progetti

Front End Engineering Design (FEED) Challenges

in EPC Projects: Design, LLI Strategy & Fast Track

By Armando Bianco, Engineering Manager, Eniprogetti

Global Conference on EPC Contract & Project Management
9th-10th November 2017 Lisbon, Portugal
 Index

Eni

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

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

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

Conclusions

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 Eni

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

4 eniprogetti
 Oil and Gas Project Development Phases

Pre-feasibily Feasibility Basic - FEED Detail Design & Construction

1-3 MM (typical ref.) 2-4 MM (typical ref.) 3-9 MM (typical ref.) Procurement Commissioning
9-18 MM (typical ref.) 12+ MM (typical ref.)
G1 G2 G3

Execution: detailed development and physical

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

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

Time

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

Pre-feasibily Feasibility Basic - FEED Detail Design & Construction

1-3 MM (typical ref.) 2-4 MM (typical ref.) 3-9 MM (typical ref.) Procurement 9-18 MM Commissioning
(typical ref.) 12+ MM (typical ref.)

Support to Construction
and commissioning Red-marked and as-built
Feasibility

3D model P&ID (with vendor information)

Detail Engineering Design Equipment DS (for all items)
Procurement and Construction Details MTO (2nd and 3rd)
Isometrics
Construction drawings
Stress Reports
Finalization of all processes, utilities and Finalization of Heat & Material balance, P&ID & Equipment and
transportation systems. packages DS
Design of all engineering systems Plot Plan, Equipment layouts, Underground layouts
Constructability reviews finalization Finalization of Technical Specifications (Stress analysis Criteria)
Single lines for steel structures
Preli i ar MTO’s Pipi g ( st MTO)

Preparation of process specifications, design criteria, for all Process Flow Diagrams
processes , utilities and transportation systems. Preliminary Battery Limits Table
engineering, safety and constructability. Preliminary P&I Ds
Equipment Data Sheets Design Criteria
Preliminary Plot Plan
Identification and analysis of the main process and Technology selection report
utilities for each generated concept alternative Preliminary Heat & Material balance
6 Block Flow Diagram
Preliminary Site Plan
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 How Design Basis, Key Delivery and B.L. can affect a Project

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

 … Key Deliverables are not ready as needed

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

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

Example: two different mechanical contractors were assigned to install the cooling water circuits in the relevant area
and a battery limits was established. During the commissioning phase after the battery limits were connected it was
noticed that one contractor inverted the connection from a process point of view.
Technical resolution: the connections were modified during commissioning and with acceleration in procurement for
the unforeseen additional material during commissioning
Impact: delay during commissioning phase

7
Note: Lesson Learnt not related with ENI projects
eniprogetti
 Why Basic-FEED is the most important part of a Project?

Pre-feas. Feasibility Basic - FEED Detail Design & Construction Construction

1-3 MM 3-6 MM 3-9 MM (typical ref.) Procurement 9-18 MM 12 – 32 MM (typical Commissioning
(typical ref.) (typical ref.) ref.) 12+ MM (typical ref.)

value

$ BOQ &
Construction
strategy

Material
Selection & Peak
Take-off Construction
Cost
Project Cost
Curvet

Availability of
Peak Information
Material
Cost time

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

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

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

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 Long Lead Items definitions

Those components of a system or piece of equipment for

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

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 Critical Path

The critical path is the sequence of activities that represents the longest path through a project, which
determines the shortest possible project duration [PMBOK 6.6.2.2 Critical Path Method]

Appling Critical Path method for all the systems of a project, even material with a rather short
delivery can result to be critical, owing to that we can split LLI in two categories:

 Typical LLI such as:

• High pressure equipment
• High temperature equipment
• Special Material equipment

 Not Typical LLI such as:

• Tie-ins: integration with existing Facilities
12
• Bulk material for early commissioning system eniprogetti
 Tie-ins: integration with existing Facilities

 REFERENCE GREEN-FIELD PROJECT SCHEDULE

Pre-feas. Feasibility FEED Detail Design & Construction Commissioning
1-3 MM 3-6 MM 3-9 MM (typical ref.) Procurement 9-18 MM 12 – 32 MM (typical 3- 12 MM (typical ref.)
(typ.Ref.) (typ.Ref.) PROCUREMENT (typical
FOR
PROCUREMENT FOR LLI ref.)
TRADITIONAL LLI ref.)

EARLY ENGINEERING EARLY CONSTRUCTION

EARLY PROCUREMENT
TIE-INS EARLY COMMISSIONING

 PRODUCTION PLAN of EXISTING FACILITIES

Shut- Shut-
UNIT 10 down Production down
UNIT 20 Plant to be disinvested Dismantling
Dismantelling
Dismantelling
Shut-
UNIT 30 down Production

 OVERALL SCHEDULE INTEGRATED WITH PRODUCTION PLAN

FEED TIE-INS
Detail Design &
TIE-INS INSTAL. Commissioning
INSTAL. Procurement Dismantling
Feasibility Study TIE-INS Shut- Construction
down

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

Engineering design for bulk material is

aimed to produce MTOs with increased
levels of definition

Procurement generally follows the

MTO by engineering based on master
agreements or project agreements

Construction strategy is divided into:

1st phase by area

2nd phase by system

During the engineering phase it is important to verify that the delivery of bulk material
14 fits the Mechanical Completion dates (additional specific MTOs can be envisaged). eniprogetti
 Long Lead Items strategy – Key points

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

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

If you're not confused, you're

not paying attention.

Tom Peters

16 eniprogetti
 Project objectives and Fast-Track Projects

Pre-feas. Feasibility Basic - FEED Detail Design & Construction Commissioning

1-3 MM 3-6 MM 3-9 MM (typical ref.) Procurement 9-18 MM 12 – 32 MM (typical 3- 12 MM (typical ref.)
(typ.Ref.) (typ.Ref.) (typical ref.) ref.)

• Opt.1) Compress the activity lengths

Pre-F. Feasibil. FEED Detail Design &

Procurement

• Opt.2) Fast-Track by parallelization

of phases
Feasibility Study

FEED

Detail Design &

Procurement

17 eniprogetti
 Possible outcomes when implementing a Fast-Track in a project

Not linear
Relying approach in
upon preliminary Design based
decision making
information on assumptions
Overdesign Increased
material interface
management

More More difficult

More
engagement of
Higher Engineering Reworks personnel
Cost Man-hours

Higher
Increased Risk
possibility of Which it the greatest
inconsistencies
objective?

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 How to mitigate risks in fast-track projects

Re-cycling
Design
Feasibility Study inputs/outputs
FEED
Detail Design & D
Procurement
Final alignment
ENGINEERING MATERIAL
Final alignment mitigates risk When procurement cycle
of further phases for critical is long, procurement can
aspects be start with preliminary
data, updating more
consolidated information
during the vendor
ENGINEERING MATERIAL alignment before PO
TEAM
Preliminary information Material check/re-rated
If the approach is aligned
evaluated from Basic (used is re-consolidated both in
since the beginning with a
for detail design) are Basic and Detail Design
common goal, all the team
always re-checked when to avoid reworks during
is aimed to support
more information are construction and
unavoidable project changes
available commissioning
and reworks activities

19 eniprogetti
 Case Study

Feasibility Study

FEED
Detail Design & D
Procurement

 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

20 eniprogetti
Case Study Organization Chart

OWNER

FEAS.
PRE-
FEASIBILI
LICENSOR
TY FEASIBIL. CNT
BASIC -
BASIC –FEED

FAST-TRACK
FEED

CONTRACTOR
DETAIL ENG.
CONTRACTOR
DETAILED
ENG.

VENDOR VENDOR VENDOR

CONSTRUCTION CONSTRUCTION
CONSTRUCTION

CONTRACTOR CONTRACTOR

SUB. SUB. SUB. SUB.

CONTRACTOR CONTRACTOR CONTRACTOR CONTRACTOR

 Interface Management eniprogetti

 #1: Process and Layout for critical circuit

2) PROCESS SCENARIOS
(DESIGN CASES AND
TRANSIENTS)
PUMP
FV s Valves Flow PSVs Valves Flow
DISCHARGE

Case
File by FVA FVB FVC PSVA PSVB PSVC
A B C IN OUT IN OUT IN OUT IN OUT IN OUT IN OUT
EST฀9 ฀ 4 SA 1 351 351 351 351 351 351 351 351 351 351 351 351 351 351 351
EST฀9
EST฀9
฀
฀
4
4
SA
SA
2
3
380 380 380 380 380 380 380 380 380 380 380 380 380 380
5 5 5 5 5 5 5 5 5 5 5 5 5 5
380
5
3) STRESS
EST฀9 ฀ 4 SA 4 351 351 250 351 351 351 351 250 250 351 351 351 351 250 250
EST฀9
EST฀9
฀
฀
4
4
SA
SA
5
6
250 351 351 250 250 351 351 351 351 250 250 351 351 351
351 250 351 351 351 250 250 351 351 351 351 250 250 351
351
351
CRITERIA
EST฀9 ฀ 4 SA 7 351 351 351 351 351 351 351 351 351 250 250 250 250 250 250

CEER฀ 4 CEER 1
x x x x x x x x x
351 351 250 351 351 351 351 250 250 250 250 250 250 250
x x x x x x
250
WITH
4
CEER฀
CEER฀ 4
4
CEER
CEER
2
3
351 250 351 351 351 250 250 351 351 250 250 250 250 250
250 351 351 250 250 351 351 351 351 250 250 250 250 250
250
250 PRELIMINARY
1) PRELIMINARY CEER฀
CEER฀
CEER฀
4
4
CEER
CEER
CEER
4
5
6
351 351 250 351 351 351 351 250 250 351 351 351 351 250
351 250 351 351 351 250 250 351 351 351 351 250 250 351
250 351 351 250 250 351 351 351 351 250 250 351 351 351
250
351
351 CRITICAL
CEER฀ 4 CEER 7 351 351 351 351 351 351 351 351 351 351 351 351 351 351 351

SIZE CALCULATION & CEER฀

CEER฀
4
4
CEER
CEER
8
9
380 380 380 380 380 380 380 380 380 380 380 380 380 380
351 351 351 250 250 250 250 250 250 250 250 250 250 250
380
250 VERIFICATION
In Process: Pump Nozzle Alignment for installation case, Pumps ABC at ambient

PLOT PLAN CEER฀

CEER฀
4

4
CEER

CEER
temperature , piping not anchored to the pumps.

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

AND TYPICAL
CEER฀ 4 CEER In Process: Tracing Failure Scenario analysis DETAILS
4) 3D
LAYOUT

6) UPDATING PROCESS LINE

CALCULATION & PLOT PLAN

5) STRESS
CALCULATION

BASIC-FEED DETAIL ENGINEERING

CONTRACTOR CONTRACTOR

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

DETAIL ENGINEERING BASIC-FEED

CONTRACTOR CONTRACTOR

BASIC-FEED DETAIL ENGINEERING

CONTRACTOR CONTRACTOR

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 #3: Material Selection (Piping)

Fluid list Piping Classes

Process Fluid List

Vendor
Material requisition
Follow-up &
Purchase Order
Material Requirements

BASIC-FEED DETAIL ENGINEERING

CONTRACTOR CONTRACTOR

24 eniprogetti
 #4: Vendor design

Process DataSheet

Material Requisition

Mechanical and
Material Check
Vendor
Follow-up

BASIC-FEED DETAIL ENGINEERING

CONTRACTOR CONTRACTOR

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 #5: Design Philosophy – Operating manual

Updated Control
Philosophy

Updating Process Operating

Design
Design Operating Manual
Scenarios Scenarios
Process Philosophy

BASIC-FEED DETAIL ENGINEERING

CONTRACTOR CONTRACTOR

26 eniprogetti
 Fast Track – Key points

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

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 Conclusions - Key Factors for Basic-FEED Projects

 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

28 eniprogetti