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OGP Project Services
Project Guide No. 7: Project Premise Document, Project Execution Strategy or Plan, Project Implementation Plan
Project Guide 7
Project Premise Document Project Execution Strategy Or Plan Project Implementation Plan
Custodian: Owner: Keywords:
M. Kalappa H. Goudsmit
Shell Global Solutions, OGNL-OGP/4 Shell Global Solutions, OGNL-OGP
Project Management, execution strategy, premise, implementation plan
This document is made available subject to the condition that the recipient will neither use nor disclose the contents except as agreed in writing with the copyright owner. Copyright is vested in Shell Global Solutions International B.V., The Hague. © Shell Global Solutions International B.V., 2003. All rights reserved. Neither the whole nor any part of this document may be reproduced or distributed in any form or by any means (electronic, mechanical, reprographic, recording or otherwise) without the prior written consent of the copyright owner.
Shell Global Solutions
Shell Global Solutions is a trading style used by a network of technology companies of the Royal Dutch/Shell Group.
Date Sept 2003
Reason for change Approved for Implementation
Author Name / Ref.Ind. L. Keijzer, OGNL-OGP/8
Approved Name / Ref.Ind. Signature H. Goudsmit, OGNL-OGP
The controlled copy of this document is held by Shell Global Solutions, OGP Project Support Group. All paper copies are uncontrolled.
OWNERSHIP.5 3.2 2. 1.2 4. 1. 5.3 2.2 1.2 6.4 5. 3.4 2. RIGHT OF USE DEFINITIONS / REFERENCES PROJECT PREMISES OUTLINE OF INVESTMENT PROPOSAL .1 1.4 3.3 2. 3. PRODUCT AND UTILITIES ECONOMICS PROJECT MANAGEMENT – ORGANISATION VENTURE ORGANISATION PROJECT SITE CONSIDERATIONS PROJECT OVERALL SCHEDULE PROJECT COMMISSIONING AND START-UP TECHNOLOGY TECHNOLOGIES CAPACITIES.1 2.1 INTRODUCTION PURPOSE AND USE SCOPE PROJECT PHASES PURPOSE OF THE DOCUMENTS PROJECT PREMISE DOCUMENT (PPD) PROJECT EXECUTION STRATEGY (PES) PROJECT EXECUTION PLAN (PEP) PROJECT IMPLEMENTATION PLAN (PIP) CONTENT OF THE DOCUMENTS GENERAL PROJECT PREMISE DOCUMENT – PPD PROJECT EXECUTION STRATEGY – PES PROJECT EXECUTION PLAN – PEP PROJECT IMPLEMENTATION PLAN .3 1. YIELDS.2 3.1 5.1 2.4 2.3 4.1 1.1 4. APPENDIX B: TEMPLATE WITH CHECKLIST FOR PES 1. 1. 5.PIP RESPONSIBILITY.1 3. FEED AND PRODUCT QUALITY HSE & SUSTAINABLE DEVELOPMENT IDENTIFICATION OF KEY HSE AND SD ISSUES PROJECT BACKGROUND SCOPE SUMMARY OF DEVELOPMENT PLAN 6 6 7 7 8 8 8 9 10 11 11 11 11 11 11 12 13 14 14 14 14 14 14 15 15 15 15 15 16 16 16 16 17 17 17 17 18 19 19 19 20 20 21 21 21 21 APPENDIX A: TEMPLATE WITH CHECKLIST FOR PPD 2.2 1.3 3. 1.2 4.03.1 1. 4. 6.SCOPE OBJECTIVES PRIORITIES CUSTOMER / OPERATOR KEY ISSUES. 2.3 2. INVESTMENT ORIGIN JV PARTNERS RISK IDENTIFICATION AUTHORITY ENGINEERING MAIN CHANGES FROM PREVIOUS REVISIONS STRATEGIC FIT AND BUSINESS CASE FEEDSTOCK.OG.2 2.2 .5 4. RISKS MAIN ISSUES.4 3.1 3.30750 2 Confidential Table of Contents 1.
4.4.2 3. 2.2 4.OG.1 4.2 1.2 4.1 2.1 1.5 3.1 2.4.3 3.1 3.1 5. RISKS. 3. SERVICE AGREEMENTS AND FINANCES FUNDS FORM OF AGREEMENTS FINANCES Shell Global Solutions Services – To be rendered Prior to Implementation Phase Shell Global Solutions Services – In the Project Implementation Phase 21 22 22 22 23 23 23 23 24 24 24 25 25 25 26 27 29 29 29 30 30 30 31 32 32 32 32 33 33 33 33 34 34 34 34 35 36 37 37 37 37 38 40 40 40 42 38 39 27 28 5. SENSITIVITIES TECHNOLOGY JV PARTNERS PROJECT EXECUTION AUTHORITY ENGINEERING VALUE AND WORK PROCESSES COST AND SCHEDULE AND CHANGE CONTROL COST ESTIMATE COST CONTROL PROJECT SCHEDULE CHANGE CONTROL DIVISION OF WORK AND RESOURCING PURPOSE CUSTOMER'S INPUT SHELL GLOBAL SOLUTIONS SERVICES Strategy Change Control Procedure 2.2 6.3 1. 4.3 2.3.6 2.3 2. 6.4 1.1 4.3 1.5 1.2 4.4 1.2 OBJECTIVES AND PRIORITIES CUSTOMER/OPERATOR UPDATE PROJECT PREMISE DOCUMENT – PPD REV 1 NOMENCLATURE KEY ISSUES.3.4 APPENDIX C: TEMPLATE WITH CHECKLIST FOR PEP AND PIP PROJECT BACKGROUND SCOPE SUMMARY OF DEVELOPMENT PLAN OBJECTIVES AND PRIORITIES CUSTOMER/OPERATOR UPDATE PROJECT PREMISE DOCUMENT – PPD REV 2 and 3 NOMENCLATURE KEY ISSUES.30750 3 Confidential 1.3 .2 2. 3.1 6.6 2.1 3. 4. 1.3 5.2 6.1 3.4 3. SENSITIVITIES TECHNOLOGY JV PARTNERS PROJECT EXECUTION AUTHORITY ENGINEERING COST AND SCHEDULE AND CHANGE CONTROL COST ESTIMATE PROJECT SCHEDULE DIVISION OF WORK AND RESOURCING PURPOSE CUSTOMER'S INPUT SHELL GLOBAL SOLUTIONS SERVICES CONTRACTING PURPOSE STRATEGY BUDGETS.3 1.1 4.2 2. 3.4 2.2 4.03.5 1. RISKS.
2 Shell Global Solutions Services – To be rendered prior to the Implementation Phase Shell Global Solutions Services – To be rendered in the Project Implementation Phase 42 43 5.3. 13.2 6.1 6.4 10.7 6.1 13. 4. 9.1 7.5 8.3 11.2 5.1 10.3 13.3.1 4.5 .2 6.4 13.30750 4 Confidential 4. 11.1 8.1 5.4 5.2 7.3 7.5 12. 10.03.2 12.2 8.2 10.3 8.3 11.3 6.1.OG.3 13.6 8. START-UP AND PERFORMANCE TESTING PURPOSE PHASES COMMISSIONING AND START-UP SCHEDULE ORGANISATION VENDOR ASSISTANCE Application Control 43 45 45 45 45 47 47 47 48 49 49 49 50 50 51 51 51 51 52 52 53 53 54 54 54 55 55 56 56 56 57 58 58 58 59 60 60 61 61 61 62 64 64 64 64 65 66 47 47 7. ENVIRONMENT (HSE) AND SUSTAINABLE DEVELOPMENT POLICY HSE PLAN HSE FEATURES PUBLIC RELATIONS ENGINEERING PURPOSE STRATEGY Division of Work PROCUREMENT PURPOSE STRATEGY DIVISION OF WORK PRE-ORDERING LONG-LEAD EQUIPMENT ORDERING OF UNDERGROUND PIPING AND CABLES CONSTRUCTION PURPOSE STRATEGY DIVISION OF WORK COMMISSIONING. 8. RESOURCES CONTRACTING PURPOSE STRATEGY MAJOR CONTRACTS BUDGETS. 12.2 11.1 12.2 9.3 9.1 11.1.1 9. SAFETY.2 13. SERVICE AGREEMENTS AND FINANCES FUNDS FORM OF AGREEMENTS FINANCES PROJECT ORGANISATION AND PROCEDURES PURPOSE CORPORATE STRUCTURE PROJECT ORGANIZATION PROCEDURES QUALITY ASSURANCE PURPOSE STRATEGY QUALITY ASSURANCE REQUIREMENTS REVIEWS and AUDITS QUALITY ASSURANCE FEATURES AUDIT TRAIL INTEGRITY OF THE DESIGN HEALTH.4 8.4 11. 9.1 6.3 7.4 8.
30750 5 Confidential 13.8 14.2 SPARE PARTS DOCUMENTATION AT HAND-OVER DOCUMENTATION AT SUCCESSFUL PERFORMANCE TEST RUN POST-IMPLEMENTATION REVIEW INTRODUCTION SCOPE AND TIMING 66 66 67 68 68 68 .1 14.7 13.6 13.03. 14.OG.
contractors. These documents are principally required to be available to complement the proposal for and support the project development at the assurance gate reviews. This information also provides key input to the technical development as recorded in the BOD. stakeholders. 1. This PG acts as a handbook for the Project Team on how and when to execute the relevant activity. 1 The term ‘execution’ describes the whole period of ‘development’ and ‘implementation’ of a project. BDP. It should be noted that prime responsibility within the Asset Development Organisation (Ref. It is used through appropriate phases of the project development to provide guidance. the strategy. The PIP covers a relatively long period in time and may therefore require review and update during implementation of the project. The purpose of the PPD is to ensure alignment of key stakeholders that are impacted by the project on the premises and requirements of the Venture on which all development will be based and assessed. Project Execution Plan (PEP) and the Project Implementation Plan (PIP). in increasing depth as the project develops. In addition.7) for establishing project premises. The PES. In addition it provides a key reference for initiation of many project processes such as Risk Management. Operational Implementation Planning etc. which is initiated in the Scouting phase and finalised in FED 1. and also specifies the contents and level of detail for the deliverables. procedures and/or checklists for relevant subjects. . whilst prime responsibility for project execution strategies. BDEP/Project Specification. it will assists in creating an awareness of relevant aspects of the project development and implementation process and transferring knowledge on the subject to other parties. The use of PGs is a requirement for all projects executed under the responsibility of the Shell Global Solutions OGP business group as defined in ‘OGP Governance: Project Development and Implementation’ (Ref 1). tactics & plans lies with Project Management. the Project Execution1 Strategy (PES). etc. These guides assist project managers. The purpose of the PES/PEP/PIP is to detail. evolves with increasing definition during the development phases of the project to the PEP at end of FED 2 and PIP at end of FED3 or FID. tactics and plans for development and implementation of the project in order to meet the premises and requirements laid down in the PPD. As the PGs are an integral element of OGP’s business process for projects.OG.1 Purpose and use This particular Project Guide provides guidelines for the preparation of the Project Premise Document (PPD). maximum benefits are derived from using them in combination with the Project Development and Implementation Process and Project Value Processes. project engineers and others involved in the development and implementation of capital projects to execute the project development and implementation process and to produce the required deliverables.30750 6 Confidential 1. such as project sponsors. INTRODUCTION This Project Guide (PG) is one of a series of guidance documents to assist Shell Global Solutions staff in developing and implementing capital projects.03. objectives & goals lies with Venture Management. Contracting and Procurement Strategy Development.
PES. FEED = front end engineering design.30750 7 Confidential 1. FID = final investment decision.3-1 Legend: BDEP = basic design and engineering package. the principles nevertheless. PEP = project execution plan. Figure 1. It shall be noted that the size of the project may determine the level of detail of the subjects to be addressed in the various documents. BDP = basic design package. PIR = post implementation review. PS = project specification.3 Project Phases In Project Guides. However it is recognised that other Shell business sectors utilise different nomenclature. required signatures and right of use of these documents. In Appendices A. BOD = basis of design. activities and deliverables are related to the phases of a project.OG.3-1 below illustrates the relationship between OGP phase / review gate nomenclature and that used in other sectors.2 Scope This Guide covers the purpose of the PPD.03. construction. their content. procurement. apply for all projects. VAR = value assurance review . Figure 1. BfD = basis for design. PEP and PIP. RFSU = ready for start-up. EPC = engineering. OGP have standardised on a common nomenclature for the phases of a project that is utilised throughout this document. PSA = pre start-up audit. B and C provide templates for the subjects and issues to be addressed in these documents and checklist items for consideration. ownership. FDP = field development plan. 1.
This document could then be tweaked in FED2. objectives and economics.30750 8 Confidential 2. and (main) changes from previous phases recorded. In this aspect it differs from the follow up plans such as PES. The PES shall then be further refined and updated. FED3 etc. . cost estimating and future work planning. preparation and tendering The PPD –rev 0 . PURPOSE OF THE DOCUMENTS 2. live Plant. The PPD is likely to be produced not only by the Project Department in OGP. The PPD shall therefore be kept up to date as an individual document during the progression of the proposal until its final completion. The Terms Of Reference (TOR) that need be developed to define the scope of work for SGSi will refer to the PPD. It is a live document that will exist throughout the development of the investment proposal into a project and ultimately. as appropriate.2 PROJECT EXECUTION STRATEGY (PES) The target groups for the PES are: • The Customer • The Venture Organisation / project team • Shell Global Solutions project management.1 PROJECT PREMISE DOCUMENT (PPD) The target groups for the PPD are: • The Customer • The Project Venture Organisation / project team • Shell Global Solutions project management.FED1 “Entry Document” stipulating the key elements prior to enter FED and under which main conditions. it need to set out clearly the premises.is to be considered as a – high level . by end of FED 1. prior to FED1) the overall strategy under which the project is intended to be developed and implemented according to the template in Appendix B. For examples of information to be included see Appendix A. preparation and tendering The PES should describe as early as possible in a project (at the end of the Scouting Phase. especially where economics and business issues are at stake. PEP and PIP where the focus will shift to development of an investment proposal where the PPD focuses on its definition. 2. cost estimating and future work planning. along with a summary proposal for its Front End Development. A key step in the development of the PPD and alignment of key stakeholders can be archived by use of Opportunity Framing if it has been facilitated prior to FED1.03. At the end of FED1 it need updating to rev 1 and at this stage. the Project Premise Document need to be in “near finished condition”. but significant and essential contributions will be delivered by the investment originating party. As the PPD is likely to be used to rank a project proposal amongst other investment opportunities.OG.
3 PROJECT EXECUTION PLAN (PEP) The target groups for the PEP are: • The Customer • The Venture Organisation / project team • Shell Global Solutions project management. For examples of information to be included see Appendix C. Shell Global Solutions’ involvement): This information enables the Customer and Shell Global Solutions to be in a better position to start planning and preparing (e.g. . preparation and tendering The PEP should describe the overall plan under which the project is intended to be executed. agreed by project participants. • Provide background information for respectively the update of the +/-30% cost estimate and the +/20% cost estimate: Only if basic assumptions and requirements are agreed and recorded a realistic cost estimate and an overall preliminary schedule can be prepared. describe alternatives that Shell Global Solutions can offer for it (contract alternatives.g. optimising in this way total project cost and schedule. Based on the above the purposes of the PEP can be summarised as follows: • Explain how Shell Global Solutions is going to execute the next project phases or.OG. for tendering) for the next project phases.g. based on the “worst anticipated scenario”.03. It will make the transition from FED2 to FED3 efficient and records the conditions under which that will happen • Summarise all critical actions to be done and decisions to be taken in the next project phases by all parties involved (the Customer. for tendering) for the next project phases. Shell Global Solutions or third parties): Providing this information helps both Customer and Shell Global Solutions in estimating required manpower and planning for the next project phases. if so requested. contract alternatives. If no information is available a contingency has to be added in the cost estimate.30750 9 Confidential Based on the above the purposes of the PES can be summarised as follows: • Explain how Shell Global Solutions is going to execute the next project phases or if so requested. based on the “worst anticipated scenario”. Shell Global Solutions’ involvement): This information enables the Customer and SGSI to be in a better position to start planning and preparing (e. and approved by the Customer. 0 of the PEP should be prepared during FED2. Rev. describe alternative strategies to execute the project and indicate the preferred option (e. • Provide background information for the 30% cost estimate: If basic assumptions and requirements are agreed and recorded a realistic +/-30% cost estimate and an overall preliminary schedule can be prepared. cost estimating and/or future work planning. If no information is available a contingency has to be added in the cost estimate. 2. It will make the transition from FED1 to FED2 efficient and records the conditions under which that will happen.
construction.30750 10 Confidential 2. during the implementation phase of the project.4 PROJECT IMPLEMENTATION PLAN (PIP) The target groups and purposes of the PIP are the same as for the PEP. commissioning. especially for the implementation of the project (the detailed engineering. The document is prepared at the end of the FED3 phase prior to FID and provides background for the +/-10% cost estimate.03.OG. The PIP shall be considered a live document and should. . Start of the fieldwork and at around 50% completion can be important milestones for release of PIP revisions to reflect actual situation and focus on the periods to come. be kept up-to-date with the agreed project implementation strategies. The only difference between the two documents is that the PIP contains more details than the PEP. The last issue of the PIP shall contain detailed information about the arrangements agreed for the commissioning and start-up and refer to a final Operations Implementation Plan (OIP). procurement. start-up and performance testing).
This high level document shall give a synopsis of the key issues only. The main table of contents of the first 6 chapters of the PEP and PIP is equal to that of the PES.3 PROJECT EXECUTION STRATEGY – PES In Appendix B a template with checklist is given for the PES.5 PROJECT IMPLEMENTATION PLAN .2 PROJECT PREMISE DOCUMENT – PPD In Appendix A a template with checklist is given for the PPD. 3. The PEP should be much more detailed than the PES. However. especially not for the chapters 10 up to and including 14. the PIP is a further development of the PEP.30750 11 Confidential 3. for later revisions. During FED1 and FED2 phases not all information mentioned in the checklist of Appendix C is already available in full detail.03. during the implementation phase .4 PROJECT EXECUTION PLAN – PEP In Appendix C a template with checklist is given for the PEP and PIP. asset development or project manager.PIP Ref Appendix C. 3. mentioning possible (likely) alternatives or describing what items still require resolution.OG. The PES shall be a concise document. CONTENT OF THE DOCUMENTS 3. as far as possible all items should be covered either by definite information or by preliminary information. 3.1 GENERAL It is recommended to produce the documents below by project participants in their various disciplines or field of expertise and assembled by the venture. 3. and contains information which becomes available during FED3 and. The content page of the document can serve as a vehicle to allocate the different chapters for this purpose.
Customer (no special secrecy agreement required) .Technical or Steering Committee of the Customer with secrecy agreement at corporate or personal level.Customer After FID: . Table 1 Ownership. RIGHT OF USE Table 1 indicates who is the owner of the document.Shell Global Solutions .Customer PIP Shell Global Solutions Before FID: .Technical or Steering Committee of the Customer with secrecy agreement at corporate or personal level.Customer .Shell Global Solutions .Customer .Shell Global Solutions . PEP and PIP Document PPD Owner Joint development by Investment Originator and/or Customer (e. signatures and right of use of PPD. who should sign them off (Shell Global Solutions and/or the Customer) and who has the right to use them.Shell Global Solutions . RESPONSIBILITY.OG. PES. OWNERSHIP.g.Customer Right of use .Shell Global Solutions .Shell Global Solutions . for Chemicals the asset development manager) and Shell Global Solutions Shell Global Solutions Signing off by .Customer (no special secrecy agreement required) .Shell Global Solutions .Shell Global Solutions .Shell Global Solutions . as appropriate After FID: . as appropriate Before FID: .Investment Originator PES .Customer PEP Shell Global Solutions . For the documents to be signed off by Shell Global Solutions the OGP Authority Matrix in the Business Group Management Manual indicates the authority to approve.03.30750 12 Confidential 4.
03. OG.30540.03.03.30722 OG. 2 Project Guide 8 – Project Specification Ref.03.03.8 Project Guide 9 – BOD/BDP Project Value Process 4 .1 OGP Governance – Project Development and Implementation OG.03.OG.03.30703 Ref.5 Ref.30750 13 Confidential 5. DEFINITIONS / REFERENCES Ref.30752 OG.30712 OG.30705 OG.6 Ref.4 Ref.30704 OG.7 Ref.03.03.Risk Management Project Value Process 3 – Contracting & Procurement Strategy Development Project Value Process 11 – Operational Implementation Planning Project Guide 11 – Building the Asset Development Organisation Project Value Process 2 – Opportunity Framing & Project Goals Setting .3 Ref.30751 OG.
Opportunity Statement. (Value drivers identify what is important for increasing the value of the opportunity.4 - CUSTOMER / OPERATOR Principal customer Stakeholder Identification and Mapping (to identify key stakeholders who have varying degrees of influence on the project.g. and their issues.SCOPE Description of investment proposal Alternatives considered 1. Identification of proactive measures to engage stakeholders) Future ownership and operating company Operating and maintenance practices - .30750 14 APPENDIX A .03. (a definition of the opportunity to gain team focus on the opportunity) Value Drivers and Critical Success Factors. reputation) and must reflect all the principles of sustainable development) Business expectations: why / sensitivity of success - 1. capex. They can include economic as well as soft items (e.OG.PPD Confidential APPENDIX A: TEMPLATE WITH CHECKLIST FOR PPD 1.2 - OBJECTIVES Main objective of proposal / ultimate goal / market share Objectives in time.1 - PROJECT PREMISES OUTLINE OF INVESTMENT PROPOSAL .3 PRIORITIES Checklist: Ranking with other proposals (Third party) competition 1. 1.
PPD Confidential 2. organisational.4 AUTHORITY ENGINEERING Checklist: Alternatives considered .2 - JV PARTNERS Identification of (potential) Joint venture partners Checklist: list pro’s and con’s of venturing 2. patents Checklist: Previous investment proposals 2.1 - MAIN ISSUES. (Rank using TECOP – technical. KEY ISSUES.OG. RISKS 2.30750 15 APPENDIX A .03. commercial. political framework to provide a structured approach to identify issues and define mitigation measures) Identification of show stoppers - 2. INVESTMENT ORIGIN Boundaries and Givens Originating parties Definition of Success Confidentiality – secrecy agreements.3 - RISK IDENTIFICATION Key Risk and Opportunities. economical.
OG.30750 16 APPENDIX A . rail.PPD Confidential 2. inventory requirements Utility requirements: supply versus self-generation 3. PEP and PIP.2 - ECONOMICS Scenarios Sensitivities Acid tests Value of process materials and catalysts Energy values . 3. The PPD requires to be updated as it contains the defined premises. PRODUCT AND UTILITIES Feedstock / arrangements / contract opportunities Suppliers. marketing areas Quality specifications. alternate supply Delivery mode – pipeline. required until completion of the full PIR. ship Market share Number and types of products.5 MAIN CHANGES FROM PREVIOUS REVISIONS Background: the PPD is a quality document that exists next to the various documents such as PES. truck. these will become extinct after use. off spec disposal Packaging. Define criteria for recording of changes Record (main) changes Initiating party and justification 3.1 - STRATEGIC FIT AND BUSINESS CASE FEEDSTOCK. 18 to 24 months after start up.03.
2 - PROJECT SITE CONSIDERATIONS Proposed location and alternatives considered (list pro and contra’s) Synergy effects with adjacent and/or existing facilities General facilities requirements (buildings.3 - PROJECT OVERALL SCHEDULE Overall schedule with FED phases and implementation / start-up Product availability requirements Schedule constraints – identify critical path(s) .03. Cape) 4.1 - VENTURE ORGANISATION Company service agreements Sponsoring – Steering Committee 4.PPD Confidential - Profitability criteria for trade offs – capital – labour – materials Trade off – cost versus schedule Cost on carbon Checklist: Max capital limitation References to economic evaluation models (e.OG. warehouses. PROJECT MANAGEMENT – ORGANISATION 4.30750 17 APPENDIX A . effluent treatment etc) 4.g.
PPD Confidential 4.30750 18 APPENDIX A .03.4 - PROJECT COMMISSIONING AND START-UP First indicative plans with regard to Company / Organisation of (initial) operation Checklist: Indicate upstream and downstream linked plant .OG.
YIELDS. TECHNOLOGY 5.30750 19 APPENDIX A .PPD Confidential 5.03. FEED AND PRODUCT QUALITY Nameplate capacity (including description of the definition used) Production early years versus mature operation Proposed availability Yields Run length Turndown requirements Feedslate and indication min and max quality Product slate and quality .Alternatives considered 5.1 - TECHNOLOGIES Technology selection Licensing parties License agreements.2 - CAPACITIES. conditions and fees Licensors and front end engineering parties Checklist: .OG.
1 - IDENTIFICATION OF KEY HSE AND SD ISSUES Identify key issues on health.03. HSE & Sustainable Development 6.OG. safety and environment and sustainable development First high level identification of scope per Project Guide 1A Effluent handling and disposal requirement Required operating permits .30750 20 APPENDIX A .PPD Confidential 6.
grass root or revamp. PROJECT BACKGROUND 1.PES Confidential APPENDIX B: TEMPLATE WITH CHECKLIST FOR PES Paragraphs that are underlined need addressing in the Rev 0 issue in scouting phase 1. (summary Project Premises Document) Alignment between Customer and Project - .OG. limitations existing facilities. life cycle cost.03.1 - SCOPE Project title and number Project location. plot space. operational cost). time. HSE.g.2 - SUMMARY OF DEVELOPMENT PLAN Purpose of the project (summary of Project Premise Document . type of plant. capacity) Listing of new plants/units to be constructed and main modifications to existing plants. etc. country/town Short description of the project (green field.30750 21 APPENDIX B . quality. 1. e. 1.3 - OBJECTIVES AND PRIORITIES Evaluate key parameters in terms of Customer's requirements on cost (capital cost. resources.PPD) Project history Project development (description of the next project phases) Status of planning application Ancillary facilities (neighbours) Provisions for infrastructure Significant provisions for future expansions.
The PPD requires to be updated as it contains the defined premises. PEP and PIP.30750 22 APPENDIX B . in case of transition FED1 to FED2 from rev 0 into rev 1. these will become extinct after use.03. Highlight main changes and their impact of Front End Development / project execution.OG. With the start of every new phase.4 - CUSTOMER/OPERATOR Define Customer/Operator Shareholders Project Steering Committee Venture management 1. 18 to 24 months after start up.6 - NOMENCLATURE Definition of special words/terminology/abbreviations used .PES Confidential 1. required until completion of the full PIR.5 UPDATE PROJECT PREMISE DOCUMENT – PPD REV 1 Background: the PPD is a quality document that exists next to the various documents such as PES. the Project Premise Document requires updating. 1.
Modular construction – opportunities considered – decision point .03.OG. RISKS.2 - JV PARTNERS JV agreements .1 - TECHNOLOGY Own technology Third party technology Licence agreements Licence contamination Technology risks Novelty of Plant and/or equipment design.cost sharing Protection of know-how Disclosure of information Participation in project execution 2. KEY ISSUES.3 - PROJECT EXECUTION Customer objectives Fast track or split phase Shell Global Solutions involvement: Selection of value and work processes Execution/cost risks . 2. automation and information technology (Development Releases).PES Confidential 2.30750 23 APPENDIX B .Grass roots. local organisation . SENSITIVITIES 2.
off-plot. taxes.Timing permit applications (NB: allow sufficient time for approval of the permit applications) 3. financing. setting (contractual benchmark) targets Checklist: Enhancement of local business / local content requirements Simultaneous construction activities in the area 2.1 COST ESTIMATE Responsible parties to prepare the estimates (i.IT applications – E-documentation – Livelink platform (incl access control). e.e. 10/90 or 90/10 - Checklist: .Project financing/financeability . shipping. infrastructure. Shell Global Solutions-services) Type and format (breakdown) of estimates Description of Owners Cost elements "Asset Breakdown".30750 24 APPENDIX B .PES Confidential .OG. COST AND SCHEDULE AND CHANGE CONTROL 3. on-plot.4 AUTHORITY ENGINEERING .Benchmarking activities through Front End Development.g. Work Breakdown Structure (WBS) Explain project's aim for low-life cycle cost Responsible party to prepare cost comparison analysis between successive estimates Justify type of estimate.50/50.03. storage and recording of key project / auditable documents .Responsible party and focal point . duties. insurance.
When elements are removed from the main contract scope this can compromise the technical integrity of the installation and introduce complicated interface problems between the Customer and the Contractor(s) The necessary resources for the project in terms of skills of personnel and accumulated know-how adjusted to the needs of each project phase can be made available from Shell Global Solutions .OG. DIVISION OF WORK AND RESOURCING 4. Optimising sequences and minimising interfaces could considerably shorten project schedules at no extra capital cost. Checklist: 4.03. The division of work and responsibilities between Customer and Shell Global Solutions need to be defined and agreed and relevant agreements drawn up. Concise overall schedule Prepare Front End Development schedule with forecasted expenditures per phase Describe main planning features of proposed implementation schedule(s) Define the critical steps in the overall planning of the project (e. To check if the capacity of the Customer’s organisation is sufficient or requires strengthening a proper listing of all his required actions and deliverables shall be done. the assistance of Shell Global Solutions could be limited to a specific phase of the project. For other projects. ad-hoc advice or the provision of resources to reinforce Customer's project team.1 PURPOSE The purpose of a division of work is to formulate a policy for the division of activities and responsibilities between Customer and Shell Global Solutions and to translate this into resource requirements. permit application. The site organisation is likely to be built-up concurrently with project development and hence will not be available for project duties. Customer might wish to appoint Shell Global Solutions as the Technical Leader whereupon Shell Global Solutions will set up the required organisation for the realisation of the total project. Customer resources will initially be very limited.g.2 PROJECT SCHEDULE Great emphasis shall already be given in the earliest project phases to the detailed planning of project activities of alternative project execution strategies.PES Confidential 3. When the project is on a new site (so called grassroots).30750 25 APPENDIX B . In such a case. long delivery items) and identify critical path elements. Separating scope out from the main EPC(M) contract(s) for implementation by the local company needs to be handled with care.
Planning application/permits .OG.Local conditions/soil investigation/technical standards .2 CUSTOMER'S INPUT .Tendering for Project Implementation .Outside plot/plant change .PES Confidential (international) staff.Tendering for construction and other local contracts .Installation of a steering committee .Supplies of operating materials .Interfaces with existing plant/demarcation boundaries/BL conditions/ meteorological data/economic data .30750 26 APPENDIX B .Terms and conditions for contracts . and by contracting out work.Preparation of monthly progress reports .Project language . temporarily hired staff.Management policy .03. Customer staff.Approved vendor list .Provide staff for project teams .Agree/prepare/monitor estimates and schedules (refer Chapter3) . contracted staff.Master plan . 4. Shell Global Solutions can advise Customer on the organisation and structuring of the project team.Contacts with local authorities .CAR insurance .Training .Build-up of organisational site organisation .Contractor's third party liability covered under Customer's insurance? .
30%.03. .HSE reviews during Implementation Phases .Selection of Value and Work Processes .Operational Implementation Strategy and Plan .Land acquisition o NB: Finalise land acquisitions the earliest to minimise engineering and construction changes.Project Execution Strategies.Site investigations/early start of site preparation work .Basic Design Packages .OG.1 SHELL GLOBAL SOLUTIONS SERVICES Shell Global Solutions Services – To be rendered Prior to Implementation Phase .Feedback of lessons learned during construction.Commissioning and start-up .PES Confidential .Change control .Basis of Design (BOD) .Funding/financing .3 4. commissioning and start-up to Shell Global Solutions .Management reviews . Project Execution and Implementation Plans .Scouting Studies .3. 20% and/or 10% cost estimates .Tendering for PS .30750 27 APPENDIX B .Identification of Customer’s risks/liabilities 4.Cost control/budgets for start-up .Development of Project standards (DEP-‘s versus Industry Standards) .Performance testing .
cost estimated and approved via DMS procedure .Shell Global Solutions services to be covered under CSA or Letter Agreement as amendment to existing Services Agreement .Steering Committee representation .Review of major changes in PS/BDEP .Pre-qualification.Prepare/monitor cost estimates/schedules .Participation in Independent Management Reviews (IMR) (refer also to Appendix C para 8.Operational Service Agreement (OSA) for post-start-up period .2 Shell Global Solutions Services – In the Project Implementation Phase .OG.E-Procurement . costs estimated and approved via Deals Management System (DMS) procedure . bid evaluation of EPC(M) Contractors and recommendation of preferred Contractor .Cost accounting structure for SGSi services to be structured and approved .Procurement engineering for long lead items .30750 28 APPENDIX B . start-up and performance testing .Review/audit of work contracted by Customer to others .Shell Global Solutions services to be covered under Construction Service Agreement (CSA) or Letter Agreement as amendment to existing Services Agreement. tendering. 4.Shell Global Solutions services to be internally aligned.03. commissioning.Economic assessments .PES Confidential .4) .3. construction.Project Specification or BDEP .Shell Global Solutions’ services: internally aligned.Identification of Shell Global Solutions’ risks/liabilities.Assistance to Customer during engineering.Monitor/advise on contractor(s) activities .Selection and application of Value and Work processes . .Provide (international) staff for project teams .Licence agreements .
Participation in Post Investment Reviews (PIR) .30750 29 APPENDIX B .Pre-qualification Bidders . competitive or single-source tendering. CONTRACTING 5.Contract type or if not yet decided. 5. Where process technology is key.2 STRATEGY Through a structured process (identifying the most suitable contractors – where necessary via a prequalification procedure .OG.Identification of Shell Global Solutions’ risks/liabilities.PES Confidential .Contracting workshop .1 PURPOSE The purpose of contracting is to obtain specific works. technical clarification.to be invited to bid for a work package. overview of possible contract alternatives . advise from the relevant Shell Group technology custodian need be sought and recorded.Required local content .03. services and goods required to support the project objectives that cannot or will not be supplied by Shell Global Solutions and/or Customer.Competitive or single source tendering . 5. commercial evaluation and the final ranking) the contract is awarded to the Contractor considered most attractive to execute the work. .
. advice and services rendered.OG. .30750 30 APPENDIX B . Upon signature of the agreement by Customer. .Timing for the preparation of 502 or similar documents 6. liabilities. such as: * * * * * * * * * Cost Contributing Agreement Construction Service Agreement Technical Support Agreement Side letter to existing Service Agreement. Shell Global Solutions will initiate all related activities covered by the Agreement. and its remuneration are all encapsulated in an agreement to be concluded between Shell Global Solutions and Customer.List agreements (to be) concluded and executive summary.1 FUNDS .2 FORM OF AGREEMENTS The role of Shell Global Solutions. its authorities.Responsible party to initiate budgets . SERVICE AGREEMENTS AND FINANCES 6. in case project activities are "optional services" Operational Service Agreement Joint Venture Agreements Licence Agreement Others Timing of Agreements.Required budgets from Customer for services to be rendered by Shell Global Solutions during the individual project phases. BUDGETS. lines of communication.PES Confidential 6.03. responsibilities.
integrated strategy and plan to deal with and coordinate project financing.30750 31 APPENDIX B . proper arrangements should be in place which allow Shell Global Solutions.03.OG.PES Confidential 6.Local tax regulations applicable for services and supply of goods Checklist: NB: Procurement of long delivery items Financing Already in the first phases of the project. Contractors and Vendors of long delivery items to be paid in time for work done. .Finance arrangements for disbursement of invoices . Loan arrangements whereby the shareholders do not guarantee the full amount of the loan should be avoided. In case such arrangements cannot be avoided a multidisciplinary task force is to be set-up in the early days of the project for the purpose of establishing a comprehensive.Tax/treasury/insurance/audit matters .3 FINANCES .
Executive summary of Basis of Design or BDP. including: * * * Short description of the project (green field.03. A Status of planning application Ancillary facilities (neighbours) Provisions for infrastructure Significant Provisions for future expansions – ref Design Class process.PEP and PIP Confidential APPENDIX C: TEMPLATE WITH CHECKLIST FOR PEP AND PIP 1.OG.Project location. - . PROJECT BACKGROUND 1. Rev. type of plant.Project title and number . e.g.30750 32 APPENDIX C .2 SUMMARY OF DEVELOPMENT PLAN Purpose of the project (and capture of main changes of Project Premise Document – PPD from rev 1 to rev 2) Project history Project development (description of the next project phases) Changes to approved BOD. country/town . grass root or revamp.1 SCOPE . 1. capacity) Listing of new plants/units to be constructed Modifications to existing plant/tie-ins.
18 to 24 months after start up.Definition of special words/terminology/abbreviations used. plot space. Arrange alignment meeting – customer – sponsor .5 UPDATE PROJECT PREMISE DOCUMENT – PPD REV 2 and 3 Background: the PPD is a quality document that exists next to the various documents such as PES. required until completion of the full PIR. Highlight main changes and their impact of Front End Development / project execution.3 OBJECTIVES AND PRIORITIES Evaluate key parameters in terms of Customer's requirements on cost (capital cost.4 CUSTOMER/OPERATOR Define Customer/Operator. limitations existing facilities. these will become extinct after use. PEP and PIP.30750 33 APPENDIX C . resources. Shareholders.OG. in case of overlapping responsibilities clearly define this. 1. the Project Premise Document requires updating. time. operational cost). Arrange alignment meetings with stakeholder / customer / operator / project - 1. The PPD requires to be updated as it contains the defined premises.project - 1. etc. With the start of every new phase.03. . quality. Identify developments/changes to agreed objectives. HSE.PEP and PIP Confidential 1. life cycle cost. in case of completion of FED2 into rev 2 and upon completion of FED3 into rev 3.6 NOMENCLATURE . If more parties are involved define responsibilities of each party.
e. application of CO2 removal process for LNG plants) Licence agreements Licence contamination Studies remaining to be completed after the BOD. A has been approved.OG. SENSITIVITIES 2. Rev. including development releases. KEY ISSUES.3 PROJECT EXECUTION Customer objectives Fast track or split phase Shell Global Solutions involvement o o Update of results of utilized value and work processes previous phases Selection of value and work processes this phase Modular construction: final concept .03.30750 34 APPENDIX C .PEP and PIP Confidential 2. - - 2. RISKS.g. Technology risks Novelty of Plant and/or equipment design.1 TECHNOLOGY Own technology Third party technology (if need be to be decided during a later Project Phase. automation and information technology (Development Releases).2 JV PARTNERS JV agreements – cost sharing Protection of know-how Disclosure of information Participation in project execution 2.
- N. local organisation Project financing/finance ability Interface/division of responsibilities with other Group Service Companies Provisions for site construction teams of Customer and Main Contractor in terms of housing. Appropriate actions and organisational measures have to be stipulated to prepare a tax strategy. facilities.4 AUTHORITY ENGINEERING Responsible party and nomination overall coordinator(s) Summary of required technical and operations permits. political and juridical circumstances (in particular important for remote construction sites).03.30750 35 APPENDIX C .PEP and PIP Confidential - Define project control philosophy Define measures to specify and purchase and accept of vendor packaged units. Enhancement of local business Simultaneous construction activities in the area Execution/cost risks Import restrictions Withholding tax Tax/duty exemption Substantial amounts of money can be involved resulting from local taxation requirements. Provision and arrangements of benchmarking activities. back-up documentation and agreement on engineering standards. listing of deviations.B.: Project language Grass roots. Contractors may gain advantage by establishing a project company in a tax shelter or a tax-advantaged location. IT applications – E-documentation – update Livelink platform with its key and auditable documents – focal point - 2. schooling. Such a study should be carried out by a competent tax professional as early as possible in the project development. IT. A study can reveal the most tax-efficient contracting strategy to be used and also to identify who are liable if the tax regime changes. with schedule and application periods. The objective is to have a clear identification of who pays what taxes. and their assignment to focal points .OG. familiarisation with different cultural.
PEP and PIP Confidential - Timing of permit applications (NB: allow sufficient time for approval of the permit applications) Supporting (design) documents (N.5 VALUE AND WORK PROCESSES Summary of status of value and work processes that have been applied during the earlier phases of front end development and a programme of the activities that need be undertaken to complete Schedule when these processes are most efficient applied and arrangement for participation.B: early preparation of documents for Authorities required which do not contain information on proprietary know-how of Shell and third parties) Concept on HSE (deviations from normal standards) - - 2.OG.30750 36 APPENDIX C .03. - .
justify type of estimate. 3.30750 37 APPENDIX C .g. e. long delivery items). on-plot. Shell Global Solutions-services) Executive summary of available capital cost estimates Identify Capex and Revex items for further cost estimates Type and format (breakdown) of estimates Timing of estimates and phasing of expenditure Responsible party to prepare cost comparison analysis between successive estimates "Asset Breakdown". off-plot. Describe critical path analysis results of the implementation phase. Describe planning features of proposed implementation schedule Define the critical steps in the overall planning of the project (e.03. Work Breakdown Structure (WBS.OG.1 COST ESTIMATE Explain project's aim for low-life cycle cost Responsible parties to prepare the estimates (i. permit application. insurance. duties.3 PROJECT SCHEDULE Great emphasis shall already be given in the earliest project phases to the detailed planning of project activities of alternative project execution strategies. and mitigation measures.PEP and PIP Confidential 3. fallback scenarios.e. infrastructure. 10/90 or 90/10 - Checklist: 3. 50/50. COST AND SCHEDULE AND CHANGE CONTROL 3. taxes. - . Optimising sequences and minimising interfaces could considerably shorten project schedules at no extra capital cost. financing. shipping.g.2 COST CONTROL Responsible party to prepare budget cover statements for future commitments Provisions of counter-estimates Preparation of a Cost Control Management Plan.
. Major cost savings.OG. including interfaces with other Group Service Companies. Safety. they are variations to the agreed scope necessary to secure the project objectives of realising a safe and reliable operating unit. Progress control Justify probability of schedule (preferably linked with constructability reviews) e. A procedure shall be in place making it compulsory that change proposals are properly screened for their impact on Operability. Major implementation changes should be treated as scope changes and may require a budget revision. Describe risk in case of a stretch target completion date. Scope Changes are basically "forced" scope changes. including milestones for all major activities Describe impact of agreements (to be) concluded.PEP and PIP Confidential - Detailed schedule up to investment decision Responsible party to update project schedules Overall schedule.. The control of change is an important factor in ensuring that the project is completed on time and within budget. The only legitimate reasons for Scope Changes within the authorized project budget are for: • • • • Correction of errors (in original scope).g. or alternatively. Alterations to the detailed execution of the work (Implementation changes) should be financed out of the Project Contingency Allowance. deliverables of Customer and third parties. Health and Environmental aspects. i.03. that appropriate action is taken to obtain the necessary agreements on revised schedules and/or budgets.e.30750 38 APPENDIX C .1 CHANGE CONTROL Strategy Proposals for change need to be strictly controlled and their cost/ time implications closely monitored in order to ensure that project objectives are met on time and within budget. Consider the impact of a potential on delay in completion on product sales contracts (a schedule contingency to be added to the sales contracts?) and trade –off between schedule and cost. Initiatives or improvements for earning power or marketing and operations flexibility shall be carefully considered.4 3.4. Restoration/enhancement of safety and safe operation. Changes to the BOD or BDP (scope changes) might affect the business objectives and may require budget resubmission. P50 - - Checklist: 3. Changes in legislation requirements or regulations.
In principle no change will be considered if the capital project facility can operate reliably for the defined turnaround cycle (between two planned shutdowns) without a forced shutdown. Arrangements in the project organisation to ensure that change control procedures are followed by all parties involved (no unauthorised implementation of changes).30750 39 APPENDIX C . Analysis of impacts on operability.OG. evaluation and approval of changes. Changes need to be approved at senior level in Shell Global Solutions and/or Customer 3. i. safety.2 Change Control Procedure The most important aspects of the change control procedure are: Recognition and recording of change and reporting. Arrangements between Shell Global Solutions and Customer regarding the responsibility for handling changes. Effective procedures for preparation. All changes to Shell Global Solutions deliverables (BOD. Prompt authoritative responses to change proposals. BDEP/PS) should be verified by Shell Global Solutions skill departments prior to implementation.e.4.03. BDP. training. Analysis of the consequences on cost and schedule. health and environment. as design integrity may have to be guaranteed. soft measures rather than Capex. Provision of funds. - - - .PEP and PIP Confidential Late safety and operability requirements need to be addressed first through procedures.
4.30750 40 APPENDIX C . When the project is on a new site.OG. Customer resources will initially be very limited. the assistance of Shell Global Solutions could be limited to a specific phase of the project. either in time or in scope. To check if the capacity of the Customer’s organisation is sufficient or requires strengthening a proper listing of all his required actions and deliverables shall be done.PEP and PIP Confidential 4.1 PURPOSE The purpose of a division of work is to formulate a policy for the division of activities and responsibilities between Customer and Shell Global Solutions and to translate this into resource requirements. Customer might wish to appoint Shell Global Solutions as the Technical Leader whereupon Shell Global Solutions will set up the required organisation for the realisation of the total project. In such a case. DIVISION OF WORK AND RESOURCING 4. Interfaces must be clear and preferably at natural borders. Separating scope out from the main EPC(M) contract(s) for implementation by the local company needs to be avoided.03. For other projects. ad-hoc advice or the provision of resources to reinforce Customer's project team. parties must get together to revise the originally agreed division of work. especially when the elements removed from the main contract scope can compromise the technical integrity of the installation and introduce complicated interface problems between the Customer and the Contractor(s) Where developments indicate that an adjustment is necessary.2 CUSTOMER'S INPUT Master plan Management policy Local conditions/soil investigation/technical standards Interfaces with existing plant/demarcation boundaries/BL conditions/ meteorological data/economic data Outside plot/plant change Planning application/permits Tendering for Project Implementation - . The division of work and responsibilities between Customer and Shell Global Solutions need to be defined and agreed and relevant agreements drawn up. The site organisation is likely to be built-up concurrently with project development and hence will not be available for project duties.
OG.PEP and PIP Confidential NB: - Contacts with local authorities Provide staff for project teams Installation of a steering committee Tendering for construction and other local contracts Agree/prepare/monitor estimates and schedules (refer Chapter 3) Project language Approved vendor list Terms and conditions for contracts CAR insurance Contractor's third party liability covered under Customer's insurance? Preparation of monthly progress reports Training Build-up of organisational site organisation Supplies of operating materials Commissioning and start-up Cost control/budgets for start-up Funding/financing Land acquisition Finalise land acquisitions the earliest to minimise engineering and construction changes Change control Management reviews HSE reviews during Implementation Phases Feedback of lessons learned during construction.03. Identification of Customer’s risks/liabilities - . commissioning and start-up to Shell Global Solutions Performance test.30750 41 APPENDIX C .
1 SHELL GLOBAL SOLUTIONS SERVICES Shell Global Solutions Services – To be rendered prior to the Implementation Phase - Scouting Studies Project Premise Document – applicable revision Basis of Design (BOD) Basic Design Packages (BDP) Project Execution Strategy. tendering. 20% and/or 10% cost estimates Site investigations/(early start of) site preparation work Development of Project standards (DEP-‘s versus Industry Standards).3 4. Project Execution and Implementation Plans Operational Implementation Strategy and Plan 30%. cost estimated and approved via the Deal Management System (DMS) procedure Shell Global Solutions services to be covered under Construction Service Agreement (CSA) or Letter Agreement as amendment to existing Services Agreement. bid evaluation of EPC M) Contractors and recommendation of preferred Contractor Participation in Independent Management Reviews Economic assessments Licence agreements Shell Global Solutions’ services: internally aligned. - - - - .30750 42 APPENDIX C .PEP and PIP Confidential 4.OG. nomination of the CD-ROM version applicable for the duration of the project Tendering Choice of Project Specification or BDEP depending on implementation strategy Summary of selected Value and Work Processes Procurement engineering for long lead items Prequalification.03. Provide staff for project and/or residence team(s) Identification of Shell Global Solutions’ risks/liabilities.3.
- - 4. The level of expertise required in Customer's project team should be assessed.2 Shell Global Solutions Services – To be rendered in the Project Implementation Phase - Monitor/advise on contractor(s) activities Provide staff for project teams Prepare/monitor cost estimates/schedules Provide (international) staff for project teams Assistance to Customer during engineering. temporarily hired staff. Shell Global Solutions can advise Customer on the organisation and structuring of the project team. start-up and performance test Review/audit of work contracted by Customer to others Steering Committee representation Summary of selected Value and Work Processes Model reviews Operational readiness review Pre-start-up HSE review Fire Safety Review Shell Global Solutions services to be estimated and approved via Finance DMS system Shell Global Solutions services to be covered under CSA or Letter Agreement as amendment to existing Services Agreement OSA for post-start-up period Review of major changes in PS/BDEP Participation in Post Implementation Reviews (PIR) Identification of Shell Global Solutions’ risks/liabilities. contracted staff.3. construction.03. Customer staff.OG. for new organisations preferably at the time the CSA is negotiated.PEP and PIP Confidential 4. . This would be the vehicle through which Shell Global Solutions staff is transferred to Customer.30750 43 APPENDIX C .4 RESOURCES The necessary resources for the project in terms of skills of personnel and accumulated know-how adjusted to the needs of each project phase can be made available from Shell Global Solutions (international) staff. in particular during the Implementation Phase. commissioning. and by contracting out work.
resident) Detailed Engineering and Procurement (home office. start-up Performance tests. specify the required resources. tendering. resident) Construction Commissioning. Resourcing policy Manpower resource plan/assignment durations/Shell Global Solutions staff/Customer staff/Contractor staff Physical location of team(s) Strength and compositions of teams for: * * * * * * * * Basic Design Package Home office project management and engineering Longlisting.30750 44 APPENDIX C . The extent of Contractor supervision needs to be defined. could then be provided by Shell Global Solutions on an ad-hoc basis. and competences actual available in the team. requiring decision-making or verification of documents at a higher level. bid evaluation.OG. Under these circumstances the timely involvement of appropriate expertise from within Shell Global Solutions becomes even more important. Sometimes a particular skill is not required full time within the project itself. Decide whether the project team. in particular whether a resident team in Contractor's office is required.PEP and PIP Confidential In general it is preferable to transfer at least those staff that have been most closely involved in the PS/BDEP in order to provide continuity and in-depth knowledge of the project. - . shortlisting of Contractors. Competence mappings of project teams should be prepared.03. Lacking competences. in particular during the PS Phase. indicating the required discipline competences specific for the project. For each of the project teams required for the individual project phases. will work as a task force or in the matrix organisation. in which case such expertise may not be represented in the Customer’s project team. recommendation of preferred Contractor PS/BDEP Package (home office.
1 PURPOSE The purpose of contracting specific works.3 MAJOR CONTRACTS Preliminary list of principal contracts Scope of principal contracts Party responsible for prequalification / tendering / award / monitoring / invoicing / payment / change orders Type of contract reimbursement Single or competitive tendering Contractor selection criteria - . may be considered. as part of the value processes. 5. commercial evaluation and the final ranking) the contract is awarded to the Contractor with the most attractive package to execute the work.PEP and PIP Confidential 5. CONTRACTING 5. in particular in case of incentive contracts Expression of objectives in terms of time Assessment of (quality of) resources both available and required Allocation of responsibilities Constraints Financial stability of selected Contractor Ensure life cycle requirements are incorporated. Contracting strategy / confirmation earlier contracting strategy and / or workshop proceedings Identifying objectives to be achieved. In case such has been applied in FED 1 phase.03. technical clarification. establishing the contracting strategy for the project. For the first step.OG. a contracting workshop.2 STRATEGY Through a structured process (identifying the most suitable contractors to be invited to bid for a work package. services and goods is required to support the project objectives that cannot or will not be supplied by Shell Global Solutions and/or Customer.30750 45 APPENDIX C . the strategy need be confirmed. - 5. competitive or single-source tendering.
Customer may benefit more from linking the incentive scheme to the achievement of "sustainable products in tanks". N.OG.B. local content - Checklist: .: - Consider utilising international contractors' operating experience in involving them actively in Customer's commissioning and start-up teams Qualitative and quantitative assessment of milestone achievements Tender Board approvals.PEP and PIP Confidential - Target incentive contract Bonus incentive schemes need not only to focus on the achievement of intermediate milestones and the RFSU date.30750 46 APPENDIX C .03.
47 APPENDIX C - PEP and PIP
BUDGETS, SERVICE AGREEMENTS AND FINANCES
Required budgets from Customer for services to be rendered by Shell Global Solutions during the individual project phases. Responsible party to initiate/prepare/monitor/consult budgets Align the project funding with the Work Breakdown Structure, if required back to back with Customer and / or JV partners Timing for the preparation of 502P and F Supporting documents.
Customer is fully responsible for the control of funds. Customer may in turn request the services of Shell Global Solutions for the execution of certain project activities. Within Shell Global Solutions, the Activity Leader is then responsible for the proper execution of these services and the control of related cost within the approved budget. Checklist: List budgets to be controlled by the Activity Leader Change control procedure (see also chapter 3).
FORM OF AGREEMENTS
The role of Shell Global Solutions, its authorities, responsibilities, liabilities, lines of communication, advice and services rendered, and its remuneration are all contained in an agreement to be concluded between Shell Global Solutions and Customer. Upon signature of the agreement by Customer, Shell Global Solutions will initiate all related activities covered by the Agreement.
- List agreements (to be) concluded and executive summary, such as: * * Cost Contributing Agreement Construction Service Agreement
48 APPENDIX C - PEP and PIP Technical Support Agreement
* * * * * * *
Side letter to existing Service Agreement, in case project activities are "optional services" Operational Service Agreement Joint Venture Agreements Licence Agreement Others Timing of Agreements.
- Financing NB: Already in the first phases of the project proper arrangements should be in place which allow Shell Global Solutions, Contractors and Vendors of long delivery items to be paid in time for work done. Loan arrangements whereby the shareholders do not guarantee the full amount of the loan should be avoided. In case such arrangements cannot be avoided a multidisciplinary task force is to be set-up in the early days of the project for the purpose of establishing a comprehensive, integrated strategy and plan to deal with and co-ordinate project financing. Financial control Tax/treasury/insurance/audit matters Budgetary control Commitment and expenditure control Expenditure phasing and (3 months) roll over cash call forecasts Disbursement control Corporate ledger.
49 APPENDIX C - PEP and PIP
PROJECT ORGANISATION AND PROCEDURES
The purpose of the project organisation is to provide a well-defined organisational structure to manage the resources allocated to the Project (manpower, know-how, time and capital). With Customer being Project Principal and budget holder, management of the Project is Customer's responsibility. However, the available resources and expertise often necessitate assistance being requested from Shell Global Solutions. Projects taking the size of a major revamp or new plant construction require the establishment of (a) dedicated project team(s) with their own management for each phase of the work. In a split-phase project with a division between the PS Phase/Implementation Phase/on-plot/offplot/procurement activities, the interfaces need to be carefully managed and a clear hand-over point must be defined in terms of completed activity (e.g. Project Specification and the 10% estimate are ready). In dividing the work, it is advisable to keep management of the relevant work synchronous with the division in scope. Independent Management Reviews are recommended. These reviews need be planned well in advance, and can be carried out e.g. at the end of the BOD and towards the end of the BDEP or PS. If a Customer will prepare the project execution strategy and plans, the responsible Activity Leader shall explain and justify the benefits of the value and work processes within the project governance structure of Shell Global Solutions.
- Include a block diagram showing Customer's relationship with: * * * * * * * Shareholders Advisers Authorities Shell Global Solutions Project Management Feedstock suppliers/off-takers Licensor Others
resident team) For mega-projects that include "non-traditional shareholders".3 PROJECT ORGANIZATION Describe Project phases and their management Shell Global Solutions or Customer Project management Milestone identifying beginning/end of phases Reporting relationships/interfaces Customer/Shell Global Solutions organisation and focal points. legal. - - - 7. . concerns and corrective actions: * * Contractor to Shell Global Solutions’ Activity Leader Shell Global Solutions’ Activity Leader to Customer Project Review meetings with Customer Communication with others Lessons learned from Customer to Shell Global Solutions’ Activity Leader. home office. matrix organisation.4 PROCEDURES List and justify any deviations from OG’s Business Process Manual Projects Management systems Administrative procedures Information systems Document commenting.03.PEP and PIP Confidential 7. consider employing the services of a reputable and experienced legal firm from the earliest stages of the project. control and distribution Progress/cost reporting of achievements. insurances and contractual agreements Financial authorities Provide a narrative of main organisational features for each phase (e. Indicate who are the key decision makers Consider assigning a dedicated team member for matters related to financing.g.OG.30750 50 APPENDIX C . task force. to assist Shell Global Solutions’ contracting department and Customer on legal and contractual matters.
should take into account the degree of expertise available within the Customer. This will require a quality management approach that involves three elements: Quality planning Quality control Quality improvement.2 STRATEGY In order to ensure the efficient and effective realisation of a project. 8.com/OG_mgt_system/OGMS/OG-Home/Home.3 QUALITY ASSURANCE REQUIREMENTS ISO 9000 and ISO 9001 have been set as the basic quality system requirements that shall be fulfilled by all parties involved in the execution of the Project.PEP and PIP Confidential 8. the principal quality steps should be equally valid for the Customer. QUALITY ASSURANCE 8.03.shell. it is necessary to manage quality.30750 51 APPENDIX C .htm Whilst the Shell Global Solutions quality system cannot be imposed on the Customer. The services rendered by Shell Global Solutions on behalf of Customer's Project will be executed in compliance with OG’s Business Group Management Manual – Projects Quality guidance is available on the OG website. Adherence to project standards will be verified by control of nonconformances. to reduce unnecessary expenditure arising from avoidable failure to achieve project objectives in the most efficient manner. via the home page: http://sww-ogstaff. 8. Any QA/QC system put into place. the optimum selection and procurement of the required materials and equipment.OG. in particular Customer's project team. and the construction of the project facilities in strict compliance with the requirements of the Basic Design Package and with the Definition and Implementation phase Contracts. by identifying areas for improvement. The objectives of the QA strategy will be to assure design integrity.1 PURPOSE Quality is to be the total of characteristics that makes a project fit for the intended use. and Shell Global Solutions can advise on the establishment of an appropriate system. taking due regard of the conflict of interest between (always) Customer's requirements for long-term durability and (generally) Contractor's and Supplier's short-term involvement. and should require consultation with Shell Global Solutions whenever this is appropriate. and by acting upon those promptly and resolutely to ensure compliance .
which will also stipulate requirement with effect to timing and participation. Both reviews and audits need to be scheduled in the overall Project Quality Plan. likely with assistance of relevant SGSi expertise PEER groups Functional Reviews – such as desktop safety studies – HAZOPS – IPF reviews – pre start up reviews – fire safety reviews Checklist: - List all identified reviews during BDEP/PS and Implementation phase Responsible party to initiative review(s) and for drafting terms of references Anticipated participants in the reviews Timing. sub vendors) Vendor appraisal Procurement control - . with senior project executive participation PEER reviews – reviews on discipline level.PEP and PIP Confidential 8. Non Conformance Requests Interface control Quality assurance in procurement (incl. Allocation of cost in budget 8. audits are independent assessments to ensure compliance to agreed standards.OG.5 QUALITY ASSURANCE FEATURES Quality assurance in design QA audits. Contractor’s internal QA audit schedule. The most common reviews are: Independent Management Reviews – commonly executed under guidance of Shell Global Solutions.4 REVIEWS and AUDITS Project development need be subjected to a structured programme of reviews and audits. Contractor’s quality plan Records on Corrective Action Requests. Request Technical Deviations.30750 52 APPENDIX C .03. Reviews are more generic and must be seen as an assessment against best practices and project guidelines identifying strength and weaknesses and recommendations for project execution improvement.
7 INTEGRITY OF THE DESIGN A procedure has to be developed for individual project phases that deal with the handling and authorisation of changes to the design intentions or deviations from agreed standards. .30750 53 APPENDIX C . health and environmental aspects and whether the request has to be referred to the respective Shell Global Solutions’ specialist department for further review. 8.6 AUDIT TRAIL An audit trail of all decisions on alternative solutions that have an effect on technical and operational matters.OG. on the Project's economics.PEP and PIP Confidential - Inspection parties Authority inspection Quality assurance in construction Contractor appraisal Construction control Construction material control Commissioning and start-up control. Changes to the design intentions need always Shell Global Solutions' support. operational.03. safety. A competent focal point should have the technical authority to approve/disapprove change and deviation requests. should be kept up to date. Where necessary. This will provide the rationale for the ultimate plant design. safety and environment. This focal point should have the experience and seniority to judge whether the request has been properly checked for impacts on the design integrity. quality. a reference to the Project Premise Document shall be made. 8.
SAFETY. Safety and Environment require to conduct all activities on the project in such a way as to take foremost account of the health and safety of all persons working on the project and to give proper regard to the conservation of the environment. additional safety officers chastising the construction site. the Project Guide 1A on HSE and Sustainable Development shall be followed. In implementing this policy.OG.: - Considerations such as: * * * Identifying all regulatory authorities having jurisdiction over the Project Identifying all regulations that must be complied with Identifying all permits and certificates that are needed .g. To achieve adherence to Group Guidelines and for the proper implementation of HSE/SD. the requirement of the local legislation shall be complied with and measures for the protection of the health.2 HSE PLAN Statement of policy – check PG 1A Summarise available safety studies ESHA : Environmental Safety Health Assessment draft and final reports Responsible party to prepare Safety Management Plan Timing Safety ranks alongside traditional areas of productivity and quality Safety is line responsibility Employers. contractors and suppliers have "Duty of Care" Self-regulated safety approach Self-regulated safety approach and line responsibility of safety may be difficult to achieve at some construction sites right from the beginning.30750 54 APPENDIX C . appropriate measures need to be in place right at the start of construction. - N. ENVIRONMENT (HSE) AND SUSTAiNABLE DEVELOPMENT 9. safety and environment for all who may be affected directly or indirectly by the project shall be promoted in an appropriate manner.B. employees.03. managers/supervisors.1 POLICY The Group Policy Guidelines on Health. HEALTH. e. Although this approach to be a development objective during the course of the project. 9.PEP and PIP Confidential 9.
i. Environment and Operability. i.30750 55 APPENDIX C . Confidential * * * * * 9. responsiveness Training Audits.e. inspections Safety incentives 9. Safety.3 HSE FEATURES PG 1A “HSE and sustainable development” and PG 1B: HSE& Sustainable Development Management of Construction” describe the minimum requirements for Shell Global Solutions’ involvement in areas which are of vital interest to Shell Global Solutions’ business and which are related to Health.03. Management of HSE in design/engineering/construction/commissioning Discussions with local authorities. protection of staff Preparing design philosophy Planning safety audits and identifying auditors Assessing and planning for external safety approvals.OG. protection of the public Internal safety. Reporting Accidents and Safety Performance Statistics Contractors HSE plan Emergency procedures.e.4 PUBLIC RELATIONS Formal consultative mechanisms with environmental stakeholders and regulators to increase understanding and co-operation Meeting specific needs of the community Public Relations plan - .PEP and PIP External safety.
The strategy of low project life-cycle cost has to be applied as intended. ENGINEERING 10. and procurement terms & conditions be available. AutoCAD) to update engineering documents Overlapping of detailed design/procurement and construction activities As built requirements – handover documentation (schedule) – extent of electronic documentation with pre-requisite formats and structure / software compatible solutions - - .03.10% estimate can be made. 10. to satisfy authority regulations and to enable future plant developments. the contents of the Basis of Design need to be developed into the Basic Design Packages and further into a PS or BDEP so that a +/. If pre-ordering (purchasing equipment or goods prior to final investment decision) is required.PEP and PIP Confidential 10. detailed engineering for the longlead items need be performed during the PS phase.2 STRATEGY To achieve the project objectives.1 PURPOSE The purpose of engineering is to specify plant and equipment in sufficient detail that elements can be procured and facilities constructed in accordance with the requirements of the Basis of Design and of the Process Design/Licensing Packages. Furthermore. engineering shall deliver the documentation required to operate and maintain the plant. The Project standards are agreed in this phase. a computerised materials handling system and Computer-Aided Design package (e.30750 56 APPENDIX C . a maintenance management system.OG. Validation of BOD Identify critical non-routine engineering subjects Technology assurance Involve customer’s representatives in operations and maintenance during the preparation of the PEFS-‘s and development of the plot-plan and involve also specialists in construction during the development of the plot-plan Incorporate in the design of a grassroots project a Local Area Network (LAN).g. Sufficient definition should be achieved to prepare for the Implementation phase in accordance with the desired contracting strategy.
3 Division of Work Division of engineering scope between Shell Global Solutions.OG. thereby making effective use of Shell Global Solutions man-hours. - . Customer. proper Contractor control of process engineering and technology design. Advantage: streamlining level of Shell Global Solutions liabilities. licensors and others Interface control procedure Consider the PS Contractor deal directly with the sub license Contractors.03.30750 57 APPENDIX C .PEP and PIP Confidential 10.
project planning and commercial objectives. PROCUREMENT 11. local requirements. a set of selection criteria will be defined and agreed that justify higher expenditures versus a longer and/or more cost effective life cycle. It shall be made clear that low life-cycle cost can mean higher Capex cost. and international/local vendors Use of export credit facilities Use of MESC. For this purpose. EMA and/or E-SPIR 2000 (early input from Customer required to take existing stock of spare parts into consideration) Purchasing conditions Development of vendor price agreements (blanket orders for bulk materials) Corporate procurement initiatives E-procurement Electronic material management systems to be compatible with engineering design systems Commissioning/Maintenance agreements (include requirement for Vendor Service Men in equipment inquiry and consider quoted cost in bid evaluations) Negotiate maintenance support deals during purchase of e.30750 58 APPENDIX C . vendor qualifications. consideration to the below-mentioned key parameters should be given.OG. Project organisation for procurement The Shell Group's statement of General Business Principles with respect to business integrity Project vendor list.1 PURPOSE The purpose of procurement is to purchase materials and equipment required for the project. satisfying all technical specifications.2 STRATEGY To achieve the project objectives during procurement. 11.PEP and PIP Confidential 11.03. standardisation and resource availability.g. rotating equipment and main instrumentation packages Sealed bid receiving and evaluation - - - - - - .
Forwarding Agent Vendor performance feedback to Customer and Shell Global Solutions Surplus disposal (include buy-back clauses for bulk materials in inquiry and consider offered credits in bid evaluations) Procurement of last-minute items Location of material/equipment landing. temporary material unloading jetty required. harbour facilities. on-plot and off-plot materials Resources Procurement offices Procedures Monitoring of procurement activities Resident inspectors and expediting . packages for which verification of - - - - - - 11. delivery and overall performance List critical equipment and subcontract Vendor/Subcontractor proposals is required Pre-ordering of long-lead equipment Contractual arrangements on factory acceptance testing (FAT’s) of DCS / process control systems Procure spare parts needed during commissioning.03.30750 59 APPENDIX C . start-up and first year of operation together with the main equipment/bulk materials Quality assurance/control requirements Importation. life-cycle cost. bridges. road transport. price.OG.PEP and PIP Confidential - Assessment of tenders on the criteria of quality. defiles Store spare rotors vertically in inert (N2 blanketed) containers Delivery conditions such as FOB (Free On Board) or other Discrepancy reports. duties Document requirements Delivery and site handling of materials.3 DIVISION OF WORK Responsible parties for procurement.
Buy-back clauses will prevent excessive surplus materials. and be validated with the construction plan. in case these activities are executed prior to EPC funds approval.PEP and PIP Confidential - Third party inspection and expediting agencies.5 ORDERING OF UNDERGROUND PIPING AND CABLES It should be considered to order underground piping and cable materials as early as possible. This will allow early completion of corresponding construction activities and the application of paving.OG.4 PRE-ORDERING LONG-LEAD EQUIPMENT Responsibility to requisition/tender/evaluate/procure Assignment of purchase orders to Contractor Bridging funds required covering advanced detailed engineering and procurement work and cancellation charges. 11. . which is one of the prerequisites for a smooth and safe construction progress.30750 60 APPENDIX C .03. 11.
PEP and PIP Confidential 12. CONSTRUCTION 12.Project organisation for the construction N. 12.30750 61 APPENDIX C . the design shall be translated in actual plant. off-site.B.g.1 PURPOSE The purpose of construction is to build the Plant in accordance with the project specifications and procedures.2 STRATEGY To achieve the project objectives. on-site) Modular construction (consider also the logistic restrictions for this) List of execution contractors Development of contract packages Procedure for tendering of site/erection contracts Field administration procedures International/local contractors Preference of Customer for "house" contractors Definition of mechanical completion. .OG. tie-ins) - - . shutdown. RFSU. scope of commissioning activities Hand-over from Contractor to Customer's construction team.: experienced operating and maintenance staff shall be involved early in the construction phase Prefabrication (included in erection contract. Customer's construction team to Operations Sequential mechanical completion dates for systems according to logic of commissioning and start-up (several RFSU dates instead of only one RFSU for entire complex) Restricted work periods due to public holiday seasons and weather conditions Dedicated construction areas (general work permit) Special requirement from the site/Customer Interface with existing site operations/maintenance activities (e.03.
admin. Demobilisation of labour force 12. for usage by construction organisation (consider permanent facilities to be ready for use well before start of commissioning of first utilities sections) Industrial relations: * * * * * * History Union representation Wage structures Hours of work Construction camp Effective labour relations with clear comprehensive site agreements and ongoing communication with labour leaders - - Site administration Existing medical facilities Development of information package for each individual tie-in into existing facilities. temporary facilities Early erection of warehouse.03. buildings. etc.OG. training f Facilities. workshop. canteen. laboratory and Contractor facilities Transfer of engineering work to site Fire-fighting facilities/emergency response Entrance control Warehousing Amenities for field staff Workshop for maintenance contractors .30750 62 APPENDIX C .3 DIVISION OF WORK Construction work inside / outside Plant Battery Limits Provision of utilities for construction Office.PEP and PIP Confidential - Infrastructure. construction areas. work permits.
Change and claim control .OG.PEP and PIP Confidential - Safety induction for life plant and construction site Lessons learnt report from Customer to Shell Global Solutions.03.30750 63 APPENDIX C .
The units are being connected and reactions are started to produce products.3 COMMISSIONING AND START-UP SCHEDULE The overall project philosophy is to have one integrated approach throughout Engineering. Commissioning and Start-up. The Shell Global Solutions project team will define the target completion dates for utilities. 13. this document addresses the same subjects as this chapter but in much more detail. One of the features of the Shell Global Solutions value processes is the generation of an Operations Implementation Plan (OIP). The purpose of performance testing is to prove that the plant meets the guaranteed performance values. After successful start-up.OG. operable. Individual systems are oxygen freed with nitrogen and filled with hydrocarbons. COMMISSIONING. 13. commissioning and start-up schedules will be established for the plant(s) to be integrated into an overall master schedule such that the optimum start-up sequence is achieved. agreements have to be made with (third party) upstream or downstream consumers in respect of their plant completion. Where applicable. pre-punching. where appropriate.03. It includes final punching by Shell project/operations teams and hand-over of system with the appropriate documentation • Hot commissioning & Start-up.30750 64 APPENDIX C . general facilities and process facilities that will support a logical start-up sequence and will result in a phased hand-over. a performance test-run will be conducted to confirm that the plant achieves the specified and designed operating window. Construction. It includes flushing. • Hand-over. Procurement. • Performance testing. storage.1 PURPOSE The purpose of commissioning is to prepare the plant for operation. responsibilities and work procedures need to be defined between the Shell Global Solutions project teams. safe and complete system. tight. system testing. Individual EPC.PEP and PIP Confidential 13. equipment water runs. with the Start-up sequence as the starting point. It concludes with “Ready For Start-up” for the specific block. .2 PHASES The following phases of the commissioning and start-up activities have been identified for which the division of the scope of work. the EPCM contractors and the Future Operator: • Cold commissioning – delivery of a clean. a reference to this document can be made. commissioning and start up schedules to integrate into an overall master schedule. START-UP AND PERFORMANCE TESTING 13. Schedule milestones need be developed to monitor progress of construction work with respect to the agreed target completion dates. The overall master schedule will contain all essential elements including storage and vessel loading and unloading facilities.
Ready for start up (RFSU).PEP and PIP Confidential - Schedule of milestone dates such as: Product in Tank (PIT). whereas construction activities in adjacent systems are still continuing Electrical switching of electrical feeders Responsibility of Activity Leader up to RFSU. - 13. switch safety reporting Resources: Customer. PIT or Plant Acceptance Responsibility shift for safety areas. Progress of construction work to be closely monitored. tankage and process facilities in line with logical startup sequence Arrow diagrams. Shell Global Solutions. late completion of systems will compress commissioning activities. Earlier completion of construction may result in operations not ready to commission and take over.30750 65 APPENDIX C .4 ORGANISATION Checklist: Division of responsibilities Here it is very important to describe the exact roles and responsibilities of the construction team. commissioning team and Customer's operation.03.OG. and Contractor.g. . On the other hand. e. schedule and responsible parties Target completion dates for utilities. * * * * * Who operates commissioning? and maintains mechanically completed systems during Customer liable for Contractors' waiting time in case a compressor needs to be started for commissioning? Start of guarantee period in case systems and in particular rotating systems are operated prior to RFSU Permit-to-work system when commissioning of systems has commenced. Phased hand-over.
Obtain vendor assistance rates in purchase order quotations Training. Disposal of surplus materials.6 SPARE PARTS Traditionally it will be the EPC contractors’ contractual task to procure spare parts for commissioning. start-up and the first year of operations to be ordered together with procurement of main material: include in purchase order requisitions Hand-over Contractor to Customer Determine Customer (future Owner) party to review proposals and decide to purchase.5 VENDOR ASSISTANCE Identify equipment / purchase orders for which site assistance by vendor will be required.PEP and PIP Confidential 13.7 DOCUMENTATION AT HAND-OVER The following documents are classified “vital” for a successful and safe start-up and will be handed over by the contractor with each geographical block or operational system: As build Process Engineering Flow and Utility Schemes Instrument Safeguarding Narratives Process Control Function Specifications Alarm and Trip Setting list Design book text Electrical one-line diagrams Punch Lists Layout plot plan And optional: Process Flow Diagrams . 13. start-up and the first year of operation utilising the Shell GSI program E-SPIR 2000. Spare parts for commissioning.30750 66 APPENDIX C . where required obtain specifics in purchase order quotations. - 13.03.OG. following the DEP guidelines and local practices.
30750 67 APPENDIX C . (maintenance) manuals Commissioning verification Clearing punch lists Lessons learned report from Customer to Shell Global Solutions. issued by Customer to Contractor Certificate of Completion of Work.8 DOCUMENTATION AT SUCCESSFUL PERFORMANCE TEST RUN Certificate of Acceptance.PEP and PIP Confidential Other / remaining documentation need be handed over at a predetermined date to complete the handover. 13.03. Contractor drawing files/as-built drawings/inspection reports Mechanical completion verification Equipment data Vendor data. . issued by Customer to Shell Global Solutions. even when deficiencies are expected. Ensure that Performance Testrun will be carried out within the time period stated in the Agreement with the EPC (M)-contractor.OG.
OG. likely rev 3) 6.PEP and PIP Confidential 14. Project benchmark reports (the benchmark report at the time of FID as a minimum) . Project Premise Document (the applicable FID revision. 502 (at FID) 2. 14. but will normally be conducted at a stage when the plant has well reached its sustained operating capacity (normally between 18 months to 3 years post start-up) when it should be possible to achieve a reasonably accurate assessment of the overall economics of the project as compared with what was planned in the budget proposal (502) Documents that need be stored on Livelink PIR databank at the time of Final Investment Decision (FID) are as follows: 1. but will also cover the commercial. Economic evaluation models (such as CAPE) consistent with the particular 502 (ascertain that software/PC’s are still compatible around that date) 3. The full PIR will cover the same topics.2 SCOPE AND TIMING Post Investment Reviews follow on from the stage-gate proceedings in the earlier phases of the project’s lifecycle.30750 68 APPENDIX C . incl MOD’s 5. 10% Cost Estimate 4.the interim PIR – this review will not only cover an assessment of the effectiveness of project execution and management issues (sometimes called post implementation reviews). Definition phase gate and FID session presentations. market and economic issues prevalent at that time and forecast for the future at that date to identify at an early stage major learning which may lead to concrete actions both in connection with the project under consideration but also with respect to projects coming up through the system. PIR timing and report-out will be tracked in the respective Group Company’s database and a report made to the original Company Approval Board and or to the CMD.1 INTRODUCTION A Post Investment Review (PIR) or Group Post Implementation Return 506 is the review of a project comparing actual implementation and performance against the plan as per Group Capital Budget Proposal 502 (CBP). POST-IMPLEMENTATION REVIEW 14. Accountability for ensuring that the PIR is conducted in a timely and appropriate fashion lays with the project sponsor for the original CBP (502) or his successor.03. The first PIR will be held some 2-6 months post start-up .
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