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The Challenge
Deltastream Energy Corporation is a Canadian private start-up exploration and production company. In 2019, Scovan was contracted to design a 12,500 barrel per day Oil Battery and Shipping Terminal in Marten Hills, which has been running above capacity of up to 18,000 bbl/d.
The Marten Hills Clearwater heavy oil play, northeast of the town of Slave lake, began seeing a ramp up in production in late 2016. The addition of Rangeland Midstream’s Marten Hills Pipeline System in July 2020, provided producers in the area the access they needed to further develop their assets. The system consists of new crude oil and condensate pipelines located in the Marten Hills region of north central Alberta. The Marten Hills Pipeline System extends approximately 85 km’s, terminating at an interconnect with Plains Midstream Canada’s Rainbow Pipeline System, which serves the Edmonton, Alberta hub and refining market.
Scovan completed the engineering design, bid evaluation and procurement of major equipment and field support for construction of the project.
Within the design stage of the project, Scovan identified through leading indicators that project costs were trending towards becoming at risk. At this stage, the plot plan had already been Issued for Design (IFD) and had been thoroughly reviewed by engineering and operations. The detailed design was approximately 80% complete and field construction was starting within one month to meet aggressive schedules to meet take-or-pay contractual agreements. Through our project controls and analytics, Scovan identified the forecast early enough that there was still an opportunity to proactively seek a solution. By moving quickly, and without compromising the process design or operability of the facility, Scovan identified an opportunity to optimize the plot plan to reduce costs for Deltastream.
Scovan’s application of digital projects, advanced work packages, and rapid deployment model allowed for the late change without a significant impact to the project. The support of the construction management team, field contractors, and operators all contributed to getting the project done on schedule.
The Approach
After assessing several options, Scovan conducted a review and study of the physical layout of the facility, and determined that they could produce cost savings by rearranging some of the major equipment. Our team found that by rotating the Treater and Free Water Knock Out Vessels, they were able to create an opening where the E-House and Generators could be relocated. Moving the E-house to a more central location shortened most of the power and control cables, especially the main power feeders to the LACT site. Piling, steel and piping were also reduced providing additional cost savings. By thinking outside the box, we were able to deliver an alternative solution to Deltastream that only required minor engineering design and rework, that led to a successful result for the project team.
The Outcome
By leveraging Scovan’s application of digital projects, advanced work packages, rapid deployment model, and creative thinking, we were able to provide Deltastream Energy a cost savings of approximately $250,000 CND. The project schedule was maintained, and the facility was ready to ship oil on its target date, providing a successful project completion for our client.
Scovan Engineering Inc.
Scovan is a state-of-the-art engineering firm that specializes in offering innovation and experience the emerging energy industry by providing engineering, procurement and construction management services. Scovan generates positive results for their clients through their unique and innovative approach to engineering and flexible commercial models.
To learn more about our services visit www.Scovan.ca
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