Introduction - PDO · Web viewMirza, Hamza UEP/311 Function Ting, Kong Yu CTP/1 CPD Akhavan, Majid CTP/11 CPD Sesha Guru, Sankareswaran GGE/4 Gas Narayanasamy, Rajesh GGE/41 Gas Stanley

Petroleum Development Oman L.L.C.

Project Management of Change Procedure

Document ID PR-1247

Document Type Procedure

Security Unrestricted

Discipline Project Engineering

Owner UEP/3

Issue Date 22-04-2015

Revision Rev 5

Copyright: This document is the property of Petroleum Development Oman, LLC. Neither the whole nor any part of this document may be disclosed to others or reproduced, stored in a retrieval system, or transmitted in any form by any means (electronic, mechanical, reprographic recording or otherwise) without prior written consent of the owner.

Project Management of Change / Rev. No. 5

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Page 2 PR-1247 - Project Management of Change Procedure 22-04-2015

The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED.


i Document Authorisation

Authorised For Issue – 22nd April 2015

Document Authorisation

Document AuthorityJulian Masters

UEP(CFDH-Project Engineering)

Document AuthorityLeandro Cuberos

Mejia UEP3(CFDH-Project

Services)

Document CustodianSreekumar Nair

UEP33(Functional Lead – Cost Engineering)

Document ControllerSaid Harmali

UEOI211(IM Coordinator)

Date: Date: Date: Date:

ii Revision HistoryThe following is a brief summary of the most recent revisions to this document. Details of all revisions prior to these are held on file by the issuing department.

Version No.

Date Author Scope / Remarks

05 April 2015 Sreekumar Nair UEP/33 Introduce; No-Change Mindset after DG3b. Set of Change Criteria Asset BVDs, CRP, and Approval levels for

<USD 50 mln projects PMC tool Portfolio level reports and audit requirements

04.1 May 2012 Paul Frost UEP/3 Minor inconsistencies corrected.

04 Jan 2012 Paul Frost UEP/3 Approved. Includes Baseline Value Drivers

03 Oct 2011 Paul Frost UEP/3 Issued for Review - Update in line with RHIP

02 Mar 2011 ANA Al Suleimany OTE/2 Approved

01 Jul 1999 Issued for review




iii Review Team

Name PortfolioMata'Ni, Mohammed UEP/331 FunctionMirza, Hamza UEP/311 FunctionTing, Kong Yu CTP/1 CPDAkhavan, Majid CTP/11 CPDSesha Guru, Sankareswaran GGE/4 GasNarayanasamy, Rajesh GGE/41 GasStanley Fernando, Kingston FBI/3 InfrastructureMithra, Vimal ONE/43 North OilCruickshank, David UIR/5 RAHPentapalli, Srinivasa UIR/53 RAHSidharthan, Rajesh OSE/4 South OilAgrawal, Pankaj OSE/41B South OilOluwapojuwo, Olalekan OSE/41M South Oil

iv Related Business Processes

Code Business Process

CP117 Project Engineering Code of Practice

v Related Corporate Management Frame Work (CMF) DocumentsThe related CMF Documents can be retrieved from the Corporate Business Control Documentation Register CMF.

EXECUTIVE SUMMARY

This document describes the process for controlling and managing changes during the DEFINE and EXECUTE phases of PDO projects. Change control is an important factor in ensuring that projects are completed on time and within budget. The document sets out a series of key Baseline Value Drivers for the projects which shall be developed during SELECT phase and then describes a structured method for assessing and approving (or rejecting) changes against these parameters.

The ‘Stage Gate’ methodology described provides a consistent approach to the assessment of Changes by Change Review Panel consisting of senior project personnel. The Change Review Panel meets regularly and acts as the reviewing and decision making body. Approval Levels associated with varying levels of change are also defined in the document.



http://sww4.pdo.shell.om/CMFportal/ListBP.aspx


Contentsi Document Authorisation...............................................................................................................3ii Revision History............................................................................................................................ 3iii Review Team.................................................................................................................................. 4iv Related Business Processes........................................................................................................4v Related Corporate Management Frame Work (CMF) Documents.............................................41 Introduction................................................................................................................................... 7

1.1 Background............................................................................................................................. 7

1.2 Distribution and intended audience.........................................................................................7

2 Objective, Purpose and Scope.....................................................................................................72.1 Purpose.................................................................................................................................. 7

2.2 Objective................................................................................................................................. 7

2.3 Scope...................................................................................................................................... 7

2.3.1 Exclusions........................................................................................................................... 8

3 Basics of PMOC Process..............................................................................................................83.1 Project Basis........................................................................................................................... 8

3.2 Changes................................................................................................................................. 9

3.3 Change Criteria....................................................................................................................... 9

3.4 Baseline Value Drivers............................................................................................................9

3.5 Classification of Changes based on impact levels................................................................10

3.6 Approval Authorities..............................................................................................................11

3.7 Change Review Panel (CRP)...............................................................................................11

4 PMOC Process............................................................................................................................. 124.1 Identifying and Recording Change........................................................................................13

4.2 Screening.............................................................................................................................. 13

4.3 Impact Assessment..............................................................................................................14

4.4 Change Review.................................................................................................................... 15

4.5 Implementation of Change....................................................................................................16

4.6 Reporting Change................................................................................................................. 17

4.7 Emergency Change Process................................................................................................17

5 PMOC Process for Projects <50M$............................................................................................185.1 South Oil Asset..................................................................................................................... 18

5.1.1 BVDs and Approval Authorities.........................................................................................18

5.1.2 CRP – Change Review Panel...........................................................................................18

5.1.3 Change Coordinators........................................................................................................19

5.2 North Oil Asset...................................................................................................................... 19




5.3 Gas Asset............................................................................................................................. 20







5.4 Infrastructure Asset...............................................................................................................22

5.4.1 BVDs and Approval Authorities for Projects greater than 20M$.......................................22

5.4.2 BVDs and Approval Authorities for Projects less than 20M$............................................23



5.5 Change Register................................................................................................................... 24

5.6 Reporting.............................................................................................................................. 24

6 Funding the Change.................................................................................................................... 247 Roles and Responsibilities.........................................................................................................24

7.1 Project Manager / Project Engineer......................................................................................24

7.2 Project Services Lead...........................................................................................................24

7.3 PMOC Coordinator...............................................................................................................25

7.4 Change Initiator.................................................................................................................... 25

7.5 Screening Team................................................................................................................... 25

7.6 Impact Assessor................................................................................................................... 25

7.7 Change Review Panel (CRP)...............................................................................................26

7.8 Change Owner...................................................................................................................... 26

8 PMOC Tool................................................................................................................................... 269 Portfolio Level Reporting & PMOC Audits................................................................................2610 Abbreviations.............................................................................................................................. 2711 Appendix-1 – Attachments.........................................................................................................27




1 Introduction

1.1 BackgroundThe purpose of the Project Management of Change process is to improve, maximise and protect the ultimate integrity and value of PDO projects by ensuring that all changes to the agreed Project Basis are robustly managed.

PDO projects will implement the Project Management of Change (PMOC) process through the DEFINE and EXECUTE phases, effective from the commencement of DEFINE phase (post Decision Gate 3b (DG3b)).

This Project Management of Change procedure sets out the PDO process for controlling changes to the agreed Project Basis and assure that further development and definition from starting point (DG3b) is properly managed, communicated and documented.

1.2 Distribution and intended audienceThis document will be archived electronically within the PDO Livelink database, which will hold the definitive current version.

The intended audience is all personnel involved in PDO projects, including Subsurface, Facilities Delivery, Wells Delivery, OR&A, HSSE & SD, QA/QC, Project Services, C&P, Finance, as well as the BOM, DRB and DE.

2 Objective, Purpose and ScopeControl of project change is an essential element in the management of design integrity and project performance. The primary aim of this procedure is to establish a systematic approach to the identification, quantification, evaluation, approval, implementation and reporting of changes to the approved Project Basis, during the DEFINE and EXECUTE phases of the project.

This Procedure describes how to manage the early identification, recording, documentation, screening, impact assessment, review, approval, implementation and reporting of a Change.

Early identification of potential Changes, rapid information flow and timely decision making will lead to success in this process.

2.1 PurposeThe purpose of this procedure is to set standard process of managing deviations to approved Project Basis, in PDO projects.

2.2 ObjectiveThere are four basic objectives for Project Management of Change:

1. To record changes to the project’s approved basis for historical, accountability and auditing purposes;

2. To control changes – identify changes, screening, impact assessment and decision making;

3. To provide early warning of changes and facilitate timely decisions regarding potential changes;

4. To support Cost and Schedule Forecasting.

2.3 ScopeThis procedure applies to all activities performed and deliverables produced by the project team (including Subsurface, Facilities Delivery, Wells Delivery, OR&A, HSSE & SD, QA/QC, Project Services, C&P and Finance) from completion of the SELECT Phase, through DEFINE and EXECUTE Phases.




Any proposed deviation from this process shall be reviewed by UEP33 and get endorsed by CFDH – Project Services (UEP3).

2.3.1 Exclusions

This procedure does not cover:

• Deviation from PDO Standards – please refer to PR-2066 – Managing Deviations from Standards & Procedures

• Requests to deviate from approved Contractors or Vendors.

• Revision of Budget and re-phasing processes.

• Facilities change proposals (FCPs) which deal with changes to installed facilities and are governed by the Field Change Proposal procedure PR-1001a.

3 Basics of PMOC Process

Select Define Execute Operate

Operations MOC AppliesProject Management of Change - PMOC

FreezeScope

DG3 DG4

( No Change Mindset )

Choosing the right Project Basis

VALUE CREATION VALUE PROTECTION VALUE REALISATION

Figure: - 2. PMOC with ‘No Change Mindset’

Good scope definition is fundamental to minimizing changes in a project. Good scope definition, coupled with a clear set of project objectives which are agreed with all stakeholders ensures a sound basis for the project. This is the biggest and most important way to avoid future preventable changes.

After DG3b, a “No-Change Mindset” should govern the project and changes in accordance to Change Criteria (section 3.3) will only be considered.

3.1 Project BasisProject Basis is a set of technical, cost, time and strategy/plan documents approved at decision gates, which defines the project scope. Examples of Project Basis documentation;

During the DEFINE Phase (endorsed at DG3b): Field Development Plan Concept Selection Report Basis for Design documentation DEFINE Phase Budget Type-2 Cost Estimate and Estimate Basis DEFINE Phase Timeline Integrated Schedule, major milestone, and Schedule Basis Project Execution Strategy/Plan Contracting Strategy/Plan




During the EXECUTE Phase (endorsed at DG4): FEED documentation Project Specifications EXECUTE Phase Budget (without P50 Contingency) and basis of Cost

Estimate Integrated Schedule, major milestone, and Schedule Basis Project Execution Strategy/Plan Contracting Strategy/Plan

3.2 ChangesChanges are deviations from the Project Basis and cover areas such as omissions or gaps in scope of work, incomplete definition of intermediate deliverables or methods, changed project premises or external influences.

The project needs to manage such Changes to ensure there is an auditable mechanism for decisions related to the content and consequences of these Changes.

3.3 Change CriteriaChanges may be considered only if they meet one or more of the following Change Criteria:

Criterion 1. The Change is essential to maintain health, safety, environment and security standards;

Criterion 2. The Change is essential to comply with legislation or results from a change in legislation;

Criterion 3. The Change is essential for system or component functionality or operability;

Criterion 4. The Change is essential for the implementation of the project, due to variation in original premises (estimate basis, schedule basis, strategies and plans, etc.)

In exceptional cases, BOM/DE may propose specific changes and in such cases, the project team shall use the PMOC process. Examples for such cases;

The Change will result in a significant reduction in the life cycle cost without impact on schedule.

Availability improvement as a result of improved reservoir data.

3.4 Baseline Value DriversFor the purpose of the PMOC process, the Baseline Value Drivers (BVDs) are the set of targets approved at decision gate. BVDs are approved at the Decision Gate (DG3b / DG4) by the DE.

The BVDs for a project are determined at the end of SELECT Phase and the approved BVDs at DG3b will form the basis for the PMOC process during the DEFINE phase.

At the end of DEFINE phase, the BVDs are revised, updated or added with new documentation and the approved BVDs at DG4 will form the basis for PMOC process during the EXECUTE phase.

A change to the Baseline Value Drivers will either increase or erode the value of the project and is therefore subject to the PMOC.

Examples of Baseline Value Drivers are:1. Time – Project Schedule (Major Milestones)2. Cost – (Opex / Capex budgets)3. Target Asset Production4. Asset Integrity5. Asset Availability6. Reserves




All projects >$US50M will have their individual BVD set developed at DG3b. If Change occurs during the DEFINE Phase (e.g. reserves, project budget or schedule milestones changed) an updated BVD set must be developed at DG4.

3.5 Classification of Changes based on impact levels The potential impact of a Change must be considered when applying the PMOC process. Changes can be classified in four Levels according to their cumulative impact (total impact of all approved Changes + impact of the current Change) on each BVD. Below table provides guidance to set impact levels.

Impacts on

(BVDs)Metric Baseline Level 4

ChangeLevel 3 Change

Level 2 Change

Level 1 Change

Major Milestone(s) Months ....

Changes with no

impact on BVDs

or with impacts

<0.1%

<1% or 1 month

<5% or 3

months

>5% > 3 months

DEFINE Budget (not applicable during

EXECUTE phase)$ .... <1%

<5% or

US$100k

>5% or US$1mln

Type-2 Estimate (not applicable during

EXECUTE phase)$ .... <1%

<5% or

US$100k

>5% or US$1mln

EXECUTE Budget (including P50 Contingency)

$ ....<1%

orUS$5mln

<5% or

US$10mln

>5% or

US$50mln

Operating Expenditure $M/Y Opex .... <1% <5% >5%

Asset Production k bopd .... <1% <5% >5%

Asset Integrity QRA (max IRPA) .... <1% <5% >5%

Asset Availability % .... <1% <3% >3%

Reserves M Boe .... <1% <5% >5%

(QRA - Quantitative Risk Assessment, IRPA - Individual Risk per Annum)

General Guideline on change level <0.1% <1% <5% >5%

As part of the project specific Management of Change elements in Project Controls Plan, the project team shall set up the BVDs. The baseline values (column-3 of above table) shall be documented and the deltas are calculated as per the percentages given. Wherever the percentage value is more than the given discrete values, the discrete values shall be applicable.




3.6 Approval Authorities The approval authority of a Change is on the basis of the impact level on the BVDs (refer to 3.4). The below table describes the Approval Authority for each impact level.

Change Level

Approval Authority Comment

Level 4 Project Engineer To be presented to next Change Review Panel, for info.

Level 3 Project Manager To be presented to next Change Review Panel, for info.

Level 2

BOM CPD ProjectsBOM, CTSM and CPDM shall join the CRP meeting to review Level 2 Change.After decision by BOM, inform DE

Asset Engineering Manager (AEM)

Asset Major Projects (>50M$)

BOM and AEM shall join the CRP meeting to review Level 2 Change.After decision by AEM, inform DE

Level 1 DE

CPD Projects DE, BOM, CTSM and CPDM shall join the CRP meeting to review Level 1 Change

Asset Major Projects (>50M$)

DE, AEM and BOM shall join the CRP meeting to review Level 1 Change

3.7 Change Review Panel (CRP)The objectives of the Change Review Panel are;

To review the decisions taken by PE and PM for Level 4 and Level 3 Changes To take decisions for Level 2 and Level 1 Changes Ensure that all implications of the Change are considered before being accepted or

rejected, for all Changes.

The Change Review Panel will meet on a regular basis; monthly on a specific day and at a specific time. CRP can be called to meet by the PMOC Coordinator when the need arises on or at the discretion of the Project Manager. If required, the CRP should be able to convene within 24 hours.

The PMOC Coordinator will work with the Project Manager to ensure that the composition of the CRP is appropriate that every affected domain and/or function is adequately represented. Whenever Level 2 or Level1 Changes are been reviewed, ensure that the respective Approval Authorities are present in the CRP.

CRP Position Project PositionChairman Approval Authority / Project Manager Secretary PMOC Coordinator Member Project Manager / Project EngineerMember Facility Delivery ManagerMember Project Services ManagerMember HSSE & SD LeadMember OR&A LeadMember QA/QC LeadMember Discipline Lead(s)Member C&PMember FinanceMember Subsurface team LeadMember FEED (Office) ManagerMember Wells leadMember Functional technical authority (as required)

The CRP quorum is minimum five members, including the Approval Authority. Depending on the nature of the Change, the Chairman may decide to relieve some CRP members and/or invite other function/discipline/party as appropriate.




Within the mandate given by the Decision Executive, the Project Manager owns the budget. However, it is the responsibility of the Project Manager to ensure that the correct overall approval is obtained, in particular if authorisation is required from outside the project team (e.g. PDO Governance and Controls body, DRB, PDAB, Project Steering Committee, Tender Board, etc.)

4 PMOC Process The standard procedure PR-1247 is applicable for all projects.

To be able to follow this process, each project requires;

Project Basis documentation (doc. Number and revision number) Documented Baseline Value Drivers and its threshold limits/ranges Approval matrix Composition of Change Review Panel and CRP meeting schedules PMOC Coordinator Discipline Leads (as per PCAP TAs)

These specific details shall be documented in the Project Controls Plan, in the section ‘Project Management of Change’.

Project MOC Process Project Scopeis frozen

Project specificProject Controls Planfor DEFINE phase

FEED Office / Contractor’sMOC process

DG4(FID)DG3

Contractor’sMOC process

Project specificProject Controls Planfor EXECUTE phase

OperateSelect Define Execute

Facility Management of Change Process

Figure: - 1. PMOC Process in the ORP

Projects below USD 50 Million will follow the PMOC process; however the CRP, BVDs, etc. will be those at the Asset level, as described in Section 5.




4.1 Identifying and Recording ChangeA Change can originate essentially from anywhere; within the Project Team, Contractors, Operations, etc. and the source of the Change can be Contractor's change requests, Design/Constructability/Operability Reviews, HSSE Reviews, Info/updates from Vendors, Info/Updates from Govt/Legal sources, etc.

The Change Initiator, in consultation with Discipline Lead, shall fill in Section-1 of CPF with all available details, including supporting documents and references and issue immediately to PMOC Coordinator, before commencing any study work.

Depending on the nature of the potential change, the PMOC Coordinator shall consult the appropriate Discipline Leads, PE or PM to decide whether the proposed change is a deviation of Project Basis (Change) or not. If it is identified as a Change, it will follow the PMOC process or else the proposal be discarded or follow other project controls processes, such as forecasting.

PMOC Coordinator shall verify the contents and collaborate with the Change Initiator and subject matter experts such as Cost, Schedule, HSSE, Finance, Technical Discipline Leads, etc. to complete Section-1 of CPF, if any essential details are missing. Once the Section-1 of CPF has been satisfactorily completed, PMOC Coordinator shall register the potential change into Change Register.

Contractor's PMOC processContractor's change requestsDesign, Constructability, Operability ReviewsHSSE ReviewsInfo/updates from VendorsInfo/Updates from Govt/Legal sources

Initiator to fill in CPF Section-1 and issue to PMOC Coordinator

Decision by PMOC Coordinator in consultation with Discipline Leads, PE or PM.

Project/Asset Change Register

PMOC Coordinator verifies the Change Proposal and ensures that all required details are available.

Change identified byPDO or contractor personnel

Register Change inChange Register

Is itChange?

A

B

Return to the Initiator

INPUTS PROCESS REMARKS

YES

NO

4.2 ScreeningScreening Team shall consist of at least two members from the CRP and the PMOC Coordinator. Depending on the nature of the Change, PMOC Coordinator shall select the screening team. The team shall review the Change Proposals and based on the specifics of the Change, identify the disciplines or teams to be involved in the Impact Assessment of Change and the BVD(s) assigned to each Impact Assessor.

Screening Team shall identify and nominate a Change Owner for the proposed Change.

The Screening Team shall meet as frequently as required, however once in a week as a minimum, when any Change Proposal is available for Screening.




The PMOC Coordinator shall complete CPF Section-2.

PMOC Coordinator will notify all the Impact Assessors with all details such as;

CPF Sections 1 and 2, including all attachments and references as applicable The timeline to complete the Impact Assessment Any specific information (review meetings, engagements, etc.)

CPF Section-1

Screening team shall include minimum of two members of the CRP and the PMOC Coordinator.

CPF Section-1Screening Team, in consultations with Subject Matter Experts, Discipline Leads, etc.

Screening Team shall review all pending Change proposals and identify the Impact Assessors and their assigned BVD(s).Nominate Change Owner.

PMOC Coordinator shall fill-in CPF Section-2.

CPF Section-1 with all attachmentsTimeline for the Impact Assessment

PMOC Coordinator shall(1) communicate with all identified Impact Assessors, send the CPF Section-1&2 with all attachments, specify the timeline for the Impact Assessment.(2) notify the Change Owner.

Select Screening Teamby PMOC Coordinator

Screening of Change Proposals


A

Send notification toidentified personnel

for carrying outImpact Assessment

A-1

Fill-in CPF Section-2

Note:If the Screening Team finds that Impact Assessment is not required for certain Changes, those Changes can straight be moved to decision by PE/PM or submitted to CRP review.

4.3 Impact AssessmentThe identified Impact Assessors shall assess the impacts and shall provide feedback to the PMOC Coordinator within the set timeline. Wherever required, review meetings and engagement sessions can be planned for impact assessment of complex Change Proposals. The Change Owner shall liaise with the Impact Assessors on technical clarifications.

Impact Assessor shall have ownership of Impact Assessment on the assigned BVD(s), however they are encouraged to provide their views on other BVDs, as well. For example, when a cost estimator looks into the cost impact of the Change, he/she may provide impact assessment on the schedule or production. Impact Assessor shall also indicate the secondary changes such as document updates, TA approvals, start C&P or Finance processes, need of obtaining approvals external to the project, etc.

It is the responsibility of the PMOC Coordinator to organize the assessment feedbacks from all assessors, within the stipulated timeframe. In case of any delay in getting the feedbacks, the PE/PM shall be notified.

The Impact Assessors shall fill-in the CPF Section-3.

The Change Owner will develop implementation plan, with details such as source of fund, timeline, specific supports required, identified risks and mitigation plans, etc. (refer to section 6,




for the funding options). The implementation plan shall address all the secondary changes as well.

Based on the final Impact Assessment, the PMOC Coordinator shall classify the Change into Level 1, 2, 3, or 4 (as per the set impact levels, refer 3.4 above). The cumulative value of impacts of all Changes (previously approved Changes and the proposed Change) shall be considered when classifying the proposed Change. The Change Register will be the source of the cumulative value of impacts. Any Change with HSSE impacts shall be classified as Level 2, as a minimum.

Depending on the nature of the proposed Change, the Project Manager can change the level of Change to any higher level so as the Change will undergo additional reviews.

CPF Section-1&2 with all attachmentsTimeline for the Impact Assessment.

The Impact Assessor shall do assessment of impact on the assigned BVD(s) and provide feedback. While taking ownership of the assigned BVD(s), the assessor may provide assessment on other BVDs.

Impact Assessment outcome.Review meetings.

Coordination by PMOC Coordinator and involvement of the Impact Assessors are key to success - quality assessments within timeline

Implementation plan includes the sources of fund, timeline, specific supports required, risks and mitigation plans, secondary changes etc.

Final Impact AssessmentClassification of Changes based on impact levels

Carry outImpact Assessment

Impact Assessors to Fill-inCPF Section-3


A-1

PMOC Coordinator to categorizethe Change in to Level 1, 2, 3, or 4

(CPF Section-3)

A-2

Change Owner to fill-inimplementation plan

4.4 Change Review For Level-4 Changes, the Project Engineer shall review Changes, take decision and sign-off CPF Section-4.

For Level-3 Changes, the Project Manager shall review Changes, take decision and sign-off CPF Section-4. The decisions made on Level 3 and 4 Changes shall be presented to the next CRP, for information.

The CRP plus additional decision authorities (refer 3.5) shall review Level 1 and 2 Change Proposals. BOM/AEM shall take decision on Level 2 Changes. DE shall take decision on Level 1 Changes.

Examples of decisions / action plans, when a Change is approved;

Where a contract exists – be processed as a variation to contract, instructions to contractor, work order to contractor, etc. in accordance with the contract administration provisions; or

Where a contract does not exist – be included in a future Invitation To Tender (ITT).




PMOC Coordinator shall ensure that the decisions at all levels are properly captured in the CPF Section-4 and signed-off.

Impact Assessments done.Level 4 Changes are reviewed and decision taken by PE.Level 3 Changes are reviewed and decision taken by PM.

PMOC Coordinator shall make available all relevant documentation for all Changes to reviewed, in advance.

Change Proposals.Impact Assessment outcome.Decisions on Level 3 and 4 Changes.

All active Change Proposals shall be reviewed one by one.PMOC Coordinator takes note on the decisions and get sign-off for each Change.

PMOC Coordinator toorganize CRP Meeting

Review Change Proposalsand take decisions


A-2

A-3

Changeapproved?

YES NO

Notify Change Initiator,Change Owner,

and all concerned parties.

Note:In some cases where the impact assessment is not sufficient for full approval and more documentation is required, the CRP may propose partial approval to commence immediate actions. When further detailed documentation has been prepared, the Change Proposal must be re-submitted for review by the CRP, in a timely manner.

4.5 Implementation of ChangePMOC Coordinator shall communicate the decision and the approved action plans, including timelines, to the Budget Holder, Change Owner, Change Initiator and other concerned parties, such as, C&P, HSSE, ORA, etc, depending on the nature of Change and action plans.

The Change Owner will have the responsibility of implementing the Change. Wherever required, other key personnel in the project (PE, PM, C&P, Finance, Engineering, Procurement, Construction, ORA, HSSE, Project Services, etc.) shall coordinate and support the Change Owner.

Once the Change is implemented, the Change Owner shall close-out the Change by filling-in the CPF Section-5.

Lessons learned shall be captured in the CPF Section-5.




Change has been reviewed and decision has been taken.

PMOC Coordinator shall communicate the decision and the approved action plans, including timelines, to all concerned, depending on the nature of Change and action plans

Approved Change and action plans

Other project team members shall support the Change Owner in implementing the Change.

Change is implementedPMOC Coordinator facilitates filling-in CPF Section-5 by Change Owner.

Communicatethe decisions on Change

and the action plans

Implement the Changeas per the action plan


A-3

Capture lessons learnedand Close-out the Change

END

Notes on implementing a Change;

Ensure that the decision on Change is properly communicated to the Change Initiator; Ensure that affected deliverables are amended accordingly and re-approved by the

appropriate Technical Authority; Check from Budget Owner if a revision of the approved budget items is required and

ensure it is followed accordingly; Ensure, if applicable, that the Change is properly communicated with the Contractor and

that Contractor's documents and related project deliverables are revised accordingly; Check from Contract Engineer if a Work Order or Variation To Contract is required, and

ensure it is followed accordingly; Ensure that cost and schedule forecasts are revised by incorporating anticipated

impacts of the Change; Ensure, if applicable, that Risk Register is up-dated as per the anticipated impacts of

the Change; Budget Owner, Contract Holder/Engineer, Project Services Lead, Risk Engineer have

been duly notified during the PMOC process so that they can anticipate the required actions and Change can be implemented within the shortest cycle time.

4.6 Reporting Change The PMOC Coordinator will expedite and report the status of the various Change Proposals. This must be reported as part of the monthly project management report. It should include an overview of the approved, pending and rejected Change Proposals and their impact on BVDs. The Changes raised in the reporting month should be listed.

4.7 Emergency Change ProcessAn Emergency Change is a Change that requires immediate approval to prevent undue danger to human life, property, environment, etc. If such a Change is identified, the Project Manager and the Change Review Panel shall be notified immediately of the Change request in order to validate the use of the Emergency Change Process.

The Project Manager will need to approve the Change.

This approved Emergency Change should be submitted retrospectively to the CRP as soon as possible.




5 PMOC Process for Projects <50M$ The projects below USD 50 Million (managed by Asset project team) shall follow the standard PMOC process. However, the PMOC Coordinator, CRP, BVDs, etc are at Asset level, not for individual projects. These specifics for each Asset are articulated below.

5.1 South Oil Asset

5.1.1 BVDs and Approval Authorities

BVDs Metric Impact Change Classification

Approval Authority

Time: Milestone M130 – Facility On-stream MonthAny

ImpactLevel-1

OSD Panel (including CRP

+ BOM)Time: Milestones in PDO/OSD Scorecard, or affecting Operational Integrity

MonthAny

ImpactLevel-1

OSD Panel (including CRP

+ BOM)Time: Other milestones for complex projects Month Any

ImpactLevel-2 OSE Panel

(including BOM)Time: Schedule impacts not affecting milestones in the Business Plan

Month Any Impact

Level-3 Project Team Leader Panel

Released Project Budget US $ Any Impact

Level-2 OSE Panel (including BOM)

Time / Budget Month / US $

No Impact

Level-4 Project Engineer

5.1.2 CRP – Change Review PanelCRP Position Title/ Role Ref. Ind.

Chairman Engineering Manager South OSE

Secretary Head of Project Services – Asset MOC Coordinator/Focal Point

OSE4

Member Operations Manager OSO

Member Pet. Eng. Manager OSP

Member Asset Finance Manager, South OSF

Member Operations Manager OSGO

Member Cluster Leader OSPx

Member Delivery Team Leader OSOx

Member Senior Management Accountant, South OSF1

Member Lead Project Engineer OSEB

Member Marmul/Chemical Engineering Team Leader OSEMC

Member Engineering Team Leader OSEG

Member Lead Project Engineer OSEN

Member Amal Steam Project Manager OST

Member South ODC/EPCC Contracts Holder OSET

Member Process/Concept Team Leader-South OSE1

Member ODC Contract Rep. & Head of Flow line projects OSET5

Member EPCC Contract Representative OSET1

Member Contract Holder OSE7




5.1.3 Change CoordinatorsChange Coordinator Position Ref. Ind.

Asset Change Coordinator/Focal Point Head of Project Services OSE4Change Coordinator of Bahja Cluster Cluster Senior Planning Engineer OSE41BChange Coordinator of Marmul & Chemical Cluster

Cluster Project Planning Engineer OSE41C

Change Coordinator of Greater Birba Cluster

Cluster Senior Project Services Engineer OSE4G

Change Coordinator of Nimr Cluster Cluster Senior Project Planning Engineer OSE41NChange Coordinator of Civil Cluster & Flowlines

Cluster Senior Planning Engineer OSE41F

The Asset PMOC Coordinator shall have the responsibility of coordinating the management of change efforts for all <50M$ projects in the Asset. The Asset PMOC Coordinator shall also function as the Asset Focal Point for the PMOC process and shall coordinate with Functional Focal Point.

The cluster-wise coordinators will take care of the Identifying and Recording Change, Screening and Impact Assessment steps of PMOC process and keep the Asset PMOC Coordinator updated. Asset PMOC Coordinator will organise the CRP and will take charge of the overall PMOC process.

5.2 North Oil Asset



Approval Authority

Time: Major Milestone

M130 - Facility Onstream Month Any Impact Level-1

ONE Panel (CRP +

ONOx and ONPx)

Time: Major Milestone

M150 – Project Completion Certificate issued

Month Any Impact Level-1 ONE

Time: Other Milestones

M050 – Start Front End Engineering Design (FEED)M060 – VAR4M070 – Start of Detail Engg.M075 – AFC Package completedM080 – Award all LL itemsM090 – Award all contractsM100 – Start ConstructionM110 – Substantial CompletionM120 – Pre-Start-Up Audit completedM140 – VAR5

Month Any Impact Level-2ONE1/ ONE2x

Released Project Budget US $

≤ 10% of Contingency

Level-2 ONE1, ONE2x

≥ 10% of Contingency or Budget

Over-run

Level-1

ONE Panel (CRP +

ONOx and ONPx)

Time / Budget Month / US $

No Impact Level-3 Project Engineer




5.2.2 CRP – Change Review PanelCRP Position Discipline Portfolio Position

Chairman Project Management North Engineering Manager – ONE

Secretary Project Services Asset MOC Coordinator/Focal Point – ONE4

MemberProject

Management/PM/Contract Holder

ONE2Q/2L/2F/ONE6/ONE3/ONE5

Member Project Management/Project Engineering ONE2X/ONE6XX/ONE5X

Member Concept/Process Engineering ONE1/ONE1Q/ONE1F/ONE1L

Member Surface Production ONOQ/ONOL/ONOF/ONOY

Member Discipline TA2s ONE63/ONE64/ONE65/ONE26L/ONE11/MSE41

Member Operation Support/ORA ONO22Q/ONO22Y/ONO22F/ONO22L

MemberSurface

Production/Petroleum Engineering

ONO/ONP

Member BOMs ONPQ/ONPF/ONPY/ONPL


Asset Change Coordinator/Focal Point Head of Project Services ONE4

Change Coordinator of YBL & FAH Planning Engineer ONE43

Change Coordinator of QAL & LEK Project Services Planner ONE41



5.3 Gas Asset



Approval Authority

Time: Milestone M130 - Facility Onstream MonthAny -

Impact on Production

Level-1GD LT

(including CRP)

Time: Milestone M130 - Facility Onstream MonthAny - No

Production Impact

Level-2 CRP





Approval Authority

Time: Milestones in GD Scorecard MonthAny

ImpactLevel-1

GD LT (including CRP)

Asset Integrity / Operational IntegrityQRA

(max IPRA)Any

ImpactLevel-1


Production : Well Delivery mlnm3/d Any

ImpactLevel-1


Time: Schedule impacts on Integrated Milestones for complex/critical projects

MonthAny

ImpactLevel-2 CRP

Time: Schedule impacts not affecting major Milestones and those in GGE Business Plan

MonthAny

ImpactLevel-3

Cluster Team Leader

Approved Project Budget US $Any

ImpactLevel-2 CRP

Time / BudgetMonth / US

$No

ImpactLevel-4

Cluster Team Leader

5.3.2 CRP – Change Review PanelCRP Position Title/ Role Ref. Ind.

Chairman Engineering Manager Govt. Gas GGE

Secretary – Permanent memberHead of Project Services –

Asset MOC Coordinator/Focal PointGGE/4

Member – Permanent member Head of Gas Concept / Process Engineering GGE/1

Member Saih Nihayda Cluster Team Leader GGE/2

Member Saih Rawl Cluster Team Leader GGE/3

Member Yibal Kauther Cluster Team Leader GGE/5

Member Well Delivery & Construction GGE/6

Member Well Delivery & Construction GGE/5Y

Member Petroleum Engineering Manager GGP

Member Operations Manager GGO

Member Head of Business Planning GGB

Member Discipline Engineers TA2 GGE/2xx

Member Business Opportunity Manager GGX

Member Asset Finance Manager GGF

Member Team Leader – Assets Contracts Oil & Gas FPO/3





Asset Change Coordinator Head of Project Services GGE4

Change Coordinator - Saih Nihayda Cluster Planning Engineer GGE/46

Change Coordinator - Saih Rawl Cluster Planning Engineer GGE/42

Change Coordinator - Kauther Cluster Planning Engineer GGE/41

Change Coordinator - Yibal Cluster Planning Engineer GGE/44

Change Coordinator – Well Delivery Cluster Planning Engineer GGE/42



5.4 Infrastructure Asset

5.4.1 BVDs and Approval Authorities for Projects greater than 20M$


Approval Authority Remarks

Time

Time - Milestone M130 - Substantial Completion / Handing Over

Month More than 3 months Level-1 DE (UID)

DRB2 after UID CRP Panel (including CRP + BOM) Review

Time


MonthLess than 3 months

delayLevel 2

Asset Engineering

Manager (UIE, UIPT,

UIK,UIB,UII, UIR,UIC)

BOM approval after UID CRP Panel Review

Cost Project Budget US$ >5% Level 1 DE (UID)

DRB2 after UID CRP Panel (including CRP + BOM) Review

Cost Project Budget US$ <5% Level 2

Asset Engineering

Manager (UIE, UIPT,

UIK,UIB,UII,UIR,UIC)

BOM approval after UID CRP Panel Review

Time / Cost

Changes with no impact on BVDs

Month / US $ No Impact Level-4

Section Leader (UIPT2, UIB4, UIE5/3,UIID, UIIB, UIK4)

Project Engineer




5.4.2 BVDs and Approval Authorities for Projects less than 20M$


Approval Authority Remarks

Time


Month More than 1 month Level-2

Asset Engineering

Manager (UIE, UIPT, UIK,UIB,UII,

UIR, UIC)

After UID CRP Panel (including

CRP + BOM) Review

Time


MonthLess than 1 month

delayLevel 2

Section Leader Review and inform

CRP Panel Review

Cost Project Budget US$ >5% Level 2

After UID CRP Panel (including

CRP + BOM) Review

Cost Project Budget US$ <5% Level 2

Section Leader Review and inform

CRP Panel Review

Time / Cost

Changes with no impact on BVDs

Month / US $ No Impact Level-4

Section Leader (UIPT2, UIB4, UIE5/3,UIID, UIIB, UIK4)

Project Engineer

5.4.3 CRP – Change Review PanelCRP Position Title/ Role Position Remarks

Chairman Engineering Manager UIE/UIPT Based on Department and availability

Secretary Infrastructure Planner, FBI3 FBI3 Asset MOC Coordinator/Focal Point

Member Asset Engineering Manager UIE/UIPT/UIR/UIB/UII/UIK/UIC/UIK

Based on Department and availability

Member Finance Manager FBI Member Finance Capex Lead FBI1

Member Project Leads UIPT2 / UIE5 / UIE3/ UIR1/UIR3/ UIID/UIK4

Member Functional Lead UEP3 Alternative based on availability

Member Operational Managers UIPT3 / UIE3 / UIB1/UIIP

5.4.4 Change Coordinators

Change Coordinator Position Ref. Ind.Asset Change Coordinator/Focal Point Infrastructure Planner FBI3Change Coordinator of Pipelines & Terminal (UIPT) Planning Engineer UIPT2S

Change Coordinator of RAH Development Project Head Project Service UIR5

Change Coordinator of Electrical Power Systems Planning Engineer UIE51

Change Coordinator of Real Estate Planner UIB4

Change Coordinator of IM&T PMO UIIP2

Change Coordinator of Production Chemistry /Corporate Security Infrastructure Planner FBI3






5.5 Change RegisterThe Asset PMOC Coordinator will develop and maintain Change Register at Asset level.

5.6 ReportingThe Asset PMOC Coordinator will report Changes at Asset level.

6 Funding the ChangeThe Project Services Manager will advise on funding options within the current Control Budget (i.e. using available contingency). The Finance Manager is tasked to advise the Project Manager regarding the funding options via a Budget supplement.

In theory, all Changes require a corresponding Budget supplement. In such cases, the Budget Management Procedure must be invoked and the supplement approved before proceeding further on implementation of the Change.

However, if the Project Manager decides that the Change can be absorbed into the currently approved Budget (using contingency fund), then the Change can proceed without a Budget supplement, once supported by the contingency holder (normally one level high in the organisation).

The accumulated cost of all approved Changes should be incorporated into the regular cost reports. If, at a later point in the Project, a Budget supplement is required, then the reported Changes can be brought forward as part of the cause of the Budget shortfall.

7 Roles and Responsibilities

7.1 Project Manager / Project EngineerProject Manager / Project Engineer is accountable for the PMOC process and shall ensure that project specific Management of Change elements is prepared and included in the Project Controls Plan, maintained (updated) and fully implemented. PM/PE will;

Ensure that PMOC Coordinator is appointed Set the CRP Ensure that the PMOC process is fully implemented and consistently used in the

project Ensure that the Change approval levels are in accordance to Manual of Authority Ensure that external reviews and/or approvals are obtained (refer 3.6 above) Actively participate and support the PMOC process.

7.2 Project Services LeadProject Services Lead is responsible for the PMOC process and shall;

Prepare project specific PMOC elements and include in Project Controls Plan Revise and update PMOC elements as required Identify and appoint PMOC Coordinator Support implementation of PMOC process and its consistent application




Review PMOC reports

7.3 PMOC CoordinatorThe PMOC Coordinator (typically a Project Services Engineer / Cost Engineer) is responsible for:

Set up and maintenance of the project Change Register; Coordination of the PMOC Process and documentation; Issuing the Change summary reports, at least monthly; Scheduling the Change Review Panel (CRP) meetings with sufficient frequency to

ensure timely screening & approval of Change requests, including; o Preparing the Agenda;o Inviting Project Team / Subject Matter Experts or other special attendees as

required;o Issuing pre-read materials;o Recording minutes, especially decisions taken;o Expediting Actions.

Throughout the process the PMOC Coordinator should expedite all Change Proposals for earliest possible decision.

7.4 Change InitiatorAnybody in the project can initiate a Change Proposal. However, it would be appropriate that the Change Initiator is from the discipline from which the proposed Change has been triggered. For example process related Changes would be initiated by the process discipline, sub-surface changes by sub-surface team, and so on.

Project Engineer can either initiate or request a discipline member to initiate a Change which is generic in nature or with multidiscipline involvement.

The Change Initiator shall;

Identify a change and carry out initial assessment Discuss with Discipline Leads and/or Subject Matter Experts Fill-in CPF Section 1, with all details and attach relevant documents Submit the Change Proposal Form Support PMOC Coordinator to guide the Change Proposal through the PMOC process

steps; Screening, Impact Assessment, Change Review and Implementation Support the Change Owner through various steps of PMOC process

7.5 Screening TeamScreening Team shall consist of at least two members from the CRP and the PMOC Coordinator. The Screening Team shall;

Meet as frequently as required, however once in a week as a minimum, when any Change Proposal is available for Screening

Review the Change Proposals Based on the nature of the Change identify Impact Assessors (the disciplines or teams

to be involved in the Impact Assessment of Change) and ensure their availability to carry out Impact Assessment

Assign specific BVD(s) to each Impact Assessor Identify and nominate Change Owner for the proposed Change

7.6 Impact AssessorAn Impact Assessor can be from within the project team or from the Function team. The Impact Assessor shall;

Study the Change Proposal Consult the Change Initiator, Change Owner and Discipline Leads, as appropriate Carry out Impact Assessment




Provide timely feedback to PMOC Coordinator on the assigned BVD(s), as well as on the other BVD(s)

Support the CRP

7.7 Change Review Panel (CRP)The CRP shall;

Meet as per notification by the PMOC Coordinator Review the decisions taken by PE and PM for Level 4 and Level 3 Changes Review and support the Approval Authority to take decisions for Level 2 and Level 1

Changes Ensure that all implications of the Change are considered before being accepted or

rejected, for all Changes

7.8 Change OwnerChange Owner is been identified by the Screening Team and can be the Project Engineer, Project Manager, Contract Holders, Discipline Leads, or any other competent personnel within the project, depending on the nature of the proposed Change. The Change Owner shall;

Take ownership of the Change Proposal and ensure that it is been reviewed within shortest possible timeframe

Support Impact Assessors and CRP Implement the decisions on the Change Capture lessons learned and close out the Change (fill-in CPF Section 5)

8 PMOC ToolThe Project Management of Change (PMC) Tool is a PDO application to function as an enabler of the PMOC process. The PMC tool will be updated/enhanced in line with the PMOC process. Once PMC updates are rolled out, the projects at DG3 and DG4 shall register into PMC and start using the tool for identifying and recording a changes proposal, Screening, Impact Assessment, Decision making, Implementation and Close-out of Change.

http://sww16.corp.pdo.om/PMC/Web/Home.aspx

The tool supports updating and maintaining the Change Register, which would be the basis for reports.

Note:

Till the time the updated PMC is made available, the project can either use the existing PMC or use the CPF and the Change Register templates attached in Appendix-1.

9 Portfolio Level Reporting & PMOC AuditsThe PMOC Focal Point in Function (UEP33 team) shall coordinate with project/Asset PMOC Coordinators to develop Change status reports for each portfolio (CPD, South Oil, North Oil, Gas and Infrastructure). This shall be monthly report focusing on Level 1 and Level 2 Changes across all projects.

The PMOC Focal Point in Function (UEP33 team) shall coordinate with project/Asset PMOC Coordinators to carry out audits on projects to verify the correct utilisation of the PMOC process. Quarterly audit reports shall be issued to UEP3 and FELT.

Wherever gaps are noticed, corrective actions shall be recommended and it is the responsibility of the project team to close out the recommended action in a timely manner.

10 AbbreviationsAEM Asset Engineering Manager



http://sww16.corp.pdo.om/PMC/Web/Home.aspx


BfD Basis for Design

BOM Business Opportunity Manager

BVD Baseline Value Drivers

C&P Contract & Procurement

CAPEX Estimate of capital expenses

CPF Change Proposal Form

CRP Change Review Panel

CSR Concept Selection Report

DE Decision Executive

DG Decision Gate (as per ORP)

DRB Decision Review Board

FEED Front End Engineering Design

FELT Facilities Engineering Leadership Team

ITT Invitation To Tender

PMOC Project Management of Change

OPEX Estimate of operation expenses

OR&A Operation Readiness & Assurance

PCAP Project Control Assurance Plan

PE Project Engineer

PM Project Manager

TA Technical Authority

VTC Variation To Contract

11 Appendix-1 – Attachments

Change Proposal Form (CPF)

Change Register Template

Examples of Changes

