%

HP
 Future In Situ Technology

Toe to Heel Air Injection (THAI)

Lower capital costs
Minimal usage of natural gas and water
Potential to be utilized in deep heavy oil resources
80% recovery expected

Vapor Extraction Process (VAPEX)

Solvent injected into oil sands resulting in significant
viscosity reduction
Expensive injection fluid (propane)
Lower energy costs
Potential for in situ upgrading and application to thin
reservoirs
Limited field-testing
Management & Schedule Improvements by
Progressive Completion Process

Start-up
Traditional project execution approach
ENGINEERING PRE-FAB CONSTRUCTION PRE-COM COM

Progressive project completion approach Start-up

CONSTRUCTION
ENGINEERING
Potential
CWP saving
CWP
CWP
CWP
CWP Acceptance Hierarchy

Level 1 acceptance Inspection

Building block CWP CWP CWP & Test Plan
completion Discipline
Modules
Civil Check-sheets
Structural Deficiency/
etc. Punch list

Level 2 acceptance Inspection

Installation/ CWP & Test Plan
Completion Module installations Discipline
Interconnects Check-sheets
Loose spool installation
Deficiency/
Buildings & outfitting
Cable pulling Punch list
etc.

Level 3 acceptance Inspection

System testing/ CWP & Test Plan
Completion Discipline
Function testing loops
Check-sheets
System Deficiency/
Mechanical Completion Turnover Punch list C or D

CSU - CCC
Engineering Integration

Benefits
With SPF
Electrical Data owned by authoring/nominated
application
Data synchronised between design tools
Data validation (Tag registry)
Single point of entry for data; data passed
Tag Registry
Dimensional Data Profile forward through design process
Data exchange
Instrument physical data
Vendor data Deliverables
Data interfaces
Item Tag
Process data
Info displayed in P&ID and
datasheet
Model + Drawing
Tags
Isometric drawing
Piping Component Data Orthographic drawings
Line Data
Progress
Equipment Data
MTO
Instrument Data

Process
Piping Specs and Commodity Data Electrical
Spec name
Valve Commodity Code
Instrumentation
Visualization data Spec (VPRM)
Engineering Data
Attribute data 3D
Hardcopy Engineering
Specs
Commodity Code list

AVEVA VPRM
The Future of the Canadian Oil Sands
Engineering & Project Management Advances

Peter Madden, President, AMEC Oil Sands

Presented to: World Energy Congress

Date: September 14, 2010

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