03 Basic Engineering
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Management of Medium-Size / Revamping Projects Oil & Gas Downstream Projects 3. Basic Engineering
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
FEED Scope and Objectives
Scope • Complementary studies, analysis, engineering and design • Technical optimization of project contents • Finalize Safety/Health/Environmental Analysis
Objectives • Confirm technical scheme selection (including Licensing) • Develop technical specifications for supplier bidding purposes
• Confirm Budget and Schedule • Finalize Project Execution Plan • Compile dossier for:
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
− Final Investment Decision by Owner − EPC Contractor Call for Tender − Regulatory approval, when applicable
4
Typical FEED start checklist Are the following items complete? Preliminary Study (or pre-FEED) report
Basis of Design
Statement of Requirements (SOR)
For Revamped areas: • Valid documentation on existing facilities • Accurate description of existing processes and utilities • Up-to-date layout, plot plan, undergroung routing
Preliminary Safety Analysis (HAZID, HAZOP) built in the design basis
Environment Base Line Study, preliminary Environment Impact Assessment
Owner design standards and rules
Owner approved FEED Budget & Schedule
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© 2011 - IFP Training
6
Specific objectives
TECHNICAL • Study in depth the technical solutions of the pre-project for each discipline • Issue AFD (Approved For Design) drawings (layouts, PID's…) and specifications • Prepare technical dossiers for LLI (Long Lead Items) and EPC contract bidding • Issue CAPEX cost estimate with the adequate accuracy level (10%)
CONTRACTS • Prepare the contractual part of the call for tenders for LLI and EPC • Issue tenders evaluation procedures for LLI and EPC, and launch calls
ORGANIZATION • Finalize Project Execution Plan including:
• Define communication and project control systems • Finalize Owner organization and project schedule RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
− Contracting strategy − Quality Assurance plan − HSE Risk Mitigation plan
7
Technical package
The FEED package should be sufficient to start Detail Engineering: • In-depth studies to support the Safety Analysis (as per corporate method) • Environmental Impact Assessment consistent with local requirements • Specific studies/deliverables to obtain approval from local authorities • Review and integration of Licensor’s Basic Engineering Packages
Adequate reviews of the FEED package should be performed
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• Independent review/audit of the most delicate calculations • Systematic workshop with Owner/Stakeholders to validate FEED quality • Communication with the site Safety Committee, if appropriate • Technical package reviewed and approved by the Owner
8
FEED Organization/Management
© 2011 - IFP Training
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
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PMC role
Reminder: the Leader of the FEED is the Owner
Owner may manage and control the Project with its own resources
If so, a Project Management Consultant will usually provide support: • • • • •
Additional Management resources Technical skills for verification of Contractor studies Assistance for developing the execution strategy (PEP) Contracting strategy, tender selection process/criteria Internal communication
Later, the PMC may remain in the Project Team (part-time)
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© 2011 - IFP Training
• Auditing • Ad-hoc technical advice • Controls of equipment (quality, delivery schedule) and field works
14
Management Usual Project Management techniques are used, (in particular for Engineering & Project Control); the following higher level management concerns apply: Coordination and communication between Owner & FEED Contractor; participation of Operations personnel at right times
Resource planning and qualification (full-time & part-time personnel, experts…)
Coordination of Licensors (Special Processes) and Consultants for Special Packages
Project Contractor/Owner Reviews with experts from Contractor /Owner/Partners
FEED Project Control (cost, schedule & progress, changes management, …): similar as described for the Concept studies, but the FEED Contractor may use his regular Engineering Project Controls tools (e.g. Progress system, PRIMAVERA for scheduling).
Risks & uncertainties identification; track latent defects; do not « fix » too early.
Ensure FEED quality as basis for the EPC phase
Well understood Owner decision process and Level of decision Approval
Contract based on reimbursable expenses as the scope, in some cases, may not be sufficiently fixed at the start (e.g.: revamping; projects with novel aspects…)
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Constructability review Lay-out Constructability Concepts Construction and Commissioning Inputs into the Engineering
Accesses for: • Contractor personnel (from inside/outside offices, control room) • Equipment / modules delivery • Temporary storage of equipment, parts, bulk • In-situ lifting or rolling • Equipment dismantling (important for revamping)
Conflicts created by simultaneous operations (“SIMOPs”)
Pre-fabrication plans
Module fabrication / delivery / integration plan for offshore facilities
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
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3D models help to check construction feasibility
© 2011 - IFP Training
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
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3D models help to check construction feasibility
© 2011 - IFP Training
• An up-to-date 3D model is a useful tool for revamping studies but • As-built drawings must always remain the contractual reference (the model may not be updated with last construction status) RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
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Procedures
Appropriate and well-known procedures: a key Management tool
General Project Management procedures • • • • •
List of Project Procedures, Glossary of terms and acronyms Guidelines for the Preparation of Project Procedures Coordination Procedure (with Owner, Partners, Licensors) Document Management and Control Preparation of Call For Tenders for − EPC contract − Equipment Supplies − Field work subcontracts
For small projects, all of them may be summarized in a single “FEED coordination procedure” applicable as part of an umbrella contract
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© 2011 - IFP Training
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Procedures
Engineering • Equipment, Instrument, Electrical & Piping Lines Numbering • PFD, P&ID preparation, Drawings numbering and formatting • Preparation of Project Specifications
HSEQ • HSE and Quality Management Plan • Safety review procedure and applicable tools (HAZID, HAZOP, HAZAN…) • Constructability review procedure
Project control • Cost Estimating, Cost Reporting and Control • Elaboration, communication, revision of Schedule • Progress measurement, reporting and control • Management of change requests
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© 2011 - IFP Training
For a Small Project FEED, the Procedures may be simplified to: • Management of Engineering • Project Control (HSE, schedule, quality) • Cost Estimating, Reporting and Control
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FEED Deliverables
Statement of Requirements + Execution Plan til S/U (revised)
Process basis, data sheets, flow diagrams, heat&matl balances
Job specifications and standard drawings for each discipline • • • •
Vessels (columns, drums, storage tanks) Thermal equipment (furnaces, boilers, exchangers) Piping networks, key instrumentation, control loops Buildings, infrastructure (site study, jetty, roads…)
Procurement basis (refined) • Call For Tender documents, Quality Plans, evaluation criteria • List of acceptable suppliers, short-list, Long Lead Items orders
Health/Safety/Environmental risk analysis (revised)
Final Cost estimate and EPC schedule, controls structure Detailed lists of Deliverables: see Attachment III
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Specific considerations for Revamping projects
Drawings should include Installation & Dismantling documents
Indication “ New “, “ Modified “, or “ Dismantled “ should appear
Drawings for Modified or Dismantled should refer to existing ones
Systematic field verification of existing documents, even if controlled • • • • • •
Concrete structures, buildings, internal roads Steel structures, racks, underground networks (careful) Piping configuration (isometric drawings may have to be re-created) Electrical cabinets drawings, cable paths, available power in SS DCS loops, synoptics, lists of I/O, process computer interface, alarms Sizing of Fire Fighting and Waste Water Treatment facilities
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© 2011 - IFP Training
Detailed lists of Deliverables: see Attachment III
27
Definitive Project Planning The following elements, already previously defined, will be revised, detailed, re-approved, and frozen:
Project Execution strategy
Project Schedule
Project CAPEX estimate © 2011 - IFP Training
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Project Execution strategy
© 2011 - IFP Training
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Influencing factors The following location factors may impact the Project Execution Strategy Remoteness and availability of site existing infrastructure (roads, railways, bridges, prefab areas) Transportation logistics (may require special transportation means, sometimes in harsh climatic conditions and in limited climatic windows) Local availability of Construction Contractors and Equipment (if insufficient, may require workforce from abroad, prefabrication at shop, modularisation) Local context may impose the use of local contractors, with insufficient qualification, leading to stronger QC and field supervision requirements Impact of local environment on project scope/risk should be closely examined • Political climate and foreseable changes, security, visa procedures • Regulatory requirements (US standards, European-type, other, none…) • Social situation, role and authority of Trade Unions, of local communities • Religious prevailing rules and off-work periods (e.g “Ramadan”)
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• Customs clearance requirements, taxes, currencies, financing/bank concerns
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Owner permanent objectives
Sustainable development • HSE performance (no personnel/process/environmental accidents) • Risk management (quality of equipment/works, for long-term reliability) • Preserve good relationship with local environment
Technical objectives • Delivery in accordance with the FEED or BASIC package • Unit business performance requirements achieved • Satisfactory performance during the whole expected project lifetime
Project cost and schedule • Project completed on schedule and within approved budget • Adequate definition and management of contingencies • Adequate cost control methods
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Contracting strategy
The Contracting strategy elaborated by Owner (*), considering: • Project desired or required schedule, and phasing • Project resource requirements versus expected availability, particularly for: − − − −
EPC Contractors Fabrication Transportation & Installation Construction
Execution Strategy: for overall project optimization (Quality, Cost, Schedule), the scope may be split into manageable Work Packages Each package may have a different contract type Medium-size projects: single Work package can be considered Revamping projects: single Work package highly advisable (interfaces) Owner keeps overall coordination of interfaces between packages
(*) with FEED Contractor support RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
• • • •
34
Contracting strategy
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
Strategy confirmed after market surveys and pre-qualification requests for: • EPC contractors • Fabrication contractors and Construction contractors • Transportation & Installation contractors • Early Contracts such as site preparation Simplified Contractor bids may be acceptable for medium-size projects, if: • Pre-commitments are necessary for engineering studies • Early procurement is justified and approved by Owner (LLI) The choice of contracting strategy is crucial for EPC phase: • Project organization: identification of Company personnel in charge of each main contract management • Budget and scheduling: structured according to the split of contracts The contracting strategy has a major impact on project cost and schedule
35
Final Project Execution Plan
Updated from Preliminary stage (based on additional information) • Executive Summary, Project Summary description • HSE aspects and Risk analysis (more complex tools)
• Execution concerns and contraint, and plan to resolve them • Regulatory authorization file (from HSE analysis) • Final Contracting strategy, EPC contract type proposed
New elements elaborated during FEED (related to the EPC stage) • Organisation/roles/responsibilities of Owner and EPC Contractor • Detailed execution Schedule, unit shutdown and startup plan • Quality Assurance / Quality Control / Inspection plan • Selection criteria for suppliers and subcontractors
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• Involvement of Owner Operations personnel, training, startup
36
Project EPC schedule
Project EPC Schedule includes: • Schedule (at least 2 levels of accuracy) • Identification of the Critical Path • S-curves and histograms (from detailed level) allowing progress control • Estimated man.hours for each activity/task − Detail Engineering, global and by disciplines − Field Construction, global and by trade
Schedule Risk analysis (probabilistic method) describes: • The highlights of the method used, and the assumptions
• The most likely range of project execution duration • The probability of the project going beyond this duration
Schedule may not be that critical for all medium-size projects (value ?)
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• Proposed actions and controls to reduce this probability
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Project CAPEX estimate
CAPEX estimate is required to support the Project Approval by Owner CAPEX estimate should be prepared according to Owner WBS/OBS For smooth approval, CAPEX accuracy should be around +/- 10% to 15% CAPEX remains an estimate, based on quantitative information: • Manhours and rates for design services • Equipment list and budget • MTO/BOQ Quantities x Unit Costs for bulk material • Construction cost rates x construction mhrs
Contingency, Risks and Profit factor is added on top of the cost estimate Probabilistic tools can help quantifying the risk of cost overrun CAPEX estimate memorandum summarizes: • underlying assumptions (consistent with PEP) • uncertainties, risks and proposed action to mitigate the risks
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• estimating methodology, sources of data, tools used
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Project CAPEX estimate Methods (Engineering, Equipment)
© 2011 - IFP Training
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Basic engineering or FEED Key points to keep in mind
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
Applicable standards clearly identified, deviations approved by Owner Long Lead Items and Licensor packages should be identified FEED consistent with local regulatory requirements (studies conducted) Availability and qualification of local workforce to be seriously addressed Project schedule includes assumptions, critical path, schedule risk analysis CAPEX estimate with 15% accuracy required for project final approval CAPEX estimate should be based on quantitative info, not only ratios Engineering contracts to perform FEED are typically of reimbursable type Most often, final Project Approval is taken right after FEED completion Revamping projects have higher risk of cost/schedule overrun Revamping: involving Owner Operations / Technology personnel is critical
41
ATTACHMENTS I.
FEED contract types
II.
Process Licensors packages
III. Detailed FEED Deliverables lists © 2011 - IFP Training
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ATTACHMENT I FEED contract types
© 2011 - IFP Training
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FEED contract types (pros & cons)
© 2011 - IFP Training
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ATTACHMENT II Process Licensors packages
© 2011 - IFP Training
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Process licensors packages (1/2)
Process Licensors provide specific Process Packages (usually referred to as « Basic Engineering Package » in particular technology areas, examples: • Distillation: EXXON, SHELL, FLUOR, PHILIPS, FOSTER, LUMMUS ... • Acid Gas Treatment and S removal: IFP, LURGI, KTI, MERICHEM, PROSERNAT, SGSI, UOP… • Sulphur Plants: JACOBS, PRITCHARD, LURGI, KTI, UOP…
In addition, technology is provided together with certain equipment, e.g. Molecular Sieves • Heavy Oil Upgrading; heavy cuts (Delayed Coker, Visbreaker): CHEVRON, FWC, LUMMUS… (x) All Licensors names are in alphabetical order, current readiness to license to be checked. • Typically BEP (Basic Engineering Package) include:
− Recommended Plot Plan (option)
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− HMBs; PFDs: Major Equipment or Equipment Lists and Specifications; Process Descriptions; Cause & Effect matrices; Information for special equipment; Operations & Start-Up manuals (option) or instructions
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Process licensors packages (2/2)
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© 2011 - IFP Training
It is often required / necessary to compare different processing schemes including a number of licensed units. Licensors usually provide proposals for this purpose. BEP packages preparation for a new unit or modified unit may take 2/3 months; If possible, BEPs should be prepared or at least launched before FEED to gain Project time. Licensors BEPs preparation is otherwise a critical element of the FEED schedule BEPs will be reviewed by FEED Contractor / Company in Design Reviews Final Process Licensor selection is normally through a formal Tendering procedure with scope including: • Supply of License, Proprietary Items if any (« Licensing Agreement ») • Supply of engineering and assistance services (« Engineering Agreement » that includes BEP and review (some FEED & EPC deliverables) and supervision services (as-built construction inspection and start-up & tests assistance)
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ATTACHMENT III Detailed FEED Deliverables lists
© 2011 - IFP Training
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FEED Main deliverables catalogue (technical)
© 2011 - IFP Training
GENERAL • BEDD (Basic Engineering Design Data) • Value Engineering Review report • Technical scope for EPC CFT PROCESS • Process Optimisation studies report • Process Flow Diagrams (PFDs) “ID” • Process Descriptions. “NDL” • Process Equipment Lists. “NDL” • Main Equipment Process data Sheets (EDS) “NDL” • P&I Diagrams (PIDs) / Line Lists (Process) “ID” • PIDs Diagrams (Main Utilities) “ID” • Preliminary Relief Valves Discharge Summary. “NDL” • Safety Control System Process Description. “NDL” • Catalysts and Chemicals Specification. “NDL” • Preliminary Utility Balance; Chemicals lists. “NDL”
THERMAL • Heat Exchangers TEMA data sheet “NDL” • Data sheets for Air Coolers (preliminary) “NDL” EQUIPMENT & TANKS • Job Specifications • Design & construction standards. • Specifications for equipment “NDL” • Specifications for Packages “NDL” • Main/ critical Vessels & Heat Exchangers drawings “NDL” • For LLIs: Requisitions, Mechanical specifications, ITPs, Bid comparisons & recommendations • Tanks list “NDL” • LNG & LPG Tanks Specifications “NDL” CORROSION / PIPING • Job Specifications. • Design & construction standards. • Material Selection Diagrams (MSD) and Corrosion study “NDL”
Notes for Revamped areas: “ID”: “Installation” & “Dismantling” documents; “NDL”: new/modified/deleted items RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
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FEED main deliverables catalogue (technical)
SAFETY & ENVIRONMENT • Job Specifications.
PLANT LAY-OUT
• Fire Demand Calculation Notes.
• Site Plan
• Fire Fighting and Fire Protection Drawings and Diagrams (principles). (ID)
• Overall Plot Plan. • Unit Plot Plans (Process, Utilities, Offsites) (ID)
• Main Equipment Specifications. (NDL)
• Flare radiation study
• Hazards Register
• Interconnecting drawings (option) (ID)
• Consequence Analysis (HAZAN) and/or QRA (x)
• Modules drawings (option) (ID)
• HAZOP review report
• Special areas lay-out studies (option)
• HAZID review report
• Preliminary MTOs for estimate (ID)
• Safety Concept or Safety Case (update)
• Preliminary BOQs for construction contracts (ID)
• Emission studies
• Battery Limits drawings • Piping Classes (NDL)
• Noise study • EBS(x)
• EIA(x) • HSE Plan for EPC phase
(x): may be performed by specialized Consultant Notes for Revamped areas: “ID”: “Installation” & “Dismantling” documents; “NDL”: new/modified/deleted items RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
• Tie-ins list (option)
• Hazardous Area Classification Drawings. (ID)
51
Example of layout principles
© 2011 - IFP Training
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QRA output: Addition of new facilities in an existing site; generated Total Risk Contour
© 2011 - IFP Training
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Addition of new facilities in an existing site; generated VCE Overpressure exceeded with a frequency of 10-4/year
© 2011 - IFP Training
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FEED main deliverables catalogue (technical)
Civil / buildings
Infrastructure • Sea Water intake / outfall / pumping station study (x) (NDL) • Reclamation over sea study (x) (option)
(x): may be performed by specialized Consultant
© 2011 - IFP Training
• Job Specifications • Design and construction Standards • Preliminary Drawings for main piperacks and structures (ID) • Modularisation study (option) • Preliminary Drawings for modules (option) (ID) • Drainage study • U/G networks drawings (ID) • Foundations preliminary drawings (revamping) • Buildings architectural dwgs; finishing schedules (ID) • HVAC systems specs, diagrams (ID) • Geotechnical study (x) • Bathymetry survey (x), Topography survey (x), Soils survey (x) • Preliminary MTOs, BOQs for estimate (option) (ID)
Notes for Revamped areas: “ID”: “Installation” & “Dismantling” documents; “NDL”: new/modified/deleted items RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
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FEED main deliverables catalogue (technical)
Electrical • Job Specifications • Preliminary users list (NDL), elec balance • Preliminary calculation Notes (Load Summary, etc.) • Single Line Diagrams. (ID) • Preliminary Substations Drawings. (ID) • Design Standards and Typical Diagrams
Controls & instrumentation • Job Specifications • Design Standards and Typical Diagrams • Control Systems Architecture Drawing (ID) • DCS/ESD/F&G Systems Specifications. (NDL) • Preliminary Control Room and Instrument Technical Rooms Drawings. (ID) • Interfaces definition drawings (ID) • Preliminary MTOs, BOQs for estimate (option) (ID)
© 2011 - IFP Training
• Main Equipment Specifications. (NDL) • Preliminary MTOs, BOQs for estimate (option) (ID)
Notes for Revamped areas: “ID”: “Installation” & “Dismantling” documents; “NDL”: new/modified/deleted items RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
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FEED main deliverables (project planning)
Construction/Fabrication/ T&I • Constructability review report • Construction requirements
• Accommodation requirements • TCF requirements • Construction Accommodation specs and drawings (option)
• Construction / Fabrication / T&I Execution & contracting Plans • Construction raw materials availability study (option)
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
Commissioning • Main operating principles (production, utilities, export, control system, metering) • Laboratory requirements
and
QC
• Staffing (Main chart), Logistic Logistic base
organization means and
• Commissioning plan
and Start-up
© 2011 - IFP Training
• Construction Contractors / Fabrication Contractors prequalification / availability study (option)
57
FEED main deliverables catalogue (project planning)
Quality plan (requirements for EPC phase (for EPC CFT) Project controls • WBS / OBS • Level II EPC Schedule and schedule memorandum
Procurement and contracts • Tendering Procedures • CFT for EPC Contracts • CFT for LLIs
• CFT for Early Contracts • Tenders Evaluation Reports
• Project Controls requirements for EPC phase (for EPC CFT) (Scheduling, Progress Control, Reporting)
• Procurement requirements for EPC phase (for EPC CFT) (Purchasing, Inspection, Expediting, Traffic) • Approved Vendors list
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• CAPEX Estimate (generally +/- 15%)
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RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
FEED Scope and Objectives
Scope • Complementary studies, analysis, engineering and design • Technical optimization of project contents • Finalize Safety/Health/Environmental Analysis
Objectives • Confirm technical scheme selection (including Licensing) • Develop technical specifications for supplier bidding purposes
• Confirm Budget and Schedule • Finalize Project Execution Plan • Compile dossier for:
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
− Final Investment Decision by Owner − EPC Contractor Call for Tender − Regulatory approval, when applicable
4
Typical FEED start checklist Are the following items complete? Preliminary Study (or pre-FEED) report
Basis of Design
Statement of Requirements (SOR)
For Revamped areas: • Valid documentation on existing facilities • Accurate description of existing processes and utilities • Up-to-date layout, plot plan, undergroung routing
Preliminary Safety Analysis (HAZID, HAZOP) built in the design basis
Environment Base Line Study, preliminary Environment Impact Assessment
Owner design standards and rules
Owner approved FEED Budget & Schedule
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
6
Specific objectives
TECHNICAL • Study in depth the technical solutions of the pre-project for each discipline • Issue AFD (Approved For Design) drawings (layouts, PID's…) and specifications • Prepare technical dossiers for LLI (Long Lead Items) and EPC contract bidding • Issue CAPEX cost estimate with the adequate accuracy level (10%)
CONTRACTS • Prepare the contractual part of the call for tenders for LLI and EPC • Issue tenders evaluation procedures for LLI and EPC, and launch calls
ORGANIZATION • Finalize Project Execution Plan including:
• Define communication and project control systems • Finalize Owner organization and project schedule RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
− Contracting strategy − Quality Assurance plan − HSE Risk Mitigation plan
7
Technical package
The FEED package should be sufficient to start Detail Engineering: • In-depth studies to support the Safety Analysis (as per corporate method) • Environmental Impact Assessment consistent with local requirements • Specific studies/deliverables to obtain approval from local authorities • Review and integration of Licensor’s Basic Engineering Packages
Adequate reviews of the FEED package should be performed
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
• Independent review/audit of the most delicate calculations • Systematic workshop with Owner/Stakeholders to validate FEED quality • Communication with the site Safety Committee, if appropriate • Technical package reviewed and approved by the Owner
8
FEED Organization/Management
© 2011 - IFP Training
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
13
PMC role
Reminder: the Leader of the FEED is the Owner
Owner may manage and control the Project with its own resources
If so, a Project Management Consultant will usually provide support: • • • • •
Additional Management resources Technical skills for verification of Contractor studies Assistance for developing the execution strategy (PEP) Contracting strategy, tender selection process/criteria Internal communication
Later, the PMC may remain in the Project Team (part-time)
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
• Auditing • Ad-hoc technical advice • Controls of equipment (quality, delivery schedule) and field works
14
Management Usual Project Management techniques are used, (in particular for Engineering & Project Control); the following higher level management concerns apply: Coordination and communication between Owner & FEED Contractor; participation of Operations personnel at right times
Resource planning and qualification (full-time & part-time personnel, experts…)
Coordination of Licensors (Special Processes) and Consultants for Special Packages
Project Contractor/Owner Reviews with experts from Contractor /Owner/Partners
FEED Project Control (cost, schedule & progress, changes management, …): similar as described for the Concept studies, but the FEED Contractor may use his regular Engineering Project Controls tools (e.g. Progress system, PRIMAVERA for scheduling).
Risks & uncertainties identification; track latent defects; do not « fix » too early.
Ensure FEED quality as basis for the EPC phase
Well understood Owner decision process and Level of decision Approval
Contract based on reimbursable expenses as the scope, in some cases, may not be sufficiently fixed at the start (e.g.: revamping; projects with novel aspects…)
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
17
Constructability review Lay-out Constructability Concepts Construction and Commissioning Inputs into the Engineering
Accesses for: • Contractor personnel (from inside/outside offices, control room) • Equipment / modules delivery • Temporary storage of equipment, parts, bulk • In-situ lifting or rolling • Equipment dismantling (important for revamping)
Conflicts created by simultaneous operations (“SIMOPs”)
Pre-fabrication plans
Module fabrication / delivery / integration plan for offshore facilities
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
© 2011 - IFP Training
20
3D models help to check construction feasibility
© 2011 - IFP Training
RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
21
3D models help to check construction feasibility
© 2011 - IFP Training
• An up-to-date 3D model is a useful tool for revamping studies but • As-built drawings must always remain the contractual reference (the model may not be updated with last construction status) RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
22
Procedures
Appropriate and well-known procedures: a key Management tool
General Project Management procedures • • • • •
List of Project Procedures, Glossary of terms and acronyms Guidelines for the Preparation of Project Procedures Coordination Procedure (with Owner, Partners, Licensors) Document Management and Control Preparation of Call For Tenders for − EPC contract − Equipment Supplies − Field work subcontracts
For small projects, all of them may be summarized in a single “FEED coordination procedure” applicable as part of an umbrella contract
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Procedures
Engineering • Equipment, Instrument, Electrical & Piping Lines Numbering • PFD, P&ID preparation, Drawings numbering and formatting • Preparation of Project Specifications
HSEQ • HSE and Quality Management Plan • Safety review procedure and applicable tools (HAZID, HAZOP, HAZAN…) • Constructability review procedure
Project control • Cost Estimating, Cost Reporting and Control • Elaboration, communication, revision of Schedule • Progress measurement, reporting and control • Management of change requests
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For a Small Project FEED, the Procedures may be simplified to: • Management of Engineering • Project Control (HSE, schedule, quality) • Cost Estimating, Reporting and Control
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FEED Deliverables
Statement of Requirements + Execution Plan til S/U (revised)
Process basis, data sheets, flow diagrams, heat&matl balances
Job specifications and standard drawings for each discipline • • • •
Vessels (columns, drums, storage tanks) Thermal equipment (furnaces, boilers, exchangers) Piping networks, key instrumentation, control loops Buildings, infrastructure (site study, jetty, roads…)
Procurement basis (refined) • Call For Tender documents, Quality Plans, evaluation criteria • List of acceptable suppliers, short-list, Long Lead Items orders
Health/Safety/Environmental risk analysis (revised)
Final Cost estimate and EPC schedule, controls structure Detailed lists of Deliverables: see Attachment III
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Specific considerations for Revamping projects
Drawings should include Installation & Dismantling documents
Indication “ New “, “ Modified “, or “ Dismantled “ should appear
Drawings for Modified or Dismantled should refer to existing ones
Systematic field verification of existing documents, even if controlled • • • • • •
Concrete structures, buildings, internal roads Steel structures, racks, underground networks (careful) Piping configuration (isometric drawings may have to be re-created) Electrical cabinets drawings, cable paths, available power in SS DCS loops, synoptics, lists of I/O, process computer interface, alarms Sizing of Fire Fighting and Waste Water Treatment facilities
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Detailed lists of Deliverables: see Attachment III
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Definitive Project Planning The following elements, already previously defined, will be revised, detailed, re-approved, and frozen:
Project Execution strategy
Project Schedule
Project CAPEX estimate © 2011 - IFP Training
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Project Execution strategy
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Influencing factors The following location factors may impact the Project Execution Strategy Remoteness and availability of site existing infrastructure (roads, railways, bridges, prefab areas) Transportation logistics (may require special transportation means, sometimes in harsh climatic conditions and in limited climatic windows) Local availability of Construction Contractors and Equipment (if insufficient, may require workforce from abroad, prefabrication at shop, modularisation) Local context may impose the use of local contractors, with insufficient qualification, leading to stronger QC and field supervision requirements Impact of local environment on project scope/risk should be closely examined • Political climate and foreseable changes, security, visa procedures • Regulatory requirements (US standards, European-type, other, none…) • Social situation, role and authority of Trade Unions, of local communities • Religious prevailing rules and off-work periods (e.g “Ramadan”)
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• Customs clearance requirements, taxes, currencies, financing/bank concerns
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Owner permanent objectives
Sustainable development • HSE performance (no personnel/process/environmental accidents) • Risk management (quality of equipment/works, for long-term reliability) • Preserve good relationship with local environment
Technical objectives • Delivery in accordance with the FEED or BASIC package • Unit business performance requirements achieved • Satisfactory performance during the whole expected project lifetime
Project cost and schedule • Project completed on schedule and within approved budget • Adequate definition and management of contingencies • Adequate cost control methods
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Contracting strategy
The Contracting strategy elaborated by Owner (*), considering: • Project desired or required schedule, and phasing • Project resource requirements versus expected availability, particularly for: − − − −
EPC Contractors Fabrication Transportation & Installation Construction
Execution Strategy: for overall project optimization (Quality, Cost, Schedule), the scope may be split into manageable Work Packages Each package may have a different contract type Medium-size projects: single Work package can be considered Revamping projects: single Work package highly advisable (interfaces) Owner keeps overall coordination of interfaces between packages
(*) with FEED Contractor support RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
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• • • •
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Contracting strategy
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Strategy confirmed after market surveys and pre-qualification requests for: • EPC contractors • Fabrication contractors and Construction contractors • Transportation & Installation contractors • Early Contracts such as site preparation Simplified Contractor bids may be acceptable for medium-size projects, if: • Pre-commitments are necessary for engineering studies • Early procurement is justified and approved by Owner (LLI) The choice of contracting strategy is crucial for EPC phase: • Project organization: identification of Company personnel in charge of each main contract management • Budget and scheduling: structured according to the split of contracts The contracting strategy has a major impact on project cost and schedule
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Final Project Execution Plan
Updated from Preliminary stage (based on additional information) • Executive Summary, Project Summary description • HSE aspects and Risk analysis (more complex tools)
• Execution concerns and contraint, and plan to resolve them • Regulatory authorization file (from HSE analysis) • Final Contracting strategy, EPC contract type proposed
New elements elaborated during FEED (related to the EPC stage) • Organisation/roles/responsibilities of Owner and EPC Contractor • Detailed execution Schedule, unit shutdown and startup plan • Quality Assurance / Quality Control / Inspection plan • Selection criteria for suppliers and subcontractors
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• Involvement of Owner Operations personnel, training, startup
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Project EPC schedule
Project EPC Schedule includes: • Schedule (at least 2 levels of accuracy) • Identification of the Critical Path • S-curves and histograms (from detailed level) allowing progress control • Estimated man.hours for each activity/task − Detail Engineering, global and by disciplines − Field Construction, global and by trade
Schedule Risk analysis (probabilistic method) describes: • The highlights of the method used, and the assumptions
• The most likely range of project execution duration • The probability of the project going beyond this duration
Schedule may not be that critical for all medium-size projects (value ?)
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• Proposed actions and controls to reduce this probability
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Project CAPEX estimate
CAPEX estimate is required to support the Project Approval by Owner CAPEX estimate should be prepared according to Owner WBS/OBS For smooth approval, CAPEX accuracy should be around +/- 10% to 15% CAPEX remains an estimate, based on quantitative information: • Manhours and rates for design services • Equipment list and budget • MTO/BOQ Quantities x Unit Costs for bulk material • Construction cost rates x construction mhrs
Contingency, Risks and Profit factor is added on top of the cost estimate Probabilistic tools can help quantifying the risk of cost overrun CAPEX estimate memorandum summarizes: • underlying assumptions (consistent with PEP) • uncertainties, risks and proposed action to mitigate the risks
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• estimating methodology, sources of data, tools used
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Project CAPEX estimate Methods (Engineering, Equipment)
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Basic engineering or FEED Key points to keep in mind
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Applicable standards clearly identified, deviations approved by Owner Long Lead Items and Licensor packages should be identified FEED consistent with local regulatory requirements (studies conducted) Availability and qualification of local workforce to be seriously addressed Project schedule includes assumptions, critical path, schedule risk analysis CAPEX estimate with 15% accuracy required for project final approval CAPEX estimate should be based on quantitative info, not only ratios Engineering contracts to perform FEED are typically of reimbursable type Most often, final Project Approval is taken right after FEED completion Revamping projects have higher risk of cost/schedule overrun Revamping: involving Owner Operations / Technology personnel is critical
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ATTACHMENTS I.
FEED contract types
II.
Process Licensors packages
III. Detailed FEED Deliverables lists © 2011 - IFP Training
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ATTACHMENT I FEED contract types
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FEED contract types (pros & cons)
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ATTACHMENT II Process Licensors packages
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Process licensors packages (1/2)
Process Licensors provide specific Process Packages (usually referred to as « Basic Engineering Package » in particular technology areas, examples: • Distillation: EXXON, SHELL, FLUOR, PHILIPS, FOSTER, LUMMUS ... • Acid Gas Treatment and S removal: IFP, LURGI, KTI, MERICHEM, PROSERNAT, SGSI, UOP… • Sulphur Plants: JACOBS, PRITCHARD, LURGI, KTI, UOP…
In addition, technology is provided together with certain equipment, e.g. Molecular Sieves • Heavy Oil Upgrading; heavy cuts (Delayed Coker, Visbreaker): CHEVRON, FWC, LUMMUS… (x) All Licensors names are in alphabetical order, current readiness to license to be checked. • Typically BEP (Basic Engineering Package) include:
− Recommended Plot Plan (option)
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− HMBs; PFDs: Major Equipment or Equipment Lists and Specifications; Process Descriptions; Cause & Effect matrices; Information for special equipment; Operations & Start-Up manuals (option) or instructions
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Process licensors packages (2/2)
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It is often required / necessary to compare different processing schemes including a number of licensed units. Licensors usually provide proposals for this purpose. BEP packages preparation for a new unit or modified unit may take 2/3 months; If possible, BEPs should be prepared or at least launched before FEED to gain Project time. Licensors BEPs preparation is otherwise a critical element of the FEED schedule BEPs will be reviewed by FEED Contractor / Company in Design Reviews Final Process Licensor selection is normally through a formal Tendering procedure with scope including: • Supply of License, Proprietary Items if any (« Licensing Agreement ») • Supply of engineering and assistance services (« Engineering Agreement » that includes BEP and review (some FEED & EPC deliverables) and supervision services (as-built construction inspection and start-up & tests assistance)
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ATTACHMENT III Detailed FEED Deliverables lists
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FEED Main deliverables catalogue (technical)
© 2011 - IFP Training
GENERAL • BEDD (Basic Engineering Design Data) • Value Engineering Review report • Technical scope for EPC CFT PROCESS • Process Optimisation studies report • Process Flow Diagrams (PFDs) “ID” • Process Descriptions. “NDL” • Process Equipment Lists. “NDL” • Main Equipment Process data Sheets (EDS) “NDL” • P&I Diagrams (PIDs) / Line Lists (Process) “ID” • PIDs Diagrams (Main Utilities) “ID” • Preliminary Relief Valves Discharge Summary. “NDL” • Safety Control System Process Description. “NDL” • Catalysts and Chemicals Specification. “NDL” • Preliminary Utility Balance; Chemicals lists. “NDL”
THERMAL • Heat Exchangers TEMA data sheet “NDL” • Data sheets for Air Coolers (preliminary) “NDL” EQUIPMENT & TANKS • Job Specifications • Design & construction standards. • Specifications for equipment “NDL” • Specifications for Packages “NDL” • Main/ critical Vessels & Heat Exchangers drawings “NDL” • For LLIs: Requisitions, Mechanical specifications, ITPs, Bid comparisons & recommendations • Tanks list “NDL” • LNG & LPG Tanks Specifications “NDL” CORROSION / PIPING • Job Specifications. • Design & construction standards. • Material Selection Diagrams (MSD) and Corrosion study “NDL”
Notes for Revamped areas: “ID”: “Installation” & “Dismantling” documents; “NDL”: new/modified/deleted items RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
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FEED main deliverables catalogue (technical)
SAFETY & ENVIRONMENT • Job Specifications.
PLANT LAY-OUT
• Fire Demand Calculation Notes.
• Site Plan
• Fire Fighting and Fire Protection Drawings and Diagrams (principles). (ID)
• Overall Plot Plan. • Unit Plot Plans (Process, Utilities, Offsites) (ID)
• Main Equipment Specifications. (NDL)
• Flare radiation study
• Hazards Register
• Interconnecting drawings (option) (ID)
• Consequence Analysis (HAZAN) and/or QRA (x)
• Modules drawings (option) (ID)
• HAZOP review report
• Special areas lay-out studies (option)
• HAZID review report
• Preliminary MTOs for estimate (ID)
• Safety Concept or Safety Case (update)
• Preliminary BOQs for construction contracts (ID)
• Emission studies
• Battery Limits drawings • Piping Classes (NDL)
• Noise study • EBS(x)
• EIA(x) • HSE Plan for EPC phase
(x): may be performed by specialized Consultant Notes for Revamped areas: “ID”: “Installation” & “Dismantling” documents; “NDL”: new/modified/deleted items RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
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• Tie-ins list (option)
• Hazardous Area Classification Drawings. (ID)
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Example of layout principles
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QRA output: Addition of new facilities in an existing site; generated Total Risk Contour
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Addition of new facilities in an existing site; generated VCE Overpressure exceeded with a frequency of 10-4/year
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FEED main deliverables catalogue (technical)
Civil / buildings
Infrastructure • Sea Water intake / outfall / pumping station study (x) (NDL) • Reclamation over sea study (x) (option)
(x): may be performed by specialized Consultant
© 2011 - IFP Training
• Job Specifications • Design and construction Standards • Preliminary Drawings for main piperacks and structures (ID) • Modularisation study (option) • Preliminary Drawings for modules (option) (ID) • Drainage study • U/G networks drawings (ID) • Foundations preliminary drawings (revamping) • Buildings architectural dwgs; finishing schedules (ID) • HVAC systems specs, diagrams (ID) • Geotechnical study (x) • Bathymetry survey (x), Topography survey (x), Soils survey (x) • Preliminary MTOs, BOQs for estimate (option) (ID)
Notes for Revamped areas: “ID”: “Installation” & “Dismantling” documents; “NDL”: new/modified/deleted items RC - PR GES - 08170_A_A - Rev.1 - 18/07/2013
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FEED main deliverables catalogue (technical)
Electrical • Job Specifications • Preliminary users list (NDL), elec balance • Preliminary calculation Notes (Load Summary, etc.) • Single Line Diagrams. (ID) • Preliminary Substations Drawings. (ID) • Design Standards and Typical Diagrams
Controls & instrumentation • Job Specifications • Design Standards and Typical Diagrams • Control Systems Architecture Drawing (ID) • DCS/ESD/F&G Systems Specifications. (NDL) • Preliminary Control Room and Instrument Technical Rooms Drawings. (ID) • Interfaces definition drawings (ID) • Preliminary MTOs, BOQs for estimate (option) (ID)
© 2011 - IFP Training
• Main Equipment Specifications. (NDL) • Preliminary MTOs, BOQs for estimate (option) (ID)
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FEED main deliverables (project planning)
Construction/Fabrication/ T&I • Constructability review report • Construction requirements
• Accommodation requirements • TCF requirements • Construction Accommodation specs and drawings (option)
• Construction / Fabrication / T&I Execution & contracting Plans • Construction raw materials availability study (option)
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Commissioning • Main operating principles (production, utilities, export, control system, metering) • Laboratory requirements
and
QC
• Staffing (Main chart), Logistic Logistic base
organization means and
• Commissioning plan
and Start-up
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• Construction Contractors / Fabrication Contractors prequalification / availability study (option)
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FEED main deliverables catalogue (project planning)
Quality plan (requirements for EPC phase (for EPC CFT) Project controls • WBS / OBS • Level II EPC Schedule and schedule memorandum
Procurement and contracts • Tendering Procedures • CFT for EPC Contracts • CFT for LLIs
• CFT for Early Contracts • Tenders Evaluation Reports
• Project Controls requirements for EPC phase (for EPC CFT) (Scheduling, Progress Control, Reporting)
• Procurement requirements for EPC phase (for EPC CFT) (Purchasing, Inspection, Expediting, Traffic) • Approved Vendors list
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• CAPEX Estimate (generally +/- 15%)
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