Book Of Deliverables

Book of Deliverables Capital Program Efficiency Department

Table of Content

1- Brief and Presentation ………………………………………………………................................. 2- Building Risk Assessment ……………………………………………………….......................... 3- Business Case Assessment ……………………………………………………….......................... 4- Contracting Strategy ………………………………………………………................................... 5- Contracts Procurement…………………………………………………………………………… 6- Cost Estimate ………………………………………………………................................................ 7- Customizing Standards and Specifications …………………………………………………….. 8- Pre commissioning and Mechanical Completion………………………………………….. 9- Design Basis Scoping Paper (DBSP) ……………………………………………………….......... 10- Design Data Requirements (DDR) ………………………………………………………............ 11- Design for Maintainability Report ………………………………………………………............. 12- EIA ………………………………………………………................................................................. 13- Energy Optimization study ………………………………………………………........................ 14- Facilities Security Assessment……………………………………………………….................... 15- Facility Security Assessment for IT………………………………………………………............ 16- Land Use Permit………………………………………………………........................................... 17- Operational Readiness Plan (ORP) ………………………………………………………............ 18- Plot Plans………………………………………………………....................................................... 19- Preliminary Hazard Analysis………………………………………………………..................... 20- Procurement Strategy Material Procurement Plan (EMS) ……………………………………. 21- Project Charter……………………………………………………….............................................. 22- Project Close-Out Report………………………………………………………............................. 23- Project Execution Plan………………………………………………………................................. 24- Project Interface Plan……………………………………………………….................................... 25- Project Proposal Package………………………………………………………............................. 26- Project Proposal Review Reports………………………………………………………………… 27- Project Quality Plan………………………………………………………...................................... 28- Proposed Integrated Staffing Assignment……………………………………………………… 29- RAM Study Report………………………………………………………....................................... 30- Schedule……………………………………………………….........................................................

31- Site Selection Assessment………………………………………………………............................ 32- Stakeholder Management Plan………………………………………………………................... 33- Target Setting………………………………………………………................................................ 34- Technology Selection Report………………………………………………………...................... 35- VIP – Applicable VIPs Report……………………………………………………….....................

Book of Deliverables:

Brief and Presentation 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Contents Brief and Presentation ............................................................................................................................... 4 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 3 Content .................................................................................................................................................... 3

Document Responsibility: Capital Program Efficiency Dept.

Brief and Presentation

Deliverable-Specific Objectives The Phase Brief and Presentation are two documents, developed together at the end of each phase in the FEL process, that summarize the developments made on the project and that are presented at the Gates in order to aide in decision-making during those meetings.

Definition The Brief summarizes the project’s progress and status, including those topics which are relevant for the Gate. The Presentation is a PowerPoint document that expands the summary of the Brief into contents which are Gate-specific (hence those are described Gate-by-Gate in the content section below).

Purpose at Gate The purpose of the Phase Brief and Presentation at Gates 0, 1, AS, 2 and 3 is:   

To ensure the Gatekeeper has sufficient information to allow proper evaluation of the project’s maturity level (in order to proceed with the Gate process); To ensure the Decision Maker has sufficient information to allow proper preparation of the Gate review process; To address the corresponding Gate agenda.

The main purposes of the Phase Brief and Presentation at each Gate are outlined below: Gate

Main Purpose(s)

Gate 1

- To ensure the business case is compelling by a technical, economic and commercial perspective.` - To ensure the business case was supported by a thorough set of technical and economic data. - To ensure the cost estimate achieves an accuracy of ±50%. - To verify if there are any major impacts/constraints from an HSE perspective - To verify the selection of the optimal site considered accessibility, restrictions, land use permit and other factors. - To confirm if early high-level risks were identified and a mitigation plan defined - To ensure the contracting strategy for the next FEL phases is consistent with the project objectives and priorities. - To verify if the project execution plan adequate and coherent with the project type. - To verify if the proposed staffing is adequate to perform the required deliverables in the next phase.

Gate AS

- To ensure project alternatives were identified in terms of facilities, physical interfaces among facilities, required technologies/capabilities, etc…

Front End Loading (FEL)

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Document Responsibility: Capital Program Efficiency Dept.

Brief and Presentation

- To confirm whether the right alternative was chosen to proceed to the DBSP Phase considering compliance with the stated business objective, capital investments, asset lifecycle costs, net benefits? - To ensure the cost estimate achieves an accuracy of ±40%. - To ensure the project’s technology was appropriately evaluated and considered. - To confirm the selected site from Gate 1 has been established. - To confirm risks have been identified and a mitigation plan defined. - To ensure lessons learned have been incorporated and applied to the project. - To ensure the contracting strategy for the next FEL phases is consistent with the project objectives and priorities. - To verify if the proposed staffing is adequate to perform the required deliverables in the next phase.

Gate 2

- To ensure the scope has been properly defined and is ready to be frozen (which includes factors such as consistency with benchmarks, details of the existing and proposed facilities and interfaces, equipment details, etc…). - To verify if the updated business case is adequate in detail (in terms of objectives, scope, investments, costs, net benefits, etc…). - To ensure the cost estimate achieves an accuracy of ±25%. - To confirm the project has been selected from a list of viable alternatives. - To verify if the selected site is appropriate in terms of constructability, logistics, accessibility, distance to existing facilities, etc… - To confirm risks have been identified and a mitigation plan defined. - To verify if the procurement strategy alternatives are coherent with project objectives. - To confirm the main activities and tasks for the project, their estimated duration, alignment with project objectives, and their impact on operational readiness. - To ensure the contracting strategy for the next FEL phases is consistent with the project objectives and priorities. - To verify if the proposed staffing is adequate to perform the required deliverables in the next phase.

Gate 3

- To verify if the advanced engineering designs have been properly developed. - To ensure the updated economic value of the project (in terms of economic assumptions, results, sensitivities, alternatives, etc…) is adequate. - To confirm if the design allows for a proper execution phase. - To ensure the cost estimate achieves an accuracy of ±10%. - To verify if the required studies (HSE, HAZOP, Environmental Impact Assessment, etc…) have been developed. - To confirm risks have been identified and a mitigation plan defined. - To confirm if the contracting plan, procurement method, strategy, and schedule for procuring the EPC contracts is technically and commercially adequate. - To ensure the defined execution KPIs are coherent with project objectives - To ensure the project execution plan is adequate in terms of organization, resources plan, quality plan, HSE, etc…

Front End Loading (FEL)

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Document Responsibility: Capital Program Efficiency Dept.

Brief and Presentation

- To verify if the proposed staffing is adequate to perform the required deliverables in the next phase.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content The Phase Brief includes the following contents: Section

Description

Introduction

- Brief project description, including the following: o Project objectives o Summary of scope o Expected benefits

Gate Meeting Topics

- Provides a list and brief summary of the topics for the Gate meeting

Presentation Summary

- Summary description of the contents of the presentation

Required Actions

- Description of the required actions from the Decision Maker at the Gate - Definition of the urgency level for each required action

Project Economics

- Key project economics (costs, NPV, etc…)

The Presentation includes all the key information of each phase. The content for the Presentations are described for each Gate below. Gate 1 Section

Description

Overview

- Includes the project scope, objectives, expected benefits, etc…

Key Results to Date

- Includes the progress over the Front end Loading process and the key achieved results

Integrated Project Team - Describes the IPT composition for the phase Present Situation

- Describes the “baseline” of the project scope

Project Scope

- Describes the project scope

Project Economics

- Provides key project economics information (costs, NPV, etc…)

Risk Analysis

- Includes major and updated risks identified and the related impacts with mitigation initiatives

Front End Loading (FEL)

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Document Responsibility: Capital Program Efficiency Dept.

Brief and Presentation

Contracting Strategy Overview

- Includes a preliminary consideration for the project contracting strategy (more focused on market analysis and preliminary local content maximization strategy)

Schedule

- Provides the Schedule Level I

Execution Plan and Operational Readiness Plan

- Highlights the main points of the Execution Plan and Operational Readiness Plan

Proposed Staffing

- Describes the proposed staffing for the next Phase

Gate AS Section

Description

Overview

- Includes the project scope, objectives, expected benefits, etc…

Key Results to Date

- Includes the progress over the Front end Loading process and the key achieved results

Integrated Project Team - Describes the IPT composition for the phase Alternative Selection

- Describes the pros and cons of the identified alternatives - Describes the selected alternative which has been considered the optimal selection

Project Economics

- Provides key project economics information (costs, NPV, etc…)

Risk Analysis

- Includes major and updated risks identified and the related impacts with mitigation initiatives

Contracting Strategy Overview

- Includes a preliminary consideration for the project contracting strategy (more focused on market analysis and preliminary local content maximization strategy)

Schedule

- Provides the Schedule Level I (Updated)

Execution Plan and Operational Readiness Plan

- Highlights the main points of the Execution Plan and Operational Readiness Plan

Proposed Staffing

- Describes the proposed staffing for the next Phase

Gate 2 Section

Description

Overview

- Includes Project’s Objectives, Project’s scope summary, Expected Benefits

Key Results to Date

- Includes the progress over the Front end Loading process and the key achieved results

Front End Loading (FEL)

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Document Responsibility: Capital Program Efficiency Dept.

Brief and Presentation

Integrated Project Team - Describes the IPT composition for the phase Project Scope

- Describes the frozen project scope

Project Economics

- Provides key project economics information (costs, NPV, etc…)

Risk Analysis

- Includes major and updated risks identified and the related impacts with mitigation initiatives

Contracting Strategy

- Describes the contracting packages and related strategy - Describes the strategy on long lead and novated items

Schedule

- Provides the Schedule Level II

Execution Plan and Operational Readiness Plan

- Highlights the main points of the Execution Plan and Operational Readiness Plan

Proposed Staffing

- Describes the proposed staffing for the next Phase

Gate 3 Section

Description

Overview

- Includes Project’s Objectives, Project’s scope summary, Expected Benefits

Key Results to Date

- Includes the progress over the Front end Loading process and the key achieved results

Integrated Project Team - Describes the IPT composition for the phase Project’s Scope description

- Description of the frozen project’s scope

Project Economics

- Provides key project economics information (costs, NPV, etc…)

Risk Analysis

- Includes major and updated risks identified and the related impacts with mitigation initiatives

Contracting Strategy

- Describes the contracting packages and related strategy - Describes the strategy on long lead and novated items Describes the EPC bids evaluations

Schedule

- Provides the Schedule Level III

Execution Plan and Operational Readiness Plan

- Highlights the main points of the Execution Plan and Operational Readiness Plan

Proposed Staffing

- Describes the proposed staffing for the next Phase

Front End Loading (FEL)

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Book of Deliverables:

Building Risk Assessment (BRA) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Saudi Aramco: Company General Use Front End Loading (FEL)

Contents Building Risk Assessment (BRA) ......................................................... Error! Bookmark not defined. Deliverable-Specific Objectives ........................................................ Error! Bookmark not defined. Definition............................................................................................. Error! Bookmark not defined. Purpose at Gate .................................................................................. Error! Bookmark not defined. Responsibilities ................................................................................... Error! Bookmark not defined. Content ................................................................................................ Error! Bookmark not defined.

Saudi Aramco: Company General Use Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Building Risk Assessment (BRA)

Deliverable-Specific Objectives The Building Risk Assessment is a study of the potential hazards that might affect the project’s facilities and cause unacceptable risk.

Definition The facilities are analyzed across several types of hazards, including explosions, fire damage, toxic events, etc… Those facilities that have been assessed to have a risk coming from one or more of the hazards highlighted will require a mitigation plan (i.e. recommendations to mitigate the risks). The main components of the document include the following:   

Project Overview Building Risk Assessment Mitigation Plan / Recommendations

Purpose at Gate The purpose of Building Risk Assessment at Gate 2 (and to be considered for PPA) is to verify the presence of risk to the facilities and a mitigation plan to prevent the potential hazards and decrease the facilities’ susceptibility.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Project Overview

Description

-

Building Risk Assessment

-

Mitigation Plan / Recommendations

-

Front End Loading (FEL)

Provides important background information on the project objectives and scope Procedures developed (under SMS Element 2 – Risk Assessment &Management) to perform an initial and final study to determine whether the project’s facilities will be impacted by hazards (i.e. explosions, fire damage, toxic events, etc…) and whether an unacceptable risk is present o Facilities also includes all IT infrastructure used as part of security (SACS, IDAS, etc…) Outlines recommendations to mitigate the risks for each of the facilities considered to be impacted by hazards Page 1 of 1

Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Building Risk Assessment (BRA)

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Book of Deliverables:

Business Case Assessment (BCA) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Document Responsibility: Capital Program Efficiency Dept.

Building Risk Assessment (BRA)

Contents Business Case Assessment (BCA) ............................................................................................................ 1 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Building Risk Assessment (BRA)

Deliverable-Specific Objectives 

Provide evidence-based key drivers & assumptions in support of the business need for the proposed project.



Establish alignment with corporate strategies and strategic directions as well as interdependencies with corporate investment and master plans.



Describe operating environment in which the business objectives would be achieved.



Identify viable alternatives that would materially achieve the stated business objectives.



Identify quantitative and qualitative net benefits that would likely be realized, considering the anticipated operating environment.

Definition The main components of the deliverable include the following: 

Strategic Fit



Business Evaluation



Operating Environment



Scope Alternatives



Economic Evaluation of base case and alternatives



Details of major assumptions regarding project economics (prices, volumes, timing, etc.)



An Economic Model (using latest corporate planning guidelines and values) should always accompany this deliverable at each and every FEL phase.

Purpose at Gate The business case develops iteratively over time, in 4 distinct stages (Decision Gates) with more details being provided at each stage. Gate 1 – The purpose is to confirm the strategic context of the proposal; and to provide Decision Makers with an early indication of the proposed way forward (but not yet the preferred option), having identified and undertaken analysis on opportunities and constraints on a wide range of available options, together with preliminary indicative costs. Gate of Alternative Selection GAS - The purpose is to revisit the previous gate document in more detail and to identify a preferred option which demonstrably optimizes Net Benefits. It also sets out the optimal site; demonstrates option’s technical viability; and outlines both risk identification strategy together with its associated mitigation plan. Gate 2 – Following the definition of the business need as well as the selection of the preferred option to attain this need, the primary purpose at this gate is to support the development of Front End Loading (FEL)

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Document Responsibility: Capital Program Efficiency Dept.

Building Risk Assessment (BRA)

Design Basis Scoping Paper (DBSP) by providing preliminary description of all facilities, equipment, capabilities and other resources that will be needed to build the proposed project. This should be in consistency with the overall purpose of DBSP of providing Engineering Contractor and/or Construction Agency the information required to fully, and, to a large extent, independently develop Project Proposal. Gate 3 – The purpose at this gate is to finalize the Business Case Development and determine all necessary information, should the project be proposed to Management Committee for Expenditure Request Approval (ERA). At this stage, the Business Case Assessment document should clearly states the final business objective, fully describes the anticipated operating environment, confirms the economic and technical feasibility, as well as provides refined estimates of net benefits and capital and life-cycle costs of the project.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content All information contained is applicable and repeatedly requested at each stage, however, should evolve from one stage to another as more scope definition and specifications are obtained. Gate

Requirements -

-

Gate 1 (Business Case)

GAS

-

-

Front End Loading (FEL)

Business Objective of proposed project in broad terms. (i.e., the project’s purpose in terms of Saudi Aramco’s Strategic Direction and Business Plan objectives). Alignment and synergies with other projects contained into the Company’s investment and master plans. Operating environment in which the stated Business Objective would be achieved, to the extent reasonably possible (Kingdom, Saudi Aramco, Operating System, and Operating Plant level). Net Benefits of the proposed project in qualitative terms and rough quantitative terms. Viable alternatives that would achieve the stated Business Objective. Such information should be including: o Preliminary project scope for each alternative o Conceptual cost estimates of initial capital investment o Economic evaluation of each viable alternative along with latest economic model output showing all key parameters such as NPVs, Capital Investment Costs, Sustaining Capital, O&M, Operating Cost, Revenue Streams, NDEs and others. Updated assessment of the Business Case, according to Decision Makers directions, to confirm that Business Case is still supportive of continued project development. Page 2 of 4

Document Responsibility: Capital Program Efficiency Dept.

(Gate of Alternative Selection)

-

-

-

-

-

G2 (DBSP)

-

-

G3 (Expenditure Request Approval)

Front End Loading (FEL)

Building Risk Assessment (BRA)

Project scope for each viable alternative, in sufficient details to develop Study Cost estimates. (e.g. types of facilities, major individual scope elements, major physical interfaces, etc.). Refined Net Benefits as well as Economic evaluation of all alternatives, comparable in accuracy to study cost estimate equal to +/-40%.; part of which should be sensitivity and incremental analyses. Reasons for selecting optimal alternative as well as reasons for rejection of all other alternatives. Explanation of how the selected alternative gives the greatest extent among others in achieving the project’s business objective and demonstrating its primary justification. Preliminary identification of risks associated with each viable alternative. Assessment of sensitivities and uncertainties inherent in the cost estimates and net benefits attributed to each viable alternative. Further development of the proposed project’s scope, more specifically the alternative selected during the Study Phase, to confirm the types of facilities to be provided and the corresponding design bases. Physical location of the proposed project along with site condition, if deemed necessary. Full characteristics and location of each physical interface. Full identification of individual scope elements, to the extent required to supplement the project scope definition presented in the DBSP, with the objective of providing sufficient scope definition to develop a +/-25% Cost Estimate. Refined, as required, economic evaluation of selected alternative to be used to further develop the project’s scope. Definitive project scope definition studies, such as front-end scope evaluations, environmental studies, route surveys, and risk assessments. ER Brief and Budget Item Summary Information (BISI) package prepared in conformance with Guidelines issued by the Facilities Planning Department. Fully defined business objective, comprehensive description of the anticipated operating environment, Comprehensive economic evaluation: o Refined estimates of all Capital and Non-Capital costs, as required to obtain accuracy comparable to the accuracy of an ER Cost Estimate equal to +/-10%. o NDE and Manpower identified and explained with comparison with similar projects for reasonableness. o Breakdown of Total Expense Funds included by major type, if required >=$100M. Demolition, Dismantlement & Removal costs are common examples. o Expansion of supplemental analysis such as assessment of sensitivity of selected alternative’s economics to changes in costs or benefits. o Disclosure of reasons of not obtaining an ER quality estimates, if unavailable. o Compare scaled costs such as: $/m2, $/km. or $/BBL with similar projects.

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Book of Deliverables:

Contracting Strategy 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Contracting Strategy .................................................................................................................................. 4 Deliverable-Specific Objectives ............................................................................................................ 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2 References ............................................................................................................................................... 3 Appendices ............................................................................................................................................. 3

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Contracting Strategy

Deliverable-Specific Objectives The Contracting Strategy deliverable is a document, developed in FEL 1 2, and 3 that defines the components necessary to create a contracting strategy for FEL, and ensures this strategy is consistent with project objectives and priorities.

Definition The components of the deliverable include the following: 

Executive Summary



Scope



Contracting Market Analysis



Critical Aspects



Local Content Strategy



Project WBS



WBS Packaging Selection Criteria



Risk Analysis and Mitigation



WBS Packages Identification



Strategy and Contracting Plan

At the Business Case and Study Phases, there is a focus on the preliminary contracting market analysis and preliminary local content strategy. At the DBSP and Project Proposal Phases, the focus is on: 

Final contracting market analysis / local content strategy



Plans for developing and procuring the necessary contracts for the project's major contracting phases (i.e., Project Proposal, Detailed Design, Procurement and Construction). Information shall be categorized by the major contracting phases mentioned and include the following: o

Type of Contract

o

Procurement Method

o

Contracting Plan

Purpose at Gate The purpose of the Contracting Strategy at Gates 1 and GAS is: 

To identify major issues and opportunities for the project regarding the contractors market and/or local content.

Front End Loading (FEL)

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Document Responsibility: Capital Program Efficiency Dept.

Contracting Strategy

The purpose of the Contracting Strategy at Gates 2 and 3 is: 

To evaluate if the contracting strategy for the ensuing phases is consistent with project objectives and priorities and to ensure all risks have been identified and mitigation plans put in place

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content The Contracting Strategy (Final) deliverable shall include the following sections: Section Executive Summary

-

Description

Scope Contracting Market Analysis

-

-

Critical Aspects

-

Local Content Strategy

-

Project WBS

-

WBS Packaging Selection Criteria

-

Risk Analysis & Mitigation

-

WBS Packages Identification

-

Front End Loading (FEL)

Summary of project objectives and alignment / reference to strategic objectives Brief description of project scope Description of Market Analysis undertaken, taking into account both local and international contractors, capability, capacity and experience within Saudi Arabia. Market Analysis results (this must be supported by a full market analysis document as an attachment to this Deliverable) References any joint ventures (JVs) the company may have that could be relevant to contracting for this project. References any other projects in Saudi Arabia potential contractors are or will be working on, either for Aramco or other clients Highlights critical aspects for the particular project (specialized or proprietary technology, long lead items, single vendor requirement etc..) Outline of Local Content maximization strategy, including new entrants to the market, joint ventures with international contractors, % of work, by WBS that will be conducted by local content contractors Description of main aspects of project Work Breakdown Structure Definition of packaging criteria, like: o Maximizing competitive bidding o Splitting packages based on technical complexity o Minimize interfaces during execution o Etc… Provide analysis as to benefits and risks associated with the WBS selection criteria, identification of risks associated with a particular approach, must include a mitigation plan List of the defined contractual packages Page 2 of 4

Document Responsibility: Capital Program Efficiency Dept.

Strategy and Contracting Plan

-

Contracting Strategy

For each package define the following points: o Type of Contract (Lump Sum Turnkey, Lump Sum, Lump Sum Procure/Build, Reimbursable Cost, Unit Rate, mixed etc.) and the reasons for selection. Pay particular attention to providing support for the type of contract; why LSTK over a mixed strategy of reimbursable and LS for example? What are the benefits as opposed to the risks and how does one outweigh the other in terms of capital efficiency? o Procurement Method (Competitive Bid, Sole Source, etc.) and reasons for selection o Contracting plan (scheduling of the tendering activities) and contracting milestones

At the Business Case and Study Phases, the following contents shall be developed: 

Preliminary contracting market analysis



Preliminary local content strategy

At the DBSP and Project Proposal Phases, all the contents shall be developed.

References Reference Contracting Manual

Description Contract Types

Appendices Appendix Name Value Assurance Checklist for A Contracting Strategy

Use To be used by Value Assurance upon receiving the document to ensure proper completion

A. Value Assurance Template for Contracting Strategy Project Title Project BI Code Deliverable Name Date of Completion Date of Acceptance Deliverable Waived?

Contracting Strategy

Verification of Function involvement (as of RAPID) Input (I) Agree (A) Front End Loading (FEL)

Verified?

Notes

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Document Responsibility: Capital Program Efficiency Dept.

Section of Deliverable Executive Summary Scope Contracting Market Analysis Critical Aspects Local Content Strategy Project WBS WBS Packaging Criteria WBS Packages Identification Strategy/Planning

Front End Loading (FEL)

Contracting Strategy

Complete?

Notes

Page 4 of 4

Book of Deliverables:

Contracts Procurement 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Saudi Aramco: Company General Use Front End Loading (FEL)

Contents Contracts Procurement.............................................................................................................................. 5 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

Saudi Aramco: Company General Use Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Contracts Procurement

Deliverable-Specific Objectives The Contracts Procurement & Bid Evaluation is the process necessary for procurement of EPC contracts, the technical and commercial evaluation of the contracts, and results in the contract award.

Definition The deliverable is performed in the Finalize FEL Phase, prior to the design, procurement, and construction phases in Execution. The main components of the document include the following:    

Contractors Prequalification Invitation to Tender Bids Evaluation Bid selection and Contract award

Purpose at Gate The purpose of Contracts Procurement & Bid Evaluation at Gate 3 is:   

To verify that the EPC contractors have been identified for the Execution Phases; To verify that the selected bidders are optimal; To authorize the contract awarding for the selected bidders.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Procurement of EPC contract; describes strategy and schedule for procuring the EPC contracts technical and commercial evaluation, contract award Section Contractors Prequalification Invitation to Tender

Front End Loading (FEL)

Description -

-

List of pre-qualified contractors for the project This section includes the outcome of the deliverable “Contractor Quality Prequalification” Description of the necessary activities to prepare the tender: o Identification of packages (from the project’s Work Breakdown Structure – WBS) o Preparation of necessary documentation (Legal/Contractual, Commercial, Technical) o Issuing of the Tender Page 1 of 2

Document Responsibility: Capital Program Efficiency Dept.

Bids Evaluation

-

-

Bid selection and Contract award

Front End Loading (FEL)

-

Contracts Procurement

Definition of the schedule including the defined activities Reception the Bids Definition of evaluation criteria: o Technical o Commercial Review and evaluation of the Bids based on technical and commercial criteria Determines the best-ranked bid based on the evaluation criteria Awarding of the contract after the finalization of FEL (Gate 3)

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Book of Deliverables:

Cost Estimate 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Cost Estimate .............................................................................................................................................. 3 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2 References ............................................................................................................................................... 6

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Cost Estimate

Deliverable-Specific Objectives The Cost Estimates are an essential part of project development, and estimate the project’s total costs based on several cost factors. The Estimates are developed several times in the FEL process, becoming more and more accurate as additional project details are developed.

Definition The Business Case Cost Estimate (±50%) is developed during the very early stage of the project life cycle and is often based on limited project data (such as facility type, site location, and equipment). The data forms the basis for the preliminary feasibility study, process selection alternatives, site location and layout studies. At the point of this cost estimate, less than 1% of the engineering work has been complete, therefore this cost estimate is typically used for studying alternatives in order to establish the most viable and cost effective solution to project development. The Study Cost Estimate (±40%) is an updated and more detailed version of the previous cost estimate (Business Case Cost Estimate (±50%)). It has slightly more project data, though information concerning some items (such as facility type, site location, and equipment) is still preliminary. As with the previous cost estimate, the analyses completed include the preliminary feasibility study, process selection alternatives, site location and layout studies. At the point of this cost estimate, less than 1% of the engineering work has been complete, therefore this cost estimate is typically used for studying alternatives in order to establish the most viable and cost effective solution to project development. The DBSP Cost Estimate (±25%) is prepared after major engineering decisions have been made and is based on the approved Design Basis Scoping Paper (DBSP). At this point, typically only 5% of the engineering work has been complete. This cost estimate is intended to define the cost of the baseline scope of work for a given project that is included in the capital plan. The Final Cost Estimate (±10%) is a detailed estimate supporting the funding requests for the approval of fund allocations for a particular Budget Item and is used as the basis for project cost control. At this point, usually 25% to 30% of the engineering work has been complete, and this cost estimate establishes a detailed baseline for monitoring and control for the later phases of the project. It is used for variance reporting, productivity analysis, cost trend analysis, and control of construction (among other uses).

Purpose at Gate The purpose of the Cost Estimates at Gates 1, AS, 2, and 3 is: 

To ensure that the cost estimate ensures a certain accuracy and has taken into consideration information from all deliverables that impact cost, schedule, and quality;

Front End Loading (FEL)

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Document Responsibility: Capital Program Efficiency Dept.



Cost Estimate

To ensure the cost estimates are a true representative of the project’s costs to be executed to the agreed schedules and including all elements of the project scope.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Business Case Cost Estimate (±50%) Section Estimate Preparation Plan

Description -

Cost Estimate Package Project Summary Basis of Estimate

-

Materials & Equipment Quotation and Pricing Front End Loading (FEL)

-

This plan contains analysis regarding: o Feasibility and operability of the proposed project o Constructability of the proposed facility o Adequacy of proposed process and equipment o Sufficiency of proposed utilities requirements o Adherence to proposed size and plot plans (and equipment and pipe rack spacing) o Site investigation o Comparison with similar previous facilities o Estimate models and Work Breakdown Structures o Cost estimating tool to be used o Possible alternatives Provides a brief synopsis of the project scope (what is to be accomplished by the project), design basis (how the project is to be accomplished), project location and conditions, related projects, and alternatives Defines the methodology and identifies the assumptions used in estimate development and how these criteria affect the outcome of the estimate. The basis of the estimate covers the following o Scope of work o Estimate methodology o General assumptions o Contracting/procurement o Project schedule & activities o Construction labour man-hours & rates o Labour productivity/adjustment factors o Equipment rates, indirect costs o Shipping & handling costs o Allowances and contingency (including percentages allocated) o Uncertainties (including percentages allocated) o Factors applied to engineering, materials, and construction. Separate quotes and pricing for bulk materials and engineered equipment

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Cost Estimate

-

Benchmarking

-

Cost Estimate

The cost estimate is prepared and organized in accordance with the Work Breakdown Structure, which is composed of the following areas: o Design and Pre-commissioning o Demolition o Civil/architectural works o Structural/steel works o Process & utility equipment o Piping o Electrical power o Lighting & grounding o Communication o Instrumentation o Insulation & fireproofing o Painting/coating o Commissioning and start-up spare parts o Catalyst and chemicals o Custom duties o Bonds & insurance o Licensing fees o Cash flow & expenditure forecast o Support costs o Exclusions o Uncertainties, contingencies, allowances, and deviations Benchmarks the cost estimate compared to other projects and base estimates

Study Cost Estimate (±40%) Section Estimate Preparation Plan

Description -

Cost Estimate Package Project Summary Basis of Estimate

-

Materials & Equipment Quotation and Pricing

-

Front End Loading (FEL)

This plan contains the following sections: o Project scope of work o Site development plan and investigation o Detailed plan for conducting market outlook and project risk assessment o Methodologies for developing the estimate basis o Plans and methodology for benchmarking o Equipment list with minimum specifications o Identification of estimating software to be used o Work Breakdown Structures Provides a brief synopsis of the project scope (what is to be accomplished by the project), design basis (how the project is to be accomplished), project location and conditions, related projects, and land use permit requirements. Similar to “Business Case Cost Estimate (±50%)” but with greater detail and precision Similar to “Business Case Cost Estimate (±50%)” but with greater detail and precision

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Document Responsibility: Capital Program Efficiency Dept.

Cost Estimate

-

Benchmarking

-

Cost Estimate

Similar to “Business Case Cost Estimate (±50%)” but with greater detail and precision Similar to “Business Case Cost Estimate (±50%)” but with greater detail and precision

DBSP Cost Estimate (±25%) Section Estimate Preparation Plan

Description -

This plan contains the following sections: o Project scope of work o Site development plan and investigation o Detailed plan for conducting market outlook and project risk assessment o Methodologies for developing the estimate basis o Plans and methodology for benchmarking o Equipment list with minimum specifications o Identification of estimating software to be used o Work Breakdown Structures o Approved DBSP containing infrastructure requirements, electrical and non-electrical utility requirements, site conditions analysis, and a signed land use permit

Cost Estimate Package Project Summary - Similar to “Study Case Cost Estimate (±40%)” but with greater detail and Basis of Estimate

-

Materials & Equipment Quotation and Pricing Cost Estimate

-

Benchmarking

-

-

precision Similar to “Business Case Cost Estimate (±50%)” but with greater detail and precision Similar to “Business Case Cost Estimate (±50%)” but with greater detail and precision

Similar to “Business Case Cost Estimate (±50%)” but with greater detail and precision Similar to “Business Case Cost Estimate (±50%)” but with greater detail and precision

Final Cost Estimate (±10%) Section Estimate Preparation Plan

Front End Loading (FEL)

Description -

This plan contains the following sections: o Project scope of work o Detailed schedule with milestones for completing estimate deliverables o Quality control plan o Detailed plan for conducting market outlook and project risk assessment o Methodologies for developing the estimate basis o Plans and methodology for benchmarking o Work Breakdown Structures Page 4 of 6

Document Responsibility: Capital Program Efficiency Dept. o

o

Cost Estimate

Organization chart for the estimate team with roles and responsibilities List of deliverables for the interim and final review

Cost Estimate Package Project Summary - Provides a brief synopsis of the project scope (what is to be accomplished by Basis of Estimate

-

Market Outlook Study & Project Risk Assessment

-

Materials & Equipment Quotation and Pricing

-

Cost Estimate

-

Front End Loading (FEL)

-

the project), design basis (how the project is to be accomplished), project location and conditions, and related projects Defines the methodology and identifies the assumptions used in estimate development and how these criteria affect the outcome of the estimate. The basis of the estimate covers the following o Scope of work o Estimate methodology o General assumptions o Contracting/procurement o Detailed basis of the final cost estimate o Project schedule & activities o Construction labour man-hours & rates o Labour productivity/adjustment factors o Equipment rates, indirect costs o Shipping & handling costs o Allowances and contingency (including percentages allocated) o Uncertainties (including percentages allocated) o Factors applied to engineering, materials, and construction o Project Overhead & Profit (OH&P) factors o Currencies. Market trends and project risks are assessed to avert potential impacts on project development and execution (the results will be included in the basis of estimate and in contingency rates). The assessment includes analyses of the worldwide demand for engineering and construction services, market conditions that affect equipment procurement, trends of supply and demand of equipment and bulk material in the Middle East, availability of engineering contractors, financial markets and institutional support, project risks studies on constructability, and forecasts of contractor overhead and margins. Quotes and pricing for materials and equipment For major bulk material and equipment, it is recommended to solicit quotations from at least three (3) Saudi Aramco vendors (there are requirements as to the number of technically and commercially approved quotations needed based on value) The cost estimate is prepared and organized in accordance with the Work Breakdown Structure, which is composed of the following areas: o Design and Pre-commissioning o Demolition o Civil/architectural works o Structural/steel works o Process & utility equipment o Piping o Electrical power o Lighting & grounding o Communication Page 5 of 6

Document Responsibility: Capital Program Efficiency Dept.

Cost Estimate

Instrumentation Insulation & fireproofing Painting/coating Commissioning and start-up spare parts Catalyst and chemicals Custom duties Bonds & insurance Licensing fees Cash flow & expenditure forecast Project Proposal costs Support costs Detailed Design costs Exclusions o Uncertainties, contingencies, allowances, and deviations Benchmarks the cost estimate compared to other projects and base estimates The form reflects, as a summary, the total project cost Includes all drawings, specifications, and other related design documents and is a prerequisite for endorsement of the 56D Form. To be covered and supported by the deliverable “Project Proposal Package” To be covered and supported by the deliverable “Project Execution Plan (Final)” o o o o o o o o o o o o o

Benchmarking 56D Form Project Proposal Package

-

Project Execution Plan Project Schedule

-

Schedule to be include in the estimate for project development status monitoring

References Reference SAEP-12 SAEP-14 SAEP-1350 GI-0020.500 GI-0216.965 GI-0710.002 SACM SAMSSs Access to SAP

Description Project Execution Plan Project Proposal Design Basis Scoping Paper (DBSP) Preparation and Revision Procedures Expenditure Control Cost Distribution Rates Classification of Sensitive Information Saudi Aramco Contracting Manual Saudi Aramco Materials Systems Specifications (SAMSSs) Guidelines in Granting Access to SAP Estimation Roles

Front End Loading (FEL)

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Book of Deliverables:

VIP – Customizing Standards & Specifications 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents VIP – Customizing Standards & Specifications ..................................................................................... 7 Deliverable-Specific Objectives ............................................................................................................ 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Customizing Standards & Specifications

Deliverable-Specific Objectives The VIP – Customizing Standards and Specifications Report is an evaluation of the specific needs of a facility so that the facility can be designed with the minimum required standards.

Definition The application of this evaluation results in lower facility costs as unnecessary codes and standards are not applied. The main components of the document include the following: 

Project Information



Evaluation of Facility Needs



Required Standards



Conclusions and Recommendations

Purpose at Gate The purpose of the VIP – Customizing Standards & Specifications Report at Gate 2 is: 

To ensure the project is customized to meet the minimum required standards necessary to meet the facility needs;

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Project Information Evaluation of Facility Needs Required Standards

Description -

Summarizes important project information, with terms and definitions Describes the specific needs of the facility before it is designed

-

Based on the previous section, this outlines the minimum required standards that need to be put in place in order to meet the facility needs Identifies the type of standards used for the project (company standards, international standards, or both) Discloses any standards that have been waived and the reason behind their waiver Outlines the key recommendations and takeaways, and describes a high-level plan going forward

-

Conclusions and Recommendations

Front End Loading (FEL)

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Front End Loading (FEL)

Customizing Standards & Specifications

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Book of Deliverables:

Pre-Commissioning and Mechanical Completion Plan (PMCF) 7 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Contents FEL 2 DBSP - Pre-Commissioning and Mechanical Completion Plan (PMCF 4) ............................. 3 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2 References ............................................................................................................................................... 3

. Document Responsibility: Capital Program Efficiency Dept.

PMCF

Deliverable-Specific Objectives The Pre-Commissioning and Mechanical Completion Plan includes all pre-commissioning activities, listing of all systems/subsystems, detailed schedule and procedures required to support each system and the activities that need to be performed prior to Handover and the commencement of Commissioning, Startup and Operations.

Definition The main components of the Pre-Commissioning and Mechanical Completion Plan include the following: 

Detailed Mechanical Completion System and Pre-commissioning Schedules illustrating all major mechanical completion and pre-commissioning activities and their timing and duration to be aligned with the construction schedule and project handover requirements.



Pre-commissioning Procedures for all testing/inspection required under the mechanical completion checklist for each system, including the related applicable pre commissioning forms. The procedures should cover all disciplines (Buildings, Electrical Systems, Instrumentation Systems, non-hydrocarbon Mechanical Systems, etc.)



Identification of the Mechanical Completion Packages, which describe both in test and with drawings, the limit and scope of the system.



Vendor Representative Requirements



Master Punch List/ Exception Item List Database



Pre-Commissioning Status Tracking System.

Purpose at Gate The purpose of the Pre-Commissioning and Mechanical Completion Plan and the Status Tracking Systems and Report (before Handover) is: 

To verify that all the necessary tests and analysis has been performed prior to Mechanical Completion Acceptance and commissioning of the facility.

The purpose at this gate is to ensure the strategies are understood for the Project proposal Contractor to further develop. It is also to assure alignment with the project handover date and provide awareness of the interfaces, systems and utilities.

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. Document Responsibility: Capital Program Efficiency Dept.

PMCF

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section

Description

FEL 3- PP Specification definition

-

PreCommissioning Book

-

-

List of System /Sub-systems and definitions (descriptions) per Facility Sequence of Mechanical Completion – System and sub-systems milestones to be included in Project Schedule Mechanical Completion Packages defining the limits of each Package and a Checklist of all required tests and reference of related inspections records. Utilities requirements Inspection Walkthrough Plan and Partial mechanical Completion targets. Punch List strategy - General punch list strategy should be stated here Punch List and acceptance procedure and criteria Provides clear and concise information to personnel carrying out the tests during pre-commissioning Provides information regarding the general procedures and requirements to be used, including: o Water flushing, air blowing, manual cleaning, chemical cleaning, tightness testing, loop checking, functional tests, inerting, etc… Check lists and test sheets and Pre-commissioning forms

Execution Phase - DD Pre- Prepares the necessary materials for pre-commissioning, including: commissioning Procedures

o o o

o

Pre-commissioning dossier Required engineering and vendor documents Detailed pre-commissioning procedures for all applicable systems, schedules, and manning plans (Including Vendor representatives) Required resources, tools, test equipment, consumables, facilities, and services

Execution Phase - Construction Test Packs Book

-

Front End Loading (FEL)

Performs the necessary tests by first breaking down the tests into different areas, including: o Piping tests o Electrical tests o Mechanical tests  Includes air fin coolers, compressors, cooling towers, pumps, tankage, vessels, heat exchangers, mixers, air conditioning equipment, pressure relief and disposal systems, etc… o Fire and safety system tests o Instrument tests Page 2 of 4

. Document Responsibility: Capital Program Efficiency Dept.

-

Mechanical Completion Book

-

Punch List /Exception Items

-

PMCF

o etc These test packs require the test sheets that were developed in the first section above. To include Detailed Plan to ensure a clear path to complete the Mechanical work of the facility and should include the following: o Sequence of Mechanical Completion o List of System /Sub-systems per Facility o Schedule of Completing each System o Mechanical Completion Packages defining the limits of each Package and a Checklist of all required tests and reference of related inspections records. o Inspection Walkthrough Plan and Partial mechanical Completion targets. o Appendix (e.g., list of the facility Drawings ( e.g, P&IDs) indicating the systems boundaries…..etc.) Documents the discrepancies, damaged or missing equipment, malfunctions, missing documents, etc.

References Reference SAEP-16 SAEP-327 SAEP-1028 SAEP-A-004 SAES-A-007 SAES-B-006 SAES-B-054 SAES-B-067 SAES-B-069 SAES-G-115 SAES-G-116 SAES-J-600 SAES-L-150 SAES-L-350 SAES-N-110 SAES-O-119 SAES-P-104 SAES-P-123 SAES-Q-001 SAES-S-010 GI-0002.100

Description Project Execution Guide for Process Automation Systems Disposal of Wastewater from Cleaning, Flushing a Hydrostatic Test Chemical Cleaning and Flushing of Lube/Seal Oil and Fluid Power Systems General Requirements for Pressure Testing Hydrostatic Testing Fluids and Lay-up Procedures Fireproofing For Plants Access, Egress and Materials Handling for Plant Facilities Safety Identification and Safety Colours Emergency Eyewashes and Showers Lubrication, Shaft Sealing and Control Oil Systems Cleanliness Standard for Lube/Seal Oil and Fluid Power Systems Pressure Relief Devices Pressure Testing of Piping Systems Construction of Plant Piping Systems Installation Requirements – Castable Refractories Work Permit Procedures Wiring Methods and Materials Lighting Criteria for Design and Construction of Concrete Structures Sanitary Sewers Work Permit System

Front End Loading (FEL)

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. Document Responsibility: Capital Program Efficiency Dept.

GI-0002.710 B55-A-DOCEM-000020

PMCF

Mechanical Completion and Performance Acceptance of Facilities Preparation of Pre-Commissioning Procedures, System Hand-Over Dossiers and System Completion Manuals

Front End Loading (FEL)

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Book of Deliverables:

Design Basis Scoping Paper (DBSP) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Design Basis Scoping Paper (DBSP) ........................................................................................................ 5 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2 Appendices ............................................................................................................................................. 6 References ............................................................................................................................................... 7

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Design Basis Scoping Paper (DBSP)

Deliverable-Specific Objectives The DBSP is an integral part of the overall project planning process, and it broadly details the project scope required to achieve the project’s stated business objectives and goals. It is essentially a “contract” between the project stakeholders to further develop the proposed project in a manner that will ensure the project's stated business objective is achieved in an economical, cost-effective manner.

Definition The DBSP is one of the final design deliverables which impacts project scope, before the project scope is frozen at Gate 2. The main components of the document include the following: 







Site & Facilities o

Purpose of Facilities

o

Present Situation

o

Location Analysis

o

Project Interfaces

Studies o

Additional Study Requirements during Project Proposal

o

Constructability and Logistical Assessment

o

Assessment of As-Built Drawings

Design o

Design Objectives & General Basis

o

Description of Proposed Facilities

o

Scope Evaluations to Date

Other o

Project Schedule

o

Licensors Requirements

o

Major Equipment List

o

Appendices

Purpose at Gate The purpose of Design Basis Scoping Paper (DBSP) at Gate 2 is: 

To verify the completion and freezing of the project scope needed to achieve the business objective in an economic manner;

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Document Responsibility: Capital Program Efficiency Dept.



Design Basis Scoping Paper (DBSP)

To ensure all facilities and equipment designs were properly developed.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Site & Facilities Purpose of Facilities Present Situation

Location Analysis

Description -

Provides a concise statement of the proposed facilities (the business objective)

-

Explains the business reason for developing the proposed project Describes the anticipated operating environment in which the business objective will be achieved (Kingdom-level, Saudi Aramco-level, operating system level, and operating plant level) To be supported by the deliverable “Business Case Assessment” Provides an overview of the physical location of the proposed facilities o For grass-roots projects, the information typically includes:  General region  Nearest city  Nearby/adjacent facilities  Availability of temporary construction facilities  Characteristics of construction utilities  Topography and soil conditions (including soil testing)  Characteristics of available water  GPS coordinates  Site weather conditions  Bottom sea survey for offshore projects (pipeline, platforms)  Identification of anchoring options (marine) o For projects within an existing facility, the information typically includes:  Location of proposed facilities in relation to other facilities (particularly the physical interfaces)  Condition of the existing infrastructure, pipe racks, substations, switchgear, motor starters, instrumentation cable, automation systems, etc…  Availability of temporary construction facilities  Characteristics of construction utilities  Topography and soil conditions (including soil testing)  GPS coordinates  Site weather conditions  Process flow schemes  Layout considerations  Impact on existing infrastructure  Control & instrument philosophy  Availability / reliability analysis – sparing philosophy

-

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Project Interfaces

Design Basis Scoping Paper (DBSP)

-

Describes the project’s interfaces by covering the following areas: o Related Budget Items o Project Physical Interfaces  Including interfaces with external organizations (commercial or government) and their impacts on cost and schedule o Project Operating Interfaces  Including interfaces with external organizations (commercial or government) and their impacts on cost and schedule o Demolition Activities

-

Describes each of the specific evaluations which are to be completed during Project Proposal, which may include: o Additional front-end scope evaluations required to define the types of facilities o Environmental evaluations o Need for detailed evaluation of specific energy optimization opportunities o More definitive project scope definition studies o Geotechnical investigations Each description includes the objective, scope of the study, and all required evaluation parameters Provides a preliminary assessment of the constructability and logistical issues specific to the proposed project, which includes: o Accessibility to the proposed and/or the site of the proposed facilities within an existing facility o Load restrictions of access roads and bridges o Height clearances of bridges which extend across access roads o Available sea port and airport facilities Provides a preliminary assessment of the extent to which existing drawings must be updated to reflect as-built facilities Determines if there are any missing drawings that are required Determines the extent to which existing drawings are available in an appropriate format Provides aerial and satellite images (for grass-roots facilities) Determines the time required to modify existing drawings (as necessary)

Studies

Additional Study Requirements during Project Proposal

-

Constructability and Logistical Assessment

Assessment of As-Built Drawings

-

Design

Design Objectives & General Basis

Design Objectives - Provides a description of the physical design objectives (functions) of each major project scope element - Describes how the design objectives of the proposed facilities fit into the overall Master Plan for that respective system/area General Basis - Describes the general design basis which apply to the entire project o For process facilities, the characterization of hydrocarbon streams and utilities entering and exiting the battery limits (physical interfaces) of the proposed project o For infrastructure facilities, the characterization of the people to be served by the proposed project, characterization of anticipated traffic patterns. Characterization of equipment to be accommodated by the proposed project, and general land-use guidelines

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Document Responsibility: Capital Program Efficiency Dept.

Description of Proposed Facilities

-

-

Scope Evaluations to Date

Design Basis Scoping Paper (DBSP)

Describes each element of the project scope, including: o The type of facility to be provided o The corresponding technical design bases (i.e., the required capabilities) o Site and equipment footprint o Specific facility attributes determined o Dependency on other organizations (government and private) Consolidates preliminary information such as equipment quantities and sizes, major design parameters, process descriptions, etc…

The tables below (Appendix 1) list the deliverables that are aimed at driving estimate accuracy toward ±25%. - Provides a summary of the evaluations performed prior to and during DBSP to define the project scope (including the evaluation bases) - Identifies project scope which is not subject to additional evaluation in Project Proposal

Other

Surplus and Excess Material Project Schedule Licensors Requirements

-

Provides the results of preliminary assessments of the use of surplus and excess materials - To be covered and supported by relevant section within “Procurement strategy and material procurement plan” - Provides the Project Milestone Schedule, which includes such dates as the DBSP issue to the Construction Agency, the start and completion of Project Proposal, etc… - Background o Provides information on how the licensors were contacted for submitting proposals/bids (including a timeline), the bid collection and review process (including the members of the review team and the necessary approvals) - Commercial Evaluation o The commercial criteria evaluate the licensors based on their expertise in many areas, including:  Complete price schedules  Summary of prices and license fees  Process design packages  Proprietary equipment  Proprietary materials  Investment estimation  Capital cost estimates  Operating and maintenance costs Technical Evaluation o The technical criteria evaluate the licensors based on their expertise in many areas, including:  Proposal transmittal  Authorization to/from others  Proven technology  Equipment and materials  Record of performance  Technology services EPC contractor restrictions  On-stream factor

Front End Loading (FEL)

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Document Responsibility: Capital Program Efficiency Dept.

Design Basis Scoping Paper (DBSP)

Run length and time between turnarounds Turndown capability definition Technology and patents Proprietary equipment list Catalyst and chemicals Energy efficiency Utility consumption Safety Process hazards Environmental performance (waste production) Flare types and rates Process flow diagrams Plot plans Capital cost Operating cost Process design package Schedule milestone dates Reference lists Technology services Constructability Maintainability Licensor design capabilities (grass roots) Feedstock and products (rates & composition). Process/technical description Sparing philosophy Staffing requirements Reliability and availability rates. Block Flow Diagram displaying major equipment. Other criteria as required (regenerator design, feed nozzle, disengages, air rings, ability to circulate catalysts, spent catalyst strippers, etc…) - Rank & Recommendations o Ranks the licensors based on the criteria and provides a recommendation for actions to take going forward in licensor selection Introduction - Description of project’s specification - Definition of new equipment necessary to address the specifications - Justification for the need of new equipment Existing Equipment - Equipment Type - Technical Specification (below an example for pumps): o Design Pressure (PSIG) o Design Temperature (°F) o Capacity (MBCD) - Weight (for offshore project / lifting constraint) New Equipment - Details the vendor’s sparing philosophy and upgrades strategies/roadmaps - Equipment Type - Technical Specification (below an example for pumps): o Design Pressure (PSIG)                             

Major Equipment List

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Document Responsibility: Capital Program Efficiency Dept.

Appendices

-

Design Basis Scoping Paper (DBSP)

o Design Temperature (°F) o Capacity (MBCD) o Weight (for offshore project / lifting constraint) Provides additional information related to the following areas: o Existing Facilities o Proposed Facilities

Appendices Deliverable Description

Required

Budget Brief

x

Approved DBSP ( or draft with approval to follow)

x

Equipment List, sizes, capacities & specifications

x

Process Block Flow Diagrams

x

Beneficial

Preliminary Process Flow Diagrams

x

Piping & Instrument Diagrams (Licensor P&IDs, should be included, but other P&IDs are not mandatory)

x

Preliminary Heat and Material Balances

x

Offsite/Utility Systems, Equipment List (Quantity, capacity, size, specs)

x

Offsite/Utility Block Flow Diagrams

x

Preliminary Offsite/Utility Flow Diagrams

x

Preliminary tie in and pipe routing

x

Quantification of interconnecting facilities (interconnecting pipe list, racks, cables, ducts, etc.)

x

Catalyst/Chemicals Requirements List type/quantity

x

Licensor Data

x

Preliminary Optimized Plot Plan

x

General Arrangement Drawings

x

On and Off Plot Facilities & Description

x

Electrical Scope description including Main & Unit SS, Transmission UPS, field cabling etc)

x

Electrical One-Line Diagram

x

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Document Responsibility: Capital Program Efficiency Dept.

Design Basis Scoping Paper (DBSP)

Deliverable Description

Required

SEC memo of understanding

x

Field Instrumentation including analyzers, transmitters, ESD valves, etc

x

Preliminary I/O count/ DCS & ESD scope including I/O count (PCS Quotation)

x

Process Control System / Communication Block Flow Diagrams

x

Security Requirements including CCTV, IDAS, etc.)

x

Communication Requirements including SCADA ( WAN, LAN, Telephone, Radio, Wireless, FOC, SCADA)

x

Demolition Requirements (Scope description includes: Type, size, quantity)

x

Site Preparation Requirements (scope description includes Type, size, quantity)

x

Building Requirements List Type, size, quantity

x

Preliminary Soil Borings. subsurface analysis

x

Soil Contamination, Environmental Impact Assessment Studies

x

Project Risk Assessment

x

Preliminary Hazard Analysis

x

Previous archived estimate reference

x

Implementation of Lessons Learned

x

Implementation of approved Value Engineering Proposals from FEL 2 DBSP

x

Implementation of all planned Value Improving Practices (VIPs) that were selected for the FEL 2 DBSP Phase

x

Beneficial

References Reference SAEP-1350 DBSP

Description Design Basis Scoping Paper (DBSP) Preparation and Revision Procedures Design Basis Scoping Paper

Front End Loading (FEL)

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Book of Deliverables:

Design Data Requirements (DDR) 7 December 2015

Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Design Data Requirements (DDR)........................................................................................................... 8 Scope and Objectives ............................................................................................................................. 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 2 Responsibilities ....................................................................................................................................... 3 Content .................................................................................................................................................... 3

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. Document Responsibility: Capital Program Efficiency Dept.

Design Data Requirements

Scope and Objectives The Design Data Requirements (DDR) document is the summary of the project scope, data used as the basis for design, sources of those data, assumptions employed and calculations performed. The document is generated in FEL-1 as the data is gathered and assimilated and then taken forward into FEL-2 Study as the basis of the Project Alternatives that are assessed. This document then forms the basis for the DBSP that defines the selected Project Alternative.

Definition For Projects involving process units, the DDR summarizes the data required to develop the Process Design of the project. A Process Unit is one that processes hydrocarbons or other fluids that support the hydrocarbon units (e.g., sulfur recovery, sour water stripping). The DDR is developed as follows: 

Firstly, the project scope, objectives, business drivers, risk drivers, constraints, location, proponent, etc., are described in as much detail as is available at a given stage.



Next, the feedstock is defined in terms of quantity (availability), quality (composition, contaminants, etc.) and conditions (battery limits temperature and pressure). Any anticipated changes in these conditions over the life of the project (as a field declines, for example) must be included. The feed logistics need to be defined in terms of method of delivery (pipeline, sea, road, rail) and storage requirements (number of days between shipment arrivals, etc.). The source and validity of this data must be stated.



Then the desired product slate is defined, again, in terms of desired quantity (yields), the required quality (product specifications, etc.) and conditions (battery limits temperature and pressure). The product logistics need to be defined in terms of method of dispatch (pipeline, sea, road, rail) and storage requirements (number of days between shipment departures, etc.). The source and validity of this data must be stated.



The available utilities (electrical power, steam, fuel gas, cooling water, etc.) that would service the asset need to be defined in terms of availability and conditions (qualities, temperature, pressure, etc.).



Models are developed to represent the performance of those options; these are usually process simulations with an appropriate level of detail in terms of model complexity and yield slate accuracy. o

From the process simulation, simplified models of each option can be developed to represent the process unit(s) in the economic model (in a Linear Program model, for example). The economic model will calculate the variable margin (revenue

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Design Data Requirements

minus feedstock cost and variable operating expense) from which the project economics can be developed. 

With all of this basis information, the process options to deliver the project goals are identified so that their technical feasibility can be investigated.



Any potential issues related to Process Safety, Environmental protection, Occupational Health & Safety and Security must be raised and discussed; particularly as they pertain to selecting the right Process Option.



Likewise, issues that will affect the availability and utilization of the process unit in operation such as on-stream factor (Turnaround frequency, on-stream availability, etc) and operational complexity must be discussed to ensure they are considered in selecting the right Process Option.



All references(applicable Codes, Standards, Procedures, Best Practice, guidelines and reference material) that have guided both the work in compiling the PDB and to be used in further developing the Process Design must be stated.

Completing all sections of the DDR assures that the basis for the project is properly established; that data used is accurate, assumptions are valid, tools used are fit-for-purpose and hence that the basis for all design calculations is robust. The DDR document evolves as the project progresses and more detail is added to the design until the final process design is fixed in the DBSP.

Purpose at Gate The purpose of the DDR at the G1 gate is to assure the Gatekeeper that the basis for design has been properly developed and that the Business Case that was developed was based on a sound technical design commensurate with the level of detail at this stage. The purpose of the DDR at the GAS gate is to assure the Gatekeeper that Project Alternatives that were assessed in FEL-2 (Study) were sufficiently well developed in terms of their technical design; with a robust technical basis commensurate with the level of detail at this stage, to be able to evaluate their technical and economic viability. The purpose of the DDR at the G2 gate is to assure the Gatekeeper that the DBSP has been developed with a robust technical basis to provide sufficient detail to be able to evaluate the technical and economic viability of the selected option. It also provides the definition of the project scope required to provide a cost estimate of sufficient accuracy to meet the requirements of this gate

Front End Loading (FEL)

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Design Data Requirements

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content As discussed above, the DDR is a living document that is updated as the project progresses, more data is developed and more investigation is performed. The sections are revised as per the following table. Sect

Title

Content

FEL-1

1

Scope

2

Feedstocks

3

Products

4

Utilities

5

Process Options

6

Simulations & Calculations

8

HSSE

9

Operability & Reliability

Project scope, objectives, business drivers, risk drivers, constraints, location, proponent, etc Quantity , sources, quality (composition, contaminants), forecast/outlook data, production profiles, battery limits conditions, logistics, source of data, assumptions Desired product slate, product specifications), battery limits conditions, dispositions & logistics, source of data, assumptions. Quantity, quality and battery limits conditions of available utilities (fuel gas/oil, steam, electrical power, cooling water, air, etc.) Feasible Process options to meet the project objectives: new configurations, new process units, new equipment, modifications to existing plant Process models and simulations used to represent the process unit performance as basis for design and economic evaluation; provides estimates of operating conditions, yields, utilities consumptions etc. Issues related to Process Safety, Environmental protection, Occupation Health & Safety, Security. Issues that will affect the availability and utilization of the process unit in operation.

Front End Loading (FEL)

Preliminary

FEL-2 Study Revised

FEL-2 DBSP Final

Preliminary

Revised

Final

Preliminary

Revised

Final

Preliminary

Revised

Revised

Final

Preliminary

Revised

Preliminary

Revised

Preliminary

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10

References

Applicable Codes, Standards, Procedures, Best Practice, guidelines and reference material

Front End Loading (FEL)

Design Data Requirements

Preliminary

Revised

Final

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Book of Deliverables:

VIP – Design for Maintainability Report 8 December 2015

Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents VIP – Design for Maintainability Report ................................................................................................ 5 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Design for Maintainability Report

Deliverable-Specific Objectives The VIP – Design for Maintainability Report reviews the findings from the design for maintainability practice, which attempts to improve the ease of maintenance in a facility.

Definition The goal of the practice is to initiate the consideration of maintainability early in the project planning process and to hold workshops and use best practices and implementation tools to improve the return on investment of projects. The main components of the Report include the following: 

Workshop Plan



Workshop Objectives



Best Practices



Implementation Tools



Conclusions and Recommendations

Purpose at Gate The purpose of VIP – Design for Maintainability Report at Gates AS, 2 (and for consideration at PPA) is: 

To ensure that all maintenance criteria were taken into consideration while completing the project design;



To verify if all practices have been integrated (during Construction).

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Workshop Plan

-

Describes the plan for conducting the workshops during several phases of the project planning process

Workshop Objectives

-

Reviews the workshops in each phase and the maintenance issues that were captured, taking into consideration the objectives of each workshop:

Front End Loading (FEL)

Description

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Design for Maintainability Report

-

Study Phase – To determine if the selection between alternatives would involve maintainability as a factor

-

DBSP Phase – To set and align the maintenance criteria

-

Project Proposal Phase – To specify the maintenance objectives that will drive Execution

-

Execution (Detailed Design) – To validate decisions made in previous workshop remain intact with the final designs

-

Execution (Construction) – to ensure the maintainability practices were integrated into construction

-

Outlines the applicability and method of the maintainability best practices in the industry use (to be discussed during workshops)

-

Includes the existing maintenance and sparing philosophies and logistics to support Operations, as well as highlights the differences/ impact of the new project or new facilities

Implementation Tools

-

Outlines the method of use of the maintainability implementation tools (to be discussed during workshops)

Conclusions and Recommendations

-

Provides final recommendations for improving maintainability

Best Practices

Front End Loading (FEL)

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Book of Deliverables:

Project Environmental Assessments 7 December 2015 Document Responsibility: Capital Program Efficiency Dept.

. Document Responsibility: Capital Program Efficiency Dept.

Project Environmental Assessments

Contents Project Environmental Assessments ....................................................................................................... 1 Scope and Objectives ............................................................................................................................. 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 2 Responsibilities ....................................................................................................................................... 4 Content .................................................................................................................................................... 4 Approval Matrix..................................................................................................................................... 4 Deliverables Schedule ........................................................................................................................... 4 References ............................................................................................................................................... 5 Glossary ................................................................................................................................................... 5 Appendices ............................................................................................................................................. 6

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Project Environmental Assessments

Scope and Objectives The Environmental Aspects Assessment (EAA) shall identify, describe and evaluate environmental aspects associated with proposed projects and recommend measures and alternatives to mitigate any adverse environmental impacts. The EAA deliverables are delineated into three versions characterized by an increasing level of detail: 

Environmental Screening and Scoping Statement – FEL 1



Environmental Impact Assessment (Complete) – FEL 2



Environmental Impact Assessment (MinPet Approved) – PPA

Definition The EAA deliverables include the Environmental Screening and Scoping (ESS) statement that is developed during the Business Case project stage (by FEL Gate 1), the Environmental Impact Assessment (EIA) that is completed by the EIA Consultant during the Design Basis Scoping Paper (DBSP) project stage (by FEL Gate 2) and the completed EIA is Approved by the Ministry of Petroleum and Mineral Resources (MinPet) for Project Proposal (by Project Proposal Approval (PPA)). If there are scope changes that occurred after the completed EIA is submitted by the EIA Consultant, it shall be revised to include those changes before obtaining MinPet approval. The objectives of the ESS are to: 

Categorize the project in terms of potential environmental impact based on PME definitions and SAEP-13 and determine the category of EIA that will be conducted;



Provide environmental assessments early in the project;



Identify any additional requirements for focused environmental studies;



Alert the IPT and design team of any potential environmental concerns that must be addressed in detail in the EIA;



Identify the impacts to be considered as part of the EIA;

For programs that include multiple BIs or phases, the ESS shall include an implementation plan indicating how the major elements of the EIA will be incorporated into the entire project program, incorporating all BI’s. For example, if a site preparation BI is part of a project program, the terrestrial ecology surveys will have to be completed before the scope is finalized for site preparation, but air dispersion modeling cannot be completed until scope is well-developed for process facilities.

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Project Environmental Assessments

The ESS shall also indicate if an environmental risk assessment is required prior to final site selection. For example, a site risk assessment may be recommended for a residential development on a site that is known, or suspected to have been, previously contaminated. A site risk assessment is not a substitute for an EIA. The EIA shall be of sufficient quality to facilitate informed decision making regarding the environmental impacts (positive or negative) during complete life cycle of a project or program. This shall include the design, construction, operation and decommissioning (where applicable) phases of the project or program. All EIAs are subject to review and approval by the Ministry of Petroleum. The objectives of the EIA are to ensure that the proposed project: 

Meets national and Company environmental objectives.



Evaluates project alternatives that would better protect the environment while achieving project objectives.



Complies with all applicable environmental standards in the project design.



Acquires information necessary to obtain any Saudi Arabian Government and Saudi Aramco environmental permits.



Adopts the most cost-effective resource conservation measures.



Identifies and evaluates existing baseline conditions.



Identifies and evaluates socio-economic and public health impacts.



Identifies waste minimization, pollution prevention, water conservation opportunities, and environmental enhancement opportunities that can be cost-effectively implemented during the design, construction and operation phases of the project.



Assesses the potential to reduce greenhouse gas emissions.



Identifies and implements appropriate environmental mitigation and monitoring measures.

The discovery of new information or significant project scope changes that impact a previously completed and approved EIA will require revision and resubmittal of an amended EIA to EPD for approval. The EIA shall be revised and resubmitted whenever there is a significant change in project scope. The MinPet Approved EIA at PPA must include the most up to date changes and shall consider any foreseeable variations in environmental engineering advances or future environmental regulations that could be in effect during the project life.

Purpose at Gate The purpose of Environmental Screening and Scoping at Gate 1 is: Front End Loading (FEL)

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Project Environmental Assessments



To evaluate project site selection alternatives.



To identify and quantify likely environmental risk related to the project of program.



To recommend project alternatives.



To characterize the project Environmental Impact Category.



To determine the exact content and extent of the EIA and any additional studies.

The purpose of the Environmental Impact Assessment (Complete) at Gate 2 is: 

To ensure project scope is compliance with national, company and international environmental standards and requirements.



To identify and describe potential environmental impacts related to project life-cycle and recommend mitigation and monitoring measures.



To evaluate and recommend project Environmental Alternatives.



To ensure that all environmental risks have been identified and addressed early in the project life cycle.



To consider and include any foreseeable environmental engineering technology or environmental regulation that although is not already in place, could be applicable later during project life.



To include an environmental scope completion monitoring plan, oriented to ensure that EIA recommendations are follow up during project life cycle.



To enable complete review by EPD to assure the document is ready for submittal to MinPet. If project scope changes are anticipated, the document will be returned to the EIA consultant to address any additional environmental aspects and impacts.

The purpose of the Environmental Impact Assessment (MinPet Approved) at PPA is: 

To include an assessment of any changes to project scope that occurred after Gate 2 that could be applicable during the project life cycle.



To ensure the revised project scope is still in compliance with national, company and international environmental standards and requirements.



To identify and describe potential environmental impacts related to project life-cycle and recommend mitigation that were not included in the EIA (Complete) delivered at Gate 2.



To consider and include any foreseeable environmental engineering technology or environmental regulation that although is not already in place, could be applicable later during project life as described in the revised scope.



To include an environmental scope completion monitoring plan, oriented to ensure that EIA recommendations are follow up during project life cycle.

Front End Loading (FEL)

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Project Environmental Assessments



To submit the complete and final EIA to MinPet for approval. Note that this approval process typically requires 30-60 days by MinPet.



To submit to the EED Division Head a complete EIA document approved by MinPet, that include all the latest changes in project scope and recommendations.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content 

Environmental Screening and Scoping Statement – FEL 1: The content of the ESS deliverable shall be in compliance with SAEP-13



Environmental Impact Assessment (Complete & MinPet Approved) – FEL 2 & PPA. The content of the EIA deliverable shall be in compliance with SAEP-13 and the approved ESS

Approval Matrix Deliverable IPT EED/EPD Ministry of Petroleum and Mineral Resources

ESS Develop Review/Approval N/A

EIA (Complete) Develop Review/Approval N/A

EIA (MinPet Approved) Develop Review/Approval Approval

Deliverables Schedule In order to accomplish the objective of the EEA documents, complying with the standards and government regulations and maintaining the quality criteria required by Saudi Aramco; following the timelines needed for the deliverables: 

The final ESS shall be submitted to the Division Head of EED for review and approval no more than 15 days before FEL Gate 1.



The Complete EIA shall be submitted to the Division Head of EED for review and approval at 30% project proposal.



The MinPet Approved EIA shall be received back from the Ministry at 90% project proposal. The IPT shall make arrangements to guarantee this timely delivery, taking into consideration the 30-60 days approval period required by MinPet

Front End Loading (FEL)

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Project Environmental Assessments

For additional timelines considerations, please check SAEP-13 Project Environmental Impact Assessments.

References Reference INT-5 INT-11 SAEP-12 SAEP-13 SAES-A-102 SAES–A–104 SAES–A–105 SAES–A–007 SAES–S–007 SAES–A-111 SAES-A–103 SAES–Z–003 SASC-S-003 SAES-S-007 29 GI-0002.714 GI-0150.000 GI-0150.001 GI-0151.006 GI-0430.001 CU 22.03 CU 22.06 Form 7305-ENG Royal Decree M6 Royal Decree M34 Document No.1409-1 ISO 14001 IFC

Description Saudi Aramco Policy Statement No. INT-5, Environmental Protection Saudi Aramco Policy Statement No. INT-5, Water Conservation Project Execution Plan Project Environmental Impact Assessments Ambient Air Quality and Source Emission Standard; Wastewater Treatment, Reuse and Disposal; Noise Control; Hydrostatic Testing Fluids and Layup Procedures; Solid Waste Landfill Standard; Borrow Pit Requirements; Discharges to the Marine Environment; Leak Detection Systems; Solid Waste Management; Solid Waste Landfill Standard; Environmental Protection Policy Implementation Industrial Hygiene and Occupational Health Aspects of Environmental Protection Policy Asbestos Hazard Management Implementing the Saudi Aramco Sanitary Code Implementing The Saudi Aramco Hazardous Waste Code Processing and Handling of Hazardous Materials Disposal of Polychlorinated Biphenyls (PCB) Equipment Noise Data Sheet “Regulation for Sanitary Wastewater Treatment, Disposal and Reuse”, Ministry of Municipality and Rural Affairs “General Environment Regulation”, Presidency of Meteorology and Environment Environmental Protection Standards in the Kingdom of Saudi Arabia, Presidency of Meteorology and Environment Environmental Management Systems Requirements with Guidance for Use International Finance Corporation Performance Standards on Environmental and Social Sustainability

Glossary Front End Loading (FEL)

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CER Units DBSP EED EIA EPD ER ERA ESS FEL FPD GER Min. Pet PME RAPID

Project Environmental Assessments

Certified Emission Reduction (CER) units per Kyoto Protocol Design Basis Scoping Paper Environmental Engineering Division Environmental Impact Assessment Environmental Protection Department Expenditure Request Expenditure Request Approval Environmental Screening and Scoping Front End Loading Facilities Planning Department General Environmental Regulations Ministry of Petroleum and Mineral Resources Presidency of Meteorology and Environment (Recommend, Agree, Perform, Input, Decide) is a methodology that clarifies roles and responsibilities in the work process related to the development of the deliverable

Appendices Appendix Name A Value Assurance Checklist for the Environmental Assessment

Use To be used by Value Assurance upon receiving the FEL 1-2-3 deliverables for the Project Environmental Assessments in order to ensure proper completion.

Environmental Screen and Scoping Statement (ESS) Section of Deliverable Executive Summary Environmental Screening Project Classification EIA Scoping ESS approval by EED/EPD General Supervisor

Complete?

Notes

Complete?

Notes

Environmental Impact Assessment (Complete) Category – 1 Projects Section of Deliverable Introduction Project Data (Name, Location) Description of the activities Front End Loading (FEL)

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Project Environmental Assessments

Description of Construction activities Identification of sensitive receptors Permits and licenses ESS comments and scope integrated in the EIA DBSP approval by EPD Manager EIA approval by Ministry of Petroleum and Mineral Resources Category – 2 Projects Section of Deliverable Project Data (Name, Site) Description of the activities Construction activities Brief description of the project Volumes of inputs and consumables during construction and operations Volumes of outputs, emissions, and wastes Initial analyses of the environmental impacts Description of the control and mitigation procedures and technologies for the various impacts Permits and licenses ESS comments and scope integrated in the EIA DBSP approval by EPD Manager EIA approval by Ministry of Petroleum and Mineral Resources

Complete?

Notes

Complete?

Notes

Category – 3 Projects Section of Deliverable Executive Summary Policy, Legal, and Administrative Framework Project description Baseline Data Environmental and Social Impacts Analysis of Alternatives Waste Minimization Assessment Assessment of Potential to Earn Certified Emission Reduction (CER) Credits Mitigation Plan Environmental Management and Training Environmental Monitoring Plan Front End Loading (FEL)

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Project Environmental Assessments

ESS comments and scope integrated in the EIA DBSP approval by EPD Manager EIA approval by Ministry of Petroleum and Mineral Resources

Front End Loading (FEL)

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Book of Deliverables: Energy Optimization Study 1 November 2015 Document Responsibility: Capital Program Efficiency Dept.

Contents Energy Optimization Study ...................................................................................................................... 1 Scope and Objectives ............................................................................................................................. 1 Methodology........................................................................................................................................... 1 Purpose at Gate ...................................................................................................................................... 1 Applicability ........................................................................................................................................... 2 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2 References ............................................................................................................................................... 3 Glossary ................................................................................................................................................... 3 Appendices ............................................................................................................................................. 3

. Document Responsibility: Capital Program Efficiency Dept.

Energy Optimizing Study

Scope and Objectives The objective of Energy Optimization Study is to ensure that the most energy efficient and technoeconomically viable site-wide design has been achieved for both industrial and non-industrial related projects. It examines the power and heating requirements for a particular process and attempts to maximize the total return based on selecting the most economical methods of heat and power recovery (therefore optimizing life cycle costs) it also examines electrical consumption and most economic methods for EUI “Energy Use Intensity”, kWh/m2/yr reduction in nonindustrial applications. This document provides an overview of the Energy Optimization Study together with the definition of the relevant content to be developed. The objectives of the document are: 

To ensure the development of the required contents of the Energy Optimization Study



To provide clear responsibilities in the development of the document (RAPID)i



To provide a readiness checklist template for the Assurance Review

Compliance with the definitions and instructions contained in this document are required to ensure a quality development of the deliverable. If there is a change in the content of a deliverable after it has been approved at a Gate or Checkpoint, the team must go through the relevant processes outlined in the Gate Operative Manual.

Methodology The method of analysis is based on engineering analysis and simulation models. The main components of the energy optimization study include the following: 

Project Information and design basis



Engineering analysis and simulation Outcomes



Key Impact



Conclusions and Recommendations

Purpose at Gate Capital budget shall be allocated for conducting the Energy Optimization Study at FEL 1. The Energy Optimization Study shall be started at FEL2- study phase and completed by FEL-2 DBSP phase. The study shall be conducted in coordination with Energy Systems Division of P&CSD. The study shall be comprehensive and shall evaluate technically viable design alternatives during Alternative Evaluation stage after confirming key project data and licensors information. The objectives of the study conducted at FEL2 are: 

To ensure the most energy efficient and techno-economically viable site-wide design has been reached



To ensure the best-side wide synergy for utility-process systems integration is achieved

Front End Loading (FEL)

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Energy Optimizing Study



To ensure the efficient low grade waste energy systems have been selected



To ensure the most economical methods of power generation and recovery systems, cooling systems and heat recovery systems have been selected



To ensure life cycle costs of energy systems* are optimized through analysis of simulation and optimization models *.



Notes:



During the 30% project proposal (PP) in case ESD/P&CSD project review team identified certain energy efficiency initiative worthwhile further assessment, then a dedicated energy optimization study for that particular initiative shall be conducted prior to releasing 90% PP.



Energy optimization study shall be conducted according to the standards referenced in this document and shall comply with LEED Integrative Process requirements for non-industrial buildings



Energy System Division design review team shall be part of the Value Assurance meetings



Energy systems mainly include: heat exchanger network, cooling water network, combined heat and power network, steam system, low grade heat streams, heat recovery and power recovery network, building envelope, HVAC, lighting, hot water services and appliances.

Applicability A-type projects B-type projects C-type projects C1-type projects

Applicable Applicable Applicable Not Applicable

Responsibilities

Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Project Information

Front End Loading (FEL)

Description -

Summarizes important project information, with terms and definitions

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Engineering analysis and simulation Outcomes Key Impact Conclusions and Recommendations

-

Energy Optimizing Study

Describes the key outcomes of the simulation model (optimization of processes based on thermal efficiencies) Describes the impact of the simulation results on the process/facility configuration and systems design Outlines the key recommendations and takeaways from the model, and describes a high-level plan going forward to improve the energy efficiency of the facility

References Reference SAEP-367 SAEP-42 SAES-A-502 SABP-A-005 SAES-A-503 SAES-A-504

Description Value Improvement Practices Requirements Capital Projects Energy Efficiency Optimization Combined Heat & Power Complex Systems Optimum Design Energy Assessment Methodology for Energy Efficiency Optimization Energy Efficiency Non industrial buildings Energy Efficiency for Residential buildings

SABP-A-052 SABP-K-004 SABP-K-006 SABP-A-058

Non-Industrial Energy Use Intensities (EUI) Non-Residential Buildings Energy Audit Procedures Residential Buildings Energy Audit Procedures Recommended Consultants for Industrial/Non-Industrial Energy Assessment Studies

Glossary FEL Front End Loading RAPID (Recommend, Agree, Perform, Input, Decide) is a methodology that clarifies roles and responsibilities in the work process related to the development of the deliverable

Appendices Appendix A

Name Value Assurance Checklist for Energy Optimization Study

Use To be used by Value Assurance upon receiving the document to ensure proper completion A. Value Assurance Checklist for Energy Optimization Study Project Title Project BI Code Deliverable Name Date of Completion Date of Acceptance Deliverable Waived? Front End Loading (FEL)

Energy Optimization Study

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Energy Optimizing Study

Verification of Function involvement (as of RAPID) Input (I) Agree (A)

Verified?

Notes

Section of Deliverable Project Information Simulation Outcomes Key Impact Conclusions and Recommendations

Complete?

Notes

Front End Loading (FEL)

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Book of Deliverables:

Facilities Security Assessment Report (FSAR) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Document Responsibility: Capital Program Efficiency Dept.

Facilities Security Assessment (FSAR)

Contents Facilities Security Assessment Report (FSAR) ....................................................................................... 1 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Facilities Security Assessment (FSAR)

Deliverable-Specific Objectives The Facilities Security Assessment Report identifies the security needs and requirements related to facilities, and proposes the necessary security items to be implemented.

Definition The security needs are analyzed, proper security diagrams are drawn, and specific items are identified to be implemented to meet the security needs. The main components of the document include the following: 

Background Information



Security Analysis



Security Diagrams



Recommendations

Purpose at Gate The purpose of the Facilities Security Assessment Report at Gate 2 is: 

To ensure all security issues have been identified;



To ensure the security needs of the facility have been properly addressed through any additional significant security requirements.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Background Information

-

Security Analysis

-

Front End Loading (FEL)

Description Provides the necessary background information on the project, and if a contractor is involved, significant additional information is provided (including interpretation, tender submissions, design and management responsibilities, security documents, control of quality, installation, systems integration, inspection and testing, maintenance contracts, and handover) Reviews the security needs of the facility, including: o Threat level o Need for walled areas o Entry points o Utilities o Residences o Vehicular and pedestrian circulation Page 1 of 2

Document Responsibility: Capital Program Efficiency Dept.

Security Diagrams

-

Recommendations

-

Front End Loading (FEL)

Facilities Security Assessment (FSAR)

o General building security o Plant networks and security requirements Reviews the security requirements in a sketch format (showing multiple options if available) Provides specific items to implement to attain the necessary security for the facility

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Book of Deliverables:

Facility Security Assessment for IT (FSA) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Document Responsibility: Capital Program Efficiency Dept.

Facility Security Assessment for IT (FSA)

Contents Facility Security Assessment for IT (FSA) .............................................................................................. 1 Deliverable-Specific Objectives ............................................................................................................ 3 Definition................................................................................................................................................. 3 Purpose at Gate ...................................................................................................................................... 3 Responsibilities ....................................................................................................................................... 3 Content .................................................................................................................................................... 3

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Facility Security Assessment for IT (FSA)

Deliverable-Specific Objectives The Facility Security Assessment for IT deliverable is a document that describes the assessment of existing facility IT systems in order to identify risks and vulnerabilities.

Definition The assessment also outlines the organizational and technical measures / solutions to put in place in order to ensure full security to data and systems. The main components of the Assessment include the following: 

Introduction



Existing Facility IT Assessment



Measures and Solutions

Purpose at Gate The purpose of the Facility Security Assessment for IT at Gates AS and 2 is: 

To verify that all the measures aiming to ensure full IT security are identified;



To verify the proper organizational and technical solutions are identified.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Facility Security Assessment for IT (FSA)

Content Section Introduction Existing Facility IT Assessment

Measures and Solutions

Front End Loading (FEL)

Description

-

-

Brief description of project’s scope, existing and proposed facilities Analysis of: o IT Systems o Data Storage o Networking (LAN, WAN) o Monitoring Systems o Backup and Recovery Systems o Disaster Recovery Systems o Other IT Systems (SACS, etc…) Identification of critical issues / vulnerabilities Description of organizational and technical solutions in order to fix the identified vulnerabilities

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Book of Deliverables:

Land Use Permit 8 December 2015

Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Land Use Permit ......................................................................................................................................... 5 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Land Use Permit

Deliverable-Specific Objectives The Land Use Permit (LUP) is a document required to ensure that the site selected for the project will be available for use. It aims that all required permits (internal and external) have been identified and approved.

Definition The Land Use Permit (LUP) is to be completed in two phases. The LUP (Initial) is to be started in the Study phase, while the Land Use Permit (Approved) is in the DBSP Phase when approval is expected to be complete. The approved LUP should be obtained before issuing the draft Design Basis Scoping Paper (DBSP) for review. This LUP should be tentatively approved to confirm that there is no conflict regarding ownership of the designated site for the proposed facilities. The LUP should also be included in the draft DBSP for review and the final DBSP issued for approval, as it may have specific conditions to be met.

Purpose at Gate The purpose of the Land Use Permit at Gates AS and 2 is: 

To ensure that the required steps are being taken for proper site selection by considering legal aspects such as land ownership;

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Land Use Permit Request (Study phase)

Description -

List of required permits and status The Land Use Permit is a standard document outlining general land-use guidelines (e.g. setbacks, landscaping, etc…) and other specific conditions. Request for land use must be sent to the appropriate authority (either Saudi Aramco or the Saudi Government) Additional work should be performed in relation to land use if there are exceptional circumstances, for instance if the facility includes power stations, then a Ground Potential Rise (GPR) study shall be conducted. The study will insure that no communications cables are near the power substations (as requested by SAE-T-903 and SAES-T-887) to avoid any safety concern regarding flowing current that may result in personal fatality or property damage.

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Document Responsibility: Capital Program Efficiency Dept.

Land Use Permit Approval (DBSP phase)

-

Land Use Permit

List of required permits approved The land use permit must be approved by the appropriate authority (either Saudi Aramco or the Saudi Government) The LUP must be approved based on similar conditions as that which will be detailed in the DBSP deliverable, with no additional conditions appended to the DBSP Team must ensure that the LUP has sufficient validity (in terms of years) to complete the project design, in order for the project not to be put on hold in later phases due to an expired LUP

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Book of Deliverables:

Operational Readiness Plan Strategy (ORP) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Document Responsibility: Capital Program Efficiency Dept.

Operational Readiness Plan Strategy (ORP)

Contents Operational Readiness Plan Strategy (ORP) .......................................................................................... 1 Deliverable-Specific Objectives ............................................................................................................ 2 Definition................................................................................................................................................. 2 Purpose at Gate ...................................................................................................................................... 3 Responsibilities ....................................................................................................................................... 3 Content .................................................................................................................................................... 3

Deliverable-Specific Objectives The Operations Readiness Plan (ORP) ensures that Facilities are designed, built, commissioned and started up taking into account lifecycle Operations requirements. This will lead to a safe, cost effective and quick ramp up to target production levels. ORP will ensure that facilities are ready for reliable production at the handover of ownership from the Project Team to the Operations team and into the first period of production.

Definition The ORP describes how the “project” will transition into an “operating facility” and what “operational-type” steps must be taken along project planning and execution path to have a flawless start-up and initial operations. Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Operational Readiness Plan Strategy (ORP)

The ORP includes, but is not limited to, development of: 

Operations and maintenance organizations



Hiring and development plan for required resources



Operations and Maintenance strategies



Health, Safety & Environment (HSE) Management



Commissioning and Start-up plan



Interface plan with EPC and other contractors and vendors

The Project Sponsor verifies that a plan has been defined to address and anticipate all operational readiness issues and associated risks and how they are all addressed early in the project and updated/managed along the way. The Senior Operations Representative is the day-to-day developer and driver of the ORP and it is their guide across all Phases of the project that will lead them through a successful start-up and operations.

Purpose at Gate The purpose of the Operational Readiness Plan at Gates 1, 2, and 3 is: 

To verify that a plan has been defined to address and anticipate operational readiness issues (for Gate 1);



To ensure the project’s development activities are comprehensive of those initiatives and resources which allow for optimization of operations and maintenance (O&M) costs (for Gates 2 and 3).

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content

Section FEL 1 Business Case Phase

Description

 Describes what will be done to develop the ORP across each Phase of the project and outlines Table of Contents with some early writing in the sections that are already known at this time

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FEL 2 DBSP Phase

Operational Readiness Plan Strategy (ORP)

 Provides high level operability and maintainability assessment, manpower planning, potential risks, IT systems and data readiness, supply chain readiness, and HSE  The main components of the ORP include: o Operational Planning: Describe and integrate all the elements that will lead to operations in terms of personnel, HSE, operations and maintenance procedures, introduction of feedstock, quality assurance and control, etc. -

-

-

-

Define maintenance-related activities/deliverables that will be affected by operations (e.g. the VIP Design for Maintainability and Predictive Maintenance workshops that are held in key Phases of the project)? Ensure that all elements of operational planning are clear in project estimates and budgets as well as project schedules Describe and plan for how major equipment planning, design/procurement affect various operational aspects of the facility. Reference major, critical events and define how they contribute to operational excellence, e.g. HAZOPs, Plot Plan arrangement decisions, etc. Outline the systems, e.g. all process systems, information technology systems (including communications, SCADA, etc.)

o Risk: Identification of risk that can affect any stage of the project, thus affecting start up and operations as well as outlining mitigation actions o Organization: Define the operating organization in terms of: -

Operation manpower required during project phases and operations Mobilization plan for operations personnel Training plan for operations personnel

o Maintenance: Determine expected levels of maintainability and drive the maintainability requirements into the designs with total installed cost and lifecycle costs as key considerations tied to overall operability o Pre-Commissioning, Commissioning and Start-up: -

-

Describe how the operations organization will be involved in the Pre-Commissioning activities and how Pre-Commissioning will transition into Commissioning Define the Commissioning Plan Explain the strategy for Start-up tying it to the VIP Planning for Start-up

o Support for Operations: Describe all facility support functions and their integration with operations (HSE, plant engineering, utilities, energy management, etc.) Front End Loading (FEL)

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Operational Readiness Plan Strategy (ORP)

After FEL 2 Each subsequent reference to the ORP is to “Update” it as the project DBSP Phase progresses. For example: FEL 3 Project Proposal:



  

Start-up sequencing, e.g. outlining clear requirements of what will be done in Detailed Design, such as start-up sequencing plan with phases and boundaries, etc. Outline of what operations will carry out in each phase. Others are detailing all parameters of shutdowns and other applicable major events like outlining vendor assistance, etc. Etc…

Execution Phase (Detailed Design):

 

  

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Develop the start-up sequencing plan with a clear breakdown of the facility into start-up phases and associated systems, etc. Outline the prerequisites actions, documentation and steps to be carried out by operations (initial start-up procedures of each phase), etc. Estimate schedule duration and manpower for all commissioning and start-up activities, etc. Commodities requirements for vendors, etc. Etc…

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Book of Deliverables:

Plot Plans 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

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Contents Plot Plans ..................................................................................................................................................... 6 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

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Plot Plans

Deliverable-Specific Objectives The Plot Plans provides a drawing describing the location of the proposed / existing facilities, as well as the interfaces among them.

Definition The Plot Plans is a document which is developed in FEL 2 – DBSP phase. The main components of the document include the following: 

Introduction



Plot



Technical Notes

Purpose at Gate The purpose of the Plot Plans at Gate 2 is: 

To verify that the necessary drawings of the proposed and existing facilities completed and included;



To verify that technical specifications are consistent with project requirements.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Introduction

-

Description

Plot

-

Technical Notes

-

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Description of the project’s plot plans and consistency compared to the project’s specifications and constraints Drawing including facility and equipment location on the selected site (a schematic with dimensions and measurements) If the drawings are provided in software format, provides details regarding the minimum computing requirement and software compatibility Location coordinates Drawing scale Reference drawings (including Title, Plant, Drawing N°) Revision Data o Version number o Date Page 1 of 2

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Plot Plans

Preparation Revision Approval

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Book of Deliverables:

Preliminary Hazards Analysis 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

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Contents Preliminary Hazards Analysis ................................................................................................................. 3 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

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Document Responsibility: Capital Program Efficiency Dept.

Preliminary Hazard Analysis

Deliverable-Specific Objectives The Preliminary Process Hazard Analysis (Workshop) is a meeting conducted to identify potential large scale hazards and accidental events early in the design of the project.

Definition The hazards are evaluated based on severity, and recommendations are made to mitigate them. This is undertaken in the DBSP phase while there is sufficient time to make modifications in the design. The main components of the document include the following: 

Project Overview



Preliminary Hazard Analysis



Preliminary Hazard Analysis Workshop



Hazards, Risk Ranking, and Recommendations

Purpose at Gate The purpose of the Preliminary Process Hazard Analysis (Workshop) at Gate 2 is: 

To ensure all potential hazards have been identified and analyzed;



To ensure a mitigation plan has been put in place to cover sever hazards.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Project Overview

Description -

Preliminary Hazard Analysis

-

Preliminary Hazard Analysis Workshop Hazards, Risk Ranking, and Recommendations

-

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-

Provides brief background information on the project and details the Saudi Aramco standards/material system specifications, industry standards, and other references used in support of the analysis Highlights the objectives and methodology of hazard analysis, including the ranking scheme and severity definition o Includes access and evacuation data in the hazard analysis Outlines the details of the workshop (time, date, attendees, topics, etc…) Details the hazards identified in the workshop, their ranking based on the severity and likelihood levels, recommendations to mitigate these hazards, and where the responsibility falls to accomplish this

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Book of Deliverables:

FEL 2 DBSP- Procurement Strategy and Material Procurement Plan (EMS) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

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Contents FEL 2 DBSP- Procurement Strategy and Material Procurement Plan (EMS) .................................... 2 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 2 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2

Deliverable-Specific Objectives Procurement Strategy and Material Procurement Plan describes the potential strategies for the different procurement options available including: 

how the major equipment and materials for the project will be procured and their movement;



Identification and evaluation of major surplus equipment and excess materials that are currently available within Saudi Aramco’s inventory for potential use on the proposed project;



Should define the proposed procurement and traffic responsibilities of Saudi Aramco and the Contractor(s);



Details the various strategies that could be used to source equipment and materials through consideration of consolidation of material procurement across like projects to realize economies of scale, standardization of equipment and materials and the total cost of ownership from design, installation/commission through to maintenance contracts; o

The above should form a part of the initial review and strategy development within FEL 1 and FEL 2 Study phase.



Should take into consideration the guidelines of SAEP-125, Saudi Aramco Engineering Standards, SAEP-341, Life Cycle Cost and the Saudi Aramco Procurement Manual



Should address the use of existing Corporate Purchase Agreements (CPAs)

Definition Procurement Strategy and Material Procurement Plan key components include the following: 

Initial

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

o

Project Background

o

Exceptional Items

o

Current Aramco Inventory

o

Potential Utilization

o

Procurement Strategies

o

Recommendations

EMS 4

Final o

Project Background

o

Exceptional Items

o

Procurement Plan

Purpose at Gate The purpose of the document is: 

To identify the main strategies that can be used for procurement of equipment and materials ensuring that the methods for procuring the necessary equipment and materials have been detailed



To verify the procurement needs for the project; including analysis performed to ensure that: o

All equipment and materials available have been analyzed for use in the proposed project;

o

The alternatives have been identified (including using existing company inventory).



To ensure clear identification of long lead items.



To identify the maximum cost-effective procurement strategy taking into account consolidation, standardization and total cost of ownership.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Procurement Strategy and Material Procurement Plan (Initial).

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EMS 4

Section Project Background

-

Provides important project background information that highlights the main procurement requirements for the project (description of equipment and materials necessary for the proposed project)

Exceptional Items

-

Highlights those items (i.e. long lead items) that require special early attention from a procurement perspective in order to avoid delays in project execution

-

Outlines the current surplus inventory at Aramco

-

Determines whether the surplus inventory at Aramco can potentially be used for the proposed project as an alternative to external equipment and materials procurement

Current Aramco Inventory and potential utilization

Description

o

Methods of transferring equipment should be performed as per Saudi Aramco standard procedures

o

Also details the level of vendor support

-

Also determines if the project will be able to salvage equipment to send to either a warehouse, to be used for a future project, or support existing equipment

Procurement Strategies

-

Details the various strategies that could be used to source equipment and materials, including internal sourcing (using existing inventory), external sourcing, and external sourcing via a contractor

Recommend ations

-

Provides a recommended strategy for procurement of materials (to be used and detailed further in the Project Proposal Phase)

Procurement Strategy and Material Procurement Plan (Final) Section Project Background Exceptional Items

-

Description Provides important project background information Highlights those items (i.e. long lead items) that require special early attention from a procurement perspective in order to avoid delays in project execution

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Procurement Plan

-

EMS 4

An initial plan must be developed covering how to complete the following items: o Purchasing requisitions o Requisitions for quotation o Participation of Saudi suppliers and manufacturers o Technical and commercial bids evaluation o Bid receipt/opening, short lists o Technical appraisals o Purchase order award determination o Contractor’s purchase order o Saudi Aramco purchase order number o Vender order acceptance o Expedition o Vendor inspection o Expedition and handling of vendor documentation and data o Meetings with vendors o Certification of compliance of vendor materials o Transportation activities o Subcontract administration o Periodic procurement reports

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Book of Deliverables:

Project Charter 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

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Contents Project Charter ............................................................................................................................................ 5 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 2 Appendices ............................................................................................................................................. 3

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Document Responsibility: Capital Program Efficiency Dept.

Project Charter

Deliverable-Specific Objectives The Project Charter is a detailed project description that outlines the project’s business objectives and provides certain parameters and project planning information necessary to deliver a comprehensive understanding of project issues and outcomes. It encompasses not only the project objectives, but also expected benefits and risks, identification of viable alternatives and rationale for performing the project (compared to other potential projects).

Definition The approved Project Charter formally initiates the project. The Charter provides stakeholders and decision makers the information necessary to ensure a common and sufficient understanding of the project objectives and the work to be accomplished to deliver the new facilities. It delineates responsibilities and aims to obtain commitment from all personnel involved in the project. It serves as a reference for project and facilities performance measurement, based on key objectives, targets and outcomes. The components of the document include the following: 

Project Overview



Project Scope



Roles & Responsibilities



Limitations



Timeline & Milestones



Success Factors

Purpose at Gate The purpose of the Project Charter at Gates 1, 2, and 3 is: 

To ensure that the key elements of project management have been identified (such as objectives, roles and responsibilities, scope, limitations, success factors, etc…);



To ensure the charter has been properly updated to match new developments in project cost, scope, and schedule.

Responsibilities Please refer to the RAPID matrix in CPED web site:

https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

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Project Charter

Content FEL 1: Business Case: Initial Section Project Overview

Project Scope

Roles & Responsibilities Limitations

Timeline & Milestones Success Factors

Description Provides important background information on: - Project Purpose; what is the project setting out to accomplish in support of the organization’s strategy? - Project objectives; what are the major business objectives that will be met in order to implement the vision? What are the net benefits that would likely be realized, expected life cycle costs, impact on Saudi Aramco’s manpower and net direct expenditures (NDEs) - Should address the alignment between the proposed project and the company’s Investment and Master Plans - Should address any synergies between the proposed project and other ongoing and/or future projects - Should describe the economic value of the project, major risks and potential impacts, and develops a preliminary economic model for each viable alternative - Details the scope of the project, including information on the current situation and ongoing initiatives, should address new work, technology, processes, applications and/or locations involved or affected by this project - Project Deliverables; what are the major elements that will be delivered to meet the scope, objectives and purpose of the project? - Defines the roles and responsibilities of the stakeholders involved in the project planning process, including accountabilities and checks and balances - Outlines the members of the project team (including project sponsor and project leader) as well as their roles and responsibilities - Outlines any foreseeable limitations for project success - Identify any known risks (including current issues) that could impact the project along with their likelihood of occurring, impact on the project and mitigations - Highlights the key phases or milestones and timeline of the project going forward - Project Plan; overview of how the project will be implemented, including strategy - Outlines the key success factors for the project, including targets and outcome expectations - Summarizes the key questions to address for the project, including how to define the baseline and metrics

The Project Charter is updated only when we learn something new or conditions change. FEL 2: Study: Updated In the Study Phase, any significant changes to the project previously defined need to be articulated, particularly if such a change may increase costs, schedule or have other significant impacts upon the whole project. Front End Loading (FEL)

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Document Responsibility: Capital Program Efficiency Dept.

Project Charter

FEL 2: DBSP: Updated Updates in the DBSP Phase, need to focus on requirements as per the Study Phase, in addition if no significant changes, ensure that the Scope is updated and realistic, particularly in relation to economic value that supports the business case and the economics evaluation of the alternatives. FEL 3: Finalize FEL: Final Update as per FEL 2 above, and in particular focus upon the final business case economics to determine if they have altered, and if any changes ned to be taken into consideration.

Appendices Appendix Name A Value Assurance Checklist for the Project Charter

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Use To be used by Value Assurance upon receiving the document to ensure proper completion

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Book of Deliverables:

Project Close-Out Report 7 December 2015 Document Responsibility: Capital Program Efficiency Dept.

. Document Responsibility: Capital Program Efficiency Dept.

Project Close-Out Report

Contents Project Close-Out Report .......................................................................................................................... 1 Scope and Objectives ............................................................................................................................. 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2 References ............................................................................................................................................... 4

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Project Close-Out Report

Scope and Objectives This document provides an overview of the Project Close-Out Report document together with the definition of the relevant contents to be developed. The objectives of the document are: 

To ensure the development of the required contents



To provide clear responsibilities in the development of the document (RAPID)



To provide a readiness checklist template for the Assurance Review

Compliance with the definitions and instructions contained in this document are required to ensure a quality development of the deliverable. If there is a change in the content of a deliverable after it has been approved at a Gate or Checkpoint, the team must go through the relevant processes outlined in the Gate Operative Manual. Deliverable-Specific Objectives: The Project Close-Out Report deliverable is a document providing comprehensive, consistent and reliable historical project information describing all project phases. Progressive (phase wise) Project closeout reports are generated in accordance with SAEP-329 - “Project Close-out Report”.

Definition The main components of the document include the following: 

Deliverables Checklist



Project Summary



Cost and Man-hours



Schedule and Staffing Profile



Material



General



After Action Review Meeting Minutes

Purpose at Gate The purpose of the Project Close-Out Report is: 

To provide information as a basis to support the planning, appraisal and execution of the following projects.

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Project Close-Out Report

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Description Project Summary - The Executive Summary includes: -

-

-

-

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BI and Department Representatives information Project Execution Plan (PEP): a copy of the of the PEP that are prepared and approved as per SAEP-12 ATP Capital Efficiency’s implemented deliverables (copy), such as Opportunity Statement, Sponsor Nomination, Due Diligence Report, List of the approved Deliverable Waiver Requests, Project Charter, Operational Readiness Plan, Target Setting, Assurance Review Reports (including Peer Review Reports) etc. Design Deficiencies matrix Logs of approved Scope Change(s), Project Change Request(s) and Change Order(s) Summary of Achievements and Successes: Attach list of achievements and successes experienced by the project. Briefly describe the project’s accomplishments and compare to the initial scope, baseline cost, schedule, and the original premises for financial evaluation. In addition, address any special project execution techniques, if applicable Major Issues: Attach list of major issues with concise narratives encountered during the phase, i.e., issues related to site access, constructability, historical landmarks, obstructions during excavation, etc. Value Improvements Practices outcome implementation reports Contractor(s) Performance Evaluation Report(s): Provide end-of-phase Performance Evaluation Report for each engineering contractor. In addition, include a narrative to address each contractor's performance in schedule, cost, quality, and safety. Also, provide a copy of the performance evaluation report for the engineering contractor(s) at the 90% construction stage (submission at MC) as viewed from the Construction Agency’s perspective. Also, provide a copy of the performance evaluation report for the engineering contractor(s) at the 90% construction stage (submission at MC) as viewed from the Construction Agency's perspective. Average Project Quality Index from contract award to final MCC and log of NonConformance Reports Average Project Safety Index from contract award to final MCC Copies of the following reports and certificates: o Final Project Planning Update Report (PPU) o Preliminary Engineering Statistics Report (PES) o Monthly Project Update Report (MPU) o Detailed Engineering Statistics Report (DES) o Project Completion Schedule (PCS) o Mechanical Completion Certificate Page 2 of 4

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Cost and Manhours

-

-

Schedule and Staffing Profile -

-

Material

-

-

-

General

-

-

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Project Close-Out Report

o Performance Acceptance Certificate For each contract and/or contractor location (IK/OOK), phase-wise total planned and actual costs and man-hours information for the Construction Agency (including SMP, Project Management Contract, etc.). The total cost should include labor, vehicles, aircraft costs, business trips, consumable or non-consumable office supplies or material and other Construction Agencyassociated charges for the project. Planned and actual costs and man-hours information for each Contractor (including engineering contractors) involved in the project. All costs and manhours associated with change orders, manufacturer bid equalization, commissioning assistance, surplus material, stand by time/delay costs, incidental services, or any other payments incurred by the contractor toward the execution of the contract should also be accounted for. o Planned and actual key milestone dates for all FEL, execution and handover phases. Include reasons for variances where planned and actual milestone dates differ. Critical Path Method (CPM) work schedules including approved original schedule, approved revised baseline schedules, and last updated schedule for the Project Proposal, Engineering, Procurement, and Installation and Commissioning (EPIC) stages. Construction Agency (including SMP, PMC etc.) and contractor’s monthly planned and actual man-hours and histogram/staffing profile with table indicating discipline and the consolidated total man-hours associated with the for the Project Proposal, EPIC stages. Cost o Direct charge material o SAMS material o Contractor Supplied material Volumes o Quantity Metrics providing data related to the quantities of the main equipment and bulk materials acquired, finally installed and used within the project Schedule o Engineered material / equipment duration (Long Lead) o Attach electronic copy of the latest DC material status report Waivers log (if applicable) which contains the approved waivers (see SAEP302) that allow non-compliance to the Mandatory Saudi Aramco Engineering Requirements (MSAERs). List of: o Permits (environmental, land use, or other critical safety or regulatory compliance permits) required for the project o Licensor agreement(s), if applicable, and deliverables list of the agreement. Also provide recommendations about the appropriate timing for the award of Licensor agreements relative to the timing of the Project Proposal contract and any best practice that could be useful to other projects. Project Records Archiving and Disposal Page 3 of 4

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Project Close-Out Report

Project Records archiving and disposal. Provide a directory of where vital project data and documents produced during the project cycle are stored or archived and the archival point of contact (if applicable), per the requirement of SAEP-122. Provide minutes of the After Action Review (AAR) meetings in conjunction with Lessons Learned Collection sessions (see SAEP-367) to be held at: o Project Proposal completion o Mechanical Completion The purpose of these meetings is to identify and record lessons learned that could be used to improve the planning and execution of future projects. o

After Action Review Meeting Minutes -

References Reference SAEP-329

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Description Project Closeout Reports

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Book of Deliverables:

Project Execution Plan (PEP) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

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Contents Project Execution Plan (PEP) .................................................................................................................... 5 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2 References ............................................................................................................................................... 3

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Document Responsibility: Capital Program Efficiency Dept.

Project Execution Plan (PEP)

Deliverable-Specific Objectives The Project Execution Plan (PEP) is a strategic planning document that defines objectives, plans, requirements and related information necessary for optimum project execution. It is a master reference guide that promotes common understanding and alignment of all project participants.

Definition The PEP serves as a communications and coordination tool that formally establishes the Project Manager’s front-end project planning, with emphasis on identifying issues critical to project success and defining strategies to address these issues. In one comprehensive document, the PEP relates the approved project scope with contracting and material procurement plans, cost information, summary schedules, value practices implementation, risk management, departmental responsibilities, and SAPMT staffing requirements. The main components of the document include the following: 

Project Summary



Procurement & Construction



o

Contracting Strategy

o

Material Procurement Plan

o

Pre-Commissioning, Commissioning, and Start-up Plan:

Management o

Project Cost

o

Project Schedule

o

Project Organization and Interfaces

o

Project Safety and Environmental

o

Contractor Saudization Plan

o

Maximizing In-Kingdom Engineering, Procurement and Construction Work

o

Projects within Existing Facilities (Non-Grass Roots)

o

Areas of Concern

Purpose at Gate The purpose of Project Execution Plan at Gates 1 and 2 (and to be considered for PPA) is: 

To ensure that the key elements of the execution plan have been outlined and developed and a strategy has been outlined to implement that plan;



To ensure the development of a detailed methodology for the PEP has been developed and an analysis performed on how the project objectives will be met.

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Project Execution Plan (PEP)

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Project Summary

Description -

Provides a brief synopsis of the objectives, scope, and current progress status of the project

Contracting Strategy

-

Material Procurement Plan

-

Pre-Commissioning, Commissioning, and Start-up Plan:

-

An overall execution plan for the contracting strategy is highlighted, which addresses all aspects of the work that must be developed and presented to management at an early stage of every project. An overall execution plan for material procurement, which addresses project material requirements, their procurement and movement. It should define the proposed procurement and traffic responsibilities of Saudi Aramco and the Contractor(s). An overall execution plan for the startup plan, which addresses the roles and responsibilities of key persons and organizations, as well as the timing of startup planning and execution activities.

Procurement & Construction

Management

Project Cost

-

-

-

Project Schedule

Project Organization and Interfaces Project Safety and Environmental Contractor Saudization Plan

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-

-

An overall execution plan for the Preliminary Engineering Funding and Prior Approval Expenditure Request (PAER) Funding requirements (if applicable), and plans for the final estimate preparation. Also, describe the project budget amount and provides a summary of its major elements of engineering, material, and construction if available. Describes the basis of the current estimate and identifies any critical cost items that will require special attention to avoid cost overruns (to be updated continuously as estimates are updated) Captures any special contract/services the company may have, such as with SEC, to complete the project. Describes the strategies to be utilized to ensure effective cost control and accurate cost reporting throughout the project Describes the summary logic, interdependencies and contracting strategy used to develop the Project Milestone Schedule. Identify critical risk items, long lead equipment delivery durations and any other factors that could result in potential schedule delays. Progress measurement and control Details the project team for each major phase of the project and provides relevant organizational charts

-

This section includes Hazard and Operability (HAZOP) Studies, Environmental Assessment, Project Safety program

-

Addresses what actions will be taken to promote and support the hiring and training of Saudi Arab personnel by contractors working on the project Page 2 of 3

Document Responsibility: Capital Program Efficiency Dept.

Maximizing InKingdom Engineering, Procurement and Construction Work Projects within Existing Facilities (Non-Grass Roots)

Areas of Concern

Project Execution Plan (PEP)

-

Addresses what actions will be taken to promote maximizing the IK engineering, procurement and construction work. Also, address the feasibility of performing portions of any planned LSTK OOK design work IK

-

Addresses what actions will be taken with regards to upgrade renovation or addition to existing facilities in the following areas: o Design and site investigation work required during the project proposal development and detail design phases to determine as-built condition of existing facilities. Risk assessment for items that may impact the project cost estimate Includes those items which might not be addressed by the sections above, but due to the nature of the project, should be highlighted to top management

-

References Reference SAEP-12

Description Project Execution Plan

Front End Loading (FEL)

Page 3 of 3

Book of Deliverables:

Project Interface Plan (PIP) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Project Interface Plan (PIP) ....................................................................................................................... 4 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1 References ............................................................................................................................................... 2

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Project Interface Plan (PIP)

Deliverable-Specific Objectives The Project Interface Plan identifies and details the interfaces among existing and new facilities and among contractors.

Definition The Plan provides oversight of the interactions and information flow between the major contractors. The main components of the document include the following: 

Project Information



Interface Roles & Responsibilities



Contractor Scopes of Work and Interfaces



Master Interface Register



Interface Management Process

Purpose at Gate The purpose of Project Interface Plan is: 

To ensure interfaces within the project have been properly identified;



To ensure the scope of work has been divided appropriately based on these interfaces;



To ensure proper communication of these interfaces to contractors.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Project Information Interface Roles & Responsibilities Contractor Scopes of Work and Interfaces Master Interface Register

Front End Loading (FEL)

Description -

Summary of important project background information Reviews the roles and responsibilities between contractors for interface systems Identifies other government/public and private organizations (such as SEC, SSSP, airport authorities, etc…) and their roles and responsibilities Covers the division of work between the different contracts associated with the project Lists the interface points (IPs) and is the primary system used to control engineering and data associated with physical interfaces

Page 1 of 2

Document Responsibility: Capital Program Efficiency Dept.

Interface Management Process

-

-

Project Interface Plan (PIP)

Details the Interdependency Schedule (given to contractors to be aware of future requirements of other contractors), and the Interface Execution Plan (describes how contractor will implement the interface scope of work) This section includes details on the Interface Query Process, Interface Meetings, and Interface Agreements

References Reference SAES-A-202 SAEP-127 SAEP-334

Description Saudi Aramco Engineering Standard Security and Control of Saudi Aramco Engineering Data Certification and Submittal of Saudi Aramco Engineering Drawings

Front End Loading (FEL)

Page 2 of 2

Book of Deliverables:

Project Proposal Package (PPP) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Project Proposal Package (PPP) ............................................................................................................... 3 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2 References ............................................................................................................................................... 4

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Project Proposal Package (PPP)

Deliverable-Specific Objectives The Project Proposal Package establishes the advanced engineering scope and design necessary for use in contract procurement and bid evaluation, cost estimate basis and schedule for a proposed facility from the requirements included in the Design Basis Scoping Paper (DBSP) and the approved Project Execution Plan.

Definition The areas covered include the proposed facility design, general layout and the appropriate functional and performance specifications, including the published applicable standards & codes. Project Proposal shall be of sufficient detail to prepare a cost estimate with ±10% accuracy, provide sufficient technical information for Saudi Aramco review and (where applicable) provide sufficient information to obtain detailed engineering, procurement and construction contract bids. The main components of the document include the following: 





Project Overview & Design o

Project Summary

o

Project Description

o

Communication Requirements

o

Drawing Index and Drawings

o

Project Quality Plan

o

Materials & Equipment List

Studies o

Required Studies & Assessments

o

Environmental Impact Assessment

o

Building Risk Assessment

o

Fire Risk Assessment

Other o

Scheduling & Estimating Requirements

Purpose at Gate The purpose of Project Proposal Package (to be considered at PPA) is: 

To ensure that the project design is ready for finalization and execution through the preliminary engineering design;

Front End Loading (FEL)

Page 1 of 4

Document Responsibility: Capital Program Efficiency Dept.

Project Proposal Package (PPP)

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Description Project Overview & Design Project Summary - Provides a history of the existing conditions, brief discussion of the proposed facilities and their justification, and outlines project objectives, scope, and schedule Project Description - Provides scope and design information that establishes the performance specifications for facilities; typically includes the following: o Facility/plant layout and location o Facility/process description, design basis and performance specification o Major mechanical, electrical, and utility requirements (type and quantity) o Temporary and permanent on-plot and off-plot facilities o Site survey, topography and soil data (Geotechnical Investigation) o Demolition and modifications to existing facilities/plants o Operating variables o Corrosion control o Impact on and interface with other related projects o Security, fire protection & safety provisions (if required, Hazard Identification Plan of Major Hazards, fire hazard zone drawings, and fire system layout drawings) o Communications, including government approvals if required o Control systems (including SCADA) provided with Control System Block Diagram or System Architecture, instrument index, instrument cable routing and I/O count breakdown o Project Execution Plan/Schedule o Training requirements o Land use permits for new facility sites or addition of facilities within existing plants. o Strategy for project compliance with Project Quality Plan requirements o Process & utilities system definition and turnover sequence o Piping, electrical and control system tie-in /hot tap plan. o Site Investigation Report Front End Loading (FEL)

Page 2 of 4

Document Responsibility: Capital Program Efficiency Dept.

Communication Requirements

-

Drawing Index and Drawings

-

Project Quality Plan Materials & Equipment List

-

-

Studies Required Studies & Assessments

-

-

Environmental Impact Assessment Building Risk Assessment Fire Risk Assessment Other Scheduling & Estimating Requirements

Front End Loading (FEL)

-

-

-

Project Proposal Package (PPP)

o Commissioning and Start-up Plan Outlines both temporary (during construction) and permanent communication systems As procurement approval for radio frequencies and materials involves long lead times, communication systems require early identification and coordination Provides drawings that define the scope of the project and key drawings such as Process Flow Diagrams (PFD), Piping and Instrumentation Diagrams (P&ID), plant and equipment layouts, electrical one-line diagrams, etc… To be covered and supported by the Project Proposal Package subdeliverable “Project Quality Plan” Description of project’s specifications Existing Materials & Equipment o Outlines the materials and equipment required for the project that have already been covered by existing Saudi Aramco Inventory New Materials & Equipment o Provides a rationale for requiring new materials and equipment o Details the type(s) of materials o Details the type(s) of equipment o Highlights those items that are long lead items and novated items o Discloses the level of support provided by vendors and manufacturers Provides the studies & calculations necessary to be developed during Project Proposal (i.e. ETAP study, HAZOP study, process simulation, environmental dispersions, etc.) based on project needs All required engineering studies, including those defined in DBSP, must be carried out regardless of contracting strategy adopted, e.g., LSTK, LSPB, etc. To be covered and supported by the Project Proposal Package subdeliverable “Environmental Impact Assessment (Final)” To be covered and supported by the Project Proposal Package subdeliverable “Building Risk Assessment (Final)” To be covered and supported by the Project Proposal Package subdeliverable “Fire Risk Assessment (Final)” To be supported by the deliverable “Schedule Level III (Initial)” in the Project Proposal Phase

Page 3 of 4

Document Responsibility: Capital Program Efficiency Dept.

Project Proposal Package (PPP)

References Reference SAEP-14 SAEP-12 SAEP-13 SAER-5437 SAEP-5437 SAES-P-100

Front End Loading (FEL)

Description Project Proposal Project Execution Plan Project Environmental Impact Assessments Guidelines for Conducting HAZOP Studies Guidelines for Conducting HAZOP Studies Basic Power Systems Design

Page 4 of 4

Book of Deliverables:

Project Proposal Reviews Report 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Saudi Aramco: Company General Use Front End Loading (FEL)

Contents Project Proposal Reviews Report ............................................................................................................. 2 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1 References ............................................................................................................................................... 2

Saudi Aramco: Company General Use Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Project Proposal Reviews Report

Deliverable-Specific Objectives The Project Proposal Reviews (30-60-90%) is a structure review process of the Project Proposal Package.

Definition The Reviews occur three times during the development of the Project Proposal Package (at 30-6090% completion and at 90% completion). The main components of the document include the following:  

Review Plan Review Meetings Outcomes

Purpose at Gate The purpose of Project Proposal Reviews (30-60-90%) (to be considered at PPA) is:  

To ensure that the project design has been reviewed by stakeholders at the appropriate times to ensure its proper development; To ensure value addition has occurred as a result of these review meetings.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Review Plan Review Meetings Outcomes

-

Front End Loading (FEL)

Description Outlines the details of the review meetings (schedule, attendees, topics to be covered, etc…) Describes the key points of discussion of each of the three review meetings Describes the key outcomes of those meetings and the modification plan, which explains: o Items from the 30% and 60% review meetings to be modified/fixed before the 90% review meeting o Items from the 90% review meeting to be modified/fixed before the approval of the Project Proposal

Page 1 of 2

Document Responsibility: Capital Program Efficiency Dept.

Project Proposal Reviews Report

References Reference SAEP-14

Front End Loading (FEL)

Description Project Proposal

Page 2 of 2

Book of Deliverables:

Project Quality Plan (PQA) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Document Responsibility: Capital Program Efficiency Dept.

Project Quality Plan (PQA)

Contents Project Quality Plan (PQA) ....................................................................................................................... 1 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 2

Front End Loading (FEL)

Page 2 of 6

Document Responsibility: Capital Program Efficiency Dept.

Project Quality Plan (PQA)

Deliverable-Specific Objectives The Project Quality Plan is a document which outlines the principles, policies, and methodology will be followed in regards to quality management.

Definition The document highlights the quality assurance and quality control procedures that will be followed by the contractor during construction (with specific information on inspection activities, organization, staffing, etc…). The document identifies the processes required to realize project goals in accordance with the quality policy, and defines specific components to be addressed under a quality plan. It is used as a management tool to ensure that future work will adhere to a certain quality standard. The sections of the deliverable are outlined below: 

Introduction



Scope



References and Acronyms



Terms and Definitions



Quality Management System



Management Responsibility



Resource Management



Product Realization



Measurement, Analysis, and Improvement



Improvement



Registered Document Holders



Amendment Record



Appendices

Purpose at Gate The purpose of Project Quality Plan (to be considered for PPA) is: 

To verify the presence of a well-established set of policies and methods (quality management) to maintain high quality work throughout construction;

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf Front End Loading (FEL)

Page 1 of 3

Document Responsibility: Capital Program Efficiency Dept.

Project Quality Plan (PQA)

Content Section Introduction

-

Scope

-

References and Acronyms Terms and Definitions

-

Quality Management System

-

Management Responsibility

-

Resource Management Product Realization Measurement, Analysis, and Improvement Improvement Registered Document Holders

Front End Loading (FEL)

Description Details the basis for creating the document, principles and benefits of quality management and how it fits into Saudi Aramco, and main use for the quality manual General – details to which requirements the document has been prepared in accordance with Application – clearly defines the product that the document is to be applied to, References used in preparation of the Quality Manual with a list of acronyms found throughout the document Describes the terms used throughout the document (reliance is placed on ISO 9000:2005 and 9001:2008 whenever possible) General Requirements Document Requirements Highlights risks/benefits/costs of under-quality or over-quality outcomes Management Commitment Customer Focus Quality Policy Planning Responsibility, Authority, and Communication Management Review Provision of Resources Human Resources Infrastructure Work Environment Planning of Product Realization Customer-Related Processes Design and Development Purchasing Production and Service Provision Control of Monitoring and Measuring Devices General Monitoring and Measurement Control of Nonconforming Product Analysis of Data Continual Improvement Corrective Action Documents the controlled and uncontrolled copies (i.e. controlled copies have been approved with an individual serial number)

Page 2 of 3

Document Responsibility: Capital Program Efficiency Dept.

Amendment Record

-

Appendices

-

Front End Loading (FEL)

Project Quality Plan (PQA)

Highlights the amendments to the document that have taken place (amendment number, page number, revision from/to, description of change, date, and authorized signature) Quality Policy Statement Quality Objectives Organization Chart Inspection and Test Plan Cross References

Page 3 of 3

Book of Deliverables:

Proposed Integrated Staffing Assignment (PISA) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Document Responsibility: Capital Program Efficiency Dept.

Proposed Integrated Staffing Assignment (PISA)

Contents Proposed Integrated Staffing Assignment (PISA) ................................................................................. 1 Deliverable-Specific Objectives ............................................................................................................ 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Proposed Integrated Staffing Assignment (PISA)

Deliverable-Specific Objectives The Proposed Integrated Staffing Assignment is a document that defines the necessary staffing to perform the activities of the next Front End Loading phases (Business Case, Study, DBSP, and Project Proposal, Finalize FEL phase) to ensure that resources for project development are available.

Purpose at Gate The purpose of the Proposed Integrated Staffing Assignment is: 

To verify if the proposed staffing is adequate to perform project activities in the next phase



To verify if the resources required for the FEL development activities are consistent with the project’s scope and schedule

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Project Description Resources

Job Description (to be developed only for the following Phase and for current Phase for Business Case )

Description -

Brief description of the project

-

Definition of number of resources to perform the activities of the next Front End Loading phases (Business Case, Study, DBSP, Project Proposal, Finalize FEL phase) detailed by: o job role/skills o internal vs. external o phase Full-time or part-time (% to be defined) Duration of the assignment (in months/years or for length of project) Job descriptions: o General information  job description, job title, alternative job title, functional role level  Reporting line o Role definition  Includes the expected main activities and accountabilities for the job position (e.g. accountabilities for deliverables…) job position interfaces (superiors, reporting staff, other internal and external interfaces, etc…) o Qualifications

-

Front End Loading (FEL)

Page 1 of 2

Document Responsibility: Capital Program Efficiency Dept.

Proposed Integrated Staffing Assignment (PISA)

Details any formal academic/professional training and official certification requirements for the jobholder and other relevant training requirements o Experience and Competencies  Indicates the technical and soft skills and experience that the successful candidate should possess  Details the rationale for having the defined skills/competencies to cover activities in the next phase Includes the names of proposed members to be staffed for the next phase, as well as their contact information and home function 

Proposed Membership

-

Front End Loading (FEL)

Page 2 of 2

Book of Deliverables:

Reliability Availability and Maintainability (RAM) Study Report 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Reliability Availability and Maintainability (RAM) Study Report ..................................................... 2 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 2 References ............................................................................................................................................... 2

Front End Loading (FEL)

. Document Responsibility: Capital Program Efficiency Dept.

(RAM) Study Report

Deliverable-Specific Objectives Reliability, Availability and Maintainability (RAM) study is a simulation based study that examines operability targets for a facility. The objective of this practice is to predict plants and facilities production availability and quantify the contribution of the various assets to nonperformance (i.e., culprits, shutdowns, slowdowns, etc.). It also helps identifying plants and facilities sections’ that limit the production throughput (i.e., Production Performance). The study recommends and justifies the needed measures (i.e., design upgrades, reliability, maintainability, sparing and redundancy, etc.) to attain the availability needed to deliver the production business targets in a cost-effective manner.

Definition The main components of the document include the following; however, the details are given in SAES-A-030 

Project Scope and Boundary



Production operation objectives, operation and maintenance constraints



Models, Assumptions, Data



Simulation Outcomes, Conclusions and Recommendations

Purpose at Gate The purpose of the Reliability, Availability and Maintainability Study Report at Gate 2 is: 

To initiate and model, at high-level (unit level) with available plants and facilities overall production configuration.



To generate results with regard to the set business targets of the operating plants and facilities as per SAES-A30.

The purpose of the Reliability, Availability and Maintainability Study Report at Gate 3 is:



RAM PP study is performed at PFD level (equipment level). This phase includes the detailed analysis which includes but not limited to identifying top 20 equipment limiting plant availability, reliability, performance etc. This study phase identifies the bottlenecks and provides recommendations to ensure design meets the facility and project business targets as per SAES-A-30.

Responsibilities

Front End Loading (FEL)

Page 1 of 3

. Document Responsibility: Capital Program Efficiency Dept.

(RAM) Study Report

Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Project Information Key Factors

Description -

Simulation Outcomes

-

Conclusions and Recommendations

-

-

-

Summarizes important project information, with terms and definitions Lists the key input factors used to build the simulation model for the facility Identify the constraints and highlights key uncertainties and how design margins can be included Includes the operations, maintenance, and sparing philosophies Describes the key outcomes of the simulation model (operability targets for the facility) Quantifies benefits and costs to the incremental increase in reliability Identify top 20 equipment limiting plant availability, reliability, performance and production targets RAM data, information and assumptions shall be documented and submitted as study report. RAM study final report findings, assumptions and recommendations shall be presented by the RAM service provider RAM study final report and presentation shall be prepared by the RAM service provider and shall be submitted Saudi Aramco. The RAM model shall be submitted in a compatible format with Saudi Aramco’s specified All submitted information and documents shall be in electronic formats which include but not limited to final report, RAM data, RAM model waiver request form, study approved waivers, RAM model executable file shall be in a compatible format with Saudi Aramco’s RAM software Outlines all the recommendations and describes a detailed implementation plan with focal points to achieve operability and desired RAM targets of the facility Note: For any details and clarification in this section please consult with SAES-A- 030.

References Reference SAES-A-030 SABP-A-047

Front End Loading (FEL)

Description Reliability Availability and Maintainability Study Execution Qualification Criteria and Approved Services Providers for Reliability, Availability and Maintainability (RAM) Study

Page 2 of 3

Book of Deliverables:

Schedule 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Schedule ...................................................................................................................................................... 2 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 2

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Schedule

Deliverable-Specific Objectives The Schedule deliverable is a document that covers the project development and execution scheduling (activities, milestones, duration, critical path method implementation, etc…).

Definition The Schedule deliverable is articulated into several deliverables related to the different phases of the Front End Loading process, and is characterized by incremental levels of details. In particular, the Schedule deliverables are listed below, by FEL phase: 

Schedule Level I in the Business Case Phase (for Gate 1)



Schedule Level I (Update) in the Study Phase (for Gate AS)



Schedule Level II in the DBSP Phase (for Gate 2)



Schedule Level III in the Project Proposal Phase (for Gate 3)



Schedule Level IV and V in the Execution (Detailed Engineering) Phase



As-Built Schedule in the Execution (Construction) Phase

Purpose at Gate The purpose of the Schedule at Gates 1, AS, 2 and 3 is: 

To verify the project’s progress as compared to the defined schedule and to analyze issues, causes and recovery plans (if any);



To verify the main milestones are properly identified and defined and are coherent with the project size/complexity (for Gates 1 and AS);



To verify if a high-level networked CPM has been identified that defines the critical path (for Gate 2);



To ensure the schedule includes all deliverables to achieve the scope of work and that it is based on an appropriately-detailed networked CPM.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Front End Loading (FEL)

Page 1 of 5

Document Responsibility: Capital Program Efficiency Dept.

Schedule

Content Schedule Level I Section Schedule Level I

Description -

-

Includes the main start/finish milestones to complete the project Includes details regarding the availing of shutdown of the facility (in the cases where existing facilities are present) if necessary to ensure proper completion of construction and to ensure the schedule takes into consideration this important factor. This is decided by the Project Sponsor.

Schedule Level I (Updated) Section Schedule Level I (Updated)

Description -

-

Includes the main start/finish milestones to complete the project Includes details regarding the availing of shutdown of the facility (in the cases where existing facilities are present) if necessary to ensure proper completion of construction and to ensure the schedule takes into consideration this important factor. This is decided by the Project Sponsor. It is an update of Schedule Level I with similar levels of details. Milestones are confirmed / updated in coherence with the incremental information on project scope developed during this phase.

Schedule Level II Section Schedule Level II

Description -

-

Front End Loading (FEL)

The document shows the scope of work to achieve the milestones and begins to monitor progress at a high level. The schedule may include other interim milestone dates specific to each project including contract awards by package, mobilization for engineering and construction, detailed engineering control points, long lead material procurement including release of purchase orders, fabrication, shipping, and delivery, major milestones during construction, mechanical completion, and start-up. It is based upon a high-level networked CPM that defines the critical path, and includes around 50 specific tasks. As a minimum, the schedule should address: o Cost Estimate start and completion o PAER Funding Request start and completion o DBSP start and completion o Project Execution Plan (PEP) o Contract Award for Project Proposal (PP) o PP preparation and approval, o Design Reviews o ER Estimate start and completion o ERA o Award of Detailed Engineering, Procurement, and Construction o Engineering Control Points o Long Lead procurement including release of purchase orders Page 2 of 5

Document Responsibility: Capital Program Efficiency Dept. o o

o

Schedule

Construction mobilization Interim Construction Milestones Mechanical Completion (MC)

Schedule Level III Section Schedule Level III

Description -

The document shows the deliverables to achieve the scope of work and becomes a control schedule. It is based upon an appropriately-detailed networked CPM that defines the critical path, and includes around 250 specific tasks. As a minimum, the schedule should address: o Completion of Preliminary Engineering tasks and start of Detailed Engineering o ER Estimate Preparation and Approval Steps o LSTK Contract Development and Award o Detailed Engineering Control Points o Long Lead Material Procurement with Purchase Requisition (PR), Purchase, Order (PO), Fabrication and Delivery. o Mobilization period for contractor o Site Preparation o Construction & Equipment Installation by Area/Facility, Discipline/Phase o Plant or Facility Shutdown, as applicable o Testing & Commissioning o Plant Startup sequence o Interfaces with Proponent and other projects, as applicable

Schedule Level IV Section Schedule Level IV

Description -

Front End Loading (FEL)

The document is an update of Schedule Level III based on outcomes of Detail Engineering activities It is based upon an appropriately-detailed networked CPM that defines the critical path, and includes around 250 specific tasks. As a minimum, the schedule should address: o Completion of Preliminary Engineering tasks and start of Detailed Engineering o ER Estimate Preparation and Approval Steps o LSTK Contract Development and Award o Detailed Engineering Control Points o Long Lead Material Procurement with Purchase Requisition (PR), Purchase, Order (PO), Fabrication and Delivery. o Mobilization period for contractor o Site Preparation o Construction & Equipment Installation by Area/Facility, Discipline/Phase o Plant or Facility Shutdown, as applicable o Testing & Commissioning Page 3 of 5

Document Responsibility: Capital Program Efficiency Dept.

-

Schedule

o Plant Startup sequence o Interfaces with Proponent and other projects, as applicable Moreover: o The document shows the tasks or work packages needed to complete the deliverables and is resource-loaded. Detailed control begins and includes hundreds to thousands of specific tasks. o The deliverable is a detailed level schedule based on a CPM network prepared by the Contractor indicating the sequence in which the Contractor plans to execute the work, manpower requirements, equipment, access and work space limitations, activities of subcontractors, equipment vendors and suppliers. o No individual activity duration should exceed 25 working days o All subcontracted activities will be identified on this schedule. When phased completions of units or systems are identified, the Critical Path and Sub-Critical Paths for each unit or system will be clearly indicated. Identification of Contractor supplied long-lead critical material, major equipment and bulk materials will be interfaced through schedule logic. Saudi Aramco supplied materials scheduled to arrive during the course of the Work will be included. All activities will be resource loaded in order to provide resource forecasts in the form of a series of graphic displays depicting manpower requirements.

Schedule Level V Section Schedule Level V

Description -

The document shows detail-level tasks and will be fully resourced (done by the EPC contractor for Detailed Design, Procurement and Construction, e.g. down to welding crews, etc.), and includes thousands of specific tasks (for large projects).

-

This document includes the updated activities, milestones, durations and resources at the end of construction. So it reflects actual / ex-post project schedule.

As-Built Schedule Section As Built Schedule

Front End Loading (FEL)

Description

Page 4 of 5

Book of Deliverables:

Site Selection Assessment (SSA) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Site Selection Assessment (SSA) .............................................................................................................. 2 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 2 Content .................................................................................................................................................... 2

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Site Selection Assessment (SSA)

Deliverable-Specific Objectives The Site Selection Assessment is a document, developed across two different FEL phases, which provides a high-level assessment of the optimum location for a facility.

Definition The analysis is performed by completing a matrix that compares the proposed site with several alternative sites/locations along 14 criteria. Scores are developed (out of 100) to rate each site on each criteria, and then these sites are ranked. The criteria for comparing the alternatives are listed here: 





Geographic Criteria o

Land Availability

o

Shape, Size, and Expandability

o

Site Condition

o

Soil/Geology

o

Environmental Factors

Management Criteria o

Manpower

o

Risk

o

Existing Support Facilities

o

Construction Constraints

o

Future Field Development

o

Capital Cost

Transportation Criteria o

Local Communities/Facilities

o

Distance

o

Nearest Facilities

Purpose at Gate The purpose of Site Selection Assessment at Gate 1 and AS is: 

To verify that the proper analysis has taken place in selecting the optimum location for the proposed site;



To ensure all issues have been examined for the site selection (constructability, logistics, geology, etc…)

Front End Loading (FEL)

Page 1 of 3

Document Responsibility: Capital Program Efficiency Dept.



Site Selection Assessment (SSA)

To confirm if the scope of the project can be further developed based on the site information.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Geographic Criteria Land Availability

Description -

Shape, Size, and Expandability

-

Site Condition

-

Soil/Geology

-

-

Environmental Factors

-

Reviews the ownership of the land (whether it is Saudi Aramco or Government-controlled property) Information from the Land Use Permit (Initial), which is in the Study phase, can influence this section for the Final draft Reviews the possibility of changing the size or shape of the facility, or expanding the facility on the site and if there are any restrictions to do so Reviews the condition of the site, specifically targeting presence of sabkha (salt flats) and geo-hazards Reviews the condition of the site by performing soil evaluations and geotechnical analysis, specifically targeting presence of sabkha (salt flats) and geo-hazards Should address any issue with earthquake and fault lines to the proposed location Summarizes at a high-level what would need to be done to mitigate any problems associated with the site (i.e. fill, pile foundations, stone columns, etc…) Reviews the terrain and elevation of the site, topographic relief, and potential restrictions of the facility due to environmental/geographic reasons

Management Criteria

Manpower Risk

-

-

Existing Support Facilities Construction Constraints Future Field Development

Front End Loading (FEL)

-

Determines if there is any additional manpower required Reviews the safety risks of the facility (i.e. if it is adjacent to other facilities there is a higher risk; if a large volume is being produced at one site there is also a higher risk) Reviews the security risks of the facility (i.e. if it is located on a peninsula or other locations that offer preferable security scenarios) Reviews the support locations (if any) that could be utilized for the proposed site

-

Reviews constructability and logistics issues

-

Assesses the availability of space on the site for further development and the distance to such a development

Page 2 of 3

Document Responsibility: Capital Program Efficiency Dept.

Capital Cost

Site Selection Assessment (SSA)

-

Compares the sites to the lowest (base case) cost (i.e. if Site A has the lowest cost, this is considered as cost of zero and the other sites are then compared to this base)

Nearest Facilities

-

Distance

-

Local Communities/Facilities

-

Reviews the routes (accessibility and commuting distance) that would be taken to get to the proposed facility using each of the site alternatives Highlights the distance to the center of the reserves Highlights technical factors (impact on the back pressure of wells, distance to KGP and piping costs, artificial lift implementation, site causeway landfall, etc…) Highlights safety concerns coming from orientation compared to other facilities (downwind, up wind, etc…) and the driving distance to the closest community

Transportation Criteria

Front End Loading (FEL)

Page 3 of 3

Book of Deliverables:

Stakeholder Management Plan 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Stakeholder Management Plan ................................................................................................................ 2 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Stakeholder Management Plan

Deliverable-Specific Objectives The Stakeholder Management Plan identifies and details the interfaces with internal and external stakeholders.

Definition The Plan provides the list of internal and external stakeholders and the model for their engagement and alignment. The main components of the document include the following: 

Project Information



Stakeholder Analysis



Governance Structure

Purpose at Gate The purpose of Stakeholder Management Plan is: 

To ensure stakeholder have been identified and there is a plan to manage them

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Project Information Stakeholder Analysis

Description -

-

Governance Structure (how do people plug in, decisions get made, issues get escalated)

Front End Loading (FEL)

-

Summary of project background information List of interested parties either internal or external to the project (SEC, SSSP, government authorities..) with indication of relevant information, e.g. their particular interest in the project, their role in the project, their authority, level of influence, needs and expectation Evaluation of the potential impact, reaction or support of each stakeholder Assignment of an owner to each stakeholder (a core team, sponsor or multiple project managers…) Definitions of roles and responsibilities Definition of escalation mechanism Development of model for engagement (communication model including what must be communicated, when (how often), how (format of communication) and whether a response is required) and alignment (monitoring agreement)

Page 1 of 1

Book of Deliverables:

Target Setting (TS) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents Target Setting (TS)...................................................................................................................................... 2 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Target Setting (TS)

Deliverable-Specific Objectives Target Setting Deliverable documents project targets and explain the rational for setting them. In addition it includes all the relevant information that have been used to set the targets, including benchmarking and market due diligence (if available).

Definition The document is developed across different FEL Phases (Business Case, DBSP and Project Proposal / Finalize FEL), and ensures that targets (cost, schedule, operability, HSE, local content etc…) are set, foster capital efficiency and show improvement vs. historical performance.

Purpose at Gate The purpose of Target Setting is: 

To verify that the project has set targets



To verify project commitment in achieving performances that are better than Saudi Aramco historical performance and aligned/better than Industry



To verify how targets have changed though project lifecycle and the causes for variances

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content The Target Setting document includes a description of the project’s scope, the metrics consistent with the described scope and finally the target to be achieved for each metric. The Deliverable also includes the supporting data that have been used for Target Setting (internal and external benchmark, market due diligence if available). The sections of the deliverable are the following: Section Introduction Types of Targets

Description -

Front End Loading (FEL)

Provides important background information on the project objectives and project scope For a detailed list of metrics, please refer to Target Setting Manual Definition of project split into types and sub-types List of Fundamental Project Metrics tracked for: Overall project (Cost, Schedule, HSE, Local Content and Operability) Each sub-project (Cost and Schedule) List of Standard KPIs tracked Page 1 of 2

Document Responsibility: Capital Program Efficiency Dept.

Input

-

Estimates Benchmarks and Market Due Diligence Proposed Targets from workshop Targets Rationale Explanation of Estimate Variances Appendix (Detailed Market Due Diligence)

-

-

-

-

-

Front End Loading (FEL)

Target Setting (TS)

List of Project Enablers tracked Initial inputs from the Opportunity Statement Decision Maker Input from previous gate (if available) Latest estimates (cost and schedule) Summary of internal / external benchmarks and Market Due Diligence (as available by project stage) Proposed project targets (before Gate 1) Proposed updated project targets, (before Gates AS, 2 and 3) Explanation of rationale for setting the targets, in light of: o Decision Maker Input on Targets at previous gate o Improvement vs. historical performance o Positioning vs. industry Explanation of variances (if any) of estimates versus targets

Characterization o Classification of projects, based on size and complexity Resource Planning o Estimates of internal resources, by professional role, required to execute the portfolio of capital Materials and Services Planning o Forward-looking view of materials and services required to execute the capital project portfolio Market Intelligence o Assessment of the status of markets for most relevant materials and services Project Implications o Summary of the implications of the above sections for the project

Page 2 of 2

Book of Deliverables:

VIP – Technology Selection Report 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Document Responsibility: Capital Program Efficiency Dept.

Technology Selection Report

Contents VIP – Technology Selection Report ......................................................................................................... 1 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1

Front End Loading (FEL)

Page 2 of 6

Document Responsibility: Capital Program Efficiency Dept.

Technology Selection Report

Deliverable-Specific Objectives The VIP – Technology Selection Report is a formal systematic process that evaluates the technology that is being employed for the project and compares it with technology inside or outside the company that could replace it.

Definition The analysis ensures that technology used by the project has the most competitive available technology that meets the project’s business objectives. The main components of the Report include the following: 

Evaluation of Employed Technology



Basis & Drivers



Review of Technology Available Within Saudi Aramco



Review of Technology Available Outside of Saudi Aramco



Final Recommendations

Purpose at Gate The purpose of VIP – Technology Selection Report at Gate AS is: 

To ensure all relevant technology solutions have been identified;



To ensure the most competitive technology is being utilized by the project.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Evaluation of Employed Technology Basis & Drivers

Front End Loading (FEL)

Description -

Analyses the strength of the currently employed technology for the project

-

Details the main drivers for evaluating the technologies, including: technical merit (technology description and benefits, applicability in Saudi Aramco facilities and bottlenecks, track record and test results, and deployment time) and economic merit (capital cost and ancillaries, revenue gain through direct and indirect cost savings, and maintenance and expenses) Page 1 of 2

Document Responsibility: Capital Program Efficiency Dept.

Review of Technology Available Within Saudi Aramco Review of Technology Available Outside of Saudi Aramco Final Recommendations

Front End Loading (FEL)

-

Technology Selection Report

Determines the advantages and disadvantages of technologies within the company that could be used to replace the employed technology Includes testing and piloting new technology if necessary

-

Determines the advantages and disadvantages of technologies outside of the company that could be used to replace the employed technology

-

Summarizes the final recommendations based on the technical and economic analysis of all technologies

Page 2 of 2

Book of Deliverables:

VIP – Applicable VIPs Report (AVR) 8 December 2015 Document Responsibility: Capital Program Efficiency Dept.

Front End Loading (FEL)

Contents VIP – Applicable VIPs Report (AVR) ...................................................................................................... 2 Deliverable-Specific Objectives ............................................................................................................ 1 Definition................................................................................................................................................. 1 Purpose at Gate ...................................................................................................................................... 1 Responsibilities ....................................................................................................................................... 1 Content .................................................................................................................................................... 1 References ............................................................................................................................................... 2 Glossary ................................................................................................................................................... 2

Front End Loading (FEL)

Document Responsibility: Capital Program Efficiency Dept.

Applicable VIPs Report (AVR)

Deliverable-Specific Objectives The VIP – Applicable VIPs Report is a document that encompasses the selection of processes and activities (i.e. value improving practices (VIPs)) that should result in improved project outcomes in terms of cost, schedule, operability, etc….

Definition The These VIPs are out-of-the-ordinary practices that use a systematic approach to obtaining increased project value through the following methods: reducing non-critical scope items, achieving the optimum balance between costs and performance, improving reliability or simplifying processes, eliminating over-design, and maximizing the likelihood of project success. These practices can be taken from the industry, or also from practices and synergies learned from other projects which could also lead to simplification in design, reducing overhead, etc… Each of these practices targets a different area for potential improvement, thus they need to be chosen based on each specific FEL phase. In order to capitalize on the benefits of these practices, they should be implemented at the appropriate project phase and as early as possible. To achieve this, it is best for the application of the VIPs to be planned at the beginning of each phase. The objective of this deliverable is to determine which VIPs are to be selected for all forthcoming FEL phases. The deliverable is comprised of a matrix that specifies the appropriate VIP Report to have in each FEL phase.

Purpose at Gate The purpose of VIP – Applicable VIPs Report at Gate 1 is: 

To verify the project has analyzed and selected the correct value improving practices for the forthcoming FEL phases to improve project outcomes.

Responsibilities Please refer to the RAPID matrix in CPED web site: https://sharek.aramco.com.sa/Orgs/30026862/Documents/RAPID.pdf

Content Section Selection of VIP Reports

Description -

Front End Loading (FEL)

This segment, comprised of a matrix, outlines the value improving practices reports that will be developed for the forthcoming FEL phases The following VIP reports are available for selection: o Planning for Start-up o Project Risk Management Page 1 of 2

Document Responsibility: Capital Program Efficiency Dept.

Rationale for VIP Selection

-

Applicable VIPs Report (AVR)

o Lessons Learned o Technology Selection o Constructability Review o Design for Maintainability o Classes of Facility Quality o Waste Minimization o Process Simplification o Energy Optimization o Customizing Standards and Specifications o Reliability Simulation Modelling o Design to Capacity o Value Engineering Study o 3D CAD o Predictive Maintenance This segment highlights the main rationale or justification for selecting the VIP reports in their respective FEL phase(s)

References Reference SAEP-367

Description Value Improvement Practices Requirements

Glossary FEL Front End Loading RAPID (Recommend, Agree, Perform, Input, Decide) is a methodology that clarifies roles and responsibilities in the work process related to the development of the deliverable VIP Value Improving Practice

Front End Loading (FEL)

Page 2 of 2