SECTION 11-A

PROJECT DEVELOPMENT

11.1
PROJECT DEVELOPMENT PROCESS
• Identify an opportunity
• Scoping Study
• Screening Study
• Definitive Planning
• Front-end Design
• Detailed Engineering & Procurement
• Construction
• Start-up
• Project Re-appraisal

11.2
 ESTIMATING PROJECT COSTS
• Accuracy of estimate increases as greater definition is
available:

Activity Estimate Class Contingency

Screening V ~30%
Planning III / IV ~20%
Basic Design II ~6%

11.3
 KEY PROJECT DOCUMENTS
• Screening Study
– Early test of project viability
• Design Basis Specification
– Defines design yields for project
• Design Basis Memorandum
– Defines basis for design
– May include DBS and Industrial Hygiene Design Review
• Design Specification
– Abbreviated DS for early contractor involvement
– Design Considerations
– Heat & Material Balance
• HAZOP (HAZard & OPerability study)

11.4
 ExxonMobil Project System - Gate Review Deliverables

Project Development Project Execution Start-up

Business
Planning Definitive Basic Detailed Engineering, Commissioning/
Screening Planning Design Procurement & Construction Operations

Business Group
GATE 1 Activity GATE 2 GATE 3 (Optional) GATE 4

Business Planning Evaluate Alternatives Establish Design and Establish Specs and Execute Project Commission and Project Closeout
Execution Bases Requirements Start-up Facilities

Business Strategy/Drivers Objectives / Priorities /

Venture Philosophy
Advance Funding Appropriation Request Financial Closeout Plan Financial Closeout
Identify IPT, Proj. Exec. Appoint IPT, Proj. Exec. Update IPT Financial Reappraisal
Align Site/Business Alignment

Plan Next Phase Project Plan Development &

Competitive Assessment Execution
Design Basis Process Design Detailed Engineering Assessment
Alternatives Facilities Basis
Technology Assessments
Screening Economics Economic Analysis Project Economics
of Alternatives
Screening Estimate CLV / Screening Estimate ClassIII / IV Estimate Class II Estimate
& Schedule & Schedule & Schedule & Schedule
Cost/Sched. Benchmark
Technical & Operational
Risk Assessments Eng'g Specialist Support
Cold Eyes Review 0 Cold Eyes Review 1 FEL Assessment Cold Eyes Review 2 Cold Eyes Review 3
SHE Review Inherent Safety Review HAZOP OIMS Management of Change
Constructability Construction
Permitting Plan Permitting
Contractor in Place (FEL) Contractor in Place (EPC)
Start-up Plan Start-up
Data/Documentation Plan Final
Plot Plan Documentation
Procurement Plan
Source Major Equipment Procurement
P&IDs
Electrical One Lines

Notes:
designates deliverable should be reviewed for next phase, and updated as required. IPT = Integrated Project Team.

11.5
ExxonMobil Project System - Gate Review Deliverables

11.6
11.7
 TECHNICAL QUALITY ASSURANCE
FOR PROJECTS

• Applies to Refining projects requiring ECI approval.

• EMRE responsible for technical quality of project,

regardless of who does development.
– Early involvement of EMRE specialists is important
to avoid recycle.
– Involvement continues throughout planning and
basic design phases.

11.8
 SECTION 11-B

OIMS APPLIED TO DESIGN

11.9
 OIMS APPLIED TO DESIGN
• Design conducted in accordance with approved
ExxonMobil standards:

– Design Practices
– International Practices
– Computer tools (PRO/ii, Hextran, Pegasys)
– Defined reviews

• Reviews conducted at key stages and documented in

final release.

11.10
11.11
 HAZOP REVIEWS
• 2 Hazard and Operability Reviews conducted
– During front end design
– During execution, just before start of construction
– Uses ExxonMobil experience based approach

• Team independent of project, led by safety specialist,

includes design, operations, maintenance, start-up.

• Comments formally documented with response from

project team.
– Close-out stewarded by Designer.

11.12