Saep-74

Engineering Procedure SAEP-74 Engineering Services Technology Deployment

30 January 2017

Document Responsibility: Technology Management Standards Committee

Contents 1 2 3

Scope ................................................................ 2 Applicable Documents ....................................... 2 Terminology ....................................................... 3 3.1 DEFINITIONS .................................................. 3 3.2 ACRONYMS .................................................... 7 4 Technology Initiation .......................................... 7 4.1 TMD TECHNOLOGY SELECTION ....................... 8 4.2 TECHNOLOGY STEERING COMMITTEE ............... 9 4.3 TECHNOLOGY BI APPROPRIATION REQUEST ... 10 5 Technology Deployment Planning ................... 10 5.1 INTEGRATED TECHNOLOGY TEAM ................... 11 5.2 FEL 1&2 STAGE (BUSINESS CASE, STUDY, AND DBSP PHASE) ...................................... 12 5.3 FEL 3 STAGE (PROJECT PROPOSAL PHASE) ... 15 6 Technology Project Execution ......................... 17 6.1 EXPENDITURE RELEASE ................................ 18 6.2 PROJECT EXECUTION ................................... 18 6.3 MANAGEMENT OF CHANGE ............................ 19 6.4 PROJECT CONTROLS .................................... 19 6.5 MECHANICAL COMPLETION ............................ 19 7 Technology Operations ................................... 19 7.1 PERFORMANCE ACCEPTANCE CERTIFICATE..... 20 7.2 PROJECT CLOSE-OUT REPORT ...................... 20 7.3 FINANCIAL CLOSE-OUT .................................. 20 7.4 POST PROJECT APPRAISAL REPORT .............. 20 Revision Summary................................................. 20 Attachment A - Technology Justification Categories................................................... 21 Attachment B - Rapid Matrix (Recommend, Agree, Perform, Input, Decide) ................... 26

Previous Issue: New

Next Planned Update: 30 January 2020 Page 1 of 29

Contact: Naeem, Walid A (noaimwa) on phone +966-13-8801901 ©Saudi Aramco 2017. All rights reserved.

Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

1

Scope This SAEP defines the procedures and responsibilities for Technology Deployment Master Appropriation projects by Engineering Services. The objective is to deliver deployment of high impact innovative and commercially proven technologies, company-wide to resolve corporate technical challenges and improve the efficiency of field operations. This procedure defines the process to be followed during the Initiation, Front End Loading, Execution, and Operations Phases of a Technology Deployment Master Appropriation BI project. The Technology Initiation Phase, led by Engineering Services, is used to select the technologies and corresponding deployment locations to be included in a Technology Deployment project. The Technology Front End Loading Phase, led by Engineering Services, is used to produce the necessary deliverables such as Business Case and DBSP required to ensure the success of the project prior to obtaining project funding for Master Appropriation BI. The Front End Loading (FEL) process is customized to suit the deployment of new technologies in a Master Appropriation BI. The Execution Phase, led by the Field Proponent with Engineering Services, is in an advisory role; it is used to execute the technology project, including detailed design, procurement, and construction, in accordance with the project requirements developed during Front End Loading Phase and with project funding provided by Engineering Services. The Operations Phase, led by the Field Proponent with Engineering Services, is in an advisory role; it is used to carry out the commissioning and start-up, performance acceptance criteria, and post-project completion evaluation.

2

Applicable Documents The requirements contained in the following documents apply to the extent specified in this procedure.  Saudi Aramco References Saudi Aramco Engineering Procedures SAEP-12

Project Execution Plan

SAEP-13

Project Environmental Impact Assessments Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

SAEP-14

Project Proposals

SAEP-25

Estimate Preparation Guidelines

SAEP-201

Saudi Aramco Engineering Reports

SAEP-303

Engineering Reviews of Project Proposal and Detailed Design Documentation

SAEP-329

Project Closeout Reports

SAEP-360

Project Planning Guidelines

SAEP-367

Value Improving Practices Requirements

SAEP-1020

Capital Program Planning

SAEP-1350

Design Basis Scoping Paper (DBSP) Preparation and Revision Procedure

Saudi Aramco Best Practice SABP-A-042

Business Case Development Guidelines

Saudi Aramco General Instructions GI-0002.710

Mechanical Completion and Performance Acceptance of Plant/Unit

GI-0020.500

Expenditure Control

GI-0202.451

Engineering Work Order Authorization for Preliminary Engineering Preparation

GI-0431.001

Protection of Intellectual Property

Saudi Aramco Form and Datasheet SA-7214

Performance Acceptance Certificate

Saudi Aramco Manual Saudi Aramco Procurement Manual 3

Terminology 3.1

Definitions 9COM: Non-cataloged materials which are not stocked in Materials Supply but may be stocked by suppliers. Potential manufacturer sources are maintained at the generic material description level. Approved Vendor List: List of suppliers approved for doing business. Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

The Approved Vendor List is usually created by procurement or sourcing and engineering personnel using a variety of criteria such as technology, functional fit of the product, financial stability, and past performance of suppliers. Bid Package: The package of documentation supplied to a bidder to quote the job. A Bid Package includes Instructions to Bidders, Pro-Forma Contract, Job Specifications, Functional Specifications Document, relevant Saudi Aramco standards and specifications, and other documents as applicable. Bid Evaluation Team: A team that reviews the contractor's or vendor's bids and prepares technical and commercial recommendations. Refer to the Contracting Manual for additional information. Bid Slate: A list of qualified contractors or vendors eligible to bid on the project. Budget Item: A discrete project that has been defined and evaluated to the extent required for management to include it in the Business Plan and commit additional resources to further develop the information required by management, and if deemed appropriate, the Board of Directors, to make reasonable business decisions regarding the continued development of the project. Construction Agency: The organization assigned to execute the project. Design Basis Scoping Paper (DBSP): A document prepared that details the complete scope of a given capital project in order to economically achieve the stated business objective(s) in an anticipated operating environment. Refer to CMS Book of Deliverables for details of the DBSP guidelines. Expenditure Request Approval (ERA): The date the expenditure request is approved to allow the project to proceed to the execution phase. The ERA is the date project funding becomes available upon approval by the Executive Committee or the Board. Expenditure Request Completion (ERC): The date the expenditure request is closed and project is handed over to the operating organization (proponent). The ERC is the date on which the Performance Acceptance Certificate (SA-7214) is signed off, for the project. It is close to, but need not match, the “beneficial use” or “on-stream” dates for the facilities, which are the dates on which the proponent begins to use the facilities. Field Proponent: The Saudi Aramco organization that owns, operates, and maintains the completed facility. The Proponent is responsible for signing the Mechanical Completion Certificate as owner of the facility. Front End Loading (FEL): A process that organizes the project life cycle into phases, each with defined activities, deliverables, and specific objectives. Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

Integrated Technology Team (ITT): A team composed of appointed members from different organizations who work in an integrated manner and have clear roles and accountabilities toward project planning and execution of technology projects. Job Specification: The scope of the work to be performed pursuant to a contract. It describes or refers to the applicable drawings, standards, specifications as well as the administrative, procedural, and technical requirements that the contractor shall satisfy or adhere to in accomplishing the work. Mechanical Completion: Achieved when the facility defined in the approved scope, construction documentation, drawings, specifications and material requisitions has been installed and tested (Pre-commissioned) and is available for commissioning and start-up. Non-Material Requirements (NMR): The complete set of documentation required from the vendor and/or the contractor during the design and development phase of the project. There are three categories of NMRs: 

601 NMRs Preliminary drawings for review and approval

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602 NMRs Certified drawings, literature, photographs, and spare parts data/requirements

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603 NMRs Operations, maintenance manuals, installation instructions, test certificates.

Operating Organization: The organization responsible for operating the facility. Performance Acceptance: The process of demonstrating via performance tests that the facility can operate successfully at the design conditions established by the approved Project Scope. Project Execution Plan: A document prepared by the Technology Project Manager during FEL and developed further by the Technology Execution Leader during Execution Phase to define the objectives, plans, requirements, and related information necessary for optimum project execution. RAPID (Recommend, Agree, Perform, Input, Decide): A methodology that clarifies roles and responsibilities in the work process related to the development of a deliverable. Restricted Vendor List (RVL): Subset of approved suppliers considered for bid slate development when material requirements are specific (applicable for all types of material procurement: 9CAT, 9COM, inspectable, non-inspectable).

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

Senior Operations Representative: The Proponent Business Line representative involved in all phases of the project, to ensure the short- and long-term objectives of the Operations Business Line(s) are incorporated during the project development process. Technology Execution Leader: A representative from Field Proponent, who leads the Integrated Technology Team (ITT) during Execution and Operations phases after ERA project funding and prior to ERC. Technology Project Manager: A representative from Engineering Services, who leads the Integrated Technology Team (ITT) during Front End Loading phases prior to ERA project funding. Technology Readiness Level (TRL): Method of estimating technology maturity. The use of TRLs enables consistent, uniform, discussions of technical maturity across different types of technology. The TRL scale used in Engineering Services is aligned with Saudi Aramco R&D Center and US DoD Technology Readiness Assessment (TRA) Deskbook (July 2009). o TRL 1: Basic technology principles observed and reported. o TRL 2: Technology concept and/or application formulated. o TRL 3: Analytical and experimental critical function and/or conceptual concept proof. o TRL 4: Component and/or breadboard validation in laboratory environment. o TRL 5: Validation in relevant environment. o TRL 6: System/subsystem model or prototype demonstration in a relevant environment. o TRL 7: System prototype demonstration in an operational environment. o TRL 8: Actual system completed and operated through test and demonstration. o TRL 9: Actual system proven through successful operations. Technology Sponsor (TS): An Executive from Engineering Services who is accountable for meeting project objectives and steering the Integrated Technology Team (ITT) towards maximizing investment value. Technology Steering Committee (TSC): This committee is chaired by Engineering Services Vice President/Executive Director. The vice chair is the Chief Engineer and all the Engineering Services Managers are members. The function of the TSC is to provide strategic direction and key decisions on the evaluation and deployment of technologies. The TSC is responsible for approving the selection of the technologies to be included in the ES Technology Deployment Master Appropriation BI’s. Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

Value Improving Practices (VIPs): Are out-of-the-ordinary practices used to improve project performance, and they are primarily used during the FEL of a project. Within Saudi Aramco, the term VIP encompasses Value Engineering, a group of other value management techniques called Best Practices, Project Risk Management, and Interface Management. Waiver: The formal approval to waive one or more specified Mandatory Saudi Aramco Engineering Requirements (MSAERs) on a project basis. 3.2

Acronyms BI BISI DBSP ERA ERC ER ES CSD CMS EPD FEL FPD ITT MA OPPM NPV PMOD RAPID SAEP TMD TS TSC VIP

4

Budget Item Budget Item Supporting Information Design Basis Scoping Paper Expenditure Request Approval Expenditure Request Completion Expenditure Request Engineering Services Consulting Services Department Capital Management System Environmental Protection Department Front End Loading Facilities Planning Department Integrated Technology Team Master Appropriation Oracle Primavera Portfolio Management Net Present Value Project Management Office Department Recommend, Agree, Perform, Input, Decide Saudi Aramco Engineering Procedure Technology Management Division Technology Sponsor Technology Steering Committee Value Improving Practices

Technology Initiation The Technology Initiation Phase led by Engineering Services is the process used to incorporate a Technology Deployment project into the Capital Program Business Plan. Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

The process starts with the selection of technologies and corresponding deployment locations to be included in a Technology Deployment project. This is followed by initiating a request to FPD via OPPM for inclusion of the Technology Deployment project into the 3-year Capital Program Business Plan. The Initiation Phase is completed upon Board approval of Technology Deployment BI inclusion in the 3-year Capital Program Business Plan. Figure 1 shows the Technology Initiation Phase with respect to the overall initiation, planning, execution and operations process. FEL 1 & 2

FEL 0

FEL 3

Figure 1 - Technology Initiation

4.1

TMD Technology Selection In preparation to the monthly Technology Steering Committee meeting (see Section 4.2), TMD selects the technologies and its corresponding deployment locations that have potential to be included as part of a future Technology Deployment Master Appropriation BI. The technologies are selected from list of successfully evaluated deployable technologies submitted by ES and Field Proponent departments contained in the TMD Technology Database. Technologies selected for deployment shall have the following deliverables provided: 4.1.1

Published Saudi Aramco Engineering Report (SAER) to include the following at a minimum: 

Description of the technology described, through text, calculation data, drawings and other relevant documents



Evidence to support the Technology Readiness Level



If previously piloted, actual return on investment based on installed equipment performance and Lessons Learned during the Piloting Execution Phase



Recommendations for future deployment



List of applicable SAES/SAMSS and approved 9COM commodity number Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

4.1.2

Technologies selected for deployment are screened according to the following criteria: 

Experience: Check in Technology Database if similar technologies are already being piloted or deployed in Saudi Aramco facilities.



Justification: Classify justification according to criteria in Attachment A - Technology Justification Categoriesspecifying corporate technical challenge being addressed.



Cost: Provide ±50% cost estimate. The total cost for the deployment of one technology deployment shall be less than $30MM. The aggregate value of a single technology with multiple deployment locations shall not exceed this limit.



Risks: Identify initial risks associated with technology including cost, schedule, quality, and technology maturity.

The Technology Readiness Level (TRL) for a technology shall be nine (9); or eight (8) in exceptional circumstances when the other risks are very low (low cost and schedule impact). The TRL of a technology is based on input from the technology SME, recommended by TMD and approved by the TSC. Deliverables: Technology Management Division issues a “Technology Deployment Report” to be presented to the Technology Steering Committee (TSC) identifying technologies that have potential to be included in a Master Appropriation BI. 4.2

Technology Steering Committee TMD present the latest “Technology Deployment Report” to the Technology Steering Committee with TMD recommendations for technology deployment. The Technology Steering Committee consist of the following members: Chair: Vice President/Executive Director Engineering Services Vice Chair: Chief Engineer Secretary: TMD Coordinator Manager, Consulting Services Manager, Environmental Protection Manager, Facilities Planning Manager, Inspection Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

Manager, Process & Control Systems Proponent Representative(s) The Vice President/Executive Director decides on continuing the deployment process of the technologies endorsed by the Technology Steering Committee. If following the TSC meeting, insufficient technology deployment opportunities have been identified to support initiating a Technology Deployment Master Appropriation BI in the Capital Program, further technology selection (see Section 4.1) iterations will be done by TMD until a Technology Deployment BI is initiated. 4.3

Technology BI Appropriation Request TMD initiates a Technology Deployment BI “Appropriation Request” to include the Technology Deployment Master Appropriation BI in the Capital Program Business Plan following the process in SAEP-1020. TMD initiates the Appropriation Request for Technology Deployment Master Appropriation project to FPD via OPPM. The Appropriation Request submittal shall be submitted in line with the Facilities Planning Department (FPD) Capital Program Processing Schedule (Planning Calendar) which includes deadlines for submission into e-CAP. Late Appropriation Request submittals will require a waiver from FPD. Following “Appropriation Request” submittal, TMD is responsible to initiate a ±50% estimate request to PMOD. Refer to SAEP-25 for required SAP transaction roles. TMD is responsible to coordinate with FPD to ensure the Business Case including estimated Net Present Value is of sufficient accuracy and will support the Capital Program Business Plan. The Board Review and approval of the 3-year Capital Program Business Plan occurring in December according to Capital Program Planning Calendar will determine whether the Technology Deployment Master Appropriation BI is included in the Business Plan.

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Technology Deployment Planning Technology Planning is the Phase following approval of the Technology Deployment BI inclusion in the Capital Program Business Plan and prior to obtaining Expenditure Request Approval (ERA) required for project funding. Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

The Technology Front End Loading (FEL) Phase led by Engineering Services is used to produce the necessary deliverables such as Business Case, and DBSP required to ensure the success of the project prior to obtaining project funding for Master Appropriation BI. The FEL process is based on SAEP-360, customized to suit the deployment of technologies in a Master Appropriation BI. 5.1

Integrated Technology Team The Integrated Technology Team (ITT) is a temporary project team, formed from needed functional departments under a unified leadership (Technology Project Manager) and sharing the same objectives and steered by the Technology Sponsor (TS). The ITT members represent the various Functions of the Company and work within the team coherently and responsively. The ITT leadership will transition from Engineering Services to Field Proponent upon Expenditure Request Approval (ERA). The ITT is formed at the start of the FEL process by the assigned Technology Project Manager from Engineering Services. The ITT will vary in size according to the technology and project requirements. The ITT shall be formed to suit the deployment of technologies considering complexity, value, facility location, and technical expertise of the team. The Technology Sponsor drives trade-offs between cost, schedule, and operability. The TS is the Chief Engineer of Engineering Services. The Technology Project Manager is a member from Engineering Services with project management expertise primarily responsible for developing the Front End Loading (FEL) deliverables necessary prior to ERA funding. Following ERA, the Technology Execution Leader role is transitioned to the Field Proponent for execution (detailed design, procurement, and construction). The functions of the ITT members and Support Functions is given in the RAPID matrix in Attachment B - RAPID Matrix (Recommend, Agree, Perform, Input, Decide). The RAPID matrix is customized for each technology deployment. The Technology Project Manager determines the specific list of deliverables for each individual technology project deployed and list these in the Project Execution Plan. The ITT members and support functions during FEL are summarized below: 5.1.1

Technology Sponsor Approves key project deliverables and decisions. 

Technology Project Manager: Responsible for developing the project deliverables prior to ERA funding. Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment



Technology Representative: provides input to the Technology Project Manager necessary for the technology including: o Identify applicable 9COM(s) for procurement of technology. If none exists, development of 9COM with approved vendors and manufacturing facilities o Prepare single source procurement justification if necessary o Identify applicable Saudi Aramco Engineering and Materials System Specification standards. Process waiver as required.

5.2



Sr. Operations Rep: provides input to the Technology Project Manager regarding the Field Proponent operations facilities including ‘as-built’ drawings and process operating conditions.

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FPD: Agrees on Business Case Assessment and DBSP FEL Deliverables developed by Technology Project Manager



PMOD: Agrees on Cost Estimates and FEL Deliverables developed by Technology Project Manager

FEL 1&2 Stage (Business Case, Study, and DBSP Phase) Prior to the start of the development of the DBSP, the ITT will make a decision, on whether to undertake the development of the FEL 2 DBSP phase in-house or externally through the use of an engineering contractor. Figure 2 shows the Business Case, Study, and DBSP Phase (FEL 1&2) with respect to the overall initiation, planning, execution and operations process. FEL 1 & 2

Figure 2 - Business Case, Study and DBSP Phase

5.2.1

Purpose The purpose of the FEL 1&2 Business Case, Study, and DBSP phase is to continue to verify and develop the business case (including technical, commercial, and economic evaluations and identification of a complete set of alternatives (refer to SABP-A-042, Business Case Development Guidelines, for further details), complete the analysis required to identify viable alternatives for achieving the stated business objective, determine which of the viable alternatives should be further developed, to freeze the project scope and generate a Master Appropriation ER cost estimate Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

(±10%). This estimate will be used for submission of Budget Item to FPD for the quarterly ER approval process. The DBSP shall clearly and definitively describe “what” facility capabilities are required to most economically achieve the proposed project’s stated business objective. The DBSP requires that the ITT continue active participation in the development of key studies to refine the engineering level of the project and allow the scope to be “frozen.” The DBSP shall be written in accordance with SAEP-1350, DBSP Preparation and Review Procedure. 5.2.2

Responsibilities At the beginning of this phase, the ITT is fully assembled and is led by the ITT leader from Engineering Services. The ITT leader determines the required resources to undertake all the required deliverables, integrates project components, maintains control over the project and engages the stakeholders to enable the development of the project, fully utilizing the RAPID matrix for all activities, and is working under the direction of the TS. The Technology Sponsor will decide whether to submit ER package for Executive Committee ER approval.

5.2.3

Deliverable(s) The core deliverable for this phase are the Business Case, DBSP, and Project Execution Plan. This includes: 

Prepare/update the Project Execution Plan as per SAEP-12 including technology project schedule and customized RAPID Matrix deliverables required for the Execution Phase of the project. 

Review and validation of the business objectives that the technology project supports the resolution of the corporate technical challenge



Confirmation of potential synergies with other technology projects that can be implemented



Description of the project in terms of scope, expected net benefits and lifecycle costs



Economic evaluation for each of the viable alternatives



Overview of the physical location of the proposed facilities and the related interfaces Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment





Preliminary assessment of the constructability and logistical issues specific to the proposed project



Preliminary assessment of the extent to which existing drawings must be updated to reflect as-built facilities, the extent to which existing drawings are available in an appropriate format and the time required to modify existing drawings (as necessary)

The ITT undertakes the following activities to achieve the gate deliverables: 

Reconfirms all viable alternatives for achieving the stated Business Objective



Develops a project scope for each viable alternative to develop a FEL 2 Study Cost Estimate



Visits the site of the proposed facilities (i.e., the physical location of the proposed facilities) to definitively describe the proposed facilities



Develops a preliminary plot plan to show the location of the proposed facilities relative to each other and to existing facilities



Determines the location and characterizes the conditions of each physical interface between the existing and proposed facilities



Develops the drawings/documents and prepares a detailed list of equipment required (as per SAEP-25) to generate the Master Appropriation ER estimate.



Completes an economic evaluation for each of the viable alternatives; describes the main assumptions for the economic evaluation used to derive the economic benefits for each viable alternative



Completes a preliminary assessment of the operational requirements, restrictions and constraints, as well as related safety requirements, which may impact the engineering design, construction and/or start-up of the proposed facilities



Prepares the necessary documents (ER Brief and BISI) for presentation to Management Committee

The DBSP review is performed in order to steer the engineering activity, incorporate design development, and identify errors and non-compliance with standards and specifications. These reviews involve several project stakeholders including proponent (Operations & Maintenance), Construction Agency and Engineering Services. Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

Deliverables that are critical to enable assessment of the project at the Gate for this phase are presented to the TS. The Master Appropriation BI FEL 2 Business Case, Study and DBSP cost estimate shall have an overall accuracy for Master Appropriation as defined in SAEP-25 of ±10%. This estimate is to be used in the Saudi Aramco Cost Estimate Form 56D for approval by PMOD, and submission to FPD. When the Project Proposal FEL 3 is waived and as stated in Project Execution Plan, Master Appropriation individual releases shall have an accuracy as defined in SAEP-25 of ±10%. 5.2.4

Outcome The Project Execution Plan is completed with responsibilities as designated in the RAPID Matrix. Deliverables that are critical to enable assessment of the project at the Gate for this phase are presented to the TS. The Executive Committee will decide whether funding is provided for the Master Appropriation in the quarterly ER approval cycles. Following approval of Master Appropriation BI, Expenditure Releases may be initiated. Gate 2 provides approval of Master Appropriation BI. After which, individual expenditure releases may be initiated and approved by management. At the end of this phase the project then enters the Project Execution, Detailed Design, Procurement, Construction, Operations, Commissioning, Startup and Close-Out for the technologies where the Project Proposal Phase has been waived as stated in the Project Execution Plan.

5.3

FEL 3 Stage (Project Proposal Phase) Figure 3 shows the Business Case, Study, and DBSP Phase (FEL 1&2) with respect to the overall initiation, planning, execution, and operations process. FEL 3

Figure 3 - Project Proposal Phase Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

Project Proposal is not required for technologies where the design scope is of small value and complexity. 5.3.1

Purpose The purpose of the FEL 3 Project Proposal phase is to complete the development of the preliminary engineering and execution strategy for the project, finalize the front-end project planning, evaluation of the contractor bids and project’s economic evaluation.

5.3.2

Responsibilities This phase starts with the TS and the ITT leader meeting with all the ITT members to review the management direction for the project and the key Project Proposal phase objectives. The ITT leader continues to guide the team to complete all the required deliverables to enable assessment of the project at the Gate, fully utilizing the RAPID matrix for all activities, and continues working under the direction of the TS.

5.3.3

Deliverable(s) The focus of this phase is to define the preliminary engineering scope and design to be used for the contract bidding process for execution, including: 

Scope and design information that define the performance specifications of the technologies.



Updated drawings that define the scope of the project (e.g., Piping and Instrumentation Diagrams, plant and equipment layouts, electrical one-line diagrams, etc.)



Studies and calculations necessary to be developed based on project needs (e.g., ETAP study, HAZOP study, etc.)



Implementation of applicable Value Improving Practices requirements as per SAEP-367

The ITT undertakes the following activities to achieve the gate deliverables: 

Manages the engineering contractor charged with preparing the Project Proposal phase in accordance with SAEP-14



Defines the proposed project’s scope in sufficient detail to obtain an ER cost estimate



Details the project scope in the Project Proposal deliverables Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment



Documents a complete description for each proposed scope modification, if any, together with the underlying rationale and comprehensive cost estimate



Development and maintenance of the project execution plan and schedule as per SAEP-12



Completes the applicable VIPs (Value Engineering, Constructability, etc.) per SAEP-367



Details the project scope in the Project Proposal deliverables



Develops and formally documents the Master Appropriation individual release ER cost estimate (±10%)



Completes a comprehensive economic evaluation, with an explanation of the basis of the cost estimate



Business Case Assessment (final) that includes a detailed ER cost estimate (±10%)

The Master Appropriation ER release shall have an accuracy as defined in SAEP-25 of ±10%. This estimate is to be used in the 56D for approval by PMOD and to be included when initiating Master Appropriation release. Deliverables that are critical to enable assessment of the project at the Gate for this phase are presented to the TS. 5.3.4

Outcome At the end of this phase, the technology project then enters the Project Execution, Detailed Design, Procurement, Construction, Operations, Commissioning, Startup, and Close-Out.

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Technology Project Execution The Execution Phase led by the “Technology Execution Leader” from the Field Proponent department responsible to execute the technology project including detailed design, procurement and construction in accordance with the project requirements developed during Front End Loading Phase and with project funding provided by Technology Management Division, Engineering Services. The role of the “Technology Project Manager” shifts to advisory and supervisory role, as the proponent of the Master Appropriation BI.

Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

6.1

Expenditure Release The Execution phase starts upon release of funds by TMD to the Field Proponent. The ER funds are initiated via the Expenditure Request Fund Releases System, SAP Transaction ZP0400. The release of funds in the Master Appropriation is governed by GI-0020.500 Expenditure Requests. All expenditure releases shall be initiated with preparation requirements detailed in GI-0020.500. Additionally, a technology deployment letter initiated by TMD for concurrence to the Field Proponent and Engineering Services Department attaching the technology Project Execution Plan is required prior to initiating the Master Appropriation Expenditure Release (ER).

6.2

Project Execution At the start of the Execution Phase, the Integrated Technology Team (ITT) is formed based on the Integrated Staffing Assignment for Execution Phase developed during the FEL process. As per the RAPID Matrix, the Technology Execution Leader is responsible for the formation of the team. The Execution Phase is carried out in accordance with the Project Execution Plan developed for the deployment of technology in the Field Proponent facility. Figure 4 shows the Execution Phase with respect to the overall initiation, planning, execution and operations process.

Figure 4 - Execution Phase

The “Technology Execution Leader” is responsible for developing the Execution phase deliverables as per RAPID matrix in Attachment “B”. The “Technology Project Manager” role shifts to advisory and supervisory role, as the proponent of the BI. The Technology Project Manager is the single point of contact with the Technology Execution Leader to provide technical support pertaining to Saudi Aramco standards and specifications and ensure compliance with the Saudi Aramco Procurement Manual during the detailed design, procurement, construction, and pre-commissioning stages.

Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

6.3

Management of Change The Field Proponent is responsible to ensure that all the changes associated with the technology project are carried out in accordance to the Field Proponent facility Management of Change processes in accordance with Element 5 of the Saudi Aramco Safety Management System (SMS) ensuring that all changes to existing assets have been properly evaluated, authorized, implemented, and documented.

6.4

Project Controls As the BI Proponent, TMD will monitor the individual ER project activities with input from the Technology Execution Leaders on the cost, scheduling, and QA/QC functions throughout the Execution Phase. TMD will prepare reports at BI level on monthly basis, addressing planned versus actual and forecasted progress, in addition to highlighting achievements, objectives, and areas of concern covering the project for management reviews. The monthly reports are to be distributed to the Field Proponents and Engineering Services management.

6.5

Mechanical Completion The execution phase is complete upon achieving Mechanical Completion as defined in GI-0002.710. The Construction Agency is responsible for delivering a completed facility as defined in the project scope of work. In addition to the requirements in GI-0002.710, the Mechanical Completion Certificate shall be routed to Technology Deployment BI Proponent (TMD) in addition to the facility Field Proponent.

7

Technology Operations Figure 5 shows the Operations Phase with respect to the overall initiation, planning, execution and operations process. The ERC shall be completed for all expenditures.

Figure 5 - Operations Phase

The RAPID matrix shows deliverables to be developed during this Phase (see Attachment B - RAPID Matrix (Recommend, Agree, Perform, Input, Decide)). Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

7.1

Performance Acceptance Certificate The Performance Acceptance Certificate (PAC) ensures that the equipment installed has been demonstrated to perform within Saudi Aramco standards, project drawings, and specifications. It includes the signatures of the relevant stakeholders including TMD. The Technology Execution Leader is responsible for initiating the PAC to the requirements in GI-0002.710 and shall be routed to Technology Deployment BI Proponent (TMD) in addition to the facility Field Proponent. Signing of the PAC marks the completion of the technology project. All technology projects shall be completed to achieve the Technology Deployment Master Appropriation BI Expenditure Request Completion.

7.2

Project Close-Out Report The Project Close-Out Report will be completed by the Technology Project Manager and will provide information to support the planning, appraisal and execution of future technology projects as well as serving as a key document for benchmarking, post-appraisal and value assurance purposes. This document will be archived in the TMD Technology Database for evaluating and promoting future technology projects.

7.3

Financial Close-Out The Financial Close-Out Report evaluates the elements of the project’s work breakdown structure, determines if there are any additional commitments and their corresponding costs, as well as provides key data regarding the project (including staffing, lessons learned, etc.) and any information from project execution that could have impacted the project’s finances.

7.4

Post Project Appraisal Report The Post Project Appraisal Report is a conclusive report that provides a high-level evaluation of the project. The Report identifies any lessons that could improve subsequent projects (regarding their planning, decision-making, or execution), determines the extent to which the original project expectations were realized, and reasons for any changes in these expectations. This includes project actual economic performance against predicted economic performance.

Revision Summary 30 January 2017

New document that defines the procedures and responsibilities for Technology Deployment Master Appropriation projects by Engineering Services. Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

Attachment A - Technology Justification Categories Summary The project justification categories are intended to clearly and succinctly explain why proposed projects are reasonable and consistent with Saudi Aramco’s Business Plan objectives. Presently, there are four primary justification categories: 

Compliance



Economics



Loss Control, consisting of three (3) subcategories



o

Loss Control – Safety

o

Loss Control – Security

o

Loss Control – Environment and Health

Maintain Business, consisting of three (3) subcategories o

Maintain Business – Reliability

o

Maintain Business – Performance

o

Maintain Business – Demand Growth

The criteria for deciding which of these justification categories most effectively explains the business rationale for the proposed project are presented in the next section. Additional information on the selection criteria and the required supporting information are presented in the following section.

Selection Criteria and Required Supporting Information General 

The justification category should be consistent with the proposed project’s stated Business Objective and the operating environment in which this Business Objective has to be achieved.



All reasonable efforts should be made to justify project economically, consistent with Saudi Aramco’s mission “to engage in all activities related to the hydrocarbon industry, on a commercial basis and for the purpose of profit.”

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

Compliance Selection Criteria The Compliance justification category should only be used to justify projects that are primarily attributable to a specific government directive or government regulation (e.g., security directives, environmental regulations) that is expected to be in effect at the time the project is approved. Otherwise, one of the other justification categories should be used.

Supporting Information 

A description of the government directive or government regulation, including all of its pertinent provisions



A written government directive or regulation, preferably (or evidence of a written government directive or regulation, as a minimum)



An explanation of the extent to which the proposed project would comply with the applicable directive or regulation, complete with an incremental economic evaluation which demonstrates the reasonableness of the proposed project scope.

Economics Selection Criteria The Economics justification category should generally be used, unless the proposed project is required to comply with a specific Government directive or regulation.

Supporting Information 

An economic analysis of the proposed project, as described in Section 4.2.2.5, including the economic evaluation model



A complete explanation of all of the assumptions and the bases for these assumptions, as a means of demonstrating the reasonableness of the economic analysis

Loss Control Selection Criteria The Loss Control justification category should only be used for projects which primarily address Safety, Security, and Environmental and Health risks to Saudi Aramco assets, employees and/or the public: 

Which are not specifically addressed by a government directive or regulation



For which the net benefits cannot be reasonably quantified

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

Supporting Information Examples of the types of supporting information that should be provided if the Loss Control justification category is used are presented below:

Loss Control – Safety 

Historical record of safety-related incidents (e.g., accidents)



Risk assessment reports from the Consulting Services Department (CSD), the Inspection Department, and/or the Loss Prevention Department



A complete description of the net benefits, which would likely be realized from the proposed safety project

Loss Control – Security 

Historical record of security-related incidents



Risk assessment reports from Industrial Security and/or the Loss Prevention Department



A complete description of the net benefits, which would likely be realized from the proposed security project

Loss Control – Environmental and Health 

Historical records which document environmental and health related concerns



An environment assessment report from the Environmental Protection Department (EPD)



A complete description of the net benefits, which would likely be realized from the proposed environmental and health project

Maintain Business Selection Criteria The Maintain Business justification category should only be used for discretionary projects: 

With net benefits that clearly and overwhelmingly exceed the anticipated costs (i.e., the net benefits are so great compared to the anticipated costs that additional more detail analysis is not warranted)



For which the net benefits cannot be reasonably quantified

The Economics justification is preferable, as it is consistent with Saudi Aramco’s mission to engage in all activities related to the hydrocarbon industry, on a commercial basis and for the purpose of profit.

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment

Supporting Information Examples of the types of supporting information that should be provided if the net benefits cannot be reasonably quantified are presented below:

Maintain Business - Reliability 

Historical records, which conclusively demonstrate a significant number of unplanned equipment/facility shutdowns (i.e., failures) and a significant amount of downtime



An assessment of the cause of the shutdowns



Forecasts of the number of shutdowns and the amount of downtime



A complete description of the impact of the demonstrated failures and downtime on: o



The Operating Plant, itself 

Saudi Aramco’s ability to achieve one or more of its Business Plan objectives, taking into account other actions that could be taken to mitigate (i.e., reduce) the direct impact of the failure and downtime, such as increasing production from other facilities and/or by drawing down storage (i.e., the quantifiable and qualitative net benefits attributable to the proposed project) net impacts.



A complete description of the quantifiable and qualitative net benefits, which would likely be realized from the proposed increase in performance



The applicable operating organization(s)



The net impact on Saudi Aramco’s ability to achieve one or more of its Business Plan objectives

A targeted level of reliability, consistent with comparable industry o

The Operating Plant, itself 

Saudi Aramco’s ability to achieve one or more of its Business Plan objectives



The targeted reliabilities should be compared to typical “industry” reliability levels, to provide additional perspective.

Maintain Business - Performance 

A performance level assessment



The current level of performance (i.e., service)



The targeted performance level



A complete description of the quantifiable and qualitative net benefits, which would likely be realized from the proposed increase in performance Saudi Aramco: Company General Use

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Document Responsibility: Technology Management Standards Commitee SAEP-74 Issue Date: 30 January 2017 Next Planned Update: 30 January 2020 Engineering Services Technology Deployment



The applicable operating organization(s)



The net impact on Saudi Aramco’s ability to achieve one or more of its Business Plan objectives



An assessment of the level of performance typically provided elsewhere (i.e., other comparable companies, other organizations within Saudi Aramco)



An estimate of the quantifiable net benefits attributable to the proposed increase in performance

Maintain Business – Demand Growth Historical records which document an increase in demand for a product or service (e.g., infrastructure, IT services, other support services) A demand forecast, consistent with the historical record, together with an explanation of the underlying assumptions (preferably a range of forecasts) An assessment of existing capacity at: 

At the Operating Plant, itself o

Within the corresponding Operating System

o

Within other operating systems that could contribute to achieving the applicable Business Plan objectives

Preferably, this capacity assessment should be based on capacity tests performed specifically to determine the maximum sustainable capacity. A complete description of the quantifiable and qualitative net benefits, which would likely be realized from the proposed increase in capacity The applicable operating organization(s) The net impact on Saudi Aramco’s ability to achieve one or more of its Business Plan objectives An estimate of the quantifiable net benefits attributable to the proposed increase in capacity

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Document Responsibility: Technology Management Standards Commitee Issue Date: 30 January 2017 Next Planned Update: 30 January 2020

SAEP-74 Engineering Services Technology Deployment

Attachment B - RAPID Matrix (Recommend, Agree, Perform, Input, Decide)

I

I

I

I

I

I

I

I

A

A

I

I

2,1,b

Proposed Integrated Staffing Assignment for Business Case

D

R

2.4

FEL and Execution Deliverable List - included in PEP

D

R

2.12

Contracting Strategy (Initial)

D

R

2.13

Project Execution Plan (Initial)

D

R

2.21

Preliminary Engineering Funding Request

D

R

4.4

Basic Data Requirements (Final)

D

R

4.5

Design Basis Scoping Paper (DBSP)

D

R

I

A

4.20

VIP - Project Risk Management (PRM) (Updated)

D

I

I

4.21

Preliminary Process Hazard Analysis (Workshop)

D

I

I

4.26

Business Case Assessment (Final)

R

I

I

D

I

I

I

I

A

A

I

Loss Prevention

FPD

Deliverables

Contracting

ITT SUPPORT FUNCTIONS

Material Procurement

INTEGRATED TECHNOLOGY TEAM (ITT) MEMBERS

CPED Value Assurance Technology Sponsor Technology PM (ES) Execution Leader(Field) Technology Rep. Materials Procurement Contracting Coord. Loss Prevention Inspection Coord. Safety Specialist Finance Coord. Sr. Operations Rep Admin Area CPM

Deliverable No.

Notes 1. RAPID Matrix to be customized according to technology deployment requirements. 2. Technology Representative from Engineering Services Dept (CSD, P&CSD, ID or Env.)

PMOD

FEL 1& 2 (Business Case, Study, DBSP)

Phase

ITT member function of origin legend Technology Project Manager (Engineering Services) Technology Execution Leader (Field Proponent Dept.) Engineering Services Others

I

I

A

I

I I

I

I

I

A

I

A

I

A I

I

A A

I

A

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FEL 1& 2 (Business Case, Study, DBSP)

SAEP-74

4.27

Procurement Strategy

D

4.28

Contracting Strategy (Updated)

A

4.29

Project Interface Plan (Initial)

4.30

Project Execution Plan (Updated)

4.31 4.33 4.34

DBSP Cost Estimate (±25%)

4.36

DBSP Brief and Presentation

D

R

I

4.37

Proposed Integrated Staffing Assignment for Project Proposal

D

I

R

4.38

Pre-Commissioning & Mechanical Completion Plan (Initial)

I

D

4.41

Assurance Review Report

D

4.42

Gatekeeper Submittal

D

R

4.43

Gate Outcome Report

R

D

R

I

I

R

R

D

D

R

I

Operational Readiness Plan (ORP) (Updated)

D

R

I

Schedule Level II

D

R

I

I

I

A

I

I

I

A

I

I

A

I

I

A

R

Loss Prevention

I

D

I

Contracting

Material Procurement

FPD

Deliverables

PMOD

Engineering Services Technology Deployment

CPED Value Assurance Technology Sponsor Technology PM (ES) Execution Leader(Field) Technology Rep. Materials Procurement Contracting Coord. Loss Prevention Inspection Coord. Safety Specialist Finance Coord. Sr. Operations Rep Admin Area CPM

Deliverable No.

Phase

Document Responsibility: Technology Management Standards Commitee Issue Date: 30 January 2017 Next Planned Update: 30 January 2020

I

I A

I

D

I I

A I

I

I

A

I

I

I

I

I I

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Execution (Procurement)

Execution (Detailed Design)

7.2

Schedule Level III (Updated)

7.3

Project Completion Schedule

7.6

D

A

A

D

A

A

VIP - Design for Maintainability Report (Updated)

R

D

I

A

7.7

VIP - Constructability Review Report (Updated)

R

D

I

A

7.9

VIP - Planning for Startup Report (Updated)

R

D

I

A

7.10

VIP - Project Risk Management (PRM) (Updated)

R

D

7.11

eReview by Detailed Design Stakeholders

D

I

I

I

I

I

A

7.12

Detailed Design

D

I

I

I

I

I

A

7.12a Construction Package

D

I

I

I

I

I

A

I

I

I

7.13

IFP (LSPB Contract)

R

7.14

Schedule Level IV and V

D

8.1

Purchase Requisition

D

R

8.2

Technical Submittal Reviews

D

R

8.3

Inspection Assignment Packages

D

I

8.4

Spare Parts Data Packages

D

R

8.5

Materials Final Disposition Report

D

I

8.6

Materials Reports

D

R

8.7

Asset Record (Fixed Assets Work In Progress)

D

R

A

I

I

A

A

Loss Prevention A

A

I

I

I

I

I

R

I

I

I

I

I

I

I

I

I

I

R

Contracting

Material Procurement

FPD

Engineering Services Technology Deployment

PMOD

Deliverables

SAEP-74

CPED Value Assurance Technology Sponsor Technology PM (ES) Execution Leader(Field) Technology Rep. Materials Procurement Contracting Coord. Loss Prevention Inspection Coord. Safety Specialist Finance Coord. Sr. Operations Rep Admin Area CPM

Deliverable No.

Phase

Document Responsibility: Technology Management Standards Commitee Issue Date: 30 January 2017 Next Planned Update: 30 January 2020

Saudi Aramco: Company General Use

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Execution (Construction)

9.3 9.4

EPC/LSPB Construction Notice to Proceed

D

9.5

Capital Assets List

D

9.6

Construction Progress Reports

D

9.7

Request for Inspections (RFIs)

9.9

Safety Management System (SMS) - Final

D

9.11

Inspection Record Books

D

9.12

Proposed Integrated Staffing Assignment for Commissioning

I

9.13

VIP - Design for Maintainability Report (Updated)

R

D

9.14

VIP - Planning for Startup Report (Updated)

R

D

9.15

VIP - Project Risk Management (PRM) (Final)

I

D

9.16

Mechanical Completion Certificate

A

R

I

A

9.18

Project Records Book Submittals

D

R

I

9.19

As-Built Schedule

9.22

I

A

I

A

I

A

I

A

I

A

I

A

D

R

Loss Prevention

Contracting

Material Procurement

FPD

Deliverables

PMOD

Engineering Services Technology Deployment

Operational Readiness Plan (ORP) (including Final Startup Plan) EPC/LSPB Construction Kick-Off Meeting

9.2

Operations

SAEP-74

CPED Value Assurance Technology Sponsor Technology PM (ES) Execution Leader(Field) Technology Rep. Materials Procurement Contracting Coord. Loss Prevention Inspection Coord. Safety Specialist Finance Coord. Sr. Operations Rep Admin Area CPM

Deliverable No.

Phase

Document Responsibility: Technology Management Standards Commitee Issue Date: 30 January 2017 Next Planned Update: 30 January 2020

A

D

I

I

I

I

I

I

A

I

A

I

I I

I

I

I

A

I

D

D

R R

I R

I

A

A I

D

Exception Items Completed

D

A

R

9.23

Contract Close-Out

D

A

R

11.1

Performance Acceptance Criteria

D

A

R

12.2

Project Close-Out Report

D

A

R

12.3

Financial Close-Out Report

D

A

R

12.4

Post Project Appraisal Report

D

A

R

I

I

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