Anda di halaman 1dari 42

Engineering Procedure

SAEP-1350 4 January 2016


Design Basis Scoping Paper (DBSP)
Preparation and Revision Procedure
Document Responsibility: Facilities Planning Standards Committee

Note: This version of SAEP-1350 is applicable for all projects using the new Capital Management
System (CMS). All other projects will use the previous version of the procedure dated
15 November 2011.

Contents
1 Introduction..................................................... 2
2 Applicability.................................................... 6
3 Applicable Documents.................................... 7
4 Key Terms...................................................... 9
5 FEL 2 DBSP Development
and Implementation.............................. 12
6 Aligning of SAEP-1350 with CMS................ 12
7 FEL 2 DBSP Deliverable Contents............... 14
8 FEL 2 DBSP Review Procedures................. 31
9 FEL 2 DBSP Deliverable Approval............... 33
10 Distribution of Approved
FEL 2 DBSP Document........................ 34
11 FEL 2 DBSP Revisions................................ 35

Appendix I - FEL 2 DBSP Deliverable


Requirements for Software
Application Projects......................... 36

Previous Issue: 15 November 2011 Next Planned Update: 4 January 2019


Page 1 of 42
Contact: Morcos, Anthony George (morcosag) on +966-13-8800843

Copyright©Saudi Aramco 2015. All rights reserved.


Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

1 Introduction

1.1 Background

Since 1982, Saudi Aramco Corporate Management has endorsed the concept
that project proposals for individually engineered Budget Items (BIs) will be
supported by Design Basis Scoping Papers (DBSPs). Facilities Planning
Department (FPD) was sanctioned to lead, prepare and develop the DBSPs and
all related deliverables. Consistent with this direction, the procedures for
preparing, approving and revising the DBSPs contained in this document are
mandatory for all organizations involved in developing capital projects,
including FPD, the proponent and the Construction Agency (CA).

The contents of the DBSP have changed over the years to allow for improved
level of details, more stringent requirements and tighter scoping of the required
facilities. In an effort to control the scope changes (scope creeps) during the
project proposal, which ultimately lead to increasing capital investments (cost),
the DBSP development cycle has been extended under the new Capital
Management System (CMS) to include a number of critical design impacting
studies and deliverables. Under CMS, the DBSP becomes just one deliverable
of the many required to pass the DBSP phase of the project lifecycle.
All deliverables, including the DBSP, collectively achieve a higher engineering
design level that allows for a ±30% accurate cost estimate.

1.2 Capital Management System

The Capital Management System (CMS) is the framework adopted by Saudi


Aramco for managing and controlling activities and decisions related to Capital
Projects. The CMS covers the entire project development process from business
planning, through project definition and execution to handover to operations.

The CMS introduces five Capital Management System Efficiency Enablers


(CMSEEs), namely:
 Portfolio Execution Planning (PXP)
 Front End Loading (FEL)
 Project Sponsor (PS) and Integrated Project Team (IPT)
 Value Assurance (VA)
 Target Setting (TS)

Page 2 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

The CMS and each of the CMSEEs are described in detail in the FEL Manual
located on the Capital Program Efficiency Department’s (CPED) ShareK site at:

https://Sharek.aramco.com.sa/Orgs/30026862.

This document does not attempt to explain the CMS and the five CMSEEs listed
above. It provides a brief introduction to the concepts as they apply to
successfully plan capital projects.

Under PXP, Facilities Planning Department (FPD), working closely with


Corporate Planning and the various proponent organizations, leads the portfolio
characterization of all projects based on project size and complexity as shown in
Figure 1.1 below, “CMS Project Characterization”.

Figure 1.1 - CMS Project Characterization (M denotes $1,000,000)

The FEL process organizes the project lifecycle into different stages, phases,
decision gates and checkpopints, each with specific objectives, defined
activities, deliverables and decisions. There are four stages in the FEL process
and six phases. The four stages are FEL 0, FEL 1, FEL 2 and FEL 3. The six
phases are: Initiation, Business Case, Study, Design Basis Scoping Paper
(DBSP), Project Proposal and Finalize FEL. Based on the project
characterization types, the number of FEL gates may be streamlined to
effectively plan a given project. The six phases are mapped into the four stages
as shown in Figure 1.2, “CMS FEL Process for all Capital Projects”.

Saudi Aramco: Company General Use


Page 3 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

Figure 1.2 - CMS FEL Process for all Capital Projects

As stated above, each of the project phases accomplishes specific work towards
achieving the project objectives and decisions, and produces a set of
deliverables. The deliverables are listed and detailed in the CPED ShareK site
mentioned above. For the purposes of this document, those will not be listed
herein again.

The end of each FEL phase is sanctioned by a Checkpoint or Gate at which the
decision maker, i.e., Management Committee or Business Line Committee,
decides if a project is ready to continue to the next phase of execution.
The achievement of the objectives is checked at the Checkpoint or Gate in a
documented and systemized way. When the objectives of each project phase are
achieved, the Checkpoint or Gate is passed and the project moves to the next
phase. At each of the Gates, the project’s Business Case is defined and
formulated or reconfirmed, risks are mitigated, project planning and execution
strategies are assessed, and management approvals and direction are obtained.

CMS also introduces the Project Sponsor (PS) and the Integrated Project Team
(IPT). The PS is usually an Executive for A- & B-type projects and a member
of Management for C- & C1-type projects. The PS is appointed by the
proponent organization, is accountable for meeting the project objectives and
provides a single point of accountability throughout the lifecycle of a project.
The PS steers the IPT toward maximizing investment value. Being part of the
proponent organization, the PS provides a single point of accountability
throughout the lifecycle of a project and drives trade-offs between cost, schedule
and operability.

Page 4 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

The IPT is a temporary project team, formed from the various functional
departments of the Company, assembled under a unified leadership (the IPT
Leader) and shares the same objectives as the PS. The IPT, up to the end of the
FEL 2 DBSP phase, is led by an IPT Leader appointed by FPD who remains
functionally responsible for the delivery of the DBSP deliverables on all capital
projects. At the end of Gate 2, the leadership will transition to the IPT Leader
appointed by the Construction Agency who will lead the IPT through the FEL 3
Project Proposal phase and into the Execution and Hand-over phases of the
project.
Note: FPD leads the project during the FEL 1 and FEL 2 phases. The Execution
Agency leads the project during the FEL 3 and throughout the Execution and
Handover phases.

1.3 Purpose of FEL 2 DBSP

The purpose of the FEL 2 DBSP phase is to define the selected alternative
to freeze the project scope and generate a budgetary cost estimate (±30%).
To achieve this, the IPT continues active participation in the development of key
studies and visits the project site (as required) to refine the engineering level of
the project scope during scope development.

The FEL 2 DBSP deliverable is prepared by the IPT as one of the deliverables
required for the FEL 2 DBSP phase of the CMS. The FEL 2 DBSP deliverable
clearly and definitively describes “what” facility capabilities are required to
most economically achieve the proposed project’s stated business objective.
It defines the facilities to be built and reflects the background, sizing parameters,
design conditions and other special operational requirements. The FEL 2 DBSP,
and the other required FEL 2 DBSP deliverables, together with the Saudi
Aramco Engineering Standards and the existing as-built drawings (for brown
field projects), define the main elements of the project scope of work.

A clear distinction between the FEL 2 DBSP deliverable and the Project
Scoping Paper (PSP) document should be highlighted at this point. The PSP
provides the preliminary engineering scope of work to allow potential General
Engineering Services (GES+) contractors to develop the FEL 2 DBSP phase
deliverables, including the FEL 2 DBSP document, and to allow PMOD to
prepare a study grade cost estimate for the project. The PSP is not intended to
define the final facilities to be built, or to “freeze” the scope of the project, but
simply to highlight the general intended scope of the project.

1.4 Purpose of Guidelines

The FEL 2 DBSP deliverable is a strategic FPD deliverable within the FEL 2
DBSP phase of the CMS process that details the complete scope of a given

Saudi Aramco: Company General Use


Page 5 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

capital project. It is prepared by the IPT in order to economically achieve the


stated business objective(s) in an anticipated operating environment.

The primary objectives of these guidelines are to:


 Describe the purpose of the FEL 2 DBSP deliverable, relate it to the CMS
process and provide an outline for the development of the FEL 2 DBSP
deliverable.
 Ensure that the project design basis requirements detailed in the FEL 2
DBSP deliverable are well founded and, together with the other FEL 2
DBSP deliverables, would achieve the project's stated business objective(s)
in an economical (i.e., cost effective) manner.
 Improve the quality and consistency of the FEL 2 DBSP deliverable.

2 Applicability

The SAEP-1350 guidelines require that a project specific FEL 2 DBSP deliverable be
prepared for all fixed scope engineered BIs that are included in the 3-year Business
Plan, except for:
 BI-19s (Capital items valued at $4.0 MM or below).
 Third-party projects (Projects that are undertaken by New Business Development
per GI-0030.001, Transaction Development Guidelines).
Note: For third-party projects, at the end of the FEL 2 Study phase, the Decision Maker
decides whether a project shall be implemented as a non-third-party or a third-party
project. If the project is committed as a third-party project, the IPT seizes work and
New Business Development undertakes the remaining actions for its
implementation, as per GI-0030.001.

 Exploration projects (BI-33).


 Unconventional gas development projects (BI-34). Please note that this is only
applicable during the pilot phase.
 Development drilling projects (BI-60).
 Projects that are Monetary Appropriations only.
 Projects for which the proponent controls all scope development and planning,
such as all Master Appropriation BIs.
 BIs for repetitive standard design facilities, if a project-specific FEL 2 DBSP is
deemed unwarranted by the IPT. Examples of repetitive projects include
warehouses, roads, security fences, and home ownership developments.

Page 6 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

3 Applicable Documents

The latest edition of the applicable reference documents shall be applied:

 Saudi Aramco Engineering Procedures


SAEP-12 Project Execution Plan
SAEP-13 Project Environmental Impact Assessments
SAEP-14 Project Proposal
SAEP-25 Estimate Preparation Guidelines
SAEP-40 Value Assurance Process
SAEP-148 Mandatory Engineering Standards and Codes for
Non-Industrial, Public and Government Facilities
SAEP-303 Engineering Reviews of Project Proposal and
Detailed Design Documentation
SAEP-329 Project Closeout Reports
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-503 Assets’ Sparing Requirements and Guidelines

 Saudi Aramco Engineering Standards


SAES-A-030 Reliability, Availability and Maintainability (RAM)
Study Execution
SAES-A-202 Saudi Aramco Engineering Drawing Preparation

 Saudi Aramco General Instructions


GI-0002.716 Land Use Permits Procedures
GI-0030.001 Transaction Development Guidelines
GI-0202.451 Engineering Work Order Authorization for
Preliminary Engineering Preparation

 Saudi Aramco Form and Datasheet


SA-7214 Performance Acceptance Certificate

Saudi Aramco: Company General Use


Page 7 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

 Saudi Aramco CMSEEs documentation (for the latest, please refer to the Capital
Program Efficiency Department’s (CPED) ShareK site at:

https://Sharek.aramco.com.sa/Orgs/30026862
Portfolio Execution Planning Manual (yet to be published)
Project Sponsor (PS) Manual
Integrated Project Team (IPT) Manual
Front End Loading (FEL) Manual
Target Setting (TS) Manual
RAPID Matrix FEL 1-3
RAPID Matrix Execution
Book of Deliverables

These guidelines provide the procedures to properly develop a FEL 2 DBSP deliverable
required as part of the FEL 2 DBSP phase of the CMS. Figure 3.1, “Mapping of Key
Saudi Aramco Standards to CMS FEL Process”, shows pictorially some of the
applicable Saudi Aramco Engineering Procedures, Saudi Aramco Best Practices and
General Instructions to the different FEL phases. The figure also highlights in green
color the phase in which SAEP-1350 applies. Please note that although SAEP-1350 is
depicted in the figure to be the only guiding procedure of the FEL 2 DBSP phase of
CMS, the procedure applies to only the FEL 2 DBSP deliverable. One should refer to
CPED’s “Book of Deliverables“ for a listing of all the applicable deliverables required
for the FEL 2 DBSP phase.

Page 8 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

Figure 3.1 - Mapping of Saudi Aramco Standards to CMS FEL Process

4 Key Terms

Definitions of the key terms used throughout this document are presented below.

Budget Item (BI): A discrete project that has been defined and evaluated to the extent
required for Management to include it in the Business Plan and commit additional
resources to further develop the information required by Management. Based on the
information developed, if deemed appropriate, the Board of Directors will make
reasonable business decisions regarding the continued development of the project.

Budgetary Project Scope Definition: A preliminary description of the facilities that


might actually be built, defined in sufficient detail to develop a Capital Budget Cost
Estimate, when combined with the information provided in the FEL 2 DBSP deliverables.

Business Case: The information required to make reasonable business decisions


regarding a proposed capital project, including its scope, cost, benefits and risks
throughout its development.
Saudi Aramco: Company General Use
Page 9 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

Business Line: Saudi Aramco's basic organization structure. A business line forms
part of the organizational matrix with a responsibility over a specific part of the
company business.

Business Objective: The purpose of the proposed project.

Capital Program Efficiency Department (CPED): Is the organization that manages


and governs the implementation of the Capital Management System (CMS) “Efficiency
Enablers” to maximize capital efficiency and improve the predictability and successful
implementation of capital projects by applying the five enablers.

Capital Program Management (CPM): The Construction Agency for C1-type projects.
This is the team that is assigned to the project during project planning and execution.

Construction Agency: The organization assigned to execute the project. This could be
the Saudi Aramco Project Management administrative area that is the default
Construction Agency for A-, B- and C-type projects, or the proponent’s Capital
Program Management (CPM) team for C1-type projects.

Cost Estimate: Is estimate of the capital investment value, prepared by the Project
Management Office Department (PMOD) as per SAEP-25, and is deemed to have
various accuracies depending on the phase of the project. Those include: the FEL 2
Study Cost Estimate generated with an accuracy of ±40%, the FEL 2 DBSP Cost
Estimate generated with an accuracy of ±30%, and the FEL 3 Expenditure Request (ER)
Cost Estimate generated with a definitive accuracy of ±10%.

Decision Maker: Is represented by the Management Committee for A- and B-type


projects, by the Business Line Committee for Upstream and Downstream C- and
C1-type projects, and by the Executive Advisory Committee for all other C- and
C1-type projects.

Design Basis Scoping Paper (DBSP): A document prepared by the IPT during the
FEL 2 DBSP phase of the CMS (led by FPD) that details the complete scope, and
agreed to bu all stakeholders, for a given capital project in order to economically
achieve the stated business objective(s) in an anticipated operating environment.

Expenditure Request Approval (ERA): The date the expenditure request is approved
to allow the project to proceed to the execution phase. The ERA is the date project
funding becomes available upon approval by the Executive Committee or the Board.

Expenditure Request Completion (ERC): The date the expenditure request is closed
and project is handed over to the operating organization (proponent). The ERC is the
date on which the Performance Acceptance Certificate (SA-7214) is signed off, for the
project. It is close to, but need not match, the “beneficial use” or “on-stream” dates for
the facilities, which are the dates on which the proponent begins to use the facilities.

Page 10 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

FEL 2 Study Cost Estimate: An estimate of the initial capital investment and is
deemed to have an accuracy of ±40%.

FEL 2 DBSP Cost Estimate: An estimate of the capital investment after major elements
of the project scope has been frozen and is deemed to have an accuracy of ±30%.

FEL 3 Expenditure Request (ER) Cost Estimate: A definitive ±10% estimate


prepared in support of the funding request document. PMOD is responsible to ensure
that the FEL 3 ER Cost Estimate satisfies all Company standards for format and quality.
If the FEL 3 ER Cost Estimate is prepared by the Construction Agency, it must be
reviewed and endorsed by PMOD.

Front End Loading (FEL): The process that organizes the project life cycle into
phases, each with defined activities, deliverables, specific objectives and decisions.
FEL is applicable for all projects that follow the CMSEE. For more details, refer to the
Front End Loading Manual.

Integrated Project Team (IPT): 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.

PMOD: The Project Management Office Department.

Project Leader: A representative from FPD who leads the IPT during FEL1 and FEL
2 stages, or a representative from the Construction Agency who leads the IPT during
FEL 3 stage and thereafter up to the project completion.

Project Proposal: A document prepared by the IPT during FEL 3 (led by the
Construction Agency) which defines the actual facilities to be built, in sufficient detail
to obtain an ER Cost Estimate from PMOD. Please refer to SAEP-14 for details of the
Project Proposal guidelines.

Project Sponsor (PS): 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.

Project A-, B-, C- & C1-Types: Assigned to the projects by FPD based on size
(CAPEX) and complexity.

Proponent: The Saudi Aramco organization that owns, operates, and maintains the
completed facility. The proponent is responsible for signing the Mechanical
Completion Certificate as owner of the facility.

RAPID (Recommend, Agree, Perform, Input, Decide): A methodology that clarifies


roles and responsibilities in the work process related to the development of a deliverable.

Saudi Aramco: Company General Use


Page 11 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

Saudi Aramco Project Management Team (SAPMT): The Construction Agency


team that is assigned to the project during project planning and execution.

Value Improving Practices (VIPs): Are out-of-the-ordinary practices used to


improve project performance, and they are primarily used during the FEL of a project.
Within Saudi Aramco, the term VIP encompasses Value Engineering, a group of other
value management techniques called Best Practices, Project Risk Management and
Interface Management. It should be noted that the CMS full set of deliverables
(see FEL Manual) includes VIPs that encompass other practices. For additional details,
please see SAEP-367.

5 FEL 2 DBSP Development and Implementation

All capital investment estimates shall be prepared by PMOD in accordance with


SAEP-25. These estimates on the initial capital investments shall be used with the
quantifiable net benefits of a given capital project to develop the project economics.
Typically, the quantifiable net benefits shall utilize values reflecting the Kingdom’s
perspective.

The most recent version of FPD’s economic evaluation model shall be used to calculate
financial benefits.

All analysis shall be formally archived prior to approval of the gate (a properly labeled
file in FPD’s electronic library). The archived estimate must be generated by PMOD.

6 Aligning of SAEP-1350 with CMS

As stated above, each of the FEL phases is sanctioned by a Checkpoint or Gate at which
the project moves to the next phase. In order for a project to proceed to the FEL 2
DBSP phase, the Decision Maker decides on the project’s readiness to pass the
preceding Gate. Once the preceding Gate is passed, the IPT begins the work on the
FEL 2 DBSP phase set of deliverables.

Depending on the project type (A-, B-, C- or C1-), a different number of deliverables
are required to pass the FEL 2 Gate (please refer to the CPED ShareK site, Book of
Deliverables for a complete listing of the required deliverables for each type of CMS
project). The FEL 2 DBSP deliverable is just one of several required deliverables, but it
is the core deliverable of the FEL 2 DBSP phase. It is the single most important
document that details the final project scope.

These guidelines are not intended to replace the FEL Manual or the Book of
Deliverables prepared by CPED, however, it is important to explain that although the
FEL 2 DBSP deliverable is the core deliverable to pass the FEL 2 DBSP Gate, it cannot
be accurately completed in isolation of the other required deliverables for the Gate.

Page 12 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

Many of those deliverables, which used to be developed by FPD as part of the FEL 2
DBSP deliverable, are now independent deliverables produced by the IPT to derive the
complete FEL 2 DBSP scope and pass the FEL 2 DBSP Gate. For example, the
(approved) Land Use Permit and Environmental Impact Assessment Study, which used
to be sections or sub-sections within the overall FEL 2 DBSP deliverable, are now all
separate and required deliverables. Furthermore, many deliverables that used to be
produced by the Execution Agency during the project proposal phase are now an
integral part of the FEL 2 DBSP phase. Those include Procurement Strategy &
Materials Procurement Plan, Contracting Strategy and Operational Readiness Plan
(ORP), to name a few.

Figure 6.1, “The FEL 2 DBSP Phase Deliverables”, is important to understand the
relationship of all FEL 2 DBSP deliverables and how they contribute to completing the
FEL 2 DBSP phase. Prior to starting the development of the FEL 2 DBSP deliverable,
a number of initial deliverables must be updated or completed. In parallel, a number of
supporting deliverables are also prepared.

Figure 6.1 – The FEL 2 DBSP Phase Deliverables


Saudi Aramco: Company General Use
Page 13 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

It is critical to note at this point that the IPT Leader must refer to the FEL Manual,
RAPID Matrix FEL 1-3, and the Book of Deliverables to understand the relationships
and full requirements of the FEL 2 DBSP phase prior to starting the work on the FEL 2
DBSP deliverable. Again, those documents are found on the CPED ShareK site.

7 FEL 2 DBSP Deliverable Contents

The paragraphs below detail the required contents for each of the FEL 2 DBSP
deliverable sections.

7.1 Cover Page

The cover page shall identify the BI number, project title, deliverable name,
deliverable number and FEL phase(s). The GES+ contract number may also be
included on the cover page, but this is not required, only optional.

7.2 FEL 2 DBSP Deliverable Contributors

The contributors to the content of the FEL 2 DBSP deliverable and scope of the
project shall be listed here. This is typically a full listing of the IPT members
who are on the project team, along with key members from the GES+ contractor
staff. By virtue of the contributors being part of the IPT, their endorsement to
the content of the DBSP is implied. Signatures of all IPT members is still
required and must be obtained prior to release of the FEL 2 DBSP deliverable.

7.3 Table of Contents

7.4 FEL 2 DBSP Deliverable Sections

7.4.1 Section 1 - Purpose of Facilities

This section provides a concise statement of the purpose of the proposed


facilities. This includes a clear statement of the Business Objective(s)
and what is to be achieved in terms of Saudi Aramco's Strategic
Direction and Business Plan objectives.

7.4.2 Section 2 – Present Situation

This section explains the business reason for developing the proposed
project. It highlights the broad business reason(s) for the proposed
project and describes the anticipated operating environment in which the
stated business objective would have to be achieved.

7.4.3 Section 3 – Location Analysis

Page 14 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

This section provides an overview of the physical location of the


proposed facilities, to the extent required to effectively orient the IPT
and the project proposal engineering contractor.

For grass-roots projects, information specifically applicable to the


proposed facilities is generally provided, as follows:
 General region.
 Nearest village, town, or city.
 Nearby/adjacent physical facilities, such as roads, pipelines, process
or manufacturing plants, schools, hospitals, and environmentally
sensitive areas.
 Availability of temporary construction facilities (laydown and
fabrication yards, camps, offices and utilities).
 Characteristics of construction utilities (e.g., water – available
quantity and quality by water type, electricity – available quantity by
voltage).
 Topography of the proposed site, soil conditions and ground water
table levels.
 Site or area security requirements.
 Site zoning (industrial, residential, commercial or agricultural).
 Site weather conditions.
 GPS coordinates.
 Bottom sea survey for offshore projects (pipelines, platforms, etc.).
 Anchoring options (marine).
Note: For all grass-roots projects, the Site Selection Assessment (SSA)
deliverable of the FEL 2 Study phase is critical to completing this
section of the FEL 2 DBSP. Reference to the SSA is beneficial in
this section.

For projects located within an existing facility, the following information


is generally provided:
 Location of the proposed facilities in relationship to other facilities,
particularly the physical interfaces between the proposed facilities,
the existing facilities, and the planned facilities.

Saudi Aramco: Company General Use


Page 15 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

 Availability of temporary construction facilities (e.g., laydown and


fabrication yards, camps, offices, utilities) within or in the vicinity of
the existing facility.
 Characteristics of construction utilities (e.g., water – available
quantity and quality by water type, electricity – available quantity by
voltage).
 Topography of the proposed site, soil conditions and ground water
table levels.
 Site or area security requirements.
 Site weather conditions.
 GPS coordinates.
 Process flow schemes.
 Layout considerations.
 Impact on existing infrastructure.
 Control and instrument philosophy.
 Availability/reliability analysis – sparing philosophy.

Related Supporting Deliverables:

Additional particulars (e.g., a map to show the location of the proposed


project; a schematic and/or plot plan to show the location of the proposed
facilities relative to the existing facilities; geotechnical soil surveys; site
weather conditions) are detailed in two separate FEL 2 deliverables:
 The Plot Plans (PP) deliverable provides a drawing describing the
location of the proposed/existing facilities, as well as the interfaces
among them.
 The Land Use Permit (LUP) deliverable ensures that the site selected
for the project will be available for use, and all permits (internal and
external) have been identified and approved. GI-0002.716, Land Use
Permits Procedures, provides additional details on preparing LUPs .

7.4.4 Section 4 – Design Objectives

This section provides a clear and definitive description of the broad


design objectives (functions) of each major project scope element.
It describes how the design objectives of the proposed facilities fit into
the overall Master Plan for the respective system/area.

Page 16 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

A comprehensive review of all Saudi Aramco and International


standards and procedures to determine those that apply to the
development of the project scope shall also be conducted and agreed
upon. The specific international standards and procedures that supercede
the Saudi Aramco standards and procedures that shall be used for
development of the FEL 2 DBSP project scope shall be explicitly listed
in this section. For all non-industrial public and government facilities,
the IPT shall follow SAEP-148, Mandatory Engineering Standards and
Codes for Non-Industrial, Public and Government Facilities.

Additionally, the section describes the operating and control


philosophies for the proposed facilities, particularly those related to
safety, if applicable, in sufficient details to effectively guide the project
scope development.

The main project assumptions, constraints and overall risk assessment


shall be included in this section.
Note: The Design Objectives are different from the Purpose of Facilities, in
that they describe the functions performed by the proposed facilities,
while the Purpose of the Facilities section describes the Business
Objective of the proposed facilities (i.e., what is to be achieved in terms
of Saudi Aramco's Strategic Direction and Business Plan objectives).

7.4.5 Section 5– General Project Design Basis

This section describes the general design bases, which apply to the entire
project, as opposed to any specific project scope element.

Examples of these common design bases are as follows:


 For process facilities, the characterization of hydrocarbon streams
and utilities entering and exiting the battery limits (i.e., the physical
interfaces) of the proposed project, to the extent required by the
project proposal engineering contractor to define the project scope
required to obtain an ER Cost Estimate.
 For infrastructure facilities:
- The characterization of the people to be served by the proposed
project (e.g., numbers, functions).
- The characterization of anticipated traffic patterns.
- Characterization of equipment (e.g., vehicles - numbers, sizes and
weights) to be accommodated by the proposed project.

Saudi Aramco: Company General Use


Page 17 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

- General land-use guidelines (e.g., setbacks, landscaping, and


parking guidelines).
- Environment safety considerations.
 For all non-industrial public and government facilities, the IPT shall
follow SAEP-148, Mandatory Engineering Standards and Codes for
Non-Industrial, Public and Government Facilities.

Design bases specific to individual elements of the proposed project's


scope are provided in the following section, “Description of Proposed
Facilities,” along with the description of related facilities.

The units of measure for the proposed project shall also be stipulated in
this section.

7.4.6 Section 6 – Interfaces

This section provides a description of each of the following project


interfaces in separate subsections:

7.4.6.1 Related Budget Items

Describes other BIs which may impact the engineering design


and/or construction of the proposed facilities. Each description
summarizes how and the extent to which the related BI will
impact the engineering design and/or construction.
Generally, BIs that will be completed prior to the proposed
project's FEL 3 Project Proposal development should not be
included or described, as the related facilities will already exist
by the time the proposed project is executed.

7.4.6.2 Project Physical Interfaces

Describes the physical interfaces between the proposed


facilities and the existing facilities (e.g., process, utility,
electrical, process automation, and communications tie-ins), as
definitively as reasonably possible. Generally, the physical
interfaces should also be shown schematically and
geographically in an Appendix (e.g., Proposed Facilities).

For projects which would replace and/or upgrade existing


facilities, the existing facilities is described, to the extent
required to effectively guide the IPT and the project proposal
engineering contractor during project proposal development,

Page 18 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

in an Appendix (e.g., Existing Facilities), referenced in this


section. A complete description of physical interfaces is
particularly important, as a means of defining the “battery
limits” of the proposed project. This section also considers
interfaces with external organizations (commercial and
government) and their impacts on cost and schedule.

7.4.6.3 Project Operating Interfaces

Describes operational requirements, restrictions and constraints


which may impact the engineering design, construction and/or
start-up of the proposed facilities (e.g., shutdown requirements,
special maintenance considerations, temporary facilities
requirements, special security requirements, etc.). This section
also considers interfaces with external organizations
(commercial and government) and their impacts on cost and
schedule.

7.4.6.4 Demolition Activities

Describes significant demolition activities that are included in


the proposed project scope (e.g., demolition of existing
facilities prior to and after construction of the proposed
facilities).

Related Supporting Deliverables:

The interfaces among the existing and new facilities, and among
contractors, shall be further detailed in a separate inter-related FEL 2
deliverable, the Project Interface Management Plan (PIP) deliverable.
The PIP ensures that interfaces within the project have been properly
identified, the scope of work appropriately divided and those interfaces
are properly communicated to the respective contractors.

7.4.7 Section 7 – Description of Proposed Facilities

This section describes in details the project scope as it relates for each
element of the proposed facilities. It also consolidates project specific
design information, such as equipment sizing, sparing requirements,
major design parameters, process descriptions and specific details to
accurately describe the project scope. This includes, but not limited to:

7.4.7.1 The type of facility to be provided.

7.4.7.2 The corresponding technical design bases (i.e., the required


capabilities and/or performance acceptance criteria).
Saudi Aramco: Company General Use
Page 19 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

7.4.7.3 Site and equipment footprints, including building sizes and


descriptions.

7.4.7.4 Specific facility attributes determined during FEL 2 DBSP


development.

7.4.7.5 Major design parameters and process description, inclduing


block diagrams displaying major equipment and process flow
diagrams.

7.4.7.6 Major equipment list (equipment types, quantities, size,


specifications, sparing philosophy, etc.).

7.4.7.7 Dependency on other organizations (commercial, private and


government).

7.4.7.8 If required, more detailed supporting information which should


be provided in an Appendix (e.g., Proposed Facilities).

7.4.7.9 Written Agreement with the Service Provider shall be provided


as part of the DBSP deliverables.
Note: This section of the FEL 2 DBSP deliverable aims to drive the cost estimate
accuracy towards ±30%. Details that would facilitate “freezing” the project
scope and achieving the required estimate accuracy shall be included in
this section, including, but not limited to, technology, equipment list,
sparing, catalysts and chemicals, energy efficiency, utility consumption,
operational philosophy, control systems, field instrumentation (including
analyzers, valves, and transmitters), communications, safety, security
requirements, process hazards, site preparation, buildings, environmental,
flare types and rates, plot plans, etc.

Mandatory Paragraphs:

For all FEL 2 DBSPs, regardless of the scope, the opening paragraph of
this section shall be the following mandatory paragraph:
“The project scope definition presented in this section is fixed and shall
be the basis to define the scope requirements during the FEL 3 Project
Proposal phase to achieve the project’s stated business objectives in a
cost effective (economical) manner. This restriction, notwithstanding,
the project proposal engineering contractor shall further define and
refine the actual facilities to be built (i.e., “how” the required
capabilities are to be achieved), consistent with the project's stated
purpose and the anticipated operating environment.”

Page 20 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

For all projects that include communications scope, the following


sections shall be included:
- The following mandatory statement related to information protection
shall be inserted:
“Information protection shall be guaranteed by the existing
firewalls or, wherever necessary, by updating/adding new
firewalls. The final design of the permanent and temporary
communications shall consider the most current Saudi Aramco
information protection standards.”
- For grass-roots plant facilities, a paragraph shall include GSM (Global
System for Mobile) provisioning as follows:
o Provision of 20 x 20 meters land for the construction of GSM site.
o Provision of the required power feed to service provider shelter.
o Fiber connectivity to be provided to the nearest Aramco site if
there is no point of presence for the service provider.
o The tower should be constructed by one of the service providers
who will maintain the ownership of the site and should be shared
with other service providers.
o The service providers should be responsible for fencing the site to
secure their assets.
o The service providers should provide the required enhancers/boosters
to ensure adequate signal strength inside buildings.
- The scope to update Network Engineer database application shall be
included in the Proposed Facilities Appendix of the FEL 2 DBSP
deliverable, Appendix 13.2 (refer to section 7.5.13, Section 13 –
Appendices, below).

7.4.8 Section 8 – Scope Evaluations to Date

This section provides a summary of the evaluations performed prior to


and during FEL 2 DBSP development to define the project scope, as it
appears in the FEL 2 DBSP deliverable, including the evaluation bases
(e.g., economic evaluation bases). These evaluations are described in
sufficient detail to effectively guide the IPT in its efforts to plan and
execute the project proposal development, and the project proposal
engineering contractor in their effort to further develop a more detailed
project scope.

Saudi Aramco: Company General Use


Page 21 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

This section identifies the project scope which is not subject to additional
front-end evaluation during project proposal development, and thereby
reduce scope changes and project proposal development cost.

Study reports, minutes of meetings, letters, and other supporting


documentation shall be clearly referenced and, if practical, included in an
Appendix (e.g., Proposed Facilities). It is particularly important to
document instances in which the FEL 2 DBSP scope differs from the
scope recommended by studies or other scope evaluations, due to
proponent preferences or other considerations.

A number of specific assessments and/or studies are required to be


conducted as part of the requirement to pass the FEL 2 DBSP phase.
A summary of the findings of each assessment, especially as those affect
the project scope, shall be included in this section of the FEL 2 DBSP
deliverable. Any project scope impacts as a result of the findings of each
assessment shall also be added to Section 7, Description of Proposed
Facilities, as scope items to clearly and definitively describe the
proposed facilities.
Note: Although they are listed herein, the assessments and/or studies may
not be applicable or required for all projects. Those that are required
for a particular project must be agreed to with the PS, IPT, PMOD,
organizations that oversee the implementation of these assessments
(i.e., Loss Prevention Department, Environmental Protection
Department, etc. and Value Assurance representatives during the
planning of the FEL 2 DBSP phase. Please refer to SAEP-40, Value
Assurance Process for additional details.

The following are FPD mandated studies and assessments that are
required as part of the FEL 2 DBSP document:
- Health, Safety, and Environmental (HSE) Checklist
The HSE checklist is completed to properly identify the major HSE
related scope items and include those, if any, in the FEL 2 DBSP
scope prior to issuance.
- Modular Design Assessment (MDA)
The MDA is a study that shall assess modular design feasibility for
the project as well as opportunities to standardize major components.
It will quantify the number and size of required standardized
modules. A qualitative analysis detailing the advantages and
disadvantages of modular design against conventional design shall be
part of the assessment. The study shall recommend the optimal

Page 22 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

choice (modular or conventional design) based on qualitative


analysis and FPD’s modularization decision tree and selection
criteria. If modular design is recommended, an additional section on
Schedule impacts shall be included.

Related Supporting Deliverables:

A number of the essential studies and assessments are also required to


complete and pass the FEL 2 DBSP phase. Those are considered as
mandatory stand-alone deliverables to pass the Gate and do not need to
be included in the FEL 2 DBSP document. However, a summary of the
findings of each assessment or study, as they affect the project scope,
shall be included in this section of the DBSP document.

The following is a list of those essential FEL 2 DBSP phase studies and
assessments that are required:
 The Environmental Impact Assessment (EIA) deliverable outlines the
existing environmental conditions and describes the expected
environmental impacts that significantly affect environmental and
social aspects during construction and plant operations. Please refer
to SAEP-13 for additional details.
 The Energy Optimization Report (EOR) report examines the power
and heating requirements of a particular process and attempts to
maximize the total return based on selecting the most economical
methods of heat and power recovery.
 The Customizing Standards and Specifications (CSS) deliverable
provides an evaluation of the specific needs of the facility such that
the facility can be designed with the minimum required set of
industry and Company standards.
 The Reliability, Availability and Maintainability (RAM) study
deliverable ensures that competing technologies, designs and
licenses, sparing capacity including oversized design and capital
spares requirements are evaluated and optimized in order to secure
Capital and Operational Efficiency through the life Net Present
Value (NPV) of the projects. The RAM study shall be performed as
per SAES-A-030. Recommendations of the RAM study shall be
incorporated into the FEL 2 DBSP, FEL 3 Project Proposal and
detailed design of all projects for implementation.
 The Design for Maintainability Report (DMR) deliverable provides
an evaluation of design for maintainability practice and attempts to
improve the ease of maintenance in a facility.
Saudi Aramco: Company General Use
Page 23 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

 The Preliminary Process Hazard Analysis (PHA) deliverable details


the hazards identified as a result of process design changes,
evaluates them based on severity and provides recommendations to
mitigate them, if any, early in the design cycle.
 The Building Risk Assessment (BRA) study covers the potential
hazards that might affect the project’s facilities and cause
unacceptable risks. Several types of hazards shall be analyzed
including explosions, fire damage and toxic events to name a few.
 The Facility Security Assessment Report (FSAR) identifies the
security needs and requirements related to facilities, and proposes
the necessary security items to be implemented.
 The Facility Security Assessment for IT (FSA) is a document that
describes the assessment of the existing facility IT systems in order
to identify risks and vulnerabilities to ensure full security to data and
systems.
 The Operational Readiness Plan (ORP) is a document that describes
how the project will transition into an operating facility and what
operational type steps must be taken during the project planning
and execution stages to ensure flawless start-up and operations.
ORP ensures that facilities are ready for safe, reliable and cost
effective production at the time of handover of ownership from the
IPT to the Operations team.
 A Value Improvement Practices (VIP) Outcome Implementation
Report) must also be included in this section of the FEL 2 DBSP
document. The FEL 2 DBSP phase required VIPs are detailed in
SAEP-367. The required VIPs are performed prior and during the
development of the FEL 2 DBSP document to define project scope.
Note: The list of VIPs applicable to each of the A-, B-, C- and C1-type
projects may not be the same, and those required for the particular
project must be agreed to with the Project Sponsor, PMOD and the
Value Assurance representatives.

The critical VIPs that are required at the FEL 2 DBSP phase are:
o VIP – Lessons Learned Report (LLR) – the objective of this
report is to collect knowledge from previous projects and identify
those that can be used in the current project.

Page 24 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

o VIP – Project Risk Management (PRM) – This report provides to


the company a way to identify adverse events to which it is
exposed and to reduce their likelihood or impact.
o VIP – Value Engineering Study (VES) – this report provides a
function-driven multidisciplinary team approach for optimizing
project execution and eliminating unnecessary costs without
sacrificing total project performance, quality, or reliability.
Note: Per SAEP-367, VE should be conducted once at the FEL 2
DBSP phase for C1-type projects, and conducted twice, both at
the FEL 2 DBSP phase and the FEL 3 Project Proposal phase,
for A-, B, & C-type projects. For A- & B-type projects, an
additional VE is required on an as-needed basis during the
Detailed Design. A VE study is required when a BI value
exceeds $30 million.

o VIP – Constructability Review Report (CRR 4) – this report


provides an analysis of the design and integrate construction
expertise throughout to reduce the total lifecycle time and cost of
the construction phase.
o VIP – Planning for Startup (PFSU) – this report outlines the
sequence of events that should occur during a successful startup
in order to result in successful commercial operations of the
facility.

The following is a list of additional FEL 2 DBSP phase VIPs that


included as part of the full list of deliverables in the FEL Manual:
 VIP – 3D CAD (CAD) – the purpose of this report is to generate
computer models of the physical arrangements of facilities by using
three-dimensional computer aided design (3D CAD).
 VIP – Classes of Facility Quality Report (CFQR) – the purpose of
this is to validate and modify (as necessary) the facility
characteristics needed to meet the business objectives.
 VIP – Design for Capacity Report (DCR) – the purpose of this is to
provide an evaluation of the maximum capacity of each major piece
of equipment which is designed in the facility.
 VIP – Process Simplification Report (PSR 4) – this report searches
for opportunities to eliminate or combine chemical or physical
process steps while maintaining the necessary functionality and
reducing investment and operating costs.

Saudi Aramco: Company General Use


Page 25 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

 VIP – Reliability Simulation Modeling Report (RSMR 4) – this report


provides a simulation technique that examines operability targets for
a facility and to determine the most economical sizing, spacing, and
storage requirements to meet the operability goals.
 VIP – Waste Minimization Report (WMR 4) – this report provides an
analysis to identify methods to reduce or eliminate the generation of
environmental waste or non-useful streams from a chemical process,
during construction, and other activities related to the design and
execution of the project.

7.4.9 Section 9 – Additional Studies Required during Project Proposal

This section shall describe only those additional studies and/or


evaluations, which are to be completed during the FEL 3 Project
Proposal phase, that help refine the proposed project scope. More
conclusive project scope definition studies, such as hydrologic surveys,
pipeline route surveys, pipeline surge analyses, shall be included in this
section. The additional studies and/or evaluations shall not change the
project scope; however only enhance it. The description of each study
and/or assessment shall include the objective of the study, the scope of
the study, and all required evaluation parameters.
Note: The project scope at the end of FEL 2 DBSP phase shall be considered
“frozen” and cannot be changed. Any study and/or assessment
defined in this section cannot affect the project scope.

7.4.10 Section 10 – As-Built Drawing Assessment

This section shall provide a preliminary assessment of the extent to


which existing drawings must be updated to reflect as-built facilities and
the extent to which existing drawings are available in an appropriate
format (i.e., an electronic drawing format supported by Saudi Aramco at
the time of FEL 2 DBSP development). The time required to modify
existing drawings shall be reflected in the project completion schedule.
Note: For additional details on the as-built drawings process and guidelines,
please refer to SAES-A-202, “Saudi Aramco Engineering Drawing
Preparation”, and SAEP-334, “Retrieval, Certification and Submittal of
Saudi Aramco Engineering and Vendor Drawings”.

7.4.11 Section 11 – Surplus and Excess Material

This section shall provide the results of any preliminary assessments for
the use of surplus and excess materials completed during FEL 2 DBSP
development.

Page 26 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

Related Supporting Deliverables:

The potential strategies for the different procurement options are detailed
in the Procurement Strategy and Material Procurement Plan (EMS)
deliverable. The EMS identifies the main strategies for procurement of
equipment and materials, including long lead items, required for the
project, and identifying all alternatives to use existing Company
inventory of surplus and excess materials.

7.4.12 Section 12 – Project Schedule

This section shall provide the PMOD agreed project milestone (Level II)
schedule. The milestone dates include, but are not necessarily limited to,
the following:
 FEL 2 DBSP issue date.
 FEL 2 Gate approval.
 Project Proposal start.
 Project Proposal completion.
 FEL 3 Gate approval.
 ERA.
 ERC.

For reference, see Cost & Scheduling Manual available on the


PMOD/PEMD website. Contact Scheduling Unit in PMOD for more
detailed information on Project Milestone Schedule and assistance, if
required.

Related Supporting Deliverables:

A related FEL 2 deliverable, the Schedule (SCH) deliverable, covers the


project development and execution scheduling (activities, milestones,
duration, critical path, etc.). The FEL 2 DBSP phase requires that the
IPT develops a Schedule Level II in order to verify that the main
milestones are properly identified and scheduled, and that the critical
path is defined to achieve the project’s scope of work.

7.4.13 Section 13 – Appendices

This section shall provide additional information, as required to


effectively guide the IPT in its efforts to plan and execute project
proposal, and the project proposal engineering contractor in its
development of project scope.

Saudi Aramco: Company General Use


Page 27 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

Suggested Appendices and the information (i.e., attachments) which may


be included in each Appendix are:

Appendix 13.1 – Existing Facilities

Description of the existing facilities, including aerial and locations maps,


to the extent required to effectively guide the IPT and engineering
contractor during the project proposal development.

Appendix 13.2 – Proposed Facilities


a) Correspondence applicable to establishment of the design basis
and/or preliminary scope (e.g., Letters of Permission from
Government Ministries or Authorities).
b) Master plans design guidelines.
c) More definitive information on the location of the proposed project
(e.g., a map to show the location of the proposed grass-roots project;
a schematic and/or plot plan to show the location of the proposed
facilities relative to the existing facilities; geotechnical soil surveys;
site weather conditions).
d) More definitive information on the physical interfaces between the
existing and proposed facilities (e.g., schematics and/or plot plans
showing the physical interfaces).
e) More definitive design basis information, including but not limited to:
- Block flow diagram(s).
- Process flow diagram(s).
- Heat and material balances.
- Facility plot plan(s) – process, utilities, electrical, process control
and instrumentation, etc.
- General arrangement drawing(s).
- Power distribution plan(s), electrical equipment layout
drawing(s), one-line diagram(s) and SEC memo of understanding
(if applicable).
- Instrument block diagram(s).
- Process automation system architecture drawing(s).
- Instrument panel drawing(s).
- Instrument Loop Diagrams (ILD).

Page 28 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

- Detailed installation drawing(s) – specifically for electrical and


instrumentation equipment.
f) Licensors requirements, including but not limited to:
- Commercial evaluation.
- Technical evaluation.
- Rank and recommendations.
g) Major equipment list:
- Description of project’s specifications.
- Definition of new equipment to meet specifications.
- Justification for new equipment use.
- Existing equipment (including type, specification, design
parameters and capacity).
- New equipment (including type, sparing philosophy, upgrade
strategies/roadmaps, technical specifications, etc.).
h) Network Engineer Database Application (applicable for all projects
with communications scope):
- Information Technology (IT) physical infrastructure shall be
fully documented in the Geographic Information System (GIS)
based IT Network Engineer (NE) database application.
This includes:
 Reservation of IT physical infrastructure: IT physical
infrastructure that is planned to be used as part of the project
must be reserved in NE application. These reservations shall
be renewed by the project every six (6) months. IT physical
infrastructures that are required to be reserved in NE including:
i. Power.
ii. Space (floor, rack, and wall space) in any IT building or
IT controlled space (such as telecommunication rooms,
etc.).
iii. Connections to any existing IT equipment.
iv. Connections to any existing InSide Plant (ISP) cables
and/or floor outlets.
v. Connections to any existing IT communications
grounding system.

Saudi Aramco: Company General Use


Page 29 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

vi. Use of existing OutSide Plant (OSP) ducts or sub-ducts.


vii. Use of existing OSP cable pairs/strands.
viii. Placement of antennas on existing towers.
 FEL 3 Project Proposal package: IT physical infrastructure
(ISP and OSP) engineering design shall be entered into NE
upon the completion of the FEL 3 Project Proposal phase.
 Issued for Construction (IFC) package: IT physical
infrastructure (ISP and OSP) engineering design shall be
entered into NE application upon the completion of the IFC
engineering design package.
 As-Built Drawings: the actual “redline/as-built” updates of IT
physical infrastructure shall be updated in NE application
upon the completion of the project as part of the As-Built
package.
 It shall be noted that the IT NE Access Policy only allows
user accounts for regular Saudi Aramco employees or
contractor employees working under the direct supervision
of the IT/Engineering Tools and Documentation Group.
Also, the application can only be accessed via the Saudi
Aramco corporate network. requirement does NOT change
or supersede any existing e-review or iPlant drawings project
submittal requirements.
Note: For additional details on the as-built drawings process and
guidelines, please refer to SAES-A-202, “Saudi Aramco
Engineering Drawing Preparation”, and SAEP-334, “Retrieval,
Certification and Submittal of Saudi Aramco Engineering and
Vendor Drawings”.

Appendix 13.3 – Budgetary Project Scope Definition

All documentation of the preliminary project scope definition, more


specifically the preliminary description of actual facilities which might
be built shall be provided.

Appendix 13.4 – FEL 2 DBSP Review Meeting and Comments Log

A listing of all FEL 2 DBSP deliverable review comments and response


log to close raised issues and open items shall be included.

Appendix 13.5 – Scope Evaluations and Study Reports

Page 30 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

All applicable scope evaluations and study reports shall be inserted here
(all assessments, studies and VIPs completed as detailed in Section 8).
This section shall include the Health, Safety and Environmental (HSE)
assessment.

Appendix 13.6 List of Acronyms

A complete list of all acronyms and abbreviations used shall be included.

8 FEL 2 DBSP Review Procedures

Regardless of the project type, FPD remains the functional owner of the FEL 2 DBSP
deliverable. As the IPT leader during the FEL 2 DBSP phase, the FPD engineer is
required to lead the IPT and adhere to the mandatory procedures outlined in these
guidelines. Throughout, the IPT leader (FPD engineer) must demonstrate that the FEL
2 DBSP deliverable and related FEL 2 deliverables are produced in alignment with the
project’s stated business objectives and economic value. The sequence of reviews
during FEL 2 DBSP development is summarized below:

8.1 FEL 2 DBSP Execution Plan

The FEL 2 DBSP execution plan will be developed by the IPT leader and
reviewed with the rest of the IPT and PS. Once agreed, the FEL 2 DBSP
Execution Plan serves as the project execution plan for the FEL 2 DBSP phase.

8.2 FEL 2 DBSP FPD Management Checkpoint

The guidelines define the requirement for an interim FPD Checkpoint to be


conducted when the IPT completes and is ready to present the FEL 2 DBSP
conceptual design milestone and deliverables. This Checkpoint is conducted by,
and for, the FPD management and is not associated with the FEL Checkpoints
and Gates chartered by CMS. However, the IPT leader (FPD engineer) must
demonstrate that the FEL 2 DBSP conceptual design and related FEL 2
deliverables are produced in alignment with the project’s stated business
objectives and economic value.

Although the FEL 2 DBSP conceptual design completion point is subjective, the
FPD engineer must align this Checkpoint with critical milestones to allow for the
ability to change or correct a course of action as needed. The milestone shall
include completing the following FEL 2 deliverables and activities, at the very least:
 Business case assessment.
 Land Use Permit.
 Plot Plans.

Saudi Aramco: Company General Use


Page 31 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

 Preliminary Environmental Impact Assessment.


 Preliminary simulation and modeling.
 Preliminary process equipment sizing.
 Site visit, survey of existing facilities.
 Conceptual layout.
 Major interfaces and utilities requirements.
 Major equipment list.

The FPD Checkpoint is scheduled by the IPT leader (FPD Engineer) with FPD
management at an appropriate time when the conceptual design and process
modeling are completed. A presentation is conducted by the IPT leader
encompassing:
 Review of the project’s business case. Clarify as required the proposed
business objective(s) in terms of Saudi Aramco’s strategic direction and
business plan objectives.
 Clarify the description of the operating environment in which the business
objectives would have to be achieved.
 Provide an overview of the FEL 2 DBSP scope, detail the complexity of the
analysis conducted thus far, decisions made to date and a high level
description of the required capabilities at the impacted facilities.
 Review critical achievements towards and potential roadblocks hindering the
ability of the IPT to reach the FEL 2 DBSP goals.
 Identify ongoing and additional studies required to further develop the
FEL 2 DBSP scope and provide status on those.
 Discuss any potential constructability and execution challenges.

8.3 Draft FEL 2 DBSP Document

Once the Draft FEL 2 DBSP is prepared and reviewed by the IPT, the IPT leader
will submit the Draft FEL 2 DBSP to the FPD DBSP Quality Assessment
(DQA) Committee for quality review and scoring. The IPT leader is encouraged
to implement changes to improve the quality of the FEL 2 DBSP document
based on the comments received from the DQA committee. The DQA review
process is shown in Figure 8.1 below. The DQA criteria spreadsheets are
available at: DBSP Quality Assessment Criteria.

Page 32 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

Figure 8.1 – DBSP Quality Assessment (DQA) Process

8.4 Completed FEL 2 DBSP Document

The completed FEL 2 DBSP will be routed for approval as detailed in Section 9,
FEL 2 DBSP Deliverable Approval, below.

During the entire FEL 2 cycle, the IPT is engaged and partakes in the
development of the FEL 2 DBSP. If the IPT determines that other organizations
are required to review and comment on the FEL 2 DBSP deliverable, it is the IPT
leader’s responsibility to coordinate and solicit input from those organizations.

9 FEL 2 DBSP Deliverable Approval

The “DBSP e-Approval System“ shall be used to gain approval of the FEL 2 DBSP
deliverable from all stakeholders. This SAP-based workflow will provide approval that
is faster, confidential, streamlined, and convenient. The IPT leader from FPD shall
coordinate with the division’s Single Point of Contact (SPC) to upload the FEL 2 DBSP
and any associated documents onto the “FEL 2 DBSP e-Approval System“, assign
proper approval organizations, and finally initiate approval process. The approvers and
reviewers will receive the approval workflow in their SAP inbox that is based on the
Approval Authority Engine (AAE). The approving departments may assign additional
reviewers internally through a delegation function provided with the system. Once the
approval is complete, the FPD IPT leader can print and insert the approval sheet, which
is generated by the system, into the FEL 2 DBSP deliverable.
Saudi Aramco: Company General Use
Page 33 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

Approval of the DBSP shall be in line with the CMS process. A “Document
Verification – RAPID RECORD” defines the approval authorities as designated below:
Recommended: IPT Leader – FPD Prime.
Agreed: Manager, Facilities Planning Department.
Manager or General Manager, PMT or Business Line CPM.
Decided: Project Sponsor for project A- & B-types.
Project Sponsor and Administrative Area Head for project C- &
C1-types.

Please contact the FEL 2 DBSP Admin Group for additional details on the “ FEL 2
DBSP e-Approval System“.

10 Distribution of Approved FEL 2 DBSP Document

The IPT shall include the approved FEL 2 DBSP deliverable as part of the overall
FEL 2 DBSP phase deliverables and review all the deliverables with the Project
Sponsor. Once all the deliverables are signed and approved by the respective functional
departments and the PS, the deliverables package is sent to CPED to begin the Value
Assurance Review cycle.
Note: CPED may request that all the FEL 2 DSBP phase deliverables be uploaded in soft
copy to a project-specific link. The CPED Value Assurance leader assigned to the
project shall coordinate the details for document submission.

Note: Value Assurance may request that the approved FEL 2 DBSP be reworked based on
the Value Assurance Review findings. The IPT leader and the IPT shall define an
action plan to address the findings in the Assurance Review Report. The PS then
decides whether to bring the project to the FEL 2 Gate.

Once the VA review is complete, the IPT leader works closely with the PS to develop
the gate decision support package. The PS then presents to the Decision Maker the
detailed proposed project scope (“frozen” scope) which will be further developed
during the FEL 3 Project Proposal phase. The Decision Maker decided whether to pass
the FEL 2 DBSP Gate, Gate 2, and whether to take the project to the next phase and
commit the required resources or not.

The overall FEL 2 DBSP phase deliverables package, including the approved FEL 2
DBSP deliverable, is then handed over to the Construction Agency as the basis for
project proposal preparation. The original of the signed Approval Sheet will be retained
in FPD's Budget Item (BI) file on the FPD e-Cabinet page.

Page 34 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

11 FEL 2 DBSP Revisions

At the conclusion of the FEL 2 DBSP phase, the project scope is considered “frozen” on
the date of FEL 2 DBSP approval. Scope changes after the FEL 2 DBSP approval
should be avoided.

Any scope change to an approved FEL 2 DBSP during the FEL 3 Project Proposal
phase are managed using the mandatory Scope Change from Approved DBSP –
Request (SCDR) form. The SCDR process and a copy of the SCDR form can also be
found in SAEP-14. The SCDR form must be approved by the FPD management, and
concurred to by the PS and the Construction Agency’s management, prior to any
commitment to the scope change.

11.1 IPT Evaluation and Recommendation

The IPT must evaluate each proposed scope modification and shall include:
 An assessment of the extent to which the proposed project scope
modification is consistent with the stated Business Objective, and Saudi
Aramco's Strategic Direction and Business Plan objectives.
 An incremental economic evaluation of the proposed scope modification,
using the previous scope as a basis.

The IPT shall provide a description of the proposed scope modification in


sufficient detail to obtain a capital budget cost estimate and an assessment of the
impact of the proposed modification on the project schedule.

Based on the results of the evaluation, IPT shall formally recommend to the PS
and FPD management that the proposed scope modification be adopted,
rejected, or studied further.

11.2 Management Approval

FPD management, along with the PS and the Construction Agency’s


management, must approve all SCDR forms to effect revisions to an approved
FEL 2 DBSP. The SCDR becomes binding once approved and the scope
changes then can be implemented.

Revision Summary
4 January 2016 Major revision to align with the new Capital Management System applicable to all Capital
Projects within the Business Plan.

Saudi Aramco: Company General Use


Page 35 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

Appendix I - FEL 2 DBSP deliverable Requirements


for Software Application Projects

Page 36 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

FEL 2 DBSP deliverable Sections for Software Application Projects

1 PROJECT PURPOSE

This section provides a clear and concise statement of the business objective of the
proposed project.

For example: “The purpose of this project is to improve and optimize the pipes and
materials movements throughout the supply chain, by implementing Radio Frequency
Identification (RFID) technology that will streamline processes, enhance materials
traceability and enable inventory visibility”.

2 PRESENT SITUATION

This section describes the current situation of the project; describe elements on how the
processes are currently being carried out and provides details of the legacy systems.
It also addresses the problems/issues that trigger the need for the project.

More detailed supporting information should generally be provided in Appendix I,


Existing Situation.

3 STAKEHOLDERS

This section lists all entities that are affected by the project. It should address clearly the
process owner (proponent) and the key process users. This can include Saudi Aramco
departments or partners such as joint ventures, customers, vendors and suppliers.

4 LOCATION

This section provides an overview of the physical locations and facilities that will be
affected by the project to the extent required to effectively orient the Construction
Agency and the project proposal/blueprint engineering contractor, including data center
location for the hardware.

5 INTERFACES

This section provides a description of the following project interfaces in separate


subsections.

5.1 Related Budget Items


Describe other Budget Items which may impact the engineering design and/or
construction of the proposed scope.
Saudi Aramco: Company General Use
Page 37 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

5.2 Project Physical Interfaces


Describe the physical interfaces between the proposed scope and the existing
systems/processes.

5.3 Project Operating Interfaces


Describe operational and logical interfaces with the existing systems/processes.
List requirements/constraints which may impact the design, construction and/or
production of the proposed project. Describe all systems that will be interfaced
with the proposed system and specify the high level inputs and outputs.

6 BUSINESS OBJECTIVES

This section provides a description of the design objectives. These constitute a


specification of simply what the business needs. This is usually expressed in terms of
broad outcomes the business requires, rather than specific functions the system may
perform.

For example:

“The proposed solution will be designed to achieve the following objectives:

 Provide a fair way of facilitating bids and conducting negotiations.

 Provide a full integration between materials and services procurement where it


shall be possible to add materials and services individually or together into
contracts.”

7 GENERAL PROJECT DESIGN BASIS

This section describes the general design bases, which apply to the entire project, as
opposed to specific project scope element. These common design bases include non-
functional requirements such as User Interface/Usability, Configurability, Performance
and Scalability.

For example:

“The proposed solution shall offer a set of integrated and web-enabled applications that
will interface with the existing SAP system. The proposed application shall also offer
scalability and expandability to support future expansion. The application shall be
based on standardized software packages.”

Page 38 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

8 PROPOSED SCOPE

This section describes what the system, process, or product/service must do in order to
fulfill the business requirements. This includes description of each element of the
project scope and the required capabilities.

In addition, it addresses the scope requirements in the following subsections:

8.1 Software & Licenses


Describe the major software components and associated licenses requirements.
Also, specify the number of users of the system.

8.2 Hardware
Describe the required hardware components and specify the required data center
capacity and the need for expansion, if any. This section should address also
supporting facilities, if any.

8.3 Data Migration Plan


Address data to be migrated from legacy systems either as a part of the project
or to be done through Net Direct Expenditures (NDE).

For example:

“Required data shall be migrated into the new solutions to enable tracking and
built-in intelligence as part of the transactional systems. Legacy data is
important to be considered as part of bidder lists decisions and performance
monitoring.”

8.4 Handover Plan


Describe the key items to be addressed by the Construction Agency as part of
handing over the application/system to the proponent to ensure smooth phase-
in/phase-out and avoid negative business impact. This also includes assessing
phased approach versus big bang.

For example: “The old system shall be running temporarily along with the new
system (in parallel) to clear all pending POs and TOs after the go-live date.”

8.5 Training and Change Management


Explain the Training and change management to be planned part of the project.

Saudi Aramco: Company General Use


Page 39 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

For example:

“The project should coordinate training on the new solution by developing the
required training modules for end users.”

“For change management, the project should follow this strategy:


 Use the established Organization Change Management (OCM) Charter
and Plan.
 Use the established Change Management issues resolution and escalation
procedures.”

8.6 Information Protection


Identify information security risks and vulnerabilities that could compromise
Saudi Aramco IT infrastructure, for either internal/external Saudi Aramco users
or external for non-Saudi Aramco users.

8.7 Out of Project’s Scope


This subsection ensures clear scope boundaries by addressing the out-of-scope
work.

More detailed supporting information should generally be provided in Appendix II,


Proposed Scope.

9 SCOPE EVALUATIONS TO DATE

This section provides a summary of the evaluations performed prior to and during scope
development to define the project scope. This includes, but not limited to, feasibility
study, software evaluation and proof of concept. Also, it should address the type of
process whether it is automation or reengineering.

10 ADDITIONAL STUDIES

This section describes specific evaluations/studies, to be completed during Detailed


Design/Blueprint phase.

11 LESSONS LEARNED

This section surveys project management database for applicable lessons learned.
It also captures lessons from similar software applications projects.

Page 40 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

12 BENCHMARKING

This section provides overview of local and international benchmark for solution
deployment, unit cost reference and best practices. This demands approaching vendors
and software industry leaders.

13 RISK ASSESSMENT

The section addresses outcome of risk assessment exercise. This involves identification
of potential project risks, evaluation criteria and establishment of appropriate mitigation
plans. Coordination should be done with Value Practices Unit (under PMOD) to
facilitate project risk management session.

14 VALUE ENGINEERING STUDY

This section summarizes the proposals of value engineering workshop.


Value engineering is required for projects valued at $50MM or above.

15 PROJECT SCHEDULE

This section states project milestone schedule as follows:

Milestone Date
FEL 2 DBSP Start Month/Year
FEL 2 DBSP Approval Month/Year
Detailed Design start Month/Year
30% Detailed Design Approval Month/Year
ERA Month/Year
100% Detailed Design Approval Month/Year
System Development Start Month/Year
System Development Completion Month/Year
Functional Test Start Month/Year
Functional Test Completion Month/Year
User Acceptance Test Start Month/Year
User Acceptance Test Completion Month/Year
End User Training Start Month/Year
End User Training Completion Month/Year
Beneficial Date / Go live Date Month/Year
Production Support Month/Year
ERC Month/Year

Saudi Aramco: Company General Use


Page 41 of 42
Document Responsibility: Facilities Planning Standards Committee SAEP-1350
Issue Date: 4 January 2016 Design Basis Scoping Paper (DBSP)
Next Planned Update: 4 January 2019 Preparation and Revision Procedure

16 APPENDICES

This section provides additional information, as required to effectively guide the


Construction Agency in its efforts to plan and execute detailed design/blueprint.

16.1 Existing Situation


Address more detailed supporting information of current system/process.

16.2 Proposed Scope


Address more detailed supporting information of proposed scope. It also
describe the high level FRICE requirements (Forms, Reports, Interfaces
(inbound and outbound), Conversions, and Enhancements, and workflows).

16.3 Budgetary Project Scope Definition


Cover quantification of proposed scope to allow for high quality budget
estimate. This includes quantification of hardware, software, licenses and
manpower resources for functional consultants as well as application developers.

16.4 Acronyms

Page 42 of 42