Background & Challenges
A joint venture of three international companies initiated a megaproject on a remote island, requiring modifications to an existing refinery and the development of new facilities. The project faced several logistical, labor, and land constraints, including:
- Limited space & land reclamation – The project site lacked sufficient land, requiring land reclamation from the sea before construction.
- Strict government timelines – The government’s land expansion efforts were ongoing, limiting project timelines before a critical shipping channel was closed.
- Severe labor shortages – The island had no available workforce, necessitating importing and housing thousands of workers.
- Complex construction logistics – A conventional project of this scale would require 5,000+ on-site workers, which was neither practical nor possible.
Strategic Approach
To overcome space, labor, and logistical challenges, the team considered two execution strategies:
- Floating Barges Approach – Pre-fabricating core process units on barges, floating them to the site, and settling them on the shallow seafloor. Then, backfilling around them to create a bigger land mass.
- Modular Construction (Selected Solution) – Fabricating 200+ prefabricated process units off-site, transporting them by barges, and assembling them like Lego blocks on location.
Key strategic actions included:
- Developed modular units – Large sections of the plant, including process units, pipe racks, and vessels, were prefabricated and assembled with insulation, paint, piping, electrical, and instrumentation already installed.
- Risk & logistics planning – Addressed heavy lifting, transportation risks, sequencing issues, and large crane availability by pre-booking equipment years in advance.
- Multi-location project management – Teams were strategically divided across fabrication yards, transport hubs, and the island site to maintain oversight.
Key Outcomes & Results
- Project success – Delivered an operational facility on schedule and under budget.
- Efficiency gains – Modular execution reduced on-site labor and construction complexity, ensuring compliance with strict government deadlines.
- Risk mitigation – Proactively addressed shipping, installation, and heavy lifting risks, ensuring a smooth assembly process.
