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

By Armando Bianco, Engineering Manager, Eniprogetti

Global Conference on EPC Contract & Project Management

9th-10th November 2017 Lisbon, Portugal

progetti

Index

Eni

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

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

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

Conclusions

eniprogetti 2

3

Eni

eniprogetti

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

eniprogetti 4

eniprogetti 5

Feasibility 2-4 MM (typical ref.)

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

Detail Design & Procurement

9-18 MM (typical ref.)

Construction Commissioning

12+ MM (typical ref.)

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

Appraisal / Evaluation: assess e t of the opportu it ’s eco o ic alue

Selection: choice of optimal development configuration

Definition: finalization of the development concept

Execution: detailed development and physical

realizatio of the scope of the project’s ork

Project expenditure

Capital Risk

Difficulty to implement

changes

Personnel involved

Stakeholders’ e pectatio s

Time

G1 G2 G3

Oil and Gas Project Development Phases

eniprogetti 6

Identification and analysis of the main process and

utilities for each generated concept alternative

Preparation of process specifications, design criteria, for all

processes , utilities and transportation systems. Preliminary

engineering, safety and constructability.

Finalization of all processes, utilities and

transportation systems.

Design of all engineering systems

Constructability reviews finalization

3D model

Detail Engineering Design

Procurement and Construction

Technology selection report

Preliminary Heat & Material balance

Block Flow Diagram

Preliminary Site Plan

Process Flow Diagrams

Battery Limits Table

Preliminary P&I Ds

Equipment Data Sheets Design Criteria

Preliminary Plot Plan

Finalization of Heat & Material balance, P&ID & Equipment and

packages DS

Plot Plan, Equipment layouts, Underground layouts

Finalization of Technical Specifications (Stress analysis Criteria)

Single lines for steel structures

Preli i ar MTO’s Pipi g ( st MTO)

P&ID (with vendor information)

Equipment DS (for all items)

Details MTO (2nd and 3rd)

Isometrics

Construction drawings

Stress Reports

Project Development Phases Key Activities -> Key Deliverables (es. for process and piping and layout engineering)

Feasibility 2-4 MM (typical ref.)

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

Detail Design & Procurement 9-18 MM

(typical ref.)

Construction Commissioning

12+ MM (typical ref.)

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

Support to Construction

and commissioning

Feasibility

Red-marked and as-built

What if… … Desig Bases are not finalized

Example: the pressure of the Sea Water Make-up (rely upon information) was significantly different from the reality.

Technical resolution: lower the pumps with an additional basin (groundwater level very high).

Impact: additional costs and delay in schedule

… Key Deliverables are not ready as needed

Example: the supply of a critical reactor was assigned to a vendor in the Far East and a shipping to North Africa was

fixed in advance. Due to the delay in the 3D model, the nozzle orientation was not ready as per original plan agreed

with the vendor resulting in late finalization of the vendor engineering and eventually of the supply.

Recovery plan: an acceleration plan was agreed with the vendor to meet shipping window.

Impact: additional costs

… Battery Li its are not aligned (process-wise)

Example: two different mechanical contractors were assigned to install the cooling water circuits in the relevant area

and a battery limits was established. During the commissioning phase after the battery limits were connected it was

noticed that one contractor inverted the connection from a process point of view.

Technical resolution: the connections were modified during commissioning and with acceleration in procurement for

the unforeseen additional material during commissioning

Impact: delay during commissioning phase

eniprogetti 7 Note: Lesson Learnt not related with ENI projects

How Design Basis, Key Delivery and B.L. can affect a Project

eniprogetti 8

Feasibility 3-6 MM

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

Detail Design & Procurement 9-18 MM

(typical ref.)

Construction 12 – 32 MM (typical

ref.)

Construction Commissioning

12+ MM (typical ref.)

Pre-feas. 1-3 MM

va

lue

time

Project Cost

Curvet

Availability of

InformationPeak

Material

Cost

Peak

Construction

Cost

Material

Selection &

Take-off

BOQ &

Construction

strategy

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

During Basic – FEED project costs can be properly evaluated by finalization of material

selectio a d MTOs, owi g to that this phase is the ost i porta t for the go/ o go final assessment

$

(typical ref.)

Design approach – Key points

eniprogetti 9

The Basic - FEED engineering shall be tailor fit to allow the correct definition of

the i vest e t cost a d to support the go / o go decisio gate 3 (key deliverables fit for purpose to the activities and not vice-versa);

In Basic – FEED phase, the key deliverables allow to fix the material selection

and estimate material take-offs which are the input for the procurement and

construction strategy based on the project drivers;

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

eniprogetti 10

Long Lead Items definitions

eniprogetti 11

Those components of a system or piece of equipment for

which the times to design and fabricate are the longest and

for which an early commitment of funds may be desirable or

necessary in order to meet the earliest possible date of

system completion.

Critical Path

eniprogetti 12

The critical path is the sequence of activities that represents the longest path through a project, which

determines the shortest possible project duration [PMBOK 6.6.2.2 Critical Path Method]

Appling Critical Path method for all the systems of a project, even material with a rather short

delivery can result to be critical, owing to that we can split LLI in two categories:

Typical LLI such as:

• High pressure equipment

• High temperature equipment

• Special Material equipment

Not Typical LLI such as:

• Tie-ins: integration with existing Facilities

• Bulk material for early commissioning system

Tie-ins: integration with existing Facilities

eniprogetti 13

Dismantelling

Detail Design & Procurement

PRODUCTION PLAN of EXISTING FACILITIES

Production Shut-

down UNIT 10

UNIT 20

UNIT 30

TIE-INS

OVERALL SCHEDULE INTEGRATED WITH PRODUCTION PLAN

Plant to be disinvested

Production Shut-

down

EARLY PROCUREMENT

EARLY CONSTRUCTION

EARLY COMMISSIONING

FEED 3-9 MM (typical ref.)

Detail Design & Procurement 9-18 MM

(typical ref.)

Construction 12 – 32 MM (typical

ref.) PROCUREMENT FOR LLI

Commissioning 3- 12 MM (typical ref.)

Feasibility Study

FEED

Construction

Commissioning

TIE-INS

TIE-INS

INSTAL.

Dismantelling Dismantling

Shut-

down

Shut-

down

Shut-

down

EARLY ENGINEERING

Shut-

down

TIE-INS INSTAL.

Dismantling Shut-

down

PROCUREMENT FOR TRADITIONAL LLI

Shut-

down

REFERENCE GREEN-FIELD PROJECT SCHEDULE

Tie-ins shall be planed in an early stage of the project, with a dedicated engineering,

construction and commissioning team. The project schedule incorporates the production

plan in terms of turn-around or critical milestones.

Feasibility 3-6 MM

(typ.Ref.)

Pre-feas. 1-3 MM

(typ.Ref.)

Bulk Material for Early Commissioning System

eniprogetti 14

Engineering design for bulk material is

aimed to produce MTOs with increased

levels of definition

Procurement generally follows the

MTO by engineering based on master

agreements or project agreements

Construction strategy is divided into:

1st phase by area

2nd phase by system

During the engineering phase it is important to verify that the delivery of bulk material

fits the Mechanical Completion dates (additional specific MTOs can be envisaged).

Long Lead Items strategy – Key points

eniprogetti 15

The critical path developed for all the project systems allows us to recognize

critical delivery items which do not have the longest delivery such as tie-ins or

bulk material for early commissioning system, which shall be focused since the

start of the project with a dedicated integrated team (engineering,

construction and commissioning);

For a revamping project, the integration of the production plan in the project

baseline allows to execute tie-ins during turn-around, minimizing the number

of shut-downs and avoiding unnecessary loss of production;

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

eniprogetti 16

If you're not confused, you're

not paying attention.

Tom Peters

Project objectives and Fast-Track Projects

eniprogetti 17

Detail Design & Procurement

Feasibility 3-6 MM

(typ.Ref.)

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

Detail Design & Procurement 9-18 MM

(typical ref.)

Construction 12 – 32 MM (typical

ref.)

Commissioning 3- 12 MM (typical ref.)

Feasibility Study

FEED

Detail Design & Procurement

Pre-F.

FEED

Pre-feas. 1-3 MM

(typ.Ref.)

Feasibil.

• Opt.1) Compress the activity lengths

• Opt.2) Fast-Track by parallelization

of phases

Possible outcomes when implementing a Fast-Track in a project

eniprogetti 18

Relying

upon preliminary

information

Higher

Cost

Higher

Risk

More

Engineering

Man-hours

More

Reworks

More difficult

engagement of

personnel

Overdesign

material

Design based

on assumptions

Increased

interface

management

Not linear

approach in

decision making

Increased

possibility of

inconsistencies

Which it the greatest

objective?

How to mitigate risks in fast-track projects

eniprogetti 19

Detail Design & Procurement

Feasibility Study

FEED

Final alignment

TEAM

If the approach is aligned

since the beginning with a

common goal, all the team

is aimed to support

unavoidable project changes

and reworks activities

ENGINEERING

Preliminary information

evaluated from Basic (used

for detail design) are

always re-checked when

more information are

available

MATERIAL

Material check/re-rated

is re-consolidated both in

Basic and Detail Design

to avoid reworks during

construction and

commissioning

Re-cycling

Design inputs/outputs

D

ENGINEERING

Final alignment mitigates risk

of further phases for critical

aspects

MATERIAL

When procurement cycle

is long, procurement can

be start with preliminary

data, updating more

consolidated information

during the vendor

alignment before PO

Case Study

eniprogetti 20

Detail Design & Procurement

Feasibility Study

FEED

D

Project Organization

Engineering Approach: Re-cycling Design

1. Process and Layout for critical circuit

2. 3D Model Review 30% and 60%

3. Material Selection

4. Vendor design

5. Design Philosophy – Operating manual

eniprogetti

OWNER

BASIC –FEED

CONTRACTOR DETAIL ENG.

CONTRACTOR

VENDOR

SUB.

CONTRACTOR

VENDOR

FEASIB

ILI

TY

BASIC

-

FEED

DETAIL

ED

EN

G.

PRE-

FEAS.

CONSTRUCTION

CONTRACTOR

CONSTRUCTION

CONTRACTOR

CO

NSTRU

CTIO

N

SUB.

CONTRACTOR

SUB.

CONTRACTOR

SUB.

CONTRACTOR

VENDOR

LICENSOR

FAST

-TR

AC

K

FEASIBIL. CNT

Case Study Organization Chart

Interface Management

#1: Process and Layout for critical circuit

eniprogetti 22

File by

A B C IN OUT IN OUT IN OUT IN OUT IN OUT IN OUT

EST9 4 SA 1 351 351 351 351 351 351 351 351 351 351 351 351 351 351 351

EST9 4 SA 2 380 380 380 380 380 380 380 380 380 380 380 380 380 380 380

EST9 4 SA 3 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

EST9 4 SA 4 351 351 250 351 351 351 351 250 250 351 351 351 351 250 250

EST9 4 SA 5 250 351 351 250 250 351 351 351 351 250 250 351 351 351 351

EST9 4 SA 6 351 250 351 351 351 250 250 351 351 351 351 250 250 351 351

EST9 4 SA 7 351 351 351 351 351 351 351 351 351 250 250 250 250 250 250

x x x x x x x x x x x x x x x

CEER 4 CEER 1 351 351 250 351 351 351 351 250 250 250 250 250 250 250 250

CEER 4 CEER 2 351 250 351 351 351 250 250 351 351 250 250 250 250 250 250

CEER 4 CEER 3 250 351 351 250 250 351 351 351 351 250 250 250 250 250 250

CEER 4 CEER 4 351 351 250 351 351 351 351 250 250 351 351 351 351 250 250

CEER 4 CEER 5 351 250 351 351 351 250 250 351 351 351 351 250 250 351 351

CEER 4 CEER 6 250 351 351 250 250 351 351 351 351 250 250 351 351 351 351

CEER 4 CEER 7 351 351 351 351 351 351 351 351 351 351 351 351 351 351 351

CEER 4 CEER 8 380 380 380 380 380 380 380 380 380 380 380 380 380 380 380

CEER 4 CEER 9 351 351 351 250 250 250 250 250 250 250 250 250 250 250 250

CEER 4 CEER

CEER 4 CEER

CEER 4 CEER

In Process: Pump Nozzle Alignment for installation case, Pumps ABC at ambient

temperature , piping not anchored to the pumps.

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

In Process: Tracing Failure Scenario analysis

Ca

se

PUMP

DISCHARGEFV s Valves Flow PSVs Valves Flow

FVA FVB FVC PSVA PSVB PSVC

BASIC-FEED

CONTRACTOR

DETAIL ENGINEERING

CONTRACTOR

1) PRELIMINARY

SIZE CALCULATION &

PLOT PLAN

2) PROCESS SCENARIOS

(DESIGN CASES AND

TRANSIENTS)

3) STRESS

CRITERIA

WITH

PRELIMINARY

CRITICAL

VERIFICATION

AND TYPICAL

DETAILS

6) UPDATING PROCESS LINE

CALCULATION & PLOT PLAN

4) 3D

LAYOUT

5) STRESS

CALCULATION

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

eniprogetti 23

BASIC-FEED

CONTRACTOR

DETAIL ENGINEERING

CONTRACTOR

BASIC-FEED

CONTRACTOR

DETAIL ENGINEERING

CONTRACTOR

#3: Material Selection (Piping)

eniprogetti 24

Fluid list

Process Fluid List

Material Requirements

Vendor

Follow-up

Piping Classes

Material requisition &

Purchase Order

BASIC-FEED

CONTRACTOR

DETAIL ENGINEERING

CONTRACTOR

#4: Vendor design

eniprogetti 25

Process DataSheet

Mechanical and

Material Check

Vendor

Follow-up

Material Requisition

BASIC-FEED

CONTRACTOR

DETAIL ENGINEERING

CONTRACTOR

#5: Design Philosophy – Operating manual

eniprogetti 26

Updating Process

Design

Updated Control

Philosophy

Operating

Manual

Process Philosophy

Operating Scenarios

Design

Scenarios

BASIC-FEED

CONTRACTOR

DETAIL ENGINEERING

CONTRACTOR

Fast Track – Key points

eniprogetti 27

The Fast Track with parallelization of phases which traditionally are developed

sequentially is a possible strategy to meet Project Objectives when the

schedule is challenging;

To mitigate the risk associated to fast track (more interfaces, reworks,

designing by conservative assumptions rather that consolidated data etc.)

project team needs to be integrated with an interface management plan and

dedicated engineering methods such as re-cycling and final alignment need to

be set-up in the engineering execution plan.

Conclusions - Key Factors for Basic-FEED Projects

eniprogetti 28

Tailor fit Design by Project Objectives

Advanced monitor of costs with correct Basic-FEED data

System-wise approach since the beginning of the project

For revamping, integration of project schedule with production plan

Interface management, re-cycling and final alignment for fast-track project