CEM600 Design and Constr of Pipeline

8/10/2019 CEM600 Design and Constr of Pipeline

1/56


2/56

TA&E OF CONTENTS

&IST OF FIG4RES i

ASTRACT ii

C'APTER ONE5 INTROD4CTION 1

C'APTER TO5 T'E DESIGN AND CONSTR4CTION

PROCESS 4

2.0 Pipeline Projects Department 4

2.1 Phase I - Study & Development 7

2.2 Phase II - Preliminary n!ineerin! 11

2." Phase III - #undin! Phase 1$

2.4 Phase I% - Detailed n!ineerin! 17

2.$ Phase % - Procurement 22

2. Phase %I - 'onstruction 24

2.7 Phase %II - Start (p 2)

2.) Inter*acin! Departments in a Project "1

2.).1 +aterial Supply ,r!aniations +S,/ "1

2.).2 oss Prevention Department "1

2.)." Inspection Department ID/ "2

2.).4 'ontractin! Department "2

2.).$ nvironmental Protection Department ""

2.). Project Support and 'ontrols Department ""

2


3/56

2.)..1 Project 'ontrols Division ""

2.)..2 stimatin! Services Division "4

2.).." Project Support Services Division "4

2.)..4 Surveyin! Services Division "4

2.)..$ est Practices eam "4

2.).7 #acilities Plannin! Department #PD/ "4

2.).) #inance "$

2.).).1 Pro!rams3 #orecast & nalysis

Department "

2.).).2 'apital Pro!rams3 #orecast & nalysis

Division "

2.).)." #i5ed ssets & 6or in Pro!ress

ccountin! Department #6IP/ "

2.).).4 Project ccountin! Division "7

2.).).4.1 Internal uditin! "7

2.).).4.2 'ontract 8evie9 and 'ost 'ompliance

Department '8&''D/ "7

C'APTER T'REE5 MET'ODO&OG ":

".0 +ethods o* 'ollectin! Data ":

C'APTER FO4R5 T'E PRO&EMS AND SO&4TIONS 40

4.0 Introduction 40

4.1 8evie9 o* Detail Desi!n 42

4.2 +aterial Issues 4"

3


4/56

4.2.1 +aterial vaila;ility 4"

4.2.2 +aterial


5/56

&IST OF FIG4RES

Figure Page

Oi# and Gas Fie#ds in Saudi Ara+ia

3 Pi"e#ine Proet De"art$ent urrent organi8ation /

1 T9e "9ases o! a "i"e#ine "roet 6

: Ste"s o! Stud* ; De Ste"s o! Proure$ent P9ase 33

. Ste"s o! Constrution P9ase 3:

0 Ste"s o! t9e Start 4" P9ase 3>

5


6/56

REPORT ASTRACT

DSIB< study and development phase3preliminary en!ineerin! phase3 *undin! phase3 detailed en!ineerin! phase3procurement phase3 construction phase and start up phase. he reportdescri;es these phases and attempts to identi*y some o* associated pro;lemsand proposed solutions.

6


7/56

C'APTER ONE

I


8/56

Saudi ramco is reco!nied *or its e5pertise in transportin! o*

hydrocar;ons3 9hile simultaneously ;ein! environmentally conscious and a

sa*ety and loss prevention practitioner. Punctual product movements ;et9een

supply and distri;ution *acilities are e5ecuted throu!h an ela;orate delivery

system 9hich encompasses an area o* around 2 million suare ilometers -

constitutin! the area o* Saudi ra;ia. Pipelines3 marine crude oil taners3

product carriers and haulin! trucs3 the main components o* this delivery

system3 are operated and maintained ;y a hi!hly uali*ied 9or*orce and

adhere to the hi!hest industry standards to ensure optimied operational

levels.

he pipeline net9or totals some 203000 ilometers in len!th3 includin!

lins 9ith ne9 oil *ields in central and southeast Saudi ra;ia. +ajor pipelines

are the rans-ra;ian Pipe ine apline/3 the Saudi ra;ian-ahrain Pipeline

and the ast-6est 'rude ,il and


9/56

'hapter hree discusses the methodolo!y o* collectin! the data in this

report and type o* uestions used in the report.

'hapter #our o* this report presents the pro;lems in the desi!n and

contraction that Project +ana!ement eam *aces and the proposed solutions

*or such pro;lems. he report ends 9ith 'hapter #ive3 9hich summaries the

report and su!!ests recommendations.

3


10/56

C'APTER TO

= DSIB<


11/56

Figure35Pi"e#inePro-etD

e"art$enturrentorgani8ation

struture

5


12/56

he desi!n and construction pipeline projects in Saudi ramco !o throu!h

seven phases3 9hich are>

1. Study and Development Phase

2. Preliminary n!ineerin!

". Project Proposal to 5penditure 8euest pproval 8/

4. Detailed n!ineerin!

$. Procurement

. 'onstruction

7. Start up

#i!ure " ;elo9 illustrates the a;ove mentioned phases.

Study

Preliminary

Engineering

Project Proposal to

ERA

Detailed

Engineering

Procurement

Construction

Study and Deelopment

Preliminary

Engineering

!unding P"ase

Detailed

Engineering

Procurement

Construction

Start #p

Figure 15 T9e "9ases o! a "i"e#ine "roet%

6


13/56

3% P'ASE I @ ST4D ; DE7E&OPMENT5

he study & development phase o* any pipeline project !oes throu!h sta!es3

as illustrated in #i!ure 43 9here the outcomes o* this phase are>

Prepare the usiness Plan.

Develop the Plannin! rie*.

Produce the 'apital Pro!ram G ud!et Item I/

Develop the n!ineerin! Study Pro!ram.

Develop the Desi!n asis Scopin! Paper DSP/.

Figure :5 Ste"s o! Stud* ; De


14/56

,ne o* #acilities Plannin! Department roles is to develop and maintain the

'apital Pro!ram *or Saudi ramco *ive-year usiness Plans. he 'apital

Pro!ram is a list o* projects esta;lished to accomplish the usiness ine

o;jectives in the *ive-year usiness Plan period.

t the end o*


15/56

'apital Pro!ram data;ase. 'ontinuous discussions tae place

;et9een #acilities Plannin! Department and representatives *rom all

seven usiness ines re!ardin! the cost3 schedule3 and justi*ication o*

the ne9ly proposed projects.

#acilities Plannin! Department then archives the 'apital

Pro!ram data;ase *or the 5ecutive dvisory 'ommittee revie93 9hich

9ill tae place appro5imately three 9ees later. Durin! this period3

#acilities Plannin! Department *urther screens the ne9 projects3 rans

them amon! the other projects already in the usiness Plan3 and

!enerates Plannin! rie*s *or ne9 projects. Plannin! rie*s !ive a ;rie*

description o* the scope and the schedule reuirements and are

reuired *or all projects included in the *ive-year usiness Plan.

s soon as the usiness Plan is archived *or the 5ecutive

dvisory 'ommittee revie93 Project Support and 'ontrols Department

in conjunction 9ith #acilities Plannin! Department issues the master

schedulin! system +SS/ report *or the projects in the usiness Plan

*or revie9 at the a;le op meetin!. Simultaneously3 #acilities Plannin!

Department issues the Plannin! rie*s to Project +ana!ement. t this

meetin!3 Project +ana!ement eam and Project Support and 'ontrols

Department discuss their commentsGpro;lems 9ith the schedule o*

each project 9ith #acilities Plannin! Department *or *urther *ollo9 up

9ith the usiness ine coordinators. his meetin! 9ill also validate the

plannin! ;rie* and the schedule.

*ter the 5ecutive dvisory 'ommittee revie93 the 'apital

Pro!ram is revised to re*lect 5ecutive dvisory 'ommittee chan!es.

&


16/56

hen #acilities Plannin! Department archives a!ain *or the

+ana!ement 'ommittee revie9. Project +ana!ement eam and

Project Support and 'ontrols Department discuss any chan!es 9ith

#acilities Plannin! Department. lso3 the chan!es *rom +ana!ement

'ommittee are archived *or the oard o* DirectorsF revie9 and approval.

*ter the approval o* the Sprin! usiness Plan in +ay3 the usiness

Plan is then updated3 *ollo9in! a similar plannin! process3 to ;e

revie9ed ;y the oard in


17/56

*ter the Desi!n asis Scopin! Paper is developed3 it is revie9ed ;y

Project Support and 'ontrols Department to chec the estimate and the

schedule3 and it is revie9ed and approved ;y the proponent and Project

+ana!ement eam.

his is the point o* time 9hen the project is turned to Project

+ana!ement eam and the second phase starts.

11


18/56

3%3 P'ASE II @ PRE&IMINAR ENGINEERING5

he second phase is the development o* preliminary en!ineerin!3 as displayed

in #i!ure $3 9hich includes:

Dra*t Project 5ecution Plan PP/.

Prepare +aster 'ontractin! Plan.

Prepare Project Proposal PP/.

Produce detailed 5penditure 8euest 8/.

Prepare 'ontract *or Detailed n!ineerin!G'onstruction.

Figure /5 Ste"s o! t9e Pre#i$inar* Engineering P9ase

12


19/56

In this phase Project +ana!ement eam prepares a;;reviated Project

5ecution Plan 9hich ;asically states ho9 the project is !oin! to ;e e5ecuted

in terms o* preliminary en!ineerin!3 detail desi!n and construction3 9hether

the project can ;e handled in-in!dom or out o* in!dom3 9hether the project

9ill ;e handled as one paca!e or more than one. ll o* this is determined

;ased on the nature o* the project and costGschedule reuirements. he

Project 5ecution Plan is approved ;y e5ecutive mana!ement o* the

proponent and Project +ana!ement eam. his 9ill secure '-) *undin!. '-

) #unds are #unds allotted to project mana!ement personnel only *or the

e5ecution o* preliminary en!ineerin! to develop project proposal scope o* 9or

and contract. his *undin! is usually $ to 10 o* the project cost3 and is

determined in the Study and Development Phase3 ;ased on the nature o* the

project3 and ho9 and 9here the preliminary en!ineerin! to ;e done /.

Project +ana!ement eam e5ecutes a service order to an approved

desi!n contractor to prepare the Project Proposal. he purpose o* the project

proposal is to de*ine e5actly the scope o* the project in terms o* location3

capacity3 process3 euipments neededL. etc. in order to prepare a reasona;ly

accurate 5penditure 8euest estimate o* the actual cost o* the project. his

9ill ena;le mana!ement to deicide 9hether to proceed 9ith the project or not.

Project +ana!ement eam and Beneral n!ineerin! Service (nit3 one o* the

Project Support and 'ontrols Department units3 develop the id slate. he ;id

slate is a list o* Beneral n!ineerin! Service contractors 9hich Project

+ana!ement eam and Beneral n!ineerin! Service (nit a!ree on to invite to

;id *or doin! the project proposal. he id slate is taen to Service 8evie9

'ommittee *or approval. In the *ollo9in! situations>

13


20/56

ny Sole Source Service uthoriation anticipated

e5ceedin! M2 +illion. lso In instances 9here the estimated value

esta;lished at the initial procurement 9as under M2 +illion3 ;ut the *inal

contractorFs commercial proposal a*ter ne!otiations e5ceeds that limit.

ny service authoriation 9hose value has revised total

value e5ceedin! M2 million shall ;e promptly reported to the Service

8evie9 'ommittee as an in*ormation item.

*ter the approval o* the Service 8evie9 'ommittee3 Project

+ana!ement eam invites the Beneral n!ineerin! Service contractors to

su;mit their ;ids on the project proposal. idders are reuired to su;mit

proposals o* su**icient detail to prepare a N10 accuracy e5penditure reuest

estimate3 provide su**icient technical in*ormation *or proponent revie9 and

9here applica;le/ provide su**icient in*ormation to o;tain ump Sum urn ?ey

S?/ or detailed en!ineerin! contract ;ids. Beneral n!ineerin! Service

(nit and 'ontract 8evie9 and 'ost compliance Department representatives

9ill open the ;id ;o5 and the lo9est cost contractor is selected to do the

project proposal. Project +ana!ement eam 9ill direct and monitor the desi!n

contractor in this sta!e 7/.

I* the value o* the project e5ceeds M$0 million3 Project +ana!ement

eam initiates a *ormal value en!ineerin! study. he value en!ineerin! study

is coordinated 9ith the %alue n!ineerin! (nit o* the Project Support and

'ontrols Department.

Project +ana!ement eam 9ors 9ith 'ontractin! Department

representative to develop the construction contract3 ;id slate3 and the ;id

14


21/56

revie9 pro!ram. he 'ontractin! Department representative sends the

contract to the a9 Department and 'ontract 8evie9 and 'ost compliance

Department '8 &''D/ *or their revie9.

he Project +ana!ement eam and 'ontractin! Department

representative 9ill a!ree on the construction contractors 9ho 9ill ;e in the ;id

slate. lso3 they 9ould prepare the ;id revie9 pro!ram that 9ill identi*y the

;est contractor ;y>

1. 8evie9in! and evaluatin! o* echnical Proposal

2. 8evie9in! and evaluatin! o* 'ommercial Proposal

he purpose o* the technical evaluation is to determine 9hether the

;idders understand the speci*ic scope o* 9or and 9hether their proposals

meet the reuirement o* the scope o* 9or. he technical evaluation should

reveal cases 9here an other9ise capa;le contractor has *ailed to plan the use

o* its resources so as to satis*actorily accomplish the 9or. he purpose o* the

commercial evaluation is to identi*y the ;id representin! the lo9est overall cost

to S(DI 8+',. 'ontract a9ardin! 9ill ;e e5plained in section 2.43 detail

en!ineerin! phase )/.

15


22/56

3%1 P'ASE III @ F4NDING P'ASE5

he third phase o* a project cycle 9hich3 as displayed in #i!ure 3 includes:

5penditure 8euest stimate summary Preparation.

5ecutive +ana!ement 8evie9.

+ana!ement 'ommittee 8evie9.

5ecutive +ana!ement O',+/ pproval o* 8.

*ter the 5penditure 8euest estimate is prepared3 Project

+ana!ement eam and Project Support and 'ontrols Department 9ill prepare

Figure 65 Ste"s o! t9e !unding "9ase%

16


23/56

9hat is called a $D estimate3 9hich is really a summary o* the 5penditure

8euest estimate and the project mana!ement costs.

he $D estimate summery is revie9ed ;y #acilities Plannin!

Department. *ter the #acilities Plannin! DepartmentFs revie93 the estimate is

*or9arded to e5ecutive mana!ement *or approval. he e5ecutive mana!ement

may tae any o* the *ollo9in! decisions3 other than approval>

'ancellation> proposal to cancel an approved project reuires an 8.

De*erral> Project de*erred to ne5t e5ecutive mana!ement meetin!.

8ede*inition> 6hen the total proposed scope chan!es3 additions and-

deletions considered separately.

,nce the 5penditure 8euest pproval is secured then the project is

approved and the project can move to the ne5t phases :/.

1$


24/56

3%: P'ASE I7 @ DETAI&ED ENGINEERING5

he *ourth phase is detailed en!ineerin! 9hich3 as displayed *i!ure 73

Includes>

Prepare Desi!n Dra9in! G Specs.

Prepare +aterial Procurement.

Procure ramco +aterial G Direct 'har!e D'/.

Prepare 'onstruction id Paca!es.

he o;jective o* detailed en!ineerin! is to develop project dra9in!s and

speci*ications3 initiate material procurement and prepare construction ;id

paca!es%

Figure =5 Ste"s o! Detai#ed Engineering P9ase%

1%


25/56

(pon 5penditure 8euest pproved 8/3 the 'ontractin!

Department representative issues a letter to invite the approved contractors in

the ;id slate to a clari*ication meetin! in 9hich the scope o* the project 9ill ;e

e5plained. site visit may ;e conducted. he contractors !et a copy o* the ;id

paca!e to ;id on. ach contractor 9ill su;mit a technical and a commercial

;id.

he technical ;id 9ill contain the technical and mana!ement aspects o*

the 9or3 and may include the *ollo9in!3 dependin! on the contract>

he contractorCs proposed or!aniation.

8esumes o* ey personnel.

#unctional e5ecution plan 9or plan/.

6or schedule3 includin! mo;iliation and demo;iliation.

+anpo9er plan

uipment schedule.

Sa*ety and oss Prevention pro!ram.

uality ssurance pro!ram.

uipment 8ental.

Su;contract Plan.

5perience in similar Projects.

'ontractorCs material procurement capa;ilities.

1&


26/56

he commercial ;id 9ill ;e ;ased on>

he lump sum price *or doin! the scope o* 9or.

=ypothetical 'han!e ,rder uantities and applyin! them to the

;idderCs proposed 'han!e ,rder rates.

he technical ;id 9ill ;e opened *irst ;y the echnical 8evie9 eam3

9hich consists o*>

1. he Project +ana!ement eam.

2. he 'ontractin! Department.

he echnical 8evie9 eam evaluates the technical proposals a!ainst

pre-esta;lished scorin! criteria. ach element o* the technical proposal is

rated a!ainst a scale 9ith an a!reed pass score. he overall passin! score is

70 o* the total points. ny ;idder 9hich does not achieve this passin! score

9ill ;e recommends ;y the 8evie9 eam to ;e disuali*ied.

*ter the technical evaluation3 the commercial ;id 9ill ;e opened ;y the

'ommercial 8evie9 eam3 9hich consists o*>

1. he Project +ana!ement eam.

2. he 'ontract 8evie9 and 'ost compliance Department.

". he 'ontractin! Department.

he 'ommercial 8evie9 eam 9ill open the commercial proposals o*

those ;idders 9hose echnical proposals have ;een approved. ist the

contractors in accordance to their>

1. he lump sum price.

2. =ypothetical chan!e order cost

". otal o* 1 and 2 a;ove.

2'


27/56

he lo9est o* the otal cost 9ill ;e raned 9ith num;er 1 and 9ill ;e

a9arded the contract )/.

Detailed en!ineerin! starts a*ter the contract is a9arded. Dependin! on

the ind o* contract3 the detailed en!ineerin! 9ill ;e done ;y the construction

contractor or not. In ump Sump urn ?ey type contracts3 en!ineerin!3

procurement3 and construction are covered ;y the same contract. he

contractor is responsi;le *or the desi!n3 procurement and the construction o*

the *acility. Issued *or 'onstruction paca!e is developed *or the procurement

and construction i* the contract is a ump sum Procure ;uild contract.

he Project +ana!ement eam invites the involved department to

attend a ic o** meetin!. In the meetin! the contractor meets the departmentFs

representatives as they address their reuirements.

Durin! the development o* the desi!n3 several revie9s tae place

especially at 0 and :0 desi!n completion sta!es. Durin! this time3

several Saudi ramco or!aniations are involved in the revie9s lie Project

+ana!ement eam3 Proponent3 'onsultin! Service Department3 oss

Prevention Department3 nvironmental Protection Department3 and Inspection

Department.

ach involved department revie9s the 0 detailed desi!n paca!es

to mae sure that desi!ned *acility meets Saudi ramco standards and

reuirement3 and mae the necessary comments *or compliance. he

comments 9ill ;e incorporated in the ne5t paca!e. he same process is

repeated in the :0 and 100 detail desi!n sta!es.

lso3 a project completion schedule is put to!etherto *orecast

incremental monthly pro!ress per en!ineerin!3 procurement and construction.

21


28/56

s the jo; pro!resses3 monthly reports are prepared ;y the contractor to

re*lect actual versus planned pro!ress throu!h monthly project updates

revie9ed ;y Project +ana!ement eam.

t the end3 100 detail en!ineerin! paca!e is approved ;y Project

+ana!ement eam and the Proponent. hen it is su;mitted to the Saudi

ramco dra9in! mana!ement system3 9hich is dra9in! data;ase *or all the

company dra9in!s.

22


29/56

3%/ P'ASE 7 @ PROC4REMENT5

he *i*th phase is material procurement 9hich3 as displayed in #i!ure )

includes>

on! ead ime +aterial G uipment.

,ther +aterial G uipment.

Direct 'har!e Surplus +aterial G uipment.

Saudi ramco +aterials System Specs S+SS/.

Figure >5 Ste"s o! Proure$ent P9ase%

23


30/56

+aterial procurement is started alon! 9ith the development o* detailed

en!ineerin!. (sually t the 0 sta!e o* the detailed en!ineerin!3 all

euipment speci*ications are complete. +aterials are supplied either ;y Saudi

ramco or ;y the contractor. #or contractor supplied material it 9ill ;e

scheduled and revie9ed ;y Project +ana!ement eam and %endor Inspection

Division.

+aterials are procured throu!h placement o*>

Direct 'har!e Purchase orders

ocal Deliver ,rder 8euest orders

,rders *rom Saudi ramco +aterial System.

In Direct 'har!e material3 reuisitions are usually developed *or lon!

lead items ;y the contractor and revie9ed ;y Project +ana!ement eam and

vendor inspection division *or approval. *ter that the contractor can place the

order 10/.

ocal Deliver ,rder 8euests are material availa;le and stored at local

vendors and have Saudi ramco Stoc num;ers.

he procurement involves ;id development3 technical revie9s3 and

placement o* orders3 *a;rication and delivery. he contractor 9ill source the

material3 place and e5pedite orders. Doin! this is very critical ;ecause any

delay could a**ect the construction schedule si!ni*icantly%Project +ana!ement

eam 9ill monitor the procurement process.

24


31/56

3%6 P'ASE 7I @ CONSTR4CTION5

he si5th phase is 'onstruction 9hich3 as displayed in #i!ure :3 Includes>

( 'ontract 9ard i* ump Sum Procure uild 'ontract/.

( +o;iliation.

( Start 'onstruction.

( Pro!ress +onitorin!.

( Pre-commissionin!.

( +echanical 'ompletion.

he construction phase ;e!ins 9ith a contract a9ard to a construction

contractor. his 9as discussed in Phase I%3 Detailed n!ineerin!.

Su;seuently3 the contractor mo;ilies his personnel and euipment and sets

o**ices and camps to support the project.

Figure .5 Ste"s o! Constrution P9ase%

25


32/56

ie en!ineerin!3 this phase involves a lot o* monitorin! and reportin!

o* the pro!ress. Inspection Department3 oss Prevention3 and the proponent

9or 9ith Project +ana!ement eam in monitorin! the project.

he proponentesta;lishes the cceptance 'ommittee and appoints its

chairman as soon as construction starts ;ut no later than the 0 sta!e o*

actual construction completion. t the *irst *ormal meetin! o* the cceptance

'ommittee3 the cceptance 'ommittee mem;ers3 the Project +ana!ement

eam3 Inspection Department3 oss Prevention3 and the proponent desi!nate

their representatives.

Project +ana!ement eam advises the Proponent 9hen the

construction sta!e reaches 0 and reuest a *ormal ic-o** meetin! o* the

cceptance 'ommittee to a!ree on the Punch ist system and procedures to

;e implemented. Project +ana!ement eam 9ill reuest the cceptance

'ommittee to commence system Punch listin! 9hen all major components o*

a system have ;een installed and pre-commissioned and Project +ana!ement

eam has veri*ied that the system is ready *or Punch listin!.


33/56

1. Aes item> meanin! the item may impact the sa*e commissionin!3 start

up3 and operation o* the *acility.

2. meanin! this item 9ill not impact the sa*e commissionin!3 start

up3 and operation o* the *acility.

6ithin three 9orin! days o* receivin! the a;ove noti*ication3 the

cceptance 'ommittee 'hairmanschedules and completes the +echanical

'ompletion Inspection3 9hich is normally a thorou!h revie9 o* the outstandin!

system punch list items and an inspection o* site conditions.


34/56

Project +ana!ement eam 9ill noti*y the cceptance 'ommittee

'hairman3 9hen all o* the assi!ned QAesQ items have ;een completed and

si!ned o** ;y the ori!inators. 6ithin three 9orin! days o* receivin! this

noti*ication3 the cceptance 'ommittee 'hairman arran!es *or an cceptance

'ommittee meetin! to instruct the Project +ana!ement eam to route the *orm

9ith attachment *or si!nature. 6hen all other si!natures are o;tained3 the

Project +ana!ement eam presents the +echanical 'ompletion 'erti*icate

and attachments to the cceptance 'ommittee 'hairman to o;tain the

si!nature o* the Proponents representative prior to distri;ution o* the ori!inal

approved +echanical 'ompletion 'erti*icate.

he +echanical 'ompletion 'erti*icate si!n o** si!ni*ies custody

acceptance o* the *acility ;y the Proponent. *ter this turnover3 routine *acility

maintenance ;ecomes the ProponentFs responsi;ility. he remainin! 9or to

clear J


35/56

3%= P'ASE 7II @ START4P5

he last phase o* the Project is the start-up o* the *acility3 9hich3 as displayed

in #i!ure 103 includes>

Per*ormance cceptance.

Site #inal ccept ests.

System =andover.

'omplete 5ception Item ists.

#inancial 'lose-out.

Figure 05 Ste"s o! t9e Start 4" P9ase%

MC: Me9ania# Co$"#etionAC:Per!or$ane Ae"taneerti!iateS5 On Strea$RC:E"enditure ReBuest C#osed

2&


36/56

(pon approval o* the +echanical 'ompletion 'erti*icate3

commissionin! and start-up ;e!in. he proponent or!aniation is responsi;le

*or these activities 9ith the Project +ana!ement eam providin! assistance.

he Project +ana!ement eam3 in conjunction 9ith the proponent3 is

responsi;le *or developin! commissionin! plans and the proponent is

responsi;le *or the development and e5ecution o* *acility start-up and

per*ormance test plans and procedures. he acceptance o* the +echanical

'ompletion 'erti*icate represents the ;e!innin! o* the commissionin!3 start-up

and initial operatin! period durin! 9hich the *acility per*ormance should ;e

demonstrated to ;e in accordance 9ith the approved project scope. he

per*ormance period is si5ty days a*ter the +echanical 'ompletion 'erti*icate is

si!ned. Durin! the per*ormance acceptance period the proponent revie9s

*acility per*ormance3 relative to operatin! conditions3 in accordance 9ith the

approved project scope and prepares a list o* per*ormance-related items

reuirin! corrective actions i* the *acility is not up to per*ormance.

he a!reed Per*ormance cceptance 'erti*icate de*iciency items 9ill

*orm the ;asis o* the P' de*iciency item list3 9hich 9ill ;e attached to the

P' at the time o* si!nin!.

Per*ormance cceptance 'erti*icate is prepared ;y the Project

+ana!ement eam *or each *acility a*ter the *inal +echanical 'ompletion

'erti*icate *or the *acility has ;een si!ned. *ter the P' is si!ned3 the *acility

is put on stream 11/.

3'


37/56


38/56

3%> INTERFACING DEPARTMENTS IN A PRO?ECT

he Project +ana!ement eam relies on the cooperation o* many other

Saudi ramco or!aniations *or the success*ul e5ecution o* the project. hese

or!aniations have their o9n particular interests in either insurin! the project

compliance o* the related policies3 procedures and instructions3 or in assistin!

the project mana!ement in the e5ecution o* related *unctions.

he *ollo9in! provides a summary o* the most *reuently involved

or!aniations5

3%>% MATERIA& S4PP& ORGANIATION

+aterial supply or!aniation is Saudi ramco sole or!aniation *or

plannin!3 procurin!3 shippin!3 receivin!3 storin! and issuin! Saudi ramco

material. Its mission is to provide3 throu!h mana!in! the supply chains3 the

ri!ht material and associated services to support maintenance3 operations and

project reuirements at the ri!ht time and cost in support o* the 'ompany

operations.

3%>%3 &OSS PRE7ENTION DEPARTMENT

he oss Prevention Department is a service or!aniation responsi;le

*or developin! and monitorin! company polices andprocedures that aim to

prevent accidents and minimie losses. Saudi ramco ;elieves that the

responsi;ility *or sa*ety ;elon!s 9ith line or!aniations. his ;elie* places

accounta;ility 9ith operatin! departments to ensure that sa*ety is inte!rated

into day-to-day operation%

32


39/56


40/56

3%>%/ EN7IRONMENTA& PROTECTION DEPARTMENT

he mission o* the nvironmental Protection Department is to provide

leadership on environmental issues to all areas o* company operations. his

9ill help in cost e**ectively reduce the riss to pu;lic health and the

environment. lso3 nvironmental Protection Department monitors operation

to assure that they are conducted in an environmentally responsi;le manner%

3%>%6 PRO?ECT S4PPORT AND CONTRO&S DEPARTMENT

Project Support & 'ontract Department includes the *ollo9in! operatin!

divisions5

3%>%6% Proet Contro#s Di


41/56

3%>%6%1 Proet Su""ort ser


42/56

Preparin! desi!n ;asis Scopin! Papers 9hich are the ;asis *or project

proposals

8evie9in! project speci*ications 9ith Project +ana!ement to insure

economic desi!n and con*ormance 9ith Desi!n asis Scopin! Paper

Preparin! 5penditure 8euests to o;tain project *undin!

#ield +ana!ement ueries coverin! a variety o* areas includin!

technical 3economic 3strate!ic and con*idential su;ject.

3%>%> FINANCE

here are several *inance related departments 9hich provide support or

inter*ace 9ith the Project +ana!ement eam3 includin!>

Pro!rams3 #orecast & nalysis Department.

'apital Pro!rams3 #orecast & nalysis Division.

#i5ed ssets & 6or in Pro!ress ccountin! Department.

Projects ccountin! Division.

Internal uditin!.

'ontract 8evie9 and 'ost 'ompliance Department.

3%>%>% Progra$s2 Foreast ; Ana#*sis De"art$ent

Pro!rams3 #orecast & nalysis Department is a sta** or!aniation 9ithin

#inance 9hich develops the *rame9or *or the 'ompanyFs plannin! activities3

critically revie9s or!aniational e5penditure3 manpo9er3 and capital

su;missions. his includes the cash *lo9 implications o* these su;missions.

36


43/56

Pro!rams3 #orecast & nalysis Department also provides +ana!ement 9ith

timely evaluations o* pro!ress versus those plans so +ana!ement may mae

in*ormed ;usiness decisions.

3%>%>%3 Ca"ita# Progra$s2 Foreast ; Ana#*sis Di%>%1 Fied Assets ; or, in Progress Aounting De"art$ent

his department is a service department 9ithin ,perations ccountin!.

It is responsi;le *or tracin!3 monitorin! and analyin! e5penditures pertainin!

to 'orporate-9ide projects in pro!ress under approved capital3 non-capital3

e5ploration and development pro!ram and records capital assets into the

#i5ed ssets ccountin! System. It is also responsi;le *or analyin! *inancial

data and veri*ies approval authority ;e*ore recordin! chan!es resultin! *rom

retirements3 disposals or trans*ers o* assets and administers a periodic asset

veri*ication pro!ram inventory/ to insure the adeuacy o* sa*e!uardin! assets.

3%>%>%: Proets Aounting Di


44/56

*unds and that projects are mechanically complete on the date stipulated in the

pproved 5penditure 8euest or Project 'han!e 8euest.

3%>%>%/ Interna# Auditing

he n!ineerin! & Project +ana!ement udits Division &P+D/

provides auditGconsultin! services to its clients in the n!ineerin! Services

and Project +ana!ement dministrative reas. udits in the Project

+ana!ement dministrative rea deal primarily 9ith controls over the

accumulation and reportin! o* Saudi ramcoFs project costs to 5ecutive

+ana!ement. In addition3 project en!ineerin!Gconstruction costs and

contractor invoices are revie9ed *or compliance 9ith contract terms and the

'ompanyFs 'ontractin! Policies and Procedures.

3%>%>%6 Contrat Re


45/56

contracts3 9ors as a core mem;er o* Saudi ramco id 8evie9 eam3 in the

*ollo9in! activities>

1. valuationGne!otiation o* commercial proposals3

2. Development o* a9ard recommendations3 and

". Per*ormin! the *inal price revie9.

*ter the contract a9ard3 the Department assists proponents in various

aspects o* the contract administration. his includes>

1. 'han!e ,rder ne!otiation under lump sum contracts

2. 8evie9 and approval o* Internal dministration Procedures

". 8evie9 o* invoices under Beneral n!ineerin! Services and

other cost reim;ursa;le contracts

4. ssistance to Project +ana!ement in administerin! Pro!ram

+ana!ement 'ontracts3 ;oth in-?in!dom and ,ut-o*-?in!dom

$. 8evie9Gne!otiation and settlement o* contractor claims

. Preparin! ad hoc reports to contract proponents *rom 'ontract

In*ormation Systems 2/.

3&


46/56

C'APTER T'REE

+=,D,,BA

1%0 MET'ODS OF CO&&ECTING DATA

he data in this report 9as collected ;y intervie9in! people 9orin! in

the Pipeline Project Department. hy are ased to identi*y the pro;lems

associated 9ith the process and the solution to such pro;lems. he project

en!ineers in the Department 9ere ased to provide their input either ver;ally

or 9ritten dependin! on their place. he intervie9ers 9ere ased t9o speci*ic

uestions>

1> ist major concerns that you *aceR nd ho9 to handle themR

2> ist su!!estions to improve the processR

he main pro;lems and the su!!ested solutions *or those pro;lems are

detailed in the 'hapter #ive.

4'


47/56

C'APTER FO4R

= P8,+S


48/56

:. ac o* no9led!e o* contractors and e5perience in lectrical3

Instrumentation and 'ommunication 9or since3 they represent

much smaller part o* the project.

10. In lar!e pipeline sies3 *a;rication and delivery o* lar!e sie pipes3

valves and *ittin!s are an area o* concerns.

11. +aterial availa;ility at site durin! construction.

12. Start up procedures and activity plans have to ;e completed in

advance.

1". Inadeuate en!ineerin! site visits lead to desi!n pro;lems durin!

actual construction.

14. +issed material can cause ;i! delays.

his chapter 9ill ;e divided into three sections. ach

section 9ill discuss the pro;lems and3 9hat phase may have this

pro;lem happen and the solution o* the pro;lems. hree

pro;lems and solutions 9ill ;e discussed3 the pro;lems are>

8evie9 o* detailed desi!n.

+aterial issues.

Project has too many proponents.

:% RE7IE OF DETAI& DESIGN

42


49/56

s mentioned in 'hapter 9o3 Section 2.43 the detail

desi!n is issued *or revie9 9hen the desi!n completion at 0

and :0. In this procedure3 a copy o* the detail desi!n3 *or

e5ample3 the 0 detail desi!n3 is sent to the proponent and

other departments such as oss Prevention3 'onsultin! Services

Department3 Project Support3 'onstruction Department etc.

People 9ho are assi!ned to the desi!n revie9s do not

have the spare time to per*orm !ood revie9 a!ainst the Saudi

ramco standards and standard dra9in!s. s a result there are

a lot o* errors on the approved Issued *or 'onstruction dra9in!s

that reuire clari*ication 9ith 'onsultin! Services Department

durin! construction or reuire *ield desi!n chan!es. his e5tra

9or durin! construction can ;e avoided i* the desi!n revie9

process could ;e improved. lso3 Possi;le solution to this is to

have a dedicated sta** o* people *rom these departments to *orm

a team speci*ically to do the desi!n revie9s lso3 9hen the

proponent and support departments revie9 the 0 detail

desi!n3 they come up 9ith major scope chan!es3 9hich 9ill have

a cost and schedule impact. !reein! on a speci*ied scope at the

early sta!es o* the project and sticin! to it can solve this.

:%3 MATERIA& ISS4ES5

43


50/56

s mentioned in 'hapter 9o3 Section 2.$3 in the

Procurement Phase3 i* the contract is ump Sum urn ?ey

contract then the construction contractor 9ill secure all material

needed in the project. Sometimes this 9ill lead to pro;lems lie>

+aterials availa;ility

+aterial not complyin! 9ith Saudi ramco

standards

:%3% MATERIA& A7AI&AI&IT5

he Project sometimes needs special lar!e pipeline sies3

the *a;rication and delivery o* lar!e pipes3 valves and *ittin!s are

areas o* concern. hese and other not o** the shel* items 9ill

delay the project i* not handed 9ith care. lso3 i* any o* these

items are missed in the procurement phase or *ailed in 9orin!

in the construction phase3 a mar!inal time 9ill ;e reuired to

replace that material 9hich 9ill impact the schedule. solution

to this situation is that3 in the detail desi!n ensure su**icient

en!ineerin! and details is done in the procurement documents.

lso3 advancin! the procurement dates as early as possi;le 9ill

allo9 time to correct and re-order i* necessary. Provide a

detailed revie9 and survey o* all materials needs to ensure that

all the materials are ordered and shipped on time.

he project mana!ement can also consult the proponent

in the materials and have their input and advice o* previous

history o* !ood and ;ad materials in previous projects.

44


51/56


52/56

possi;le solution is to have the desi!n contractor

prepare a chec o** sheet 9hen revie9in! the vendor dra9in!s to

ensure that the vendor dra9in!s meet the desi!n speci*ications

and also the Saudi ramco standards. s *ar as third party

inspection3 the ump Sum urn ?ey contractor responsi;le *or

inspection/ should provide an inspection paca!e to the third

party inspection sta**. his paca!e should include copies o* the

relevant and applica;le Saudi ramco standards.

lso3 provide e5perienced inspectors3 reuest the

contractor to *ollo9 up 9ith the vendor durin! manu*acturin! o*

euipment in the *actory so that the inspector can spot the

violations/ ahead o* time *or e5ample the vendor inspector may

pay a visit to the *actory at "03 70 and 100 completion.

:%1 TOO MAN PRO?ECT PROPONENTS

In a project3 each area has its o9n proponent. ie *or

e5ample3 i* the project is a pipeline *rom a re*inery to a ;ul

plant3 the project scenario is the project has a proponent *or the

shippin! *acilities3 a proponent *or the pipeline itsel* and a

proponent *or the receivin! *acilities.

=avin! to deal 9ith di**erent proponents *or the same

project3 or more and to secure their acceptance and satis*action

throu!hout the project and *inally to !et their *inal si!natures o*

the important project document lie the +echanical 'ompletion

46


53/56

'erti*icates and the Per*ormance cceptance 'erti*icates is not

a simple tas.

solution *or dealin! 9ith di**erent proponents *or some

project could ;e that at the ;e!innin! o* the project3 the

proponents assi!n a representative that can represent them on

all sites3 arran!e the di**erent tass and procedures3 and

coordinate durin! testin! and commissionin!. his

representative can have a small !roup3 9hich the mem;ers

come *rom di**erent proponent areas to ensure that all issues

and concerns are covered. his representative can help the

project and the Project +ana!ement eam to push the activities

and the scheduled activities that reuire proponent inter*erence

and support. =e also can correspond in a timely manner to the

Project +ana!ement eam any concerns or pro;lems that the

proponent have and any issues done on one site he 9ill ensure

replications and preparation o* the other sites *or the same.

4$


54/56

C'APTER FI7E

S(++8A


55/56

desi!n speci*ications and also the Saudi ramco standards. he

last pro;lem 9as too many project proponents to a project and

the su!!ested solution 9as to assi!n a representative ;y the

proponents o* the project that can represent them on all sites.

his representative can have a small !roup3 9hich the mem;ers

come *rom di**erent proponent areas to ensure that all issues

and concerns are covered.

/%0 RECOMMENDATIONS FOR F4T4RE ST4DIES 5

he *ollo9in! recommendations are provided *or the *uture studies>

1. he study concentrated on the project en!ineers in

pipeline project department. #urther study can have

input *rom other inter*acin! departments.

2. he report had pro;lems *rom most o* the seven

phases3 concentratin! one phase and *indin! the

pro;lems and solutions mi!ht ;e e**icient.

". It is also recommended to use a multiple choice

uestionnaire rather than essay type3 9hich 9as used

in the report3 ;ut it 9ill need to mention all type o*

pro;lems that mi!ht occur in a project.

4. study can ;e done on the pro;lems that *ace the

contractor in the phases o* the project and the solution

startin! *rom the contractor point o* vie9.

4&


56/56

REFERENCES

1/ #acts & #i!ures3 999.saudiaramco.com3 Saudi ramco 2001

2/ Project n!ineers Development =and;oo3 Saudi ramco3Decem;er3 2002

"/ http>GGpscd.dha.aramco.comGdivisionsGpcdG

4/ Su;mittal 8euirements *or

Documents

CEM600 Design and Constr of Pipeline