Best Practice: Synergy Planning Guidelines

Best Practice
SABP-A-041 December 2017

Synergy Planning Guidelines
Document Responsibility: Facilities Planning Standards Committee
Saudi Aramco Desktop Standards
Table of Contents
1 Scope and Objectives ..................................................................................................................... 2

2 Synergy Planning Process and Activity Schedule ................................................................. 4
3 Synergy Identification Methodology and Guidelines ........................................................... 10
4 Applicable Documents and Data Sources............................................................................... 15
5 Synergy Assessment Reporting ................................................................................................ 17
6 Synergy Assessment Roles and Responsibilities ................................................................ 18
7 Appendix A : Standard Synergy Planning Forms ................................................................. 22
8 Appendix B : Synergy Cluster Examples ................................................................................ 26
9 Appendix C: Key Definition of Terms and Abbreviations ................................................... 27
Saudi Aramco: Company General Use

Previous Issue: 15 October 2015 Next Planned Update: 5 December 2019 Page 1 of 28
Primary contact: Donnelly, Gerry F (donnelgf) at +966-13-8800824
Document Responsibility: Facilities Planning Standards Committee SABP-A-041
Issue Date: 5 December 2017
Next Planned Update: 5 December 2019 Synergy Planning Guidelines
1 Scope and Objectives
1.1 Scope
This Saudi Aramco Best Practice (SABP) outlines the methodology, guidelines, roles and
responsibilities and activity schedule for the examination, assessment and documentation
of project synergies for the following capital investment periods:
 Five year period covering the three year Capital Program

 10 Year Investment Profile (IP)
SABP-A-041 is applicable to all Saudi Aramco capital projects including oil, gas,
downstream, infrastructure facilities, electrical, process automation, public outreach and
IT projects and brings together input from all relevant stakeholders to the synergy
assessment exercise at the planning phase. This best practice will also be applied during
formulation of synergy opportunities within Business and Facility Master Plans.
1.2 Objectives
During the early planning phase for the development of Saudi Aramco’s capital planning
activities, synergy is created when projects (or portions thereof) are combined in ways
that result in the overall expenditure of the combined budget items delivering a lower
overall installed capital cost.
Synergy assessment represents a major cost saving opportunity for the Company and
the appropriate time and resources shall be devoted to this exercise. The charter of this
exercise recommends that all reasonable effort must be made to determine and formally
report all potential synergies regardless of the extent of cost savings. The identification of
new synergy opportunities and update of the synergy reporting is conducted part of
annual Portfolio Execution Planning (PXP) activities.
While scope related synergy opportunities are routinely explored by planners as part of
the various planning practices, the synergy planning processes detailed in this document
serve to guide and enhance the identification of potential cost savings through:
 Establishment of formal evaluation process and methodologies
 Synergy Planning Check Points
 Roles and Responsibilities
 Synergy Implementation Process
Identification of projects with similar scope and nature and executed by proponent
organizations constitutes the second major objective of Synergy Assessment exercise.
Such grouped proponent managed projects will be considered under the definition of
Saudi Aramco : Company General Use
‘Proponent Programs’ to assist in developing single procurement plans. This type of

Proponent Program differs from the conventional definition of ‘Program’ in that grouped
budget items are not mutually dependent on one another. This includes identification of
C1 projects to be executed by different proponents within different geographies and
different periods throughout the IP. The identification of such synergy opportunities is
conducted in support of annual PXP activities, the aim of which is to facilitate the
development of proponent organization’s project management and execution expertise.
Areas of consideration for this type of synergy should address the following:
 Design standardization
 Equipment standardization
 Procurement strategy
 Lessons learned that should be shared across different execution agencies
Such examples of projects that would be considered across multiple years within the 10
Year IP include, HV Motor Control Gear Replacement, Flare Recovery projects and
multiple simultaneous barge replacement projects.

2 Synergy Planning Process and Activity Schedule
The synergy assessment should be carried out early during the Capital Program activity
processing calendar, and the aim is to schedule the exercise immediately following both
the Management Committee (MC) early engagement meeting in late 2Q and the Business
Line Engagement meeting during early 3Q. This timing for commencement of the synergy
exercise permits endorsement of the 10 Year Investment Profile by the Strategy Council
(SC) and implementation of recommendations for the Capital Program from the early
Management Committee engagement.
2.1 FPD Synergy Workshop Development & Activity Schedule
The preliminary assessment commences with the first of two consecutive Facilities
Planning Department (FPD) internal workshops. The recommended minimum time
between FPD Divisional and Cross Divisional synergy workshops will be three weeks and
a maximum of one month to permit FPD Divisions sufficient time for dialogue and
evaluation. Timelines and scheduling for synergy assessment activities are presented in
Figure 1. At least one synergy planning review workshop shall be scheduled to coincide
closely with each of the following activities:
 Within the development of an updated Master Plan

 Capital Program post Q2 implementation of early MC recommendations
The following steps outline the basis for the early development of synergy assessment.
The preliminary synergy assessment is prepared across two consecutive Facilities
Planning Department (FPD) internal workshops.
The Capital Program and 10 Year Investment Profile is intended to reflect recently
submitted and approved proponent proposed projects at the beginning of the annual
Capital Planning process that will also include existing Budget Items/ Appropriation
Requests reflected within Business and Facilities Master Plans (Refer to Section 2.2).
With the large number and diversity of project submittals and the availability of limited
scope definition outlined in the 10 year IP, synergy assessment across the first five years
incorporating the three year Capital Program, shall focus on execution schedules and
major scope elements that could result in synergy cost savings. The synergy assessment
will give particular consideration to budget items early in the Study phase before FEL-
Study or less preferably within the DBSP phase. The synergy workshop meetings should
consider all new and existing projects in the Investment Profile regardless of what
planning phase they are at (refer to notable exceptions herein Synergy Identification
Methodology and Guidelines).

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Final Submission to FPD/ PXP Committee

FPD Cross Divisional Synergy Workshop
Synergy Opportunity Set Agreement

Master Planning Synergy Workshop
First Submission to PXP Committee

Synergy Assessment Key Activities
FPD Divisional Synergy Workshop

Synergy Data Set Preparation
FPD Synergy Internal Review
PMOD Synergy Assessment
Figure 1 : Synergy Assessment Key Milestones & Activities

The workshops will identify potential common scope elements, engineering or man hour
savings, project mobilization, contracting or project execution savings that can be realized
through combination of one or more budget items into a single project or through
management of multiple budget items within a Program. Additionally, the synergy
assessment exercise will include identification of C1 projects having similar scope and
nature which may be executed by different proponents across multiple periods throughout
the IP. These proponent driven synergies are referred to as Proponent Programs.
The following flowchart, Figure 2, is aligned with the Capital Planning framework and
takes into consideration the proposed schedule for Business Line strategy refresh. The
work flow activities commences with a thorough assessment of the prior year’s synergy
opportunity set before consideration of recommended synergies from master planning
documents. Upon receiving FPD’s proposed synergies following the FPD workshops,
Estimating Services Division (ESD) within PMOD will formally assess the proposed
synergy clusters for implementation and project execution feasibility.
Following assessment of project synergy and execution feasibility, the recommended
synergy cluster set will be communicated to FPD IPT leaders for implementation, and
completion and submission of relevant Database Change Requests (DCRs) if applicable.
IPT leaders will be responsible for communicating any changes as a consequence of
synergies, with proponent organizations.
The implementation of the synergies will represent the termination point of FPD synergy
activities and responsibility for implementation of recommended synergies.
These implemented synergies will then form the basis of the starting point for
commencement of synergy assessment for the following year.

Figure 2: Synergy Assessment Annual Key Activities and Milestones

2.2 Pre FPD Workshop Synergy Development
The following steps outline the basis for the early development of synergy assessment
and identification at the Master Planning (MP) stage and prior to commencement of
Capital Program and IP driven synergy assessment workshops.
The first level of synergy identification is undertaken at the Master Planning stage within
Business and Facility Master Plans by FPD and Proponent, respectively, in accordance
with SAEP-60 and SABP-A-043. The Master Plans identify potential synergy
opportunities within proposed projects over a 10 to 20 years outlook and are a key input
to the FPD Synergy Workshop.
Proponent organizations are responsible for submitting the potential projects list identified
within the Master Plans into OPPM to form the basis of the 10 year Investment Profile
and subsequent Business Plan. In addition OPPM is populated with projects that were
not included within Master Plans, including adhoc submittals and urgent Product &
Facilities Development Department (P&FDD) increments. These adhoc submittals are
defined as projects not included within MP but, included within OPPM subject to VP
waiver approval. Urgent P&FDD increments are identified as upstream projects
required to meet the Company call that were not included within MP.
Master Plans are updated every three to five years or upon a substantial change to input
criteria. P&FDD increments constitute the trigger for a Master Plan update, however, due
to the inherent urgent nature of P&FDD increments these are invariably combined into
programs in parallel with Master Plan development.
FPD Master Planning groups will collate the entire set of synergy recommendations
outlined in both Facilities and Business master plans, which FPD synergy appointed lead
will distribute to workshop participants prior to the master planning workshop early in the
annual capital planning cycle.
This first master planning synergy workshop, scheduled for end of first quarter of the year,
will review the synergies recommended within Master Plans and Programs to confirm
validity with the OPPM submittals. On compilation of synergies at Master Planning level,
any omissions from P&FDD increments or adhoc projects are incorporated into updated
Master Plans. The FPD synergy lead will then communicate these to workshop
participants at least two weeks prior to commencement of the FPD synergy kick off
meeting ahead of the first of two workshops.
The exercise of reporting identified synergies will occur initially at Business Master
Planning Level, followed by Facilities Master Planning stage, such that commencement
of the FPD driven synergy workshops offers a third level of synergy at the project level.
A flow chart schematic, Figure 3, is presented herein showing synergy generation and
development, both inside and external to Master Planning prior to OPPM submittal.
Revision of Master Plans will occur on endorsement of the synergy opportunity set and
update of 10 Year and 5 Year project data with OPPM and SAP.
Figure 3 : Master Planning Synergy Assessment and Identification

3 Synergy Identification Methodology and Guidelines
The following guidelines are presented to assist workshops participants achieve a

consistent approach to identification and communication of synergy opportunities. For
example synergy clusters refer to Appendix B.
3.1 Synergy Planning Workshop Methodology
The steps below outline the basis and methodology that shall be followed in planning a
comprehensive and inclusive synergy assessment. A flowchart is also presented in
section 2.1 that details these steps and associated timelines from April to November to
guide participants on workshop activities, task completions as well as roles and
responsibilities.
In commencing the synergy exercise and to ensure seamless continuity with the prior
year’s synergy opportunities, the previous years’ endorsed synergies will form the basis
that establishes the starting opportunity set to assess synergies within the following 10
Year Investment Profile.
1. All FPD divisions across both synergy workshops shall have the same
representation from commencement to completion of the synergy assessment to
ensure consistency and continuity of methodology.
2. The current three year Capital Program covering an additional two years covering
within the period of the 10 Year Investment Profile, will be provided to workshop
participants for their assessment at least two weeks prior to commencement of the
first FPD divisional only workshops. It is recommended to also distribute both
project data sets grouped by theme or scope, and location that serves to assist
synergy workshop participants to formulate synergies. The prior years’ endorsed
synergy recommendations will also be provided.
3. Prior to each workshop participants shall come prepared (having completed the
relevant Synergy Syn-1 form in Appendix A : Standard Synergy Planning Forms)
detailing initial proposals for divisional and cross divisional synergy opportunities.
This standard form will be officially communicated to PMOD for their assessment
of synergy execution feasibility. Appendix A outlines the basis and associated
definitions to complete synergy standard form Syn-1.
4. Workshop meetings will be conducted over 1-2 hours. Discussions exceeding this
duration will be rescheduled for a follow-up session. Minutes of Meeting for each
FPD and Master Planning synergy workshop will be recorded by the FPD
appointed lead and distributed to participants for their concurrence and action if
applicable. The FPD appointed lead will be responsible to track and record any
modified or new synergies within the synergy standard tracking form (Form Syn-
2).
5. Given the dynamic nature of the Capital Program and the expectation that the
Capital Budget is only likely to be finalized in late November, the initial synergy
evaluation workshops shall be followed (if applicable) by a further and final
workshop to re-assess previously recommended synergy opportunities. A refresh
assessment of the above process will be repeated whenever there is a significant
change (by greater than 10 percent) in number or value of budget items within the
Capital Program or Investment Profile.
6. Following PMOD assessment of the project synergy opportunity set for execution
feasibility, all relevant synergy clusters will be communicated to FPD IPT leaders
for implementation and communication with proponent organizations.
7. The annual synergy assessment exercise will be concluded, with formal
implementation of the recommended synergies. The necessary Database Change
Requests (DCR) to amend ERA/ERC dates, DBSPs and Project Proposal dates
will be submitted by the appropriate FPD Division in accordance with the
methodology outlined in SAEP-1350 and SAEP-360.
8. Identified synergies will only be executed if the project falls within the current three
year Capital Program window, while those falling outside this period will be
recorded and represented in the coming annual cycle of synergy activities until the
synergy is implemented or rejected. This ensures continuity of synergy opportunity
sets are recorded and considered as they fall within the three year Capital Program
period.
3.2 Synergy Planning Workshop Guidelines
The following guidelines have been outlined to assist FPD planners and FPD synergy
representatives in their identification of synergy opportunities, but it should be
emphasized they are not prescriptive should a stronger rationale exist for synergy
proposal.
 While there is no requirement to eliminate BIs, projects may be combined into a
program if required to achieve cost savings. However, the FPD Divisional
representative will identify the particular BI(s) that could be eliminated through
scope addition to remaining synergized projects.
 Subject matter relevance, location and scope are key drivers for development of
synergy opportunities. Schedule driven synergies are considered to be captured
under scope and location.
 Identified synergies will be recorded and communicated to PMOD under separate
categories of Scope and Location driven synergy opportunities (Refer to Form Syn-
1 in Appendix A). Synergy opportunities will be continually tracked using the same
standard template as presented in the Appendix A that will record potential cost
savings.
 FPD Divisional representatives should consider possible contractor and
procurement synergies utilizing the same contractor for similar projects. Executing
projects outside of contractor’s expertise may lead to prolonging project duration

and thereby offsetting any synergy recommended cost savings.
 Where practicable, application of the use of Prior Approval Expenditure Requests
(PAER) may be considered to either align Budget Item ERA dates. However, it is
noted that deferring safety critical projects in an effort to align ERA dates across a
synergy cluster shall be avoided.
 All budget items will be subject to FPD synergy assessment to include Masters
and Annuals, which will be subject to the same rigorous assessment where
practicable. Possible exceptions to this include Maintain Potential/ BI-33/ BI-34/
BI-60 appropriations.
 Whilst there is no current upper cost limit to achieving cost savings among multiple
proposed budget items, an excessive combined cost will act as a deterrent to
identifying potential synergies within workshops. Following FPD’s proposed
synergy recommendations, these will be assessed qualitatively by PMOD to
ensure synergy execution feasibility. However, workshop participants should be
aware that combining similar BIs above $1bn+ may add to project management
complexity and decrease the likelihood for synergy savings either through the
requirement for specialist contractors or incur delays to project commissioning and
start-up schedules.
 Pre-Designated Programs will be considered within synergy assessment under all
potential synergy cost saving categories excluding scope, which is assumed to
have been optimized during Program development. A ‘Program’ being defined as
a set of inter-related and dependent projects which are not Proponent driven. The
exception being where the synergy team considers that adding another budget
item to the existing Program could represent additional complexity and negate
potential cost savings.
 Proponent Programs are grouped budget items which are similar in nature and
scope but which are not mutually dependent on one another and are likely to be
executed by different proponent organizations as C1 type projects. Such projects
will typically be scheduled throughout the IP period and will likely involve more than
one proponent organization. The objective of identifying synergized Proponent
Program opportunities is to support annual PXP activities in order to facilitate the
development of proponent organization project management and execution
expertise.
 A synergized budget item can only occur once, unless two distinct scopes of the
same budget item can realize savings should the scope be split between two
different synergy clusters.
 As referenced in Section 3.1 only synergy cluster opportunities identified within the
current three year Capital Program will be executed.

3.3 Synergy Cross Functional Teams
Each FPD division will have its own representative at consecutive synergy assessment
workshops with members potentially drawn from FPD Master Planning Groups.
Representatives will possess sufficient FPD specific divisional experience to propose
cross divisional recommendations and leverage from prior Master Planning Group studies
as well as conclusions from previous Capital Program synergy assessments. To ensure
consistency and continuity the same FPD Divisional representative will be present at both
FPD synergy workshops as well as the plenary stakeholder workshop. The intent of the
FPD synergy workshops will be to identify the preliminary synergy opportunity set and
refine these before involvement of other stakeholders.
FPD cross divisional synergy teams are responsible for proposing synergy opportunities
and these synergy opportunities will have been agreed and discussed with relevant teams
and responsible engineers from within their divisions and reviewed and endorsed up to
Divisional Head level.
Once the qualitative assessment from both PMOD has been received, the formal
recommendations will be communicated to FPD IPT leaders to be implemented within
Business Plan and Investment Profile. FPD planning engineers should at this juncture
and prior to implementation, engage with Proponent organizations to seek considerations
on any FPD internally proposed synergies and what impact these might have on
Proponents with respect to project milestone delivery and scope considerations.
Figure 4 : Synergy Assessment Stakeholders Interfaces

The organizational flowchart, Figure 4, is presented to outline how departments and

divisions facilitate dialogue from preliminary internal synergy identification to ultimate
formal stakeholder synergy opportunity set endorsement, and implementation within the
Business Plan and 10 Year Investment Profile.

4 Applicable Documents and Data Sources
The latest edition of the applicable reference documents shall be consulted prior to
commencement of the Synergy Assessment :
SAEP-060 Master Plan Development Procedure

SAEP-071 Portfolio Execution Planning (PXP)
SAEP-360 Project Planning Guidelines
SAEP-1350 DBSP Preparation and Revision Procedure
SABP-A-042 Business Case Development Guidelines

SABP-A-043 Master Plan Development Guidelines
The current live SAP database and Oracle Primavera Portfolio Management (OPPM)
dataset detailing the 10 Year Investment Profile, will be used as the basis for the synergy
dataset. The 10 Year Investment Profile data will be based on the final agreed submittal
to Strategy Council (SC). The Capital Program System (CPS) and Oracle Primavera
Portfolio Management (OPPM) system shall include the same fields for each new project
submittal to assist in identifying synergies across existing budget items and newly
submitted projects over the 10 Year Investment Profile.
Within the FPD Synergy workshops the Capital Program and Budgets Division (CP&BD)
will be responsible for coordinating the workshops and updating (adding, deleting, or
renaming) the attributes of the project dataset as needed. Projects within the 10 Year
Investment Profile shall be prepared ahead of the workshop by CP&BD. Furthermore, it
is recommended ahead of the synergy workshops to prepare a preliminary list of project
combination sets that serves to assist identification of project synergy clusters. A list of
required SAP project field data is outlined in Applicable Documents and Data Sources.
The project list for the 10-Year Investment Profile grouped by similar scope or location
will be prepared prior to workshop to assist in identifying potential synergies.
Data for the first five years will be taken from SAP due to higher quality and data reliability
and will be used as the starting basis for formulating potential synergy opportunities
across the two FPD internal workshops. The FPD synergy lead will ensure that the
following fields within SAP and OPPM are included in the dataset distributed to FPD
synergy representatives that will be assessed during synergy workshops.

 Capital Program Period  MSS Project Type

 BI Ref Number  MSS Sub Project Type
 BI Title  Project Characterization
 Operating Segment  FPD Engineer
 ERA/ERC  Const. Department
 Project Complex. Index  AV Value
 Proponent Bus. Line  Location Code
 Proponent Admin Area  FPD Division
 Proponent Department  FPD Group
 DBSP Start  Sub Loc.
 DBSP Finish  BI Justification
 Program Group  PP Start
 PP Finish  Funding Type
In addition to OPPM and SAP datasets, the FPD synergy lead will be responsible for
providing planning and budget briefs available within a central repository for consultation
by FPD synergy representatives in preparation for proposal of synergy opportunity
clusters.

5 Synergy Assessment Reporting
A register of all the synergy opportunities shall be continually maintained by the FPD
synergy lead under the framework of two FPD synergy workshops. The lead is appointed
from within the CP&BD Division. The results from the first workshop will be summarized
using Appendix A : Standard Synergy Planning Forms, in preparation for the Capital
Program synergy assessment workshop. Results from the second FPD workshop will also
be summarized using Form Syn-1 (Example presented).
The appointed FPD synergy lead will be the single point of contact for the synergy
assessment, and must be kept informed of all changes across FPD divisions as well as
amendments to the synergy dataset from external entities such as PMOD or PXP
ensuring that an up to date register of the current status of synergy opportunities is
maintained within the template outlined in Appendix A : Standard Synergy Planning
Forms. CP&BD will be the formal custodian and retain the master list of the current and
historical synergy assessments.
After an initial assessment of proposed divisional and cross divisional synergies, FPD
synergy team representatives will be expected to report to Work Directors and Budget
Director on a change in the status or synergy recommendations, thereby ensuring that all
synergies have been communicated internally and are still supported before formal
endorsement by all plenary workshop stakeholders.
A formal record of cost savings from year to year will be held as a repository to compare
the effectiveness of synergy assessment across Capital Programs and the remaining five
years of the 10 Year Investment Profile. As champion of the PXP Synergy Lens, FPD will
retain a project master list that will include all projects being considered for synergies.
This list will be categorized into two groups; one for the Capital Program projects, and
one for the remaining projects in the Investment Profile. CP&BD will communicate the
agreed synergy list to the PXP committee representative. The agreed synergy list shall
be also made available to all FPD planners to ensure consistency and allow for possible
feedback by all FPD planners.
FPD planning engineers and PMOD may elect to develop their own synergies outside of
the formally recommended workshops. While this is acceptable, these additional potential
synergies must be communicated to FPD through CP&BD immediately as soon as these
synergies are known. This is to ensure an up to date synergy opportunity list is maintained
and to ensure CP&BD successfully manage all communications and departmental
interfaces.

6 Synergy Assessment Roles and Responsibilities
6.1 Pre-Synergy Workshop Responsibilities
The following activities relate to capturing previously recommended synergies from

Business and Facilities Master Plans and programs prior to commencing both master
Planning Synergy workshops and FPD synergy workshops. Detailed roles and
responsibilities are reflected in SAEP-60 and SABP-A-043.
 The FPD Work Director responsible for leading Master Planning synergy activities
within their FPD division shall assign a master planning representative to collate
recommended master plan synergies to CP&BD.
 CP&BD shall convene a synergy workshop to assess the master plans and
Programs relevant to their particular FPD division, as well as any additional ad hoc
project proposals.
 The MPG Work Director distributes the division’s full project list to his Division’s
Work Directors and other MPG Work Directors to identify possible cross divisional
synergies at master planning level and prior to submission to CP&BD. Following
this, the Master Planning Work Director communicates the master planning
synergy opportunity set to CP&BD using standard Form Syn-1 (FPD Division
Synergy Assessment).
6.2 Synergy Planning Responsibilities
In commencing the annual FPD synergy workshop assessment the FPD synergy
appointed lead will schedule a pre-workshop kick off meeting to outline timelines, roles
and responsibilities and to brief FPD synergy representatives on expectations. The same
FPD synergy workshop team members must be present, as far as practicable, at the
beginning of the assessment and throughout Workshops I and II to ensure continuity and
consistency of approach to synergy assessment. This team will remain in-place until
formal implementation of the synergy cluster opportunity by the relevant IPT lead.
Following documentation of divisional and cross divisional synergies, FPD divisions will
categorize synergy opportunities into High, Medium and Low with regards to the likelihood
of being recommended as a potential synergy using the Standard Form Syn-1, Appendix
A. Minutes of Meeting will be recorded by CP&BD lead and distributed to workshop
participants for each synergy workshop as a formal record of the meeting agreement and
actions.

PMOD departments will commence a review of FPD recommended divisional and cross
divisional synergies on submission by FPD synergy lead of all relevant synergy
opportunities within Standard Form Syn-1 for their qualitative assessment and execution
feasibility. No determination of potential cost savings will be undertaken by PMOD or
steps taken to implement any synergy proposal at this assessment stage. One person
will be appointed from PMOD to coordinate and communicate all synergy assessment
related activity with FPD.
Following PMOD review, FPD synergy lead will communicate the results from PMOD’s
qualitative assessment to FPD synergy team members. Agreed synergy sets will then be
formally communicated through Standard Form Syn-1 within Appendix A to IPT leads for
their implementation.
A RACI Matrix is presented in Figure 5 that aims to summarize FPD and external
department responsibilities for both FPD led synergy assessments and Master Planning
synergy assessments.

FIVE YEAR CAPITAL PLANNING SYNERGY RACI MATRIX
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MASTER PLANNING SYNERGY RACI MATRIX

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Figure 5 : Capital Program and Master Planning Synergy Assessment RACI Matrix
Page 20 of 28
SABP-A-041
APPENDIX

7 Appendix A : Standard Synergy Planning Forms

7.1 Capital Program Synergy Assessment Form Syn-1
The following standard form shall be used to record synergy opportunity sets identified by
FPD planning engineers. The standard template shall be used to communicate potential
synergy opportunity sets to PMOD, and to record high level potential synergy cost
savings.
To assist with completion of the form some definitions are outlined within Appendix A.

SECTION BELOW TO BE COMPLETED BY FPD PLANNING ENGINEER (SYNERGY REPRESENTATIVE)
FPD Div. Proposer Enter FPD Division Synergy Number 1.0 Date 2/15/2017
Capital AV DBSP ERA ERC

BI Ref. FPD Div. BI TITLE
Program (MM) (Start) (M/D/YY) (M/D/YY)
-
-
-
-
Proposed Synergy Opportunity Rationale Synergy Implementation Likelihood (H,M,L)
SELECT Likelihood
Responsible FPD Planning Engineer (ID) to manage combined synergy cluster:

Outline Extent of Cost Saving (Assistance for CP&BD) See below for categories Location, Scope, OPEX
SELECT Potential Savings
SELECT Potential Savings

SYNERGY FEASIBILITY SECTION TO BE COMPLETED BY PMOD
PMOD Synergy Feasibility Assessor (ID): PMOD Review Date:

PMOD Synergy Feasibility Assessment :
COST SAVINGS SECTION TO BE COMPLETED BY CP&BD
1. Synergy Scope Savings: ($MM)

2. Synergy Location Sub-category PMT Savings Project Execution Mobilization Contracting Total
2a. Same Asset ((% or $MM) Savings)
2b. Same Geographic Location (% or $MM)
2c. Same Program(s) (% or $MM)

The following definitions are presented to help clarify to synergy team members and
stakeholders that any potential synergy savings are recorded under the most appropriate
category.
1. Scope :
Scope related synergies relate to the elimination of duplicate equipment when
combining projects with similar subject matter.
2. Location :
Location based synergy clusters will be categorized under one of the following four
sub categories:
 Same Asset
 Geographic Location
 Programs
 Technology
Subsequently, the estimated savings for each project synergy cluster will then be
assessed and recorded under :
 PMT Management Savings: Utilization of same project management
team across a number of proposed budget items. Proponent executed
‘C1’ type projects are most likely not to benefit from my synergy savings.
 Project Execution Timing: Cost savings associated with construction
related activities, achieved from utilizing regular downtimes windows to
execute construction and commissioning.
 Project Mobilization: Potential savings from costs associated with
optimal use of common site set-up services and administration, and
resource levels when staffing up projects.
 Contracting & Procurement Strategies: Savings achieved from
optimal use of utilizing same contractor to achieve design, engineering
or procurement savings across multiple budget items to match contractor
expertize thereby avoiding costly specialized contractor selection.

7.2
Synergy Type Legend : 2018-27 Capital Program & Investment Profile Revision 9
PMT Management Savings: Savings that could be achieved by utilizing the same project management team across a number of Budget Item
projects. Proponent executed projects are most likely not to benefit from my synergy savings.
Project Execution Timing: This represents potential cost savings associated with construction related savings and whether savings can be Synergy Recommendations 26-Oct-17
achieved from utilizing regular downtimes windows to execute construction and commissioning.
Project Mobilization : This category represents potential savings from costs associated with optimal use of common services and minimizing
resource levels when staffing up projects.
Contracting Strategies : These are savings achieved from the optimal use of either utilizing the same contractor for more than one budget
item or segregating scope across Budget Items to match contractor expertize and thereby avoid selection of costly specialized contractors ------------------- Synergy Type -------------------
Synergy AV Project Div or
CP No. FPD Div Synergy Opportunity Description ERA ERC Scope Saving PMT Saving Mobilization Contracting Synergy Rationale / Potential Cost Savings Likelihood
BIs ($MM) Execution Cross Div
Applicable ? Applicable ? Applicable ? Applicable ? Applicable ? This synergy will help advance the debottlenecking of Abu Safah plant in
which it will help in maintaining Abu Safah’s MSC. In addition, both
Previous Issue: 15 October 2015

10-05237 UPGRADE WATER DISPOSAL SYSTEM – QATIF 47 Feb-19 Oct-21 projects will take place in the same location and they have similar
milestones.
2018-20 1 OFPD Medium DIV

DEBOTTELNECKING ABU SAFAH GOSP WATER
10-07809 14 Jul-19 Jul-22 The potential savings include project execution and mobilization
SEPERATION – QATIF PLANT
Essentially the same objective and similar scope for SRU upgrade project.
Applicable ? Applicable ? Applicable ? Applicable ? Applicable ? Thr goal is to capitalize on the same technology licensor and EPC
UPGRADE SULFUR RECOVERY UNITS - YANBU
10-02224 76 Feb-20 Feb-23 contractor for each opportunity.
REFINERY
Based on the proposal synergy rationale, this opportunity should enable
UPGRADE SULFUR RECOVERY UNITS - RAS savings through single sourcing licensor selection for all three
2018-22 2 R&CFPD 10-02046 152 Oct-19 Jan-23 opportunities,preserve scheduling and contractor savings for the Medium DIV
TANURA REFINERY organization.
Note : 10-02224 also exists in Synergy Cluster 23.if Scenario 2 drops out 10-
UPGRADE SULFUR RECOVERY UNITS - RIYADH 02224 stays in Cluster 23
10-01081 125 Jan-18 Mar-21
REFINERY
Applicable ? Applicable ? Applicable ? Applicable ? Applicable ?

10-01996 FIELD GAS COMPRESSION - HARADH 5,879 Oct-17 Dec-21
This synergy is necessary as all BIs are interdependent and treated as a
single program. In addition, projects will take place in the same
location and they have similar milestones.
10-02029 FIELD GAS COMPRESSION - HAWIYAH 2,441 Oct-17 Sep-21

2018-22 3 GFPD High DIV

Potential saving on procurement of compressors through one vendor
DOWNSTREAM PIPELINES - HARADH
10-02142 120 Oct-17 Jan-21 (Contracting). There is no PMT saving as Budget Items within a single
INCREMENT Program
GAS PROCESSING FACILITIES - HARADH

10-02145 1,198 Oct-17 Jan-21
INCREMENT

FIELD GAS COMPRESSION - 'UTHMANIYAH
Synergy Standard Tracking Template - Form Syn-2
10-01989 1,760 Oct-19 Jul-23 This synergy is necessary as both BIs are similar in scope and schedule.
GAS PLANT
2018-22 4 GFPD High DIV
FIELD GAS COMPRESSION - SHEDGUM GAS Potential saving on procurement of compressors through one vendor.
10-02067 1,323 Oct-19 Jul-23 This is managed as a single Program and therefore no PMT savings
PLANT
INSTALL MIXED LPG BLENDING FACILITY- Both budget items are located in JNGLF
10-02444 16.5 Feb-22 Nov-25
JU'AYMAH NGL
2018-22 5 GFPD Medium DIV
INSTALL LIQUID BLOWDOWN RECOVERY
Potential execution synergy by allowing one contractor to handle both
CAPITAL PROGRAM SYNERGY TRACKING Form Syn-2
10-01862 SYSTEM - JU'AYMAH NGL FRACTIONATION 7.2 Oct-22 Nov-25 projects which might result in reduced cost of construction and material.
PLANT
10-02090 FILTRATION SYSTEM - SHEDGUM GAS PLANT 20.5 Aug-18 Oct-20
All budget items apply the same technology.
2018-27 6 GFPD 10-02060 FILTRATION SYSTEM - BERRI GAS PLANT 31 Feb-23 Aug-26 Medium DIV
Potential cost saying in engineering and procurement of filters from the

10-02028 FILTRATION SYSTEM - JU'AYMAH NGL PLANT 13.5 Dec-23 Oct-26 same vendor
Page 25 of 28
SABP-A-041
8 Appendix B : Synergy Cluster Examples
The following examples are outlined to illustrate the basis on why projects may be combined in
order to realize potential cost savings. Scope optimization synergy.
 SOUR WATER STRIPPER - RAS TANURA REFINERY

 DIESEL HYDROTREATER UNIT - RAS TANURA REFINERY
The basis for the this cost reduction synergy is the ability to combine the scope of work from the
Sour Water Stripper project with the more substantive work for the Diesel Hydrotreater Unit, both
located at Ras Tanura Refinery. Schedule driven synergies to realize multiple cost savings
synergies.
 RELOCATE CONTROL ROOM - ZULUF GOSP 4

 RELOCATE CONTROL ROOMS - MARJAN GOSP 2 AND GOSP 3
Synergy exists between the above budget items on the basis of similar ERA and therefore given
similar scope, there is the potential for cost saving opportunities to be identified. Location driven
synergies for mobilization and management savings.
 ENHANCE LPG PIPING NETWORK - JU'AYMAH NGL FRACTIONATION

 UPGRADE EXPORT PRODUCT CHILLING FACILITIES - JU'AYMAH
 UPGRADE OF WASTE WATER FACILITIES - JU'AYMAH TERMINAL
The above projects were synergized on the basis on location, permitting access to the same
mobilization team and possibly availing of the same contractor and synergized on PMT
management costs. Location driven synergies.
 ABQAIQ-HASA BULK PLANT PIPELINE

 HASA BULK PLANT
The above projects were synergized on the basis on location, permitting access to the same
mobilization team and possibly availing of the same contractor and synergized on PMT
management costs.

9 Appendix C: Key Definition of Terms and Abbreviations
Definition of Terms:
Proponent Proponent is defined as the Saudi Aramco owner of the
project and which typically submits the project for potential
funding and will eventually operate and maintain the facility.
Synergy A synergy represents a potential cost saving achieved when
two or more budget items are combined to achieve an
overlap in project scope or execution.
Program A Program is a combination of two or more budget items
that are inter-related and dependent upon one another.
Proponent Program A Proponent Program is a combination of two or more
budget items that are not inter-related or dependent upon
one another but are typically C1 type projects and are
combined for the purposes of Proponent knowledge
transfer.
Database Change Request A DCR form is initiated by the relevant FPD planner for
proposed changes in project schedule milestones or cost.
Changes to the project milestones can only occur once the
DCR is completed and signed by FPD management. Refer
to SAEP-1350 for details.
Master Planning Group FPD based planning group responsible for compiling the
projects within the Business Master Plans (Investment
Master Plans) required to comply with the company’s long
term investment plans.
Capital Program This is a compilation of FPD supported projects within a
three year period to meet corporate objectives.
Business Plan This a compilation of projects within a five year period that
serves to meet the corporate strategies and objectives of
the company.
Investment Profile This is a compilation of all projects compiled over a 10 year
period that serves to meet company corporate strategies
and objectives and is based on Facility and Business Master
Plans. The IP serves as Gate 1 for all capital projects and
forms the basis for Capital Program Business Plan
development.
Capital Management System This FPD based Group manages the processes and input
needed to help the company reach the target of maximizing
Capital Efficiency in projects delivery.
Abbreviations :
AR Appropriation Request
BI Budget Item
CP&BD Capital Planning & Budget Division
CPED Capital Planning Efficiency Department
CSR Corporate Staff Review
DCR Database Change Request
DBSP Design Basis Scoping Paper
FEL Front End Loading (Project Approval Gate Process)
FPD Facilities Planning Department
IP Investment Profile
IPT Integrated Project Team
MC Management Committee
MPG Master Planning Group
MPG WD Master Planning Group Work Director (From FPD A&P)
MSS Master Scheduling System (Capital Program)
OPPM Oracle Primavera Portfolio Management
PAER Prior Approval Expenditure Request
PMOD Project Management Office Department
P&FDD Product & Facilities Development Department
PMT Project Management Team
PP Project Proposal
PXP Portfolio Execution Planning
SAER Supplement Approval Expenditure Request
SC Strategy Council
FPD Divisions
A&P FPD Automation & Power
GFPD Gas
IFPD Infrastructure
OFPD Oil
PD&T FPD Pipeline, Distribution & Terminals
R&C FPD Refining & Chemicals
CP&BD Capital Program & Budgets Division


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Best Practice

SABP-A-041 December 2017

Saudi Aramco Desktop Standards

1 Scope and Objectives ..................................................................................................................... 2

Saudi Aramco: Company General Use

1 Scope and Objectives

 Five year period covering the three year Capital Program

‘Proponent Programs’ to assist in developing single procurement plans. This type of

Saudi Aramco : Company General Use

2 Synergy Planning Process and Activity Schedule

2.1 FPD Synergy Workshop Development & Activity Schedule

 Within the development of an updated Master Plan

Saudi Aramco : Company General Use

Final Submission to FPD/ PXP Committee

Synergy Opportunity Set Agreement

First Submission to PXP Committee

FPD Divisional Synergy Workshop

FPD Synergy Internal Review

PMOD Synergy Assessment

Figure 1 : Synergy Assessment Key Milestones & Activities

Saudi Aramco : Company General Use

Saudi Aramco : Company General Use

Figure 2: Synergy Assessment Annual Key Activities and Milestones

Saudi Aramco : Company General Use

2.2 Pre FPD Workshop Synergy Development

Figure 3 : Master Planning Synergy Assessment and Identification

Saudi Aramco : Company General Use

3 Synergy Identification Methodology and Guidelines

The following guidelines are presented to assist workshops participants achieve a

3.1 Synergy Planning Workshop Methodology

projects outside of contractor’s expertise may lead to prolonging project duration

Saudi Aramco : Company General Use

3.3 Synergy Cross Functional Teams

Figure 4 : Synergy Assessment Stakeholders Interfaces

Saudi Aramco : Company General Use

The organizational flowchart, Figure 4, is presented to outline how departments and

Saudi Aramco : Company General Use

4 Applicable Documents and Data Sources

SAEP-060 Master Plan Development Procedure

SABP-A-042 Business Case Development Guidelines

Saudi Aramco : Company General Use

 Capital Program Period  MSS Project Type

Saudi Aramco : Company General Use

5 Synergy Assessment Reporting

Saudi Aramco : Company General Use

6 Synergy Assessment Roles and Responsibilities

6.1 Pre-Synergy Workshop Responsibilities

The following activities relate to capturing previously recommended synergies from

6.2 Synergy Planning Responsibilities

Saudi Aramco : Company General Use

Saudi Aramco : Company General Use

Previous Issue: 15 October 2015

Team Representative / Role Dept.

Primary contact: Donnelly, Gerry F (donnelgf) at +966-13-8800824

MASTER PLANNING SYNERGY RACI MATRIX

Saudi Aramco : Company General Use

Team Representative / Role Dept.

Saudi Aramco : Company General Use

7 Appendix A : Standard Synergy Planning Forms

Saudi Aramco : Company General Use

SECTION BELOW TO BE COMPLETED BY FPD PLANNING ENGINEER (SYNERGY REPRESENTATIVE)

Capital AV DBSP ERA ERC

Responsible FPD Planning Engineer (ID) to manage combined synergy cluster: