Primary Mechanical Services contractor for a major Victorian oil refinery
Helping to keep a large complex hydrocarbon refinery operating reliably
Contract Value+$200M AUD
Project DurationCommenced: 2009
Major global energy organisations generally divide their operations into “upstream” and “downstream” activities. An upstream operation finds, develops and supplies liquefied natural gas (LNG), condensates and liquefied petroleum gas (LPG) to clients. While downstream operations generally include the refining, manufacturing, marketing, transportation and supply and trading of crude oil, petroleum, petrochemicals products and related services to wholesale and retail clients.
A critical component of one such leading multinational company’s downstream operations in Australia is a major Victorian based oil refinery, which is amongst the largest and most complex hydrocarbon refineries in Australia. Each year around 50% of Victoria’s fuel and 75% of Tasmania’s fuel is produced in this refinery. This major Victorian oil refinery also supplies fuel to New South Wales, Queensland, South Australia, Western Australia and New Zealand. Each year the refinery contributes hundreds of thousands of dollars towards the local community through its social investment programme as well as sponsorships and donations.
UGL has provided multi-disciplinary maintenance and minor project services to this major Victorian oil refinery since 2009. Services delivered include mechanical, electrical and instrumentation, scaffolding, painting, insulation, civil, fabrication, procurement, planning and shutdown services.
In 2012, UGL was awarded a new five and a half year contract as the Primary Mechanical Services provider to this major Victorian oil refinery. The contract has a total value of approximately $200 million.
Global energy organisations continually focus on improving efficiencies for their own downstream operations. This ultimately benefits their end clients as it assures continuous supply and quality for their petroleum based products.
To support achieving this objective, major oil and gas companies recognise the need to employ suppliers that would assist with the implementation of their downstream strategies. These strategies may include realising operational excellence and cost efficiencies, to maximise uptime and the operating performance of assets (which includes refineries) and to reduce costs and complexities.
UGL has a proven record of delivering first class outcomes for this major Victorian oil refinery. The company has transferred improvement methodologies, knowledge from brownfield environments and the benefits of working within collaborative commercial models from locations across multiple industry sectors.
Committed to providing the client with solutions that support the supply of reliable and affordable energy, UGL maintains the highest standards of safety, environmental performance and business conduct. UGL delivers service excellence throughout the entire lifecycle of this refinery’s operational asset’s with capabilities that cover all aspects of their downstream operation.
The client has employed UGL’s continuous improvement methodologies that feature repeatable scope Kaizen Lean Six Sigma processes, a business improvement road map - that focuses on the highest-value improvements at the operational level, an assessment matrix - which evaluates capacity in key areas, and audit and control measures which targets accountability.
UGL has worked closely with the client over time to proactively increase their teams working knowledge of refinery operations at this site. This has enabled a greater understanding of ongoing reliability processes and UGL’s ability to provide value-added services to improve operational performances.
The alignment of UGL’s safety systems with the client’s systems, has been an important process in fueling step-change. The benefits to the client include improved safety outcomes and the creation of consistent standards, practices and management processes.
Key Outcomes and Benefits
Whether it is maximising asset service life or introducing maintenance procedures that provide early warning of failure, UGL has the industry knowledge, applications and best practice services to remain a valuable partner to this client.
The client has benefited from UGL’s depth of oil and gas experience which includes maintenance and brownfields project expertise, proven performance in delivering shutdowns of greater than 150,000 man hours, a strong local pool of experienced personnel established through previous and current projects and flexible EBAs with effective rosters and working Union relationships to drive productivity changes.
Key benefits and outcomes include:
- Increased productivity through improved planning where all maintenance activities required (reactive + scheduled) are available.
- A KPI framework that has provided the client with greater control and transparency with its contractors that has delivered cost savings.
- An accountable business partner who can tailor a maintenance solution that optimises operational performance and reduces risk.
- Improved reliability, safety and availability of client refinery assets in leveraging UGL’s best practice maintenance shutdown and turnaround capability.
- Consistency and alignment with the client’s safety systems, processes and communication has contributed to building a strong and effective safety culture on site.
- The client is able to make informed maintenance decisions with the aim of maximising asset availability and whole-of-life asset value.