It is expected the FGP to cost extra 1.5 Billion on top of the expected 47 Billion cost. What a mess, how can this project be financially viable after over 10 billion $ cost over run and more than 3 years of delay and counting?
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&2voj you almost sound like you know what you’re talking about except the contracts in place for both civil work and commissioning (for each project) were put in place under MK leadership. EB was still GMO during most of those being awarded . NB is an agency hire firm, nothing more. Why are your feelings so hurt?
Korea construction manager and his engineering manager side kick were always supporting engineering contractor. Hence they placed a Worley body into a key position giving access to all company information.
They never gave tye project manager or the legal team a chance.
I was asked to take a crew out there and they all said to hard. Done a few Chevron gigs in the past and they always jam them up with OE talking dullards. Then when it goes down those same people are not held to account get a send off with drinks and or get promoted. I love seeing their faces when the likes of EXXon find them out whole 180 like ants under the microscope. CVX to big to fail
Ask manager of engineering management about "key" personnel in Korea team,he filled the position.
Worley/fluor personnel were allowed to occupy key company positions. Covering engineering contractors as* . Wonder why key data on contractor errors and lack of knowledge mysteriously had disappeared when the lawyers came to build the TCO claim.
TCO is a disaster. The Korean module yards hit chevron with a one billion dollar claim before they even started cutting steel. The contract was very weak.
Contractors at site actually have two sets of as built drawings. One is imaginary the other is the real set they keep at home. If you want the real set you have to keep the contractor employees
There were huge TCO (and Gorgon) disasters under JJ and he was unscathed.
Was the post about Ukrainians taking out Rus refineries taken down?
Interesting...
If I ran any of my projects like this, I'd get a 2-, get my CIP cut, get put on a PIP then run out on a rail.
Yeah it is VERY simple game theory.
Finish the project = get laid off
Delay the project = get 70% premium
Gee I wonder which I would choose?
Of course the idea is that management selects competent people with a career left, but instead we will choose whatever DEI acronym is popular that day.
It is funny that you mentioned the PBF
They put diversity inexperienced SC manager twice. Both females, they never had this experience before. One was a contractor and she milked it until she got fired. When Exxon managers asked MK how can you select someone like her to manage a massive contract and all what she have done was pushing paperwork as a certification lead, his answer was EB and corporate (aka RM) want to see more women in these critical positions. She failed badly. Then they put another woman who was an employee future leader. She was super empty, has nothing to offer and people were swinging her left, right and center while making her feel important and smart. Her failure was even worse. No Exxon guys are taking over and things are moving in a better direction. Yet, too many incompetent CVX staff are still holding on the cushy assignments and refusing to let go. They create useless internal business that has nothing to do with the bottom line. It causes delays and that is why both local and expat contractors love them. They both want the gravy train to keep going. Chevron does not have anyone that can finish this project at the moment. As someone mentioned below Exxon are running circles around them.
Well there is one little detail you overlooked. You cannot do HP/LP conversion without PBF.
It was unnecessary to be part of the FGP broken machine. This is what he meant
It could have been done with the Turn Around team using locals but they put the most incompetent expats on it with a cushy assignment in Atyrau delivering nothing but simple tie ins.
10 people and an execution team with hands on tools and valves would have been more than enough to finish this scope.
So it is unnecessary to be part of FGP.
@2voj, you obviously have no idea what you are talking about. HP/LP conversion deemed unnecessary? By whom? It's really the only part of the project that was necessary as the current bottleneck are the wells due to high backpressure.
Do not anticipate increased production in the end. The project comprises four main components:
The Gathering system, including Field Facilities and Pipelines, which was completed. It resulted in bringing online 250K Bbl in 2020, 2021, and 2022.
3GI, constructed and pre-commissioned but never fully operational. It doesn't contribute to new production but supports failing injection facilities.
HP/LP conversion, deemed unnecessary and could have been executed by a team of 20 during a turnaround, but instead handled by acquaintances and Chevron staff ineffectively. Easy expat assignments were granted despite incompetence.
3GP, intended to support the deteriorating base plant without adding production. It became the epitome of corruption. EB, the main instigator, awarded contracts to Novus B, her countrymen's company with no prior experience in Kazakhstan. Although no direct kickbacks are provable, EB received notable honors from the UK and Ireland following these contract awards. During COVID, she wasted billions, giving money to COCR for empty rooms due to personal connections. The project derailed upon her involvement.
Staff and contractors, witnessing the corruption, adopted a "why bother" attitude, as the most corrupt boss was being promoted. Locals shared a similar sentiment: "Live and let live, sc--w Chevron and their shareholders." Chevron's attempts to control the situation by removing MK and increasing surveillance backfired. They resorted to employing security personnel from anti-te---r task forces to intimidate and harass individuals, leading to complaints and criminal investigations against Chevron. Instead of rectifying these unlawful acts, Chevron attempted to wield legal power to interfere with justice, exacerbating the situation.
People on the ground are disillusioned. Locals fear for their jobs, expats are disgusted by Chevron's mismanagement under EB's leadership, and security surveillance has escalated. However, there's a growing vocal opposition among locals against these practices. Many wish for project delays and are indifferent to Chevron shareholders' interests, seeking to expose the socially engineered mafia led by RM and EB.
Making sure that employees are actually working is not important to a company?
Maybe to some people who have never run a business.
How about you start your own business and try that strategy?
Fu-k leadership, they fu---d up and blamed it on poor performance. Such shitheads.
but i guess returning back to the office and tracking dashboards are more important right!
Buying Hess or investing in the Permian seems like a safer strategy. The original price of 37 B seems steep.
Lol, thanks millennials! All of this is the result of millennial incompetence. The company and all of our retirement/severance packages would be on solid footing if it wasn't for their habitual lackluster performance and ignorance of all of the critical details in this business.
Check out the engineering contractor who under various aliases were used by PRC for TCO projects.
Then there is the Management who lined the pockets of their unqualified freinds....check out MK distribution of on site contracts claiming local content
Every MCP at TCO the last 15 years has been a cost and schedule disaster. We have not learned from a single one of them.
Classic chevron incompetence. Half of these folks would be on fancy expat packages and will retire leaving the mess for the underpaid workforce to clean. Thanks boomers!
What will come of the folks still rotating on this mess of a project? Will they be held accountable? Laid off? Or will they be absorbed back into the enterprise and cruise on….? I’d be curious to see what the intentions are of the new FE manager coming into the mix also…
Then there is Russia, waiting to pluck the plums.
This is new information, last year the cost estimate was $47B, now they are expecting extra $1.5B. So from the initial estimate of $37 B, we end up with cost over run of $11.5B, that is 30% increase and a delay by 3 years!!
COVID was the main excuse for the delays. Everyone got a free pass pretty much. Oh well.
Old news. This information came out last year.
If Bonner is the possible next CEO, does she carry any responsibility for the project overrun and delay? I recall Jay Johnson saying lessons from Gorgon/Wheatstone would be applied here to do sufficient advance engineering that the project woul pd be completed on time, on budget though the pandemic didn’t help.
All the expats are sabotagingthings purposely to get another few months on the gravy train with biscuit wheels. They dont care MKW is getting weekly updates, they will all be laid off in the 2025 super merger layoff extravaganza!
XOM is running circles around CVX on project execution
Where’s PB? We clearly need another stern email right now, but no significant changes in senior leadership.
That is one great failure. That means a lot of individuals were promoted and bonuses were extensive! That’s how they roll. Reward failure.
at this point they just need to get the project online so it can start making money. sunk cost
Do better