Saep 14

Engineering Procedure 21 February 2021
SAEP-14
Project Proposal
Document Responsibility: Project Management Office
Previous Revision: 25 November 2020 Next Planned Update: 25 November 2025
Primary contact: PMOD/Project Optimization Division – General Supervisor
© Saudi Arabian Oil Company, 2021

Saudi Aramco: Company General Use
Document Responsibility: Project Management Office SAEP-14
Issue Date: 21 February 2021
Next Planned Update: 25 November 2025 Project Proposal
Contents
Summary of Changes ................................................................................................................ 3
1 Introduction............................................................................................................................ 5
2 Conflicts and Deviations...................................................................................................... 6
3 References ............................................................................................................................ 6
5 Project Proposal Contents .................................................................................................. 9
6 Project Improvement Requirements................................................................................27
7 Reporting and Review Requirements .............................................................................28
8 Approvals and Waivers .....................................................................................................31
9 Contract Bid Package ........................................................................................................34
EXHIBIT I – Project Proposal Checklist................................................................................37
EXHIBIT II.A – SCDR Approval Form (Format) ..................................................................39
EXHIBIT II.B – SCDR’s Routing ............................................................................................40
EXHIBIT II.C – List Of Approved Scdrs ................................................................................41
EXHIBIT III – Project Proposal Approval Routing (Typical)...............................................42
Exhibit Iv – Contract Development Checklist .......................................................................43
EXHIBIT V Bid Quantification Summary Sheet ...................................................................45
© Saudi Arabian Oil Company, 2021 Page 2 of 47

Document Responsibility: Pro ject Management Office SAEP-14
Summary of Changes
Paragraph Number
Previous Revision Current Revision Change Type Technical Change(s)
2 M ay 2019 25 November 2020
Doc. Resp. M odification Changed to: PM O Standards Committee.
1.1 1.1 Clarification Clarified:
• Project Proposal (PP) roles and responsibilities shall
be per CM S-RAPID matrix.
• CM S-RAPID matrix’s required deliverables which
are subset of Project Proposal shall not be duplicated.
• Accelerated Capital Projects’ shall follow SAEP-38
requirements.
• Digital Projects requirements shall refer to SAEP-17.
8 2 M odification Affirmed addressing conflicts and deviations per SAEP-
302.
2 3 Clarification Added M SAERs cut-off-date. Also, added relevant or
removed unrelated references (added: SAEP-17, -38, -74, -
88, -134, -331 and GI-0202.305 as well as removed:
SAEP-127, -148, CM S M anuals and Saudi Aramco Cost &
Scheduling M anual).
1.5 4 Clarification Replaced FEL definition with its parent system, the
“Capital M anagement System” and elaborated definition of
“Construction Agency”, Project Leader & Project M anager
etc.
3.2.2 5.2.2 M odification/ Added requirements for:
Addition • Detailed Site Investigation (underground and above
ground including modification/demolition for
brownfield projects [5.2.2.8/9]
• Project shutdown window considerations (OSPAS
endorsed/approved) [5.2.2.10]
• Work permit plan [5.2.2.17]
• Technology Selection Report (see section 5.2.14)
[5.2.2.24]
• Creation/maintenance of Plant Functional Locations
[5.2.2.36]
3.2.3.B/C 5.3.3.B/C M odification For Scope Change from DBSP Requests (SCDRs), added
requirements for:
• PM OD’s review of schedule for all and estimate if
SCDR relates to Offshore work or exceeds 2% of
archived Budget Estimate value.
• Scope development while considering Shutdown,
Construability requirements etc.
3.2.6. 5.2.6 M odification Under required Studies and Assessments:
• Deleted redundant roles for BRA as those are covered
in CM S-RAPID matrix per SAEP-17. [5.2.6.3]
• Added requirement isolation philosophy document
[5.2.6.5]
• Added new requirements for Electrical Systems
Design and Analysis (ESD&A) per SAES-P-100 to
assure that the design basis for the project is firmly
established. [5.2.6.6]
3.2.14 5.2.14 Addition Added new requirements for Technical Selection Report
per SAEP-74.
3.4.1 5.4.1 Clarification Deleted redundant scheduling requirement and referred to
SAEP-331.
3.6 5.6 Addition Added new requirement for Creation/M aintenance of Plant
Functional Locations in accordance with GI-202.305.

3.8 and 5.4.1 5.8 and 7.4.1 Deletion Deleted obsoleted requirement of:
• Obtaining ASC TPP Series (Numbers assigned by the
Technical Services Dept/Engineering Unit, Houston).
[5.8]
• Distributing and Storing Approved Project Proposals
at ASC. [7.4.1]
4 6 Clarification For Project Improvement Requirements (VIPs),
Benchmarking, Target Setting, M arket Outlook Study,
Energy Optimization Study, Corrosion M anagement
Program, etc.) referenced relevant M SAERs.
5 7 Clarification Added Project Proposal (PP) reviews requirements i.e.,
number of reviews and their timing as well as the system.
6.1.1 8.1.1 M odification Added approval requirement from M anager, Information
Technology (IT) Engineering Department (for all projects
involving IT and Communications)
6.2.2 8.2.2 Clarification Clarified PP waiver approval roles for C1 projects.
7.0 9.0 Clarification Clarified that IFB Package design notes shall not be
utilized to add or delete scope for the LSTK or EPC
Contractor.
M isc. M isc. M odification Incorporated editorial changes resulted from above in the
whole procedure and Exhibits.

1 Introduction
This procedure outlines the requirements for preparing the Project Proposal. The procedure
is not intended to give instructions on the engineering effort, but to cover requirements that
are important during the FEL3 Project Proposal phase. In summary, it covers:
• Engineering, scope definition, specifications, standards and selected design

requirements
• Quality, cost reduction and schedule improvement techniques
• Project improvement requirements
• Schedule and ER Estimate preparation requirements
• Project Proposal reporting, review, approval and waiver requirements
• Contract bid package key activities
• Project Proposal and Contract Development checklists
The intent of the checklist(s) is to ensure compliance with key requirements. They are
not intended to cover all detailed requirements of this procedure.
Notes:
1. Unless specified elsewhere in this procedure, for stak eholders’ roles and
responsibilities related to Project Proposal (PP) and its required Capital Management
System (CMS) deliverables as well as their issuance timing, please refer to CMS-
RAPID matrix.
2. To fulfill requirements of respective PP’s contents and to avoid duplicate efforts, once
FEL3 PP phase related CMS-RAPID’s required deliverables are prepared and
approved, those shall be included in the PP as appendices.
3. For requirements and responsibilities regarding Accelerated Capital Projects, refer to

SAEP-38.
4. For requirements and responsibilities regarding Digital Capital Projects, refer to SAEP -
17.
1.1 Definition
The Project Proposal is a document which establishes the preliminary (front-end)

engineering, scope definition, cost estimate basis and schedule for a proposed
facility from the requirements included in the Design Basis Scoping Paper (DBSP)
package available at the approval of FEL Gate 2 (for FEL process details, refer to
SAEP-17). The Project Proposal includes the proposed facility design, general
layout and the appropriate functional and performance specifications including the
applicable standards and codes. The Project Proposal shall be of sufficient detail to
prepare a ±10% accuracy ER estimate, provide sufficient technical information for
Saudi Aramco review and, where applicable, provide sufficient information to

obtain detailed engineering, procurement and construction contract bids in

accordance with the approved Contracting Plan. To complete the Project Proposal,
Preliminary Engineering Funds (PEFs) shall be arranged as per GI-0202.451.
1.2 Purpose
The Project Proposal documents the agreement on and commitment to the

project scope, the project cost and design basis by the IPT which includes the
Saudi Aramco Project Management Team (SAPMT), Facilities Planning
Department (FPD), Project Management Office Department (PMOD),
Proponent and other technical support groups. This is accomplished through
careful evaluation of the project objectives during Project Proposal preparation
to ensure the optimum results. The Project Proposal establishes the basis for
Expenditure Request (ER) funding and is the baseline from which all
subsequently considered scope changes are measured per GI-0020.520.
1.3 Preparation Timing
Project Proposals must be completed and approved in time before the 56D
submission deadline in order to support the Expenditure Request Approval
(ERA).
A complete ER Estimate Package must be submitted to PMOD as per the

procedures and timing indicated in SAEP-25. An approved Project Proposal from
the Construction Agency Department Manager, Facilities Planning Department
and Proponent organization signatories is a mandatory requirement prior to
issuance of the ER Estimate (Saudi Aramco Form 56D) to Budget Director.
1.4 Application
Saudi Aramco requires a Project Proposal for all Type A, B, C and C1 projects
(for project characterization, refer to SAEP-17).
2 Conflicts and Deviations
Any conflicts between this document and other applicable Mandatory Saudi Aramco
Engineering Requirements (MSAERs) shall be addressed in writing to the EK&RD
Coordinator.
Any deviation from the requirements herein shall follow internal Company procedure
SAEP-302, Waiver of a Mandatory Saudi Aramco Engineering Requirement.
3 References
The editions of the MSAERs which are in effect on the project’s standards cut-off
date are applicable to this procedure. Saudi Aramco References:

3.1 Saudi Aramco References

Saudi Aramco Engineering Procedures
SAEP-12 Project Execution Plan
SAEP-13 Project Environmental Impact Assessments
SAEP-16 Execution Guide for Process Automation Systems
SAEP-17 Project Stage and Gate Governance
SAEP-25 Estimate Preparation Guidelines
SAEP-26 Capital Project Benchmarking Guidelines
SAEP-31 Corporate Equipment and Spare Parts Data
Requirements
SAEP-38 Accelerated Capital Projects
SAEP-40 Value Assurance Process
SAEP-74 Technical Services Technology Deployment
SAEP-88 Development and Review of Corrosion Control
Documents (CCDs)
SAEP-99 Process Automation Networks and Systems Security
SAEP-121 Operating Instructions for New Facilities
SAEP-122 Project Records
SAEP-134 Preparation of Mandatory Saudi Aramco
Engineering RequirementsSAEP-140
Project Training Impact Assessment
SAEP-250 Safety Integrity Level Assignment and Verification
SAEP-302 Instructions for Obtaining a Waiver of a Mandatory
Saudi Aramco Engineering Requirement
SAEP-303 Engineering Reviews of Project Proposal and Detail
Design Engineering Documentation
SAEP-329 Project Closeout Reports
SAEP-331 Project Schedule Requirements
SAEP-334 Retrieval, Certification and Submittal of Saudi
Aramco Engineering and Vendor Drawings
SAEP-360 Project Planning Guidelines
SAEP-367 Value Improving Practices Requirements

SAEP-1350 Design Basis Scoping Paper (DBSP) Preparation

and Revision Procedure
Saudi Aramco Engineering Report
SAER-5437 Guidelines for Conducting HAZOP Studies
Saudi Aramco General Instructions
GI-0002.716 Land Use Permits Procedures
GI-0020.520 Project Change Request
GI-0202.305 Capital Assets Record Creation and Tag Numbering
GI-0202.309 Allocation of Costs - New Facilities Start-up
GI-0202.451 Engineering Work Order Authorization for
Preliminary Engineering Preparation
GI-0400.001 Quality Management Roles & Responsibilities
➢ Saudi Aramco Engineering Standards (SAESs)
➢ Saudi Aramco Materials System Specifications (SAMSSs)
➢ Saudi Aramco Supply Chain Management Manual
➢ Saudi Aramco Information Protection Standards and Guidelines (IPSAG)
➢ Saudi Aramco Safety Management System
➢ Construction Agency Safety Management System
➢ Saudi Aramco Construction Safety Manual
➢ Saudi Arabian Government Security Directives (SECs)
➢ Saudi Arabian Government Safety and Fire Protection Directives (SAFs)
4 Important Terms
1) Capital Management System (CMS) is the general framework adopted by Saudi
Aramco for managing project activities, clarifying stakeholders’ roles and
responsibilities, and enabling timely and informed decision making for Capital
Projects. CMS manages the Front-End Loading (FEL) of capital projects through a
Stage Gate. Wherein, RAPID (Recommend, Agree, Perform, Input, Decide)
matrix defines roles and responsibilities in the work process related to the CMS and
development of FEL deliverables in each Stage Process. For more details, refer to
SAEP-17.

2) Project Types- A, B, C & C1 are categories assigned to projects based on criteria

evaluating cost and technical, commercial, and stakeholder complexity. For
details, refer to SAEP-17.
3) Construction Agency is the organization assigned to execute the project. This is
the Saudi Aramco Project Management administrative area (for types A, B and C
projects) and the Proponent’s assigned organization (for C1 type projects).
4) Proponent is the organization that owns, operates, and maintains the completed
facility. The Proponent is responsible for signing the Mechanical Completion
Certificate as owner of the facility.
5) Saudi Aramco Project Management Team (SAPMT) is the Construction
Agency team assigned to the project during project planning and execution.
6) Integrated Project Team (IPT) is a team composed of appointed members from
different organizations who work in an integrated manner and have clear roles and
accountabilities toward project planning and execution. For details, refer to SAEP-
17.
7) Project Sponsor (PS) is an Executive or a member of Management, appointed by the
Proponent organization, who is accountable for meeting project objectives and steering
the IPT towards maximizing investment value. For more details, refer to SAEP-17.
8) Project Leader (IPT Leader) is a representative from the Facilities Planning

Department who leads the IPT during FEL1 and FEL2 stages. This position
transfers to the Construction Agency representative (Project Manager) who leads
the IPT during FEL3 and the project’s execution phases.
9) Senior Operations Representative is the Proponent organization representative
involved in all phases of the project, to ensure the short- and long-term objectives
of the Proponent organization are incorporated during the project development
process.
10) Work Breakdown Structure (WBS) is defined by Project Type & Sub Type and
estimates shall be prepared and organized in accordance with the applicable Saudi
Aramco WBS (for details see SAEP-25).
5 Project Proposal Contents
The following sections outline the items normally included in Project Proposals.
5.1 Table of Contents
5.2 Technical Requirements
5.2.1 Project Summary

This section provides a history of the existing conditions, a brief

discussion of the proposed facilities and their justification, outlines the
project objectives/scope and schedule, and briefly describes how these
objectives will be achieved.
5.2.2 Project Description
This section provides scope and design information that establishes the
performance specifications for the facilities, process, waivers or
limitations. It shall address details concerning the design basis, proposed
facilities including equipment design, capacities, location/layouts and
other project related information. The list below provides common
elements found in a typical scope. This list may be optimized by the IPT
based on the Project Type & Sub Type:
1) Facility/plant layout and location
Note: The project scope boundaries and interfaces with other related
facilities must be clarified prior to developing the scope of the
project in the proposal phase.
2) Facility/process description, design basis and performance

specification
3) Equipment list with equipment capacity, size, datasheet, tag number,
etc.
4) Major mechanical, electrical, and utility requirements (type and
quantity)
5) Drawings (including):
a) Process Flow Diagrams (PFDs) including heat and material
balances
b) Electrical one-line diagrams, electrical area classification
drawings
c) Piping and Instrumentation Diagrams (P&IDs)
d) Plot plans
6) Listing of Mandatory Saudi Aramco Engineering Requirements
(MSAERs) specific to the project and their issue dates
7) Temporary and permanent on-plot and off-plot facilities
8) Site survey, topography and soil data as well as exploratory
excavations for brown field projects to identify underground
obstructions (Detailed Geotechnical Investigation Report, see
SAES-A-113)

9) Site investigations for demolition and modifications to existing

facilities/plants
Note: For item 8) and 9) develop Site Visit Execution Verification Plan
to detail the basis, tools, logistics and other requirements and
update it, as applicable. Then implement this plan during site
visits conducted in FEL3 phase.
10) Operating variables and project shutdown window (OSPAS
endorsed/approved)
11) Corrosion control
12) Impact on and interface with other related projects and/or existing
facilities
13) Compliance with Environmental Impact Assessment (see SAEP-13)
14) IT/ICS security architecture assessment, fire protection & safety
provisions (if required, Hazard Identification Plan of major hazards,
fire hazardous zone drawings, and fire system and fire/gas
detection/alarm layout drawings)
Note: Fire protection drawings are to be stamped by the registered
professional engineer or chartered engineer in accordance with
the requirements of SAES-B-014 and SAES-B-017.
15) Communications, including government approvals, if required
16) Control systems (including SCADA) provided with Control System
Block Diagram or System Architecture, instrument index,
instrument cable routing and I/O count breakdown
17) Project Execution Plan (see SAEP-12), Work Permit Plan and
Project Schedule
18) Training requirements (see SAEP-140)
19) Any change to Land Use Permits (LUPs) issued for new facility
sites or addition of facilities within existing plants including
Proponent-approved permits for lay-down areas, staging areas and
office sites (see GI-0002.716)
Note: LUP approvals from Government and Saudi Aramco are obtained
during the FEL2 DBSP phase.
20) Strategy for the project’s compliance with Project Quality Plan
requirements
21) Process & utilities system definition and turnover sequence
22) Piping, electrical and control system tie-ins, hot tap/stopple
operations plan and shutdown needs
23) Studies and Assessments (see Section 5.2.6)

24) Technology Selection Report and Project Execution Technology

Document (see, Section 5.2.14)
25) Pre-commissioning and Mechanical Completion Plan
26) Commissioning and Start-up Plan
Notes: The development of the Commissioning & Startup Plan (as an
integral part of the Operational Readiness Plan “ORP”) is the
responsibility of the Senior Operations Representative with input
from the Project Manager, Safety and Industrial Security (S&IS),
Inspection, etc. It also relies upon information from the
Pre-commissioning and Mechanical Completion plan.
The ORP is a document that defines how the project will transition
into an operating facility and will describe what “operational-type”
steps must be tak en along the project planning and execution path
to have a flawless startup and initial operations. The ORP also
highlights and describes activities and resources aiming to ensure
the optimization of Operations and Maintenance activities over the
facility lifetime (starting after handover).
27) List of items exceeding (over-specification) Saudi Aramco
standards’ minimum requirements (see, Section 5.2.13)
28) Requesting/returning of drawings/tag numbers per SAEP-334
29) Identifying Operating Instructions for New Facilities and Project
Records requirements (see SAEP-121 and SAEP-122)
30) Compliance with security and control of Engineering Data
requirements (see SAEP-134)
31) Compliance with Value Assurance (VA) requirements (see SAEP-40)
32) Compliance with Value Improving Practices (VIPs) requirements
(see SAEP-367)
33) Compliance with Project Closeout Report requirements
(see SAEP-329)
34) Implementation of Modularization requirements per Modular

Design Assessment (MDA) conducted during FEL2 stage, as
applicable (see, SAEP-360 and SAEP-1350)
35) List of CMS deliverables in accordance with the Value Assurance

Plan (see SAEP-40).
36) Creation/maintenance of Plant Functional Locations (see, GI-

202.305).
5.2.3 Scope Change from DBSP

For all projects scope shall be considered frozen on the date of approved
DBSP available at the approval of FEL2 Gate. Scope changes after
DBSP approval shall be avoided.
Note: The above shall be facilitated by ensuring the DBSP approval includes
all approvers’ commitment to eliminate scope changes after DBSP
approval.
Should a scope change after DBSP approval be required, it shall be

documented by an approved Scope Change from Approved DBSP
Request (SCDR). For the SCDR form and process, see Exhibit II.a and
Exhibit II.b.
A) Definition of Scope Change
A scope change is defined as any deviation from the approved
DBSP available at the approval of FEL2 Gate. In addition to these
deviations, any design that exceeds the minimum requirements of
MSAERs effective on the DBSP approval date shall also be
considered as a scope change. Such changes shall be clearly
identified in each of the interim and final Project Proposal
packages. The following are typical examples which may result in
scope changes:
1. Design exceeding the minimum requirements of MSAERs
2. Addition or deletion of materials or equipment from the
original list provided to PMOD/Estimating Services Division
for preparation of the budget estimate
3. Plot plan changes as result of site investigation
4. Process control plan or system changes (change in I/O counts,
type of control system, etc.)
5. Design changes as a result of the following:
• Change of Process data by the data owner
• Change of drill site locations

• Changes in approved LUPs
• Identification of new internal/external LUPs or permits not

secured during DBSP
• Changes in safety and security requirements

• Changes and/or updates in MSAERs
• Environmental Impact Assessment proposals

• Hazard and Operability (HAZOP) study

• Site investigations:
o Demolition and modifications to existing facilities/
plants
o Underground obstructions such as rock or utilities
interferences, etc.
• Building Risk Assessment or any other Loss Prevention
requirements
• Value Improving Practices proposals (see SAEP-367)
Note: For changes in the project design basis such as equipment
capacity or system operating parameters, within 14 days of
SCDR’s approval, FPD shall issue a DBSP addendum or
amendment to the Construction Agency and all other DBSP
recipients.
B) Initiation of Scope Change from Approved DBSP Request (SCDR)

As soon as a change is identified, the SAPMT (Construction
Agency) shall initiate the SCDR form with a scope description and
its impact on design, cost and schedule. FPD shall determine if
scope change is related to the original project scope and intent and
assess the impact of change. PMOD shall review and verify
schedule impact for all SCDRs and estimated cost impact if scope
change relates to offshore work or it is greater than +/- 2% (for A,
B and C projects) and +/- 5% (for C1 projects) of archived budget
estimate value. For this PMOD shall require following documents
(as a minimum):
1) Scope of work for the proposed change(s)
2) Cost estimate and schedule prepared by the IPT
3) Any other support documentation as deemed necessary by
the estimator, which may include quotations, MTOs etc.
FPD shall provide direction, i.e., should the scope change be
processed. For required approvals, see Exhibit II.a.
C) Notification and Implementation of Scope Change
Upon approval of the SCDR form, the Project Manager shall
distribute a copy to the IPT and PMOD. The IPT shall incorporate
the approved scope change into the project scope having detailed
evaluation of project deliverables while considering impact and its
mitigation for shutdown windows, constructability requirements

etc. All other deliverables which are part of the Value Assurance
Review Plan shall be updated in accordance with the approved
SCDR and shared with PMOD.
D) Recording of Scope Change
All approved SCDRs shall be included in the Project Proposal and
ER Estimate Packages. The required documentation shall include
the summary list included in Exhibit II.c and all supporting
documents required for SCDR approval. The complete summary
list shall be included in the Project Proposal approval package as
indicated in Section 6.1.1.
5.2.4 Communication Requirements
Saudi Aramco projects require both temporary (during construction) and

permanent communication systems. As procurement approval for radio
frequencies and materials involves long lead times, communication
systems require early identification and coordination between
Information Technology organization and SAPMT. To facilitate these
requirements, the Project Proposal shall contain the following:
a) Summary of temporary and permanent communication system
requirements.
b) Identification of additional communication facilities and/or
modification to existing facilities necessary to meet the project
requirements.
c) Identification of communication requirements to be handled by
Information Technology organization and those which shall be
provided and funded by the project.
d) Schedule of communication material requirements with an estimated
site required delivery date.
e) Identification and implementation plans of all communication
disaster recovery and business continuity aspects of the projects.
5.2.5 Safety and Security Directives (SAFs and SECs) Requirements
The SAFs and SECs requirements shall be adhered to by all projects, in

accordance with the directives given to Saudi Aramco by the Saudi Arab
Government..
The SAPMT shall contact relevant Departments of the Safety and

Industrial Security (S&IS) organization, Dhahran for assistance and to
obtain current safety and security requirements before proceeding with

Project Proposal engineering. A separate section in the Project Proposal

shall be devoted strictly to safety and security requirements.
Deviations from SSDs shall be handled in accordance with relevant

MSAERs.
5.2.6 Studies and Assessments
Perform all required engineering studies, assessments and calculations,

(e.g., HAZOP, RAM and Safety Integrity Level “SIL” studies, Building
Risk Assessment, Process Automation Systems analysis, Electrical
Systems Design and Analysis, etc.) including those defined in the Capital
Management System documentation, must be carried out regardless of
contracting strategy adopted (e.g., LSTK, LSPB, etc.).
Note: Per the CMS, Preliminary Hazard Analysis is completed during the
FEL2 DBSP phase.
Recommendations and/or closure report(s) shall be produced and

included in the Project Proposal package. The recommendations to be
implemented or addressed during the detailed design and later stages
shall be clearly identified and included in these report(s). The Project-
Leader/Manager is to provide oversight to ensure that addressing
recommendations resulting from studies and assessments are planned
and tracked as an activity.
Any cost impact as a result of the studies must be identified and included
in the ER Estimate package.
5.2.6.1 Hazard and Operability (HAZOP) Study
The objective in performing a HAZOP study is to improve

process safety and/or minimize operability problems.
The SAPMT in conjunction with the Loss Prevention
Department, and Process & Controls System Department shall
decide which projects and specific facilities require a HAZOP
study and how detailed it shall be. Facilities that use, produce,
process, transport, or store flammable (including combustible
liquids), explosive, toxic (including sewer gases, e.g., H2 S),
biological or reactive substances are candidates for the HAZOP
study. However, new facilities that duplicate existing facilities
shall not require a new HAZOP study. Similar facilities that
differs in design or operation may not be considered duplicate
and relevant stakeholders must decide the HAZOP approach
for such facilities which shall be project specific and risk
based. Recommendations from this HAZOP study shall be
incorporated into the Project Proposal design.

Recommendations and/or closure reports (including

recommendations to be implemented or addressed during the
detailed design and later stages) shall be produced and included
in the Project Proposal package.
For further details and guidance, see SAEP-12, GI-6.032 and

SAER-5437.
5.2.6.2 Reliability, Availability and Maintainability (RAM) Study
The objective in performing the RAM study in capital projects is

to ensure that competing technologies, designs, licenses, and
sparing capacity including oversized design and capital spares
requirements, are evaluated and optimized in order to secure
Capital Operational Efficiency through the Net Present Value
(NPV) of the projects. The RAM study and its
recommendations shall be implemented in accordance with
SAES-A-030.
5.2.6.3 Building Risk Assessment (BRA)
A Building Risk Assessment (BRA) shall be performed when

required by SAES-B-014. The BRA shall be performed in close
coordination with LPD in the early stages of the project where
modifications can be made without excessive cost and schedule
impacts.
Note: Initial Building Risk Assessment (BRA) Stage-I is completed
during the FEL2 DBSP phase. This BRA screens the
building on the basis of population and function to determine
if a stage-two building evaluation is warranted.
During the FEL3 Project Proposal phase, the stage-two BRA

evaluates hazards to the building from fires, explosions, and
toxic releases and identifies appropriate mitigation and risk-
reduction measures. For unusual cases where risk-reduction
measures are not clearly appropriate, a stage-three risk
management assessment will be made to evaluate the
acceptability of the risks associated with buildings of concern.
5.2.6.4 Process Automation System (PAS) Analysis, Safety Integrity

Levels (SIL) Assignment Study and Safety Requirement
Specification (SRS)
Process Automation System (PAS) upgrades and/or expansion

projects shall require analysis of the installed PAS to ensure the
performance, availability, and compatibility of equipment that

will be utilized to control and monitor Saudi Aramco facilities.

For further details and guidance, see SAEP-16.
It is recommended that the SIL Assignment study be conducted

in immediately following the HAZOP study. SIL assignment
and verification, for emergency shutdown system (ESD) safety
instrumented functions (SIF) and the analysis of the spurious
trip rate (STR) that results by introducing an ESD safety
instrumented function into the process facility, shall be
accomplished in accordance with SAEP-250.
A preliminary ESD Safety Requirement Specification (SRS)

shall be developed for each ESD system in line with the
requirements of SAES-B-058 and SAES-J-601.
5.2.6.5 Isolation Philosophy Document
An isolation philosophy document shall be prepared during

project proposal phase to comply with the requirements of GI
6.012. This document will define the methods to be used in
making provisions to completely isolate equipment/instruments
or sections of the process to permit safe operation and to
provide access for maintenance and inspection.
5.2.6.6 Electrical Systems Design and Analysis (ESD&A) Studies
ESD&A studies shall be performed per SAES-P-100, to assure

that design basis for the project is firmly established, i.e., data
used is accurate, assumptions are valid, tools used are fit-for-
purpose and hence that the basis for all design calculations is
robust
5.2.7 Environmental Impact Assessment (EIA)
SAEP-13 establishes the approval process and procedures necessary to

prepare the environmental impact assessment report. The EIA report
issued in FEL2 DBSP phase shall include and clearly identify
recommendations to be implemented or addressed during the FEL3
Project Proposal phase and later project stages.
The Project Leader/Manager is to ensure that recommendations resulting

from the EIA are planned and tracked as activities. Any cost impact
must be identified and included in the ER Estimate Package.
5.2.8 Mandatory Saudi Aramco Engineering Requirements (MSAERs) and

their Waiver

Projects shall meet the minimum requirements of Mandatory Saudi

Aramco Engineering Requirements (MSAERs), which are in effect on
the DBSP approval date. Changes to MSAERs approved after this date
shall be mandatory only when:
• Changes affect safety, health, environment or security highlighted by

the concerned organization.
• Changes result in cost savings to the project.
The impact of changes on the project shall be reviewed by the IPT and
other stakeholders to determine applicability and extent of
implementation. Only changes approved by the Project Manager and
concurred by the Project Sponsor shall be implemented to the project.
In the Project Proposal package include a list of Mandatory Saudi Aramco

Engineering Requirements specific to the project and their issue dates.
Identify standards, procedures, equipment and materials that will require

a waiver prior to incorporation into the facilities.
Include waivers (reference SAEP-302) that shall reduce project cost

without impacting the design, safety or operational integrity of the
facility.
Describe the deviation(s) in sufficient detail to permit technical

evaluation by the appropriate reviewing agency. Include copies of
waiver applications and approvals. Any approved waiver that has an
impact on the Project must be identified in the Project Proposal and ER
Estimate package and be considered during the Project Risk
Management Study.
5.2.9 Drawing Index and Drawings
This section provides a list and copies of the drawings that define the
scope of the project. It shall include key drawings such as PFDs, P&IDs,
plant and equipment layouts, electrical one-line diagrams, 3D CAD and
other necessary drawings that are required to establish the design basis
and assist in producing an ER quality estimate.
5.2.10 Project Quality Plan
The Inspection Coordinator shall prepare Project Quality Plan (PQP) in

accordance with GI-0400.001 (with input from the Senior Project
Engineer) and obtain Inspection Department’s concurrence before its
approval by the Project Manager. The Inspection Coordinator through

Project Manager shall also ensure that the specific requirements for
inspection are included in Schedule “Q” for all applicable contracts.
5.2.11 Information Technology (IT) and Industrial Control Systems (ICS)

Requirements
All projects shall adhere to security measures and controls for all
systems and solutions, including process automation systems, to comply
with security requirements in line with IPSAG and SAEP-99.
Note: IT/ICS Security Architecture Assessment (initial) for is completed
during the FEL2 DBSP phase (see, CMS-RAPID matrix).
5.2.12 Project Closeout Report
At the end of the FEL3 Project Proposal phase and subsequent phases,
progressive Project Closeout Reports are to be submitted by the Project
Manager (see SAEP-329). Therefore, it is recommended that SAPMT
includes the requirements in the Project Proposal contract and in the
contract(s) for later phases of the project to ensure that the requisite
information is provided by the contractor(s).
5.2.13 Over-specification Report
FEED over-specification report shall be required after each Project

Proposal design review. This is intended to support the Company in
identifying unnecessary costs associated with specifications exceeding
functional requirements. The report shall:
• Identify any over-specification item that exceed the minimum

requirements of applicable Mandatory Saudi Aramco Engineer ing
Requirements (MSAERs).
• Recommend cost effective alternatives to project-specified items

proposed to follow industry standard requirement(s) in lieu of
MSAERs without impacting the safety, quality and operability of the
facility.
The report(s) shall be included in the Project Proposal package and shall
also be distributed to the Project Sponsor and PMOD.
5.2.14 Technology Selection Report and Project Execution Technology

Document
The objective of Technology Selection Reports (TSR) is to ensure that

selected technologies for capital projects are the most competitive of the
available technologies that meet the business objectives and complies with
Saudi Aramco Mandatory Engineering Requirements (SAMERs).

TSRs are mandatory CMS-RAPID required deliverables and those are

completed in FEL stages (for details, see SAEP-17). All complex
technology selections are made during FEL2 stage and TSR-1 & -2 are
issued. Using information from these TSRs, TSR-3 would be developed
during FEL3 Project Proposal phase and included in the Project Proposal
document. To ensure successful implementation, constructability and
procurement requirements for the deployment of all identified
technologies are to be finalized at this phase, too. For details, please refer
to SAEP-74.
Project Execution Technology (PET) document is prepared by the

Integrated Project Team (IPT) during the dedicated work shop conducted
at FEL2 DBSP and FEL3 Project Proposal phases. This document shall
contain all the applicable Project Execution Technologies detailing the
safety, environmental, schedule and cost rewards for every PET items. The
contract strategy for the PET shall also be determined and included
5.3 Materials Related Requirements
5.3.1 General
The Project Proposal provides a table of major materials and equipment

identified for the project. During preliminary engineering (per approved
Material Procurement Strategy, see SAEP-12), the SAPMT, Inspection
Department and Materials Procurement Coordinator, shall arrange
review of the Company Surplus and Excess (9COM and 9CAT)
materials to identify all acceptable or substitute materials which are
available in Saudi Aramco inventories for possible use on the project,
with the objective of:
a) Incorporating materials, which require the least new cash outlay to
Saudi Aramco
b) Making maximum economic use of the materials available from
surplus and excess cataloged material inventories
c) Making maximum economic use of locally manufactured materials
d) Providing full justification for any proposed purchases of contingent
quantities or non-installed spares
After identifying Surplus and Excess (9COM and 9CAT) materials by

SAPMT and Materials Procurement Coordinator, Inspection department
(PID/VID) would verify the following:
• Materials compliance with MSAER and project specifications. For

proper traceability, SAPMT and Materials Procurement Coordinator
shall provide the required documents related to the surplus material

proposed to be utilized on designated project such as Purchase

Orders (POs), Inspection Reports, MTCs, etc.
• Storing conditions compliance with manufacturer recommended

preservation Procedure. In case of any visible traces of corrosion,
rust, etc, SAPMT shall request CSD to evaluate it. If CSD requires
special test to validate integrity of the materials, SAPMT shall be
responsible to arrange it.
Upon acceptance of material at Company warehouse, SAPMT and

Materials Procurement Coordinator shall be responsible for material
preservation and traceability till handling materials to project site.
During Project Proposal preparation, the SAPMT (through Materials

Procurement Coordinator) shall request formal review, and may request
assistance from the Procurement & Supply Chain Management
(P&SCM) Organization on all portions of the plan that involve materials
related aspects of the work. Regardless of Procurement/Contracting-
strategies, SAPMT and Materials & Inspection Coordinators will
continue to be responsible to ensure that the purchase order is in
acceptable technical compliance with relevant MSAERs. Purchase
Orders for inspect-able materials shall be reviewed by Inspection
Department (thru Inspection Coordinator) prior to placement, to ensure
compliance with the Project’s Technical and Quality requirements.
If procurement of major equipment and materials is on the critical path

of the project schedule, SAPMT may elect to consider “novation” of
these items to reduce their impact on the project schedule. “Novation”
typically involves:
1. Placement of purchase order by the Project Management Contractor
or Project Proposal Contractor with commitment only for
engineering, and
2. After ERA, transfer the purchase order to the successful Contractor
on contract award (if LSTK contracting strategy).
The purchase order transferred to the Contractor will cover the complete
scope involving engineering and manufacture. Use of novated purchase
orders should be approved as per Supply Chain Management Manual
(Volume I: Saudi Aramco Procurement Manual (see, Section relevant to
Services Review Committee “SRC”).
Prior to placement of novated purchase orders, SAPMT (through

Materials Procurement Coordinator) shall request a formal review from
P&SCM and Engineering Services-appropriate departments to ensure

that Purchase Requisitions (Request for Quotation) for inspectable

materials indicate the correct reference and stipulate all relevant
technical and inspection requirements (MSAERs).
SAPMT (through Materials Procurement Coordinator) shall address

novated purchase requisitions for inspectable materials only to Saudi
Aramco-approved manufacturers. The list of potential manufacturers to
supply an inspectable commodity shall be reviewed formally by
Materials Supply and Engineering Services-appropriate departments
(e.g., Inspection Department) to verify their current approval status.
Novated purchase orders for inspectable materials can only be placed

after receiving a formal no objection letter from involved Engineering
Services and P&SCM departments.
Novated purchase order terms and conditions shall include all relevant
contract Schedule Q requirements related to material procurement and
manufacturing activities to ensure a smooth transition from the FEED
contractor to the project contractor.
5.3.2 Equipment and Materials Source List
The Project Proposal package shall include a list of equipment

and materials required for the project with their intended sources.
The materials source list identifies major equipment and materials items
(where possible, an estimated dollar value and quantity required shall be
indicated). It also indicates responsibility for inspection, expediting,
traffic and transportation. The Project Proposal effort shall develop
Quotation Requests (QRs) for major engineered equipment and critical
items, and issue these QRs to vendors on a “For Development Only” basis
to determine prices and delivery schedules. For purpose of preparing the
ER Estimate, the major equipment list shall include account number, the
item number, a brief description, the data sheet, a requisition number if
available, the estimated value and other pertinent information.
The following areas shall be segregated:

a) Surplus (Non-cataloged) Materials usage- 9COM Materials
b) Cataloged Materials Reservation - Excess/Unrestricted use 9CAT
Materials
c) Locally manufactured materials and vendor warehoused materials
(LDOR)
d) Contractor procured Lump Sum Turnkey (LSTK) or Lump Sum
Procure/Build (LSPB)

e) Sole source materials and equipment
f) Materials procured under the Corporate Purchase Agreement(s)
5.3.3 Locally Manufactured Material
During Project Proposal development, the SAPMT (through Materials

Procurement Coordinator) shall obtain a current list of approved locally
manufactured materials and their sources from P&SCM. This list shall
be provided to LSTK & LSPB contractors to encourage use of locally
manufactured materials.
5.3.4 Critical Plant Equipment Unit Spares
A list of proposed installed spares for critical plant unit equipment and a
list of non-installed capital spares proposed for entry into Saudi Aramco
stores custody shall be provided along with the estimated cost for each
item and justification for purchase. Comparison shall be made between
spares specified in the Design Basis Scoping Paper and spares specified
in the Project Proposal.
5.3.5 Start-up Spare Parts
For LSPB contracts, the SAPMT shall specify start-up spare

responsibility including how they shall be provided, the financial impact
of purchase and final disposition of residual spares.
For LSTK contracts, Contractor is responsible for providing start-up

spares. Residual and/or unutilized start-up spares remain Contractor's
property; such spares may not be purchased from the Contractor by the
Construction Agency. Proponent at their discretion has the option to
purchase these residual spares against their Operating Budget for future
use. Operations shall communicate with P&SCM Organization to ensure
the spares are reviewed against overall inventory needs, and do not
adversely affect existing supplies. Defined start-up spares may be turned
over to Saudi Aramco in accordance with the contract requirements
provided that the quantities and types are in accordance with the Saudi
Aramco stocking policy.
For LSTK and LSPB contracts, start-up spares responsibility for “free
issue” equipment provided by Saudi Aramco shall be stated clearly in the
contract.
5.3.6 Spare Parts Data Packages
SAPMT and the respective Contractors are responsible for the spare
parts information as outlined under SAEP-31. In all cases, the

SAPMT/Contractors shall provide complete and accurate spare parts data

packages necessary to support Saudi Aramco procurement of operating
spare parts.
5.4 Scheduling and Estimating Requirements
5.4.1 Scheduling Requirements
A Project Schedule shall be developed during the Project Proposal phase

in accordance with SAEP-331.This schedule will be the key document
when performing a technical analysis of any submitted bids received
from contractors to determine if the bidders fully understand the scope
and complexity of each BI and to determine if any major discrepancies
exist in the estimates of both direct man hours and major quantities of
materials.
Contact PMOD for assistance with this section, if required.
5.4.2 ER Estimate Requirements
Project Proposals must be completed and approved in time to support the

Expenditure Request Approval (ERA) date. The SAPMT shall comply
with the requirements of SAEP-25 for developing the ER Estimate Plan,
arranging the initial kick-off and subsequent ER Estimate Review
Meetings, preparing & submitting the ER Estimate package, pre-bidding
(to improve the estimate accuracy), assisting in Market Outlook Study
and Market Risk assessment, etc.
Note: The ER Estimate requirements specified in SAEP-25 supersede the
provisions listed herein.
Contact PMOD for assistance with this section, if required.
5.5 Training Impact Assessment
SAEP-140 requires that a Training Impact Assessment (TIA) be prepared as part

of the Project Proposal for all projects for which training programs for
operations and/or maintenance personnel will be required. These training
programs will not be provided by the project and costs for training pre- and post-
commissioning are not be paid for by capital funds (also, refer to GI-0202.309).
As an integral part of the Operational Readiness Plan, the Proponent (Senior

Operations Representative) is responsible for identifying any training
requirements for a project and ensuring that these requirements are met during
the Project planning and execution phases. To meet this objective, Senior
Operations Representative shall prepare a Training Requirement Statement
(TRS). SAPMT (Project Manager) will provide equipment identification and

any details that may assist Proponent in preparation of the TRS. The Proponent
will provide the completed TRS to the Training & Development’s Early BI
Training Planning Team (EBTP) to complete a Training Impact Assessment
(TIA). If training is to be required, EBTP shall submit TIA’s Knowledge &
Skills Matrix’ (KSM) data to SAPMT for inclusion in the Project Proposal, in
accordance with SAEP-140. SAPMT is responsible for incorporating the
findings of the Training Impact Assessment in the final Project Proposal.
SAPMT may also be required to implement the findings of the Training Impact
Assessment as included in the approved Project Proposal. These may include:
• Incorporating contract provisions that require the Contractor to develop

multiple quotations for specified equipment so that the cost of training can
be taken into consideration when selecting the life-time, low-cost supplier.
These provisions will allow Saudi Aramco to direct the Contractor to place
its order with one of the proposed technically acceptable suppliers and will
provide for additional payment to the Contractor if the selected supplier did
not offer the lowest base price to the Contractor.
• Incorporating requirements for the Contractor to include provision in its

purchase orders for specified equipment that establish fixed prices for
training services or material to be procured at a later date by Saudi Aramco.
This will reduce the possibility of a supplier overcharging Saudi Aramco
when training services or materials are procured on a single-source basis.
• Providing the vendor training plans and quotes for the equipment identified
for training to the EBTP team for analysis. After the initial analysis of the
vendor training plans and quotes, the EBTP team will provide training
recommendations to SAPMT for considerations during the vendor selection
process.
After vendors have been selected, SAPMT will provide the EBTP team a list of
the specific equipment required for training, general vendor data information,
training scope, cost and schedule required for training prior to commissioning.
5.6 Creation/Maintenance of Plant Functional Locations
Per GI-202.305, the creation/maintenance of Capital Assets Record including

“Functional Locations” is required. The creation of this during early project
proposal phase will facilitate:
• Efficient turnover of assets & projects records to proponent during pre-

commissioning and commissioning.
• Early identification of Plant ID discrepancies or duplications.
• Creation of structured database to collect all related assets information.


• A structured module to upload drawings.
Creation/maintenance of the this Master data at project proposal stage will also
enable the integration, and ensure compliance & completeness of asset records
in the following Enterprise Project Management (EPM) business processes:
• Project Material Procurement

• Procurement Quality Management
• Construction Quality Management

• Quality Notification & Deliverables Management
• MPCS+.
The Project Manager shall ensure above is performed as an activity that is

planned and tracked.
5.7 Appendix
The Appendix shall include letters, minutes, land use permits and other pertinent
documents written during Project Proposal development.
5.8 Numbering Project
All Project Proposals’ cover sheet shall carry the APP Series (Numbers assigned
by the Saudi Aramco’s Technical Information Center, Dhahran).
6 Project Improvement Requirements
This section consists of practices/studies that when implemented would optimize project
cost, schedule & quality and enhance the efficiency of project planning and execution.
Budgeting for conducting value practices is included in the Preliminary Engineering
funds.
6.1 Value Improving Practices
SAPMT shall implement applicable Value Improving Practices (VIPs) in

accordance with SAEP-367.
6.2 Benchmarking
Project shall be benchmarked in accordance with SAEP-26.
6.3 Target Setting
Target Setting shall be implemented in accordance with SAEP-17.

6.4 Market Outlook Study
According to the size, complexity, uniqueness and level of project importance,

a market outlook study shall be performed in accordance with SAEP-25.
6.5 Energy Optimization Study
The purpose of this study is to render optimized process and utility capital as
well as the efficient use of thermal and electrical energy. Per CMS-RAPID
matrix (see, SAEP-17), Energy Optimization studies are completed and reports
are issued during the FEL stages. For further details, refer to SAEP-367.
6.6 Corrosion Management Program
Any new project or major upgrade of a process facility shall be required to

implement a Corrosion Management Program (CMP) as specified in SAEP-88.
The purpose of the program is to reduce the total cost of ownership and to
minimize the operational, safety, and environmental impact of corrosion and
material failure. The program will include an integrated plan to address all
corrosion and material degradation aspects, material selection, corrosion
protection, corrosion monitoring, chemical treatment and corrosion risk
assessment for all mechanical equipment, piping and fittings during the design,
procurement, construction and commissioning of the facility.
7 Reporting and Review Requirements
7.1 Project Proposal Reviews and Distribution for Review and Meetings
Project Proposal (PP) reviews are to be conducted at least once during PP

development on the last issue of the PP review package (around 90% of FEL3
PP phase) before the Project Proposal approval. However, depending on size,
technical complexity, and/or quality of design, some projects may require
supplementary review(s) during the Project Proposal development. Thus
Construction Agency in-conjunction with project’s stakehoders involved in
reviewing project documents shall determine the scope and frequency of
review(s) as soon as pratical but no later than 30% FEL3 PP phase completion.
For details of review(s) methods, related definitions, procedures and guidelines,
see SAEP-303.
Note: The e-Review system is the Company’s standard web-based system for the
review of Project Proposal pack ages, and engineering drawings/documents.
Draft Project Proposals shall be distributed for review to the appropriate

members of Saudi Aramco Management and attendees of the Technical Review
and Project Proposal Meetings. Distribution of the Project Proposal narrative
shall be in an approved editable electronic format.

The IPT Leader (SAPMT’s Project Manager) and Proponent (Senior Operations
Representative) are responsible for determining the recipients. As a minimum,
the following represents a list of various organizations that shall be considered
for receipt of the Project Proposal. However, only those organizations with
direct involvement shall receive the Project Proposal.
Executive Management:
- Proponent Organizations, i.e.;
- Refining & NGL Fractionation
- Northern Area Oil Operations
- Southern Area Oil Operations
- Pipeline, Distribution & Terminals
- Gas Operations
- Petroleum Engineering and Development (for production-related projects)
General Management:
- Industrial Security Operations
- Proponent organization
- Environmental Protection (EP)
Management:
- Oil Supply Planning and Scheduling Department
(for all proposals related in any way to hydrocarbon products movement and
handling)
- Information Technology Engineering Department
(for all projects involving IT and Communications)
- Projects Procurement Department
- Transportation & Equipment Services Department
- Power Systems Engineering Department
(for all projects related to power facilities at 2.4 kV and above)
- Abqaiq, Dhahran or Ras Tanura Utilities Department
(for the area community projects only)
- Facilities Planning Department (mandatory)
- Consulting Services Department

- Inspection Department
- Process & Control Systems Department
- Industrial Security Support Department
- Loss Prevention Department
- Fire Protection Department
- Project Management Office Department (for Value Assurance Reviews)
7.2 Technical Review Meeting
The Technical Review Meeting shall be held no sooner than ten (10) working
days after distribution of the Project Proposal for review. Location, date, and
time of the meeting shall be announced in the cover letter distributed with the
Project Proposal. The Technical Review Meeting shall discuss all technical
aspects of the Project Proposal, resolve technical questions, address
environmental issues and review the Project Summary Schedule. Interim
technical review meetings shall be conducted as required by SAPMT depending
upon the type and complexity of the project. Items not resolved at the final
technical review meeting shall be addressed in the Project Proposal Meeting.
Substantive changes resulting from the technical review meeting shall be
incorporated as appropriate into the Project Proposal documents.
SAPMT shall prepare minutes of the Technical Review Meetings and distribute
the minutes, electronically whenever possible, to all persons who either received
the Project Proposal or attended the Technical Review Meeting. The minutes
shall include the estimated cost and schedule effects of changes from the
DBSP/Project Proposal as originally prepared. Refer to Section 5.2.3 for
definition of scope change and its approval process.
The subject of critical plant equipment unit spares (capital spares) per Section 5.3.4
shall be addressed, and proposed purchases shall be reviewed.
7.3 Project Proposal Meeting
The purpose of the Project Proposal Meeting is to resolve any outstanding items
remaining after the Technical Review Meeting and to finalize the project scope.
The Project Proposal Meeting shall be scheduled no sooner than five (5)
working days after distribution of the minutes of the Technical Review Meeting.
The delegated representatives of the Project Proposal approval authorities

(Section 8.1.1) shall attend this meeting in order to make decisions on matters
not resolved in the Technical Review Meeting.

If unresolved items exist that would preclude obtaining Project Proposal

approvals as described in Section 8.1.1, SAPMT shall refer those unresolved
item(s) through appropriate channels of authority (including Project Sponsor)
until resolution is obtained.
SAPMT shall be responsible for preparing and distributing the minutes of the
Project Proposal Meeting to those persons who either received a copy of the
Project Proposal or attended the Project Proposal Meetings.
For selected small projects, the Technical Review and Project Proposal
Meetings can be combined into one meeting, with the concurrence of the
Proponent and FPD. In this case, the reviewing organizations should send
personnel authorized to make decisions to attend the meeting. 7.4 Distribution
and Storage of Approved Project Proposals
Following the approval of the Project Proposal, SAPMT (Project Manager) shall
send copies of the approved Project Proposal to:
- Facilities Planning Department (FPD) - one electronic copy and one hard
copy, to be used as a “working” document for five years or for the duration
of the project, whichever is longer.
- Technical Information Center (TIC) - one electronic copy for archival
purpose.
- Project Management Office Department (PMOD) - one electronic copy, for
Estimating Services’ use and record.
The electronics file submissions shall contain an index at the beginning of each
file medium to facilitate retrieval of stored data. The electronic text,
spreadsheet, and graphical data shall be in native format, and drawings shall be
in accordance with Saudi Aramco standards and formats. Scanned documents
shall be in accordance with the corporate standard maintained by
EK&RD/Drawing Management Unit.
8 Approvals and Waivers
8.1 Approval Process
8.1.1 Approvals
SAPMT shall be responsible for obtaining approval for the Project

Proposal from the appropriate individuals listed below. SAPMT may add
individuals/departments to the list, when required. Executive
Management may delegate the approval authority to General
Management level.

- Manager, Construction Agency Department

- Manager, Facilities Planning Department
- Manager, Consulting Services Department
- Manager, Process and Control Systems Department
- Manager, Proponent Department
- Manager, Loss Prevention Department
- Manager, Fire Protection Department
- Manager, Power Systems Engineering Department
(for all projects having power facilities of 2.4 kV and above)
- Manager, Oil Supply Planning and Scheduling Department
(for all proposals related in any way to hydrocarbon products
movement and handling)
- Manager, Information Technology (IT) Engineering Department
(for all projects involving IT and Communications)
- General Manager, Environmental Protection
- General Manager, Industrial Security
- General Manager, Proponent (if any)
- General Manager, Area Construction Agency (if any)
- Vice President, Petroleum Engineering and Development
(for production-related projects)
- Vice President, Engineering Services
- Vice President, Proponent Organization
- Project Sponsor (PS)
- Vice President, Construction Agency
The required approvals shall be obtained using the Project Proposal e-

Approval (PPeA) System. Project Proposal approval package shall
comprise of maximum ten (10) documents and those include:
1) Project proposal checklist,
2) Project summary,
3) Minutes of all the technical review meetings,
4) Minutes of project proposal meeting,
5) Comments’ log,

6) List of scope changes from the approved DBSP (see Exhibit II.c),
and
7) Other applicable documents (up to four numbers).
For Project Proposal Approval routing, see Exhibit III (sample

workflow).
8.1.2 Changes to an Approved Project Proposal
For a project with an approved Project Proposal which has not yet
received Expenditure Request (ER) approval, scope change(s) shall be as
per Section 5.2.3.
The proposed change in the meeting minutes or its addendum shall

include justification and the cost/schedule/risk impact. The required
minimal approval authority for the proposed change is Construction
Agency Project Manager level.
SAPMT shall distribute the approved changes to PMOD and all

organizations that received the original approved Project Proposal.
Note: All scope changes after the Expenditure Request Approval (ERA) shall
be dealt in accordance with GI-0020.520 - Project Change Request.
8.2 Project Proposal Waiver
8.2.1 Request
For selected projects, Construction Agency Department may request to

waive the requirement for a Project Proposal/Front End Engineering
Design (FEED) and proceed directly with detailed design using
preliminary engineering funds. This request will permit SAPMT to
use Engineering Work Order (EWO) funds for preliminary engineering
(see GI-0202.451) to carry out detailed design, perform selected project
proposal requirements and to prepare an ER quality estimate for funding
approval. Project Proposal waiver does not exempt ER Estimate, Project
Execution Plan, Saudi Government’s safety and security directives and
Value Improving Practices requirements.
Note: The waiver process mandated in this section is only applicable to
waiving the entire Project Proposal process and is not to be applied for
waiving technical deviations to the procedure. Technical deviations
shall fall under the requirements of Sec. 2 of this document.
8.2.2 Approval
To obtain a waiver of Project Proposal and proceed with detailed design

the Construction Agency Department Manager (for C1 projects Division

Head, if Department Manager does not exist) shall prepare a formal letter
(concurred by the Project Sponsor) requesting approval to carry out
detailed design during Project Proposal. The letter shall be addressed to
Executive Heads of the Construction Agency, and Proponent
organization (for C1 projects this may be a same person). The letter
should state the present situation, scope of work, justification for the
waiver and identify what project proposal requirements, if any that will
be performed during detailed design. Approval is accomplished once
request is accepted and signed by the addressees.
Note: The Construction Agency shall communicate approved waivers to
PMOD (see SAEP-17).
9 Contract Bid Package
As applicable, the Contract Bid Package will be developed in close coordination with
the Contracting Department. For guidance, refer to Contract Development Checklist
(Exhibit IV), for key activities in developing Contract Bid Package.
A complete Contract Bid Package shall be prepared in accordance with Supply Chain
Manual (SCM) and may contain the following:
• Invitation for Bid documents

• Technical Proposal documents
• Commercial Proposal documents
• As part of Commercial Proposal requirements, Bidders shall be required to submit a
Bid Quantification Summary as shown on Exhibit V for bid analysis purposes.
Note: Copies of the final Bid Quantification Summary from the successful bidder will be
provided to PMOD.
• Fully developed and approved Contract documents which include Schedules A

through F, H (as applicable), Q and S.
Issue for Bid (IFB) package typically includes drawings, specifications, applicable
reports, and other relevant documents necessary to define the project requirements and
clearly describes the contract scope of work. SAPMT shall take into consideration the
current project execution plan and responsibilities of all contractual parties when
revising the Project Proposal package to “Issue for Bid” Package.
Note: The IFB Pack age design notes shall not be utilized to add or delete scope for the
LSTK or EPC Contractor.
The following sections in the Project Proposal package shall be reviewed carefully to
determine if they are applicable for inclusion in the bid package. If they are to be
included, SAPMT shall modify as required to ensure that Contractor’s scope of work is
clearly defined in the “Issue for Bid” Package:

• Project Schedule
• Training requirements
• Land Permits
• Operating Variables and project shutdown window (as required by OSPAS)
• Strategy for projects compliance with quality requirements
• Project- Risk Management Plan, Risk Assessment Report and Risk Register
• Temporary construction and communications
• Pre-commissioning and Mech. Completion Plan
• Project Execution Technology (PET) Document
Document History
25 November 2020 Major revision.
21 February 2021 Editorial Revision to remove cancelled reference SAEP-72

EXHIBITS
TABLE OF CONTENTS
EXHIBIT I PROJECT PROPOSAL CHECKLIST
EXHIBIT II SCOPE CHANGE FROM DBSP- REQUEST (SCDR)
EXHIBIT III PROJECT PROPOSAL APPROVAL ROUTING
EXHIBIT IV CONTRACT DEVELOPMENT CHECKLIST
EXHIBIT V BID QUANTIFICATION SUMMARY SHEET

EXHIBIT I – PROJECT PROPOSAL CHECKLIST
Complied Remarks
Ref.
Item Description (Justification of non-
Section (Yes/No)
compliance)
Complete all required FEL3 Project Proposal

a 5
deliverables
Include Project Proposal related documents as
1 5.2.2
described in Section 5.2.2
2 5.2.3 Document approved Scope Changes from DBSP
Comply with Temporary and Permanent Project
3 5.2.4
Communication Requirements
4 5.2.5 Comply with Safety and Security Directives
Perform required Studies and Assessments (e.g.,

5 5.2.6 ESD&A, HAZOP, SIL and RAM studies, BRA,
etc.)
6 5.2.7 Perform Environmental Impact Assessment
Apply and obtain approval of Waivers from
7 5.2.8 Mandatory Saudi Aramco Engineering
Requirements (MSAERs)
Include a list of drawings and drawings that define
9 5.2.9
project scope
Prepare Project Quality Plan as per GI-0400.001
10 5.2.10
including Schedule “Q”
Fulfill IT/ICS Security Architecture Assessment
11 5.2.11
Requirements
12 5.2.12 Fulfill Project Closeout Report requirements
13 5.2.13 Fulfill Over-specifications Report requirements
14 5.2.14 Fulfill Technology Selection Report needs.

Review Surplus and Excess Inventory and Long
lead- Time Equipment & Materials requirements.
15 5.3.1
Also, identify project’s major material and
equipment to be reviewed by Inspection Dept.

Ref. Complied Remarks

Item Description (Justification of non-
Section (Yes/No)
compliance)
16 5.3.2 Develop major Materials and Equipment Source List

Obtain a list of approved Locally Manufactured
17 5.3.3
products and source
Develop a list of Critical Plant Equipment Unit
18 5.3.4
Spares
Identify required Start-up Spares with Proponent
19 5.3.5
with concurrence of MSO
20 5.3.6 Fulfill Spare Parts Data packages needs
21 5.4.1 Prepare Level III Project Summary Schedule
22 5.4.2 Prepare ER Estimate Package (per SAEP-25)

Review Project Training Impact Assessment (see
23 5.5
SAEP-140) and identify required implementation
24 5.6 Create/Maintain Plant Functional Locations
Comply with Value Improving Practices (including

25 6.1 Project Risk Management) requirements (see SAEP-
367)
Comply with Benchmarking requirements (see
26 6.2
SAEP-26)
27 6.6 Comply with Corrosion Management Program

EXHIBIT II.a – SCDRs APPROVAL FORM (Format)

(Hold down Ctrl key and click => Exhibit II.a for editable file)
Scope Change from approved DBSP- Request (SCDR)

SCDR Number: SCDR Title:
BI Number: BI Title:
Description of Scope Change: Archived
Impact
Value
Value Cost Schedule

Justification:
($MM) ($MM) (Months)
(%)
INITIATOR
SAPMT (Construction Agency) ------------------------------------- Date: --------------------
PROJECT MANAGER ------------------------------------- Date: --------------------

Construction Agency (CA)
Yes No
PROJECT LEADER (Facilities Planning Department “FPD”)
Scope change related to original scope and project intent
Scope change relates to offshore work or it is greater than +/- 2% (for A, B and C Yes No
projects) and +/- 5% (for C1 projects) of archived budget estimate value (SAPMT):
PMOD REPRESENTATIVES: Indicate cost and schedule impacts, if different than above.
Cost ---------------------------- Date: --------------------
Schedule ----------------------------- Date: --------------------

Yes No
Scope change should be processed (FPD):
PROJECT LEADER (FPD) ----------------------------- Date: --------------------
DEPT. MANAGER (FPD)

----------------------------- Date: --------------------
DEPT. MANAGER (CA)

----------------------------- Date: --------------------
PROJECT SPONSOR (Operations Organization)

----------------------------- Date: --------------------
Enclosure: All supporting documents (including ancillary cost estimate documents)

Distribution: Original Construction Agency
Copy Facilities Planning Department
Copy Project Management Office Department

EXHIBIT II.b – SCDR’s ROUTING
SAPMT initiates Scope Change from Approved DBSP – Request (SCDR)

(Defining change scope and indicating expected cost and schedule impact)
Construction Agency’s Project Manager concurs on SCDR
FPD evaluates SCDR and determines if change is related to Project’s original scope &
intent?
PMOD reviews schedule for all scope changes and estimate, if scope change relates to offshore
work or it is greater than +/- 2% (for A, B and C projects) and +/- 5% (for C1 projects) of archived
budget estimate value
FPD provides directions on SCDR-Form
No
Should scope change be STOP
processed? Return SCDR-
Form to Initiator
Yes
Construction Agency’s Department Manager concurs on SCDR
STOP
Project Sponsor approves SCDR Don’t process
No scope change
Yes
FPD provides approved SCDR and DBSP addendum/amendment to SAPMT and a copy to
PMOD, within 2-weeks of SCDR approval by the Project Sponsor
IPT implements approved Scope Change into the Project’s scope, cost and schedule
SAPMT maintains all records and include approved SCDRs and their consolidated list in
Project Proposal package, Project Proposal Approval package and ER Estimate package.

EXHIBIT II.c – LIST OF APPROVED SCDRs
Title: Impact Date

SCDR
Brief Description: Cost Schedule
No. Initiated Approved
($MM) (Months)
Justification:
* Note: Enclose supporting documents.

EXHIBIT III – PROJECT PROPOSAL APPROVAL ROUTING (Typical)
Note: For CMS compliant projects, SAPMT shall add Project Sponsor (PS) as Project Proposal approver before
VP/ED of the Construction Agency.

EXHIBIT IV – CONTRACT DEVELOPMENT CHECKLIST

Following are the list of key activities for developing the contract package.
Item Description Complied

Contracting Strategy
Develop/update and Approve Contracting Strategy – Required as
1 part of the Abbreviate PEP for all projects (SAEP-12). Strategy is
to be updated if there are changes during the progress of the project.
Enter and maintain data on all contract action covered by the
2 Contracting Strategy in to the PMIS Contract Action Developme nt
and Administration (CADA) module.
Pro Forma Contract and Specific Instructions to Bidders (SIB)
Complete preliminary Evaluation Plan so appropriate technical and
3
commercial questions are included in the SIB.
Complete Schedule “C” Attachment-1 to include: Project Sub-
Type, Phase of Work (Engineering Procurement, and Constructio n),
3.A
Unit Area, Primary Phase # (Standard Code of Accounts) at each
line item breakdown in accordance with SAEP 25.
Secure approvals for all single source procurement as per Supply
4 Chain Manual (SCM) and include appropriate language in Schedule
“G.”
Complete Schedule “Q” language in accordance with approved
5 Quality Plan (GI-0400.001) and review proposed language with
Inspection as needed.
Include language relating to approved training requirements in the
6 form of a preliminary TIA consisting of the knowledge and skills
matrix and approved training requirements’ language (SAEP-140).
Review any language related to contractor-supplied LAN and PC
7
equipment with the appropriated IT office(s).
Include requirements for bidder price breakdowns as part of the
8 Commercial Proposals and quantity lists as part of the Technica l
Proposals.
Hypothetical Quantities and Bid Conditioners
Prepare hypothetical quantities to be used to evaluate rates proposed
9
by the bidders (e.g., change order rates).
10 Prepare, in conjunction with other members of the Bid Review

Team, data to be used for allowed bid conditioner (e.g., differe nt

Item Description Complied

SAPMT cost for various locations).
Bid Review
11 Prepare Bid Review Program
12 Prepare Technical Proposal Evaluation Criteria
Review of Contract and Contract Supplement as Part of the Bid
Review Team
Ensure that the Contract is structured correctly (for lump sum, three
13 items – lump sum price, change orders, and other expenditures; and
use of value “VAL” with the amount in the “quantity” column).
Ensure that Authorized Expenditure Limit (AEL) includes reasonable

amounts for all applicable “Other Expenditures” (e.g., incidenta l
14 services, Saudi manufacturer equalization, stand-by time,
reimbursable start-up and commissioning assistance, variations from
target quantities, etc.).
Ensure that the Contract Supplement includes an appropriate
15
Change Order limit (percent).
After award of the contract, provide copies of the bidders’ price

16
breakdowns and quantity lists to PMOD.
Note: For a project using an LSTK contracting strategy, these actions are required during or just after
the Project Proposal period. For other strategies (e.g., GES+ LSPB) some of the activities tak e
place at later stages of the project.

EXHIBIT V BID QUANTIFICATION SUMMARY SHEET
PROJECT TITLE : BI :
CONTRACT NUMBER : JO :
CONTRACT TYPE :
SUMMARY OF COST
BY WORK BREAKDOWN STRUCTURE (WBS)
BULK
AREA OF WORK ENGINEERING CONSTRUCTION TOTALS
MATERIALS
AREA OF WORK 1 $ $ $ $
TOTAL PROJECT COST $ $ $ $
SUMMARY OF QUANTITY AND COST

BY DISCIPLINE
DISCIPLINE DESCRIPTION UNIT QUANTITY COST UNIT COST
DEMOLITION
TOTAL DEMOLITION WORST L $ $
(SCA 007)
SITE PREPARATION /
DEVELOPMENT
(PLOT SIZE) SM $ $
TANK FARM DIKING CM $ $
CONCRETE CM $ $
CIVIL / STRUCTURE
(SCA 200 & 400) FENCE LM $ $
LANDSCAPING & IRRIGATION SM $ $
STRUCTURAL STEEL TONS $ $

BUILDINGS (TYPE OF BLDGS) SM $ $
TOTAL CIVIL/STRUCTURE
MANHOURS & COST MHRS $ $
STATIC EQUIPMENT EACH $ $

HEAT EXCHANGERS EACH $ $
MECHANICAL/ AIR COOLERS EACH $ $

PROCESS PUMPS EACH $ $
EQUIPMENT
(SCA 500) COMPRESSORS EACH $ $
OTHER PACKAGE EQUIPMENT EACH $ $
TOTAL MECHANICAL/PROCESS
EQUIPMENT MANHOURS & COST MHRS $ $

LENGTH OF PIPE RACK LM $ $

TONNAGE CARBON STEEL (PIPE
RACK) TONS $ $
UNDERGROUND CARBON STEEL
PIPING PIPING LM $ $
(SCA 600) ABOVEGROUND CARBON STEEL
PIPING LM $ $
TONNAGE CARBON STEEL PIPES TONS $ $
TOTAL PIPING MANHOURS &
COST MHRS $ $
TRANSMISSION LINE LENGTH KM $ $

MAIN SUBSTATION MW $ $
UNIT SUBSTATION MW $ $
ELECTRICAL ELECTRICAL CABLE TRAY LM $ $
(SCA 700) UNDERGROUND ELECTRICAL
CABLE LM $ $
ABOVEGROUND ELECTRICAL
CABLE LM $ $
TOTAL ELECTRICAL MANHOURS &
COST MHRS $ $
PROCESS CONTROL SYSTEM

(DCS/ESD/VMS) I/O $ $
CONTROL VALVE COUNT
(MOV/GOV/MANUAL) EACH $ $
FIELD INSTRUMENTS
(TRANSMITTERS/TGS) EACH $ $
INSTRUMENTATION FIRE & GAS DETECTION SYSTEM EACH $ $
(SCA 800)
INSTRUMENTATION CABLE TRAY LM $ $
UNDERGROUND
INSTRUMENTATION CABLE LM $ $
ABOVEGROUND
INSTRUMENTATION CABLE LM $ $
TOTAL INSTRUMENTATION
FIBER OPTIC CABLES LM $ $

COMMUNICATIONS
(SCA 780) COMMUNICATION EQUIPMENT EACH $ $
TOTAL COMMUNICATIONS
INSULATION AND FIREPROOFING

INSULATION & (EQUIPMENT, STRUCTURES,
COATINGS BUILDINGS, etc.) $ $
(SCA 900) TOTAL INSULATION & COATINGS
TOTAL DIRECT CONST

TOTAL INDIRECT CONST
CONSTRUCTION
TOTAL CONSTRUCTION

TOTAL ENGINEERING MANHOURS

ENGINEERING
& COST MHRS $ $
TOTAL PROJECT COST DOLLARS $ $
ACTIVITY IN MONTH(S)
DETAIL DESIGN DURATION
SCHEDULING
CONSTRUCTION DURATION
EQUIPMENT WITH MORE THAN 6 MONTHS LEAD-TIME
DELIVERY


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Saep 14

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Engineering Procedure 21 February 2021

Previous Revision: 25 November 2020 Next Planned Update: 25 November 2025

Primary contact: PMOD/Project Optimization Division – General Supervisor

© Saudi Arabian Oil Company, 2021

© Saudi Arabian Oil Company, 2021 Page 2 of 47

Saudi Aramco: Company General Use

© Saudi Arabian Oil Company, 2021 Page 3 of 47

© Saudi Arabian Oil Company, 2021 Page 4 of 47

Saudi Aramco: Company General Use

• Engineering, scope definition, specifications, standards and selected design

3. For requirements and responsibilities regarding Accelerated Capital Projects, refer to

The Project Proposal is a document which establishes the preliminary (front-end)

© Saudi Arabian Oil Company, 2021 Page 5 of 47

obtain detailed engineering, procurement and construction contract bids in

The Project Proposal documents the agreement on and commitment to the

1.3 Preparation Timing

A complete ER Estimate Package must be submitted to PMOD as per the

2 Conflicts and Deviations

© Saudi Arabian Oil Company, 2021 Page 6 of 47

Saudi Aramco: Company General Use

3.1 Saudi Aramco References

© Saudi Arabian Oil Company, 2021 Page 7 of 47

SAEP-1350 Design Basis Scoping Paper (DBSP) Preparation

© Saudi Arabian Oil Company, 2021 Page 8 of 47

Saudi Aramco: Company General Use

2) Project Types- A, B, C & C1 are categories assigned to projects based on criteria

8) Project Leader (IPT Leader) is a representative from the Facilities Planning

5 Project Proposal Contents

5.1 Table of Contents

5.2 Technical Requirements

5.2.1 Project Summary

© Saudi Arabian Oil Company, 2021 Page 9 of 47

This section provides a history of the existing conditions, a brief

5.2.2 Project Description

2) Facility/process description, design basis and performance

© Saudi Arabian Oil Company, 2021 Page 10 of 47

Saudi Aramco: Company General Use

9) Site investigations for demolition and modifications to existing

© Saudi Arabian Oil Company, 2021 Page 11 of 47

24) Technology Selection Report and Project Execution Technology

34) Implementation of Modularization requirements per Modular

35) List of CMS deliverables in accordance with the Value Assurance

36) Creation/maintenance of Plant Functional Locations (see, GI-

5.2.3 Scope Change from DBSP

© Saudi Arabian Oil Company, 2021 Page 12 of 47

Saudi Aramco: Company General Use

Should a scope change after DBSP approval be required, it shall be

• Change of Process data by the data owner

• Change of drill site locations

• Identification of new internal/external LUPs or permits not

• Changes in safety and security requirements

© Saudi Arabian Oil Company, 2021 Page 13 of 47

• Hazard and Operability (HAZOP) study

B) Initiation of Scope Change from Approved DBSP Request (SCDR)

Saudi Aramco: Company General Use

5.2.4 Communication Requirements

Saudi Aramco projects require both temporary (during construction) and

5.2.5 Safety and Security Directives (SAFs and SECs) Requirements

The SAFs and SECs requirements shall be adhered to by all projects, in

The SAPMT shall contact relevant Departments of the Safety and

© Saudi Arabian Oil Company, 2021 Page 15 of 47

Project Proposal engineering. A separate section in the Project Proposal

Deviations from SSDs shall be handled in accordance with relevant