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Front End Engineering Design (FEED) Challenges in EPC Projects: Design, LLI Strategy & Fast Track



By Armando Bianco, Engineering Manager, Eniprogetti Global Conference on EPC Contract & Project Management 9th-10th November 2017 Lisbon, Portugal



Index



Eni



Design Basis, Key Deliverables & Battery Limits: how to approach a Front End Engineering Design Balance between engineering freezing and early procurement: Long Lead Items strategy Fast Track: Basic, FEED & Detail Design phases in overlap aiming at Project goals Conclusions



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Design Basis, Key Deliverables & Battery Limits: how to approach a Front End Engineering Design



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Oil and Gas Project Development Phases



Pre-feasibily 1-3 MM (typical ref.)



Basic - FEED 3-9 MM (typical ref.)



Feasibility 2-4 MM (typical ref.)



G1



G2



Detail Design & Procurement 9-18 MM (typical ref.)



Construction Commissioning 12+ MM (typical ref.)



G3



Execution: detailed development and physical realizatio of the scope of the project’s ork Definition: finalization of the development concept Selection: choice of optimal development configuration Appraisal / Evaluation: assess e t of the opportu it ’s eco o ic alue



Project expenditure Capital Risk Difficulty to implement changes Personnel involved Stakeholders’ e pectatio s



Time 5



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Project Development Phases Key Activities -> Key Deliverables (es. for process and piping and layout engineering) Pre-feasibily 1-3 MM (typical ref.)



Feasibility 2-4 MM (typical ref.)



Basic - FEED 3-9 MM (typical ref.)



Detail Design & Procurement 9-18 MM (typical ref.)



Construction Commissioning 12+ MM (typical ref.)



Support to Construction and commissioning Feasibility 3D model Detail Engineering Design Procurement and Construction



Finalization of all processes, utilities and transportation systems. Design of all engineering systems Constructability reviews finalization



Preparation of process specifications, design criteria, for all processes , utilities and transportation systems. Preliminary engineering, safety and constructability.



Identification and analysis of the main process and utilities for each generated concept alternative



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Technology selection report Preliminary Heat & Material balance Block Flow Diagram Preliminary Site Plan



Red-marked and as-built



P&ID (with vendor information) Equipment DS (for all items) Details MTO (2nd and 3rd) Isometrics Construction drawings Stress Reports



Finalization of Heat & Material balance, P&ID & Equipment and packages DS Plot Plan, Equipment layouts, Underground layouts Finalization of Technical Specifications (Stress analysis Criteria) Single lines for steel structures Preli i ar MTO’s Pipi g ( st MTO) Process Flow Diagrams Battery Limits Table Preliminary P&I Ds Equipment Data Sheets Design Criteria Preliminary Plot Plan



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How Design Basis, Key Delivery and B.L. can affect a Project What if…  … Desig Bases are not finalized Example: the pressure of the Sea Water Make-up (rely upon information) was significantly different from the reality. Technical resolution: lower the pumps with an additional basin (groundwater level very high). Impact: additional costs and delay in schedule







… Key Deliverables are not ready as needed Example: the supply of a critical reactor was assigned to a vendor in the Far East and a shipping to North Africa was fixed in advance. Due to the delay in the 3D model, the nozzle orientation was not ready as per original plan agreed with the vendor resulting in late finalization of the vendor engineering and eventually of the supply. Recovery plan: an acceleration plan was agreed with the vendor to meet shipping window. Impact: additional costs







… Battery Li its are not aligned (process-wise) Example: two different mechanical contractors were assigned to install the cooling water circuits in the relevant area and a battery limits was established. During the commissioning phase after the battery limits were connected it was noticed that one contractor inverted the connection from a process point of view. Technical resolution: the connections were modified during commissioning and with acceleration in procurement for the unforeseen additional material during commissioning Impact: delay during commissioning phase 7



Note: Lesson Learnt not related with ENI projects



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Why Basic-FEED is the most important part of a Project?



value



Pre-feas. Feasibility 1-3 MM 3-6 MM (typical ref.)



$



Basic - FEED 3-9 MM (typical ref.)



Detail Design & Procurement 9-18 MM (typical ref.)



Construction 12 – 32 MM (typical ref.)



BOQ & Construction strategy



Material Selection & Take-off



Peak Construction Cost



Peak Material Cost



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Construction Commissioning 12+ MM (typical ref.)



Project Cost Curvet Availability of Information time



During Basic – FEED project costs can be properly evaluated by finalization of material selectio a d MTOs, owi g to that this phase is the ost i porta t for the go/ o go final assessment



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Design approach – Key points



 The Basic - FEED engineering shall be tailor fit to allow the correct definition of the i vest e t cost a d to support the go / o go decisio gate 3 (key deliverables fit for purpose to the activities and not vice-versa);  In Basic – FEED phase, the key deliverables allow to fix the material selection and estimate material take-offs which are the input for the procurement and construction strategy based on the project drivers;



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Balance between engineering freezing and early procurement: Long Lead Items strategy



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Long Lead Items definitions



Those components of a system or piece of equipment for which the times to design and fabricate are the longest and for which an early commitment of funds may be desirable or necessary in order to meet the earliest possible date of system completion.



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Critical Path



The critical path is the sequence of activities that represents the longest path through a project, which determines the shortest possible project duration [PMBOK 6.6.2.2 Critical Path Method] Appling Critical Path method for all the systems of a project, even material with a rather short delivery can result to be critical, owing to that we can split LLI in two categories:



 Typical LLI such as: • High pressure equipment • High temperature equipment • Special Material equipment



 Not Typical LLI such as: 12



• Tie-ins: integration with existing Facilities • Bulk material for early commissioning system



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Tie-ins: integration with existing Facilities  REFERENCE GREEN-FIELD PROJECT SCHEDULE Pre-feas. 1-3 MM (typ.Ref.)



Feasibility 3-6 MM (typ.Ref.)



Detail Design & Procurement 9-18 MM PROCUREMENT FOR TRADITIONAL LLI PROCUREMENT FOR LLI ref.) (typical



FEED 3-9 MM (typical ref.)



Construction 12 – 32 MM (typical ref.)



EARLY ENGINEERING



Commissioning 3- 12 MM (typical ref.)



EARLY CONSTRUCTION



EARLY PROCUREMENT EARLY COMMISSIONING



TIE-INS



 PRODUCTION PLAN of EXISTING FACILITIES UNIT 10



Shutdown



UNIT 20



Production Dismantling Dismantelling Dismantelling



Plant to be disinvested Shutdown



UNIT 30



Shutdown



Production



 OVERALL SCHEDULE INTEGRATED WITH PRODUCTION PLAN FEED Feasibility Study



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TIE-INS



TIE-INS INSTAL.



Shutdown



TIE-INS INSTAL. Detail Design & Dismantling Procurement Construction



Commissioning



Tie-ins shall be planed in an early stage of the project, with a dedicated engineering, construction and commissioning team. The project schedule incorporates the production plan in terms of turn-around or critical milestones.



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Bulk Material for Early Commissioning System Engineering design for bulk material is aimed to produce MTOs with increased levels of definition



Procurement generally follows the MTO by engineering based on master agreements or project agreements



Construction strategy is divided into: 1st phase by area 2nd phase by system



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During the engineering phase it is important to verify that the delivery of bulk material fits the Mechanical Completion dates (additional specific MTOs can be envisaged).



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Long Lead Items strategy – Key points



 The critical path developed for all the project systems allows us to recognize critical delivery items which do not have the longest delivery such as tie-ins or bulk material for early commissioning system, which shall be focused since the start of the project with a dedicated integrated team (engineering, construction and commissioning);  For a revamping project, the integration of the production plan in the project baseline allows to execute tie-ins during turn-around, minimizing the number of shut-downs and avoiding unnecessary loss of production;



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Fast Track: Basic, FEED & Detail Design phases in overlap aiming at Project goals



If you're not confused, you're not paying attention. Tom Peters



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Project objectives and Fast-Track Projects



Pre-feas. 1-3 MM (typ.Ref.)



Feasibility 3-6 MM (typ.Ref.)



Basic - FEED 3-9 MM (typical ref.)



Detail Design & Procurement 9-18 MM (typical ref.)



Construction 12 – 32 MM (typical ref.)



Commissioning 3- 12 MM (typical ref.)



• Opt.1) Compress the activity lengths Pre-F.



Feasibil.



FEED



Detail Design & Procurement



• Opt.2) Fast-Track by parallelization of phases Feasibility Study FEED Detail Design & Procurement



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Possible outcomes when implementing a Fast-Track in a project



Relying upon preliminary information



Design based on assumptions Increased interface management



Overdesign material



More Engineering Man-hours



Higher Cost Increased possibility of inconsistencies



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Higher Risk



Not linear approach in decision making



More Reworks



More difficult engagement of personnel



Which it the greatest objective?



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How to mitigate risks in fast-track projects



Re-cycling Design inputs/outputs



Feasibility Study



FEED Detail Design & Procurement



D



Final alignment MATERIAL When procurement cycle is long, procurement can be start with preliminary data, updating more consolidated information during the vendor alignment before PO MATERIAL TEAM Material check/re-rated If the approach is aligned is re-consolidated both in since the beginning with a Basic and Detail Design common goal, all the team to avoid reworks during is aimed to support construction and unavoidable project changes commissioning and reworks activities



ENGINEERING Final alignment mitigates risk of further phases for critical aspects



ENGINEERING Preliminary information evaluated from Basic (used for detail design) are always re-checked when more information are available



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Case Study



Feasibility Study



FEED Detail Design & Procurement



D



 Project Organization  Engineering Approach: Re-cycling Design 1. 2. 3. 4. 5.



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Process and Layout for critical circuit 3D Model Review 30% and 60% Material Selection Vendor design Design Philosophy – Operating manual



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Case Study Organization Chart



CONSTRUCTION



LICENSOR FEASIBIL. CNT



FAST-TRACK



DETAILED ENG.



FEASIBILI TY PREBASIC FEAS. FEED



OWNER



BASIC –FEED CONTRACTOR



DETAIL ENG. CONTRACTOR VENDOR



CONSTRUCTION CONTRACTOR



SUB. CONTRACTOR



SUB. CONTRACTOR



VENDOR



VENDOR



CONSTRUCTION CONTRACTOR



SUB. CONTRACTOR



 Interface Management



SUB. CONTRACTOR



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#1: Process and Layout for critical circuit



File EST฀9 EST฀9 EST฀9 EST฀9 EST฀9 EST฀9 EST฀9



1) PRELIMINARY SIZE CALCULATION & PLOT PLAN



฀ ฀ ฀ ฀ ฀ ฀ ฀



4 4 4 4 4 4 4



by



Case



2) PROCESS SCENARIOS (DESIGN CASES AND TRANSIENTS) SA SA SA SA SA SA SA



1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9



PUMP DISCHARGE



FV s Valves Flow FVA



FVB



PSVs Valves Flow FVC



PSVA



PSVB



PSVC



A B C IN OUT IN OUT IN OUT IN OUT IN OUT IN 351 351 351 351 351 351 351 351 351 351 351 351 351 351 380 380 380 380 380 380 380 380 380 380 380 380 380 380 5 5 5 5 5 5 5 5 5 5 5 5 5 5 351 351 250 351 351 351 351 250 250 351 351 351 351 250 250 351 351 250 250 351 351 351 351 250 250 351 351 351 351 250 351 351 351 250 250 351 351 351 351 250 250 351 351 351 351 351 351 351 351 351 351 250 250 250 250 250 x x x x x x x x x x x x x x 351 351 250 351 351 351 351 250 250 250 250 250 250 250 351 250 351 351 351 250 250 351 351 250 250 250 250 250 250 351 351 250 250 351 351 351 351 250 250 250 250 250 351 351 250 351 351 351 351 250 250 351 351 351 351 250 351 250 351 351 351 250 250 351 351 351 351 250 250 351 250 351 351 250 250 351 351 351 351 250 250 351 351 351 351 351 351 351 351 351 351 351 351 351 351 351 351 351 380 380 380 380 380 380 380 380 380 380 380 380 380 380 351 351 351 250 250 250 250 250 250 250 250 250 250 250 In Process: Pump Nozzle Alignment for installation case, Pumps ABC at ambient temperature , piping not anchored to the pumps.



CEER฀ CEER฀ CEER฀ CEER฀ CEER฀ CEER฀ CEER฀ CEER฀ CEER฀



4 4 4 4 4 4 4 4 4



CEER CEER CEER CEER CEER CEER CEER CEER CEER



CEER฀



4



CEER



CEER฀



4



CEER



In Process: Pump Nozzle Alignment for maintenaince case, Pump A, B or C as spare.



CEER฀



4



CEER



In Process: Tracing Failure Scenario analysis



OUT 351 380 5 250 351 351 250 x 250 250 250 250 351 351 351 380 250



3) STRESS CRITERIA WITH PRELIMINARY CRITICAL VERIFICATION AND TYPICAL DETAILS



4) 3D LAYOUT



6) UPDATING PROCESS LINE CALCULATION & PLOT PLAN



5) STRESS CALCULATION



BASIC-FEED CONTRACTOR



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DETAIL ENGINEERING CONTRACTOR



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#2: 3D Model Review 30% AND 60%



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DETAIL ENGINEERING CONTRACTOR



BASIC-FEED CONTRACTOR



BASIC-FEED CONTRACTOR



DETAIL ENGINEERING CONTRACTOR



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#3: Material Selection (Piping)



Fluid list



Piping Classes



Process Fluid List



Vendor Follow-up Material Requirements



BASIC-FEED CONTRACTOR



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Material requisition & Purchase Order



DETAIL ENGINEERING CONTRACTOR



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#4: Vendor design



Process DataSheet



Material Requisition



Mechanical and Material Check Vendor Follow-up BASIC-FEED CONTRACTOR



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DETAIL ENGINEERING CONTRACTOR



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#5: Design Philosophy – Operating manual



Updated Control Philosophy



Updating Process Design Design Operating Scenarios Scenarios Process Philosophy



BASIC-FEED CONTRACTOR



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Operating Manual



DETAIL ENGINEERING CONTRACTOR



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Fast Track – Key points



 The Fast Track with parallelization of phases which traditionally are developed sequentially is a possible strategy to meet Project Objectives when the schedule is challenging;  To mitigate the risk associated to fast track (more interfaces, reworks, designing by conservative assumptions rather that consolidated data etc.) project team needs to be integrated with an interface management plan and dedicated engineering methods such as re-cycling and final alignment need to be set-up in the engineering execution plan.



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Conclusions - Key Factors for Basic-FEED Projects



    



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Tailor fit Design by Project Objectives Advanced monitor of costs with correct Basic-FEED data System-wise approach since the beginning of the project For revamping, integration of project schedule with production plan Interface management, re-cycling and final alignment for fast-track project



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