Petroleum Development Oman LLC

UNRESTRICTED DOCUMENT ID: CP 117

April 1999

Project Engineering
Code of Practice

Version 2.0 Authorised for Issue April 1999

Keywords: EPBM A-12, Code of Practice, Manage Activities, Execute Activities, Design, Construct,
Modify, Facilities Design, Design Integrity, Project Management, Engineering Project Activities,
Engineering Deliverables, Project Tools and Controls
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.

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Version 2.0 AuthorisedIssued for IssueComments
Project Engineering Code of Practice

Authorised For Issue: 14/04/99

Signed : ______________________
Hans Erlings
Engineering Director (UED)

Reviewed by: Graham Henley, OTE

Corporate Functional Discipline Head (CFDH) - Project Engineering

Revision History
The following is a brief summary of the 2 most recent revisions to this document.
Details of all revisions prior to these are held on file by the issuing department. The
owner of this document is UEJ who is the CFDH for Project Management.

Version No. Date Author(s) Scope/Remarks

Version 2.0 February 1999 Ohi Aikhoje, OTE/4 Incorporates comments from
engineers, CFDH’s and
recommendations from external
reviews and audits.
Version 1.0 August 1998 Paul Hagemeijer, OME/1, Initial issue.
Jyoti Kumar Das, OT1/32, NOTE: Originally conceived as an
Graham Bolam, UEI/I ERD end then converted to a Code
Various Project Engineers of Practice under the new PDO
Policy Cascade

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CP-117 Page 5 Jul 1999

 Project Engineering Code of Practice within PDO’s Corporate Management System

PDO
Co rp o rate M an ag em en t Fram ew ork
Business Direction C o rpo rate M anag em ent
S ystem

P et ro le u m D e ve lo p m e n t O m a n L L C

Business Management Systems

37
p o lic ie s
A P/O B R

A u th or ise d by M D :
A u gu s t 199 7
K e y w o rd s:
T h is d o cu m e n t is t h e p ro p e rty o f P e tro le u m De v e l o pm e n t O m a n L L C . I t m a y n o t b e
d is clo s e d to o th e rs o r re p ro d u ce d , s to re d o r tra n s m itt e d i n a n y f o rm o r b y a n y
m e a n s w ith o u t t h e c on s e n t o f th e o w n e r.

B u sin e ss
M anagem ent
S y ste m P o lic y

Im p rv C ode of
Control
M o n ito r
Corr
A ctn
P r a c t ic e
Revi ew

S p ec ifica t io n P ro c e d u re

G u id e lin e

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 PDO RELATED BUSINESS CONTROL DOCUMENTS

DOCUMENT TYPE NUMBER TITLE

Management Systems Corporate Management Framework

MS-1001 Product Flow Asset integrity Management System
HSE-Management System

Policy PL - 32 Product Flow Asset Integrity (**Facilities and Well Integrity)

PL - 34 Product Flow Asset Development
PL - 36 Abandonment
PL - 38 Health, Safety and Environment Protection

Code of Practice CP - 114 Maintain Surface Product Flow Assets (**Maintain Surface Facilities)
CP - 115 Operate Surface Product Flow Assets (**Operate Wells and Facilities)
CP - 118 Well Integrity
CP - 122 Health, Safety and Environmental Protection
Procedures PR - 1001a Facilities Change Control Procedure
PR - 1012 Composite Integrity Performance Indicator (CIPI) Compilation
PR - 1164 Fixed Asset Abandonment Procedure
PR - 1169 Initial Start-up Procedure
PR - 1171 HSE Management of Contracts
Specifications SP - 1074 Preparation of Plant Operating Manual (New)

Guidelines GU - 140 Contract Procedure Guide

GU - 195 Environmental Assessment Guideline
GU - 227 Operations Input into Projects

** Previous name

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CONTENTS

1. INTRODUCTION...................................................................................................................................3
1.1. BACKGROUND............................................................................................................................3
1.2. PURPOSE.......................................................................................................................................3
1.3. TARGET AUDIENCE...................................................................................................................3
1.4. STRUCTURE OF THIS DOCUMENT.........................................................................................3

2. SCOPE & OBJECTIVES......................................................................................................................6

2.1. SCOPE............................................................................................................................................6
2.2. OBJECTIVES.................................................................................................................................6
2.3. FUNDAMENTALS OF THIS CODE OF PRACTICE.................................................................6
2.4. RELATED BUSINESS CONTROL DOCUMENTS....................................................................6
2.5. REVIEW AND IMPROVEMENT.................................................................................................7

3. ROLES & RESPONSIBILITIES..........................................................................................................9

3.1. ROLES & RESPONSIBILITY MATRIX.....................................................................................9

4. PRACTICES TO BE FOLLOWED...................................................................................................11
4.1. PROJECT MANAGEMENT PROCESS.....................................................................................11
4.1.1. Corporate Planning and Budget Cycle.................................................................................11
4.1.2. Main Engineering activities and milestones........................................................................13
4.1.3. Development ADP and Conceptual design.........................................................................15
4.1.4. Front-end design...................................................................................................................17
4.1.5. Detailed design.....................................................................................................................19
4.1.6. Construction and pre-commissioning..................................................................................21
4.1.7. Commissioning and Hand-over............................................................................................23
4.1.8. Close out...............................................................................................................................24
4.1.9. Post Implementation Review (P.I.R.)..................................................................................24
4.2. PROJECT MANAGEMENT TOOLS AND CONTROLS.........................................................24
4.2.1. Technical Authority (TA) System.......................................................................................24
4.2.2. Design Integrity Documentation..........................................................................................24
4.2.3. Design Integrity Review.......................................................................................................24
4.2.4. Cost estimation.....................................................................................................................24
4.2.5. Planning, Accounting and Monitoring.................................................................................24
4.2.6. Contracting...........................................................................................................................24
4.2.7. Materials Procurement.........................................................................................................24
4.2.8. HSE management.................................................................................................................24
4.2.9. Quality Assurance................................................................................................................24

5. APPLICATION & STEP-OUT APPROVAL....................................................................................24

5.1. APPLICATION............................................................................................................................24
5.2. STEP-OUT APPROVAL.............................................................................................................24

APPENDICES.............................................................................................................................................24
APPENDIX A: EXAMPLE OF KEY DOCUMENTS DEFINITION ON AN ADP...............................................24
APPENDIX B1: LIST OF KEY DELIVERABLES.......................................................................................24
APPENDIX B2: LIST OF DRAWINGS AND DOCUMENTATION FOR DESIGN INTEGRITY..............................24
APPENDIX B3: LIST OF DOCUMENTS FOR INTEGRITY MANAGEMENT IN THE OPERATIONS PHASE...........24
APPENDIX C: SUMMARY INPUT/ACTIVITIES/OUTPUT/STANDARDS PER PHASE...................................24
APPENDIX D: GENERIC JOB DESCRIPTIONS.............................................................................................24
GLOSSARY: ............................................................................................................................................49

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1 INTRODUCTION
2 BACKGROUND
This document deals with the process of Project Management & Project Engineering and
explains the relationship of engineering activities to:
· Corporate Management Framework
· Corporate policies
· Tools and controls
· Specifications, procedures and guidelines
The document relationship is reflected in figure 1.
3 PURPOSE
This document describes how projects are to be executed within PDO. It provides a work
execution framework for Engineering projects, based upon established engineering standards,
processes and working practices. This Code of Practice (CoP) is primarily based on PDO's
mainstream surface oriented oil & gas business (though some of the processes described will be
equally applicable to other types of projects, e.g. Civil, IT). It defines how Project Engineers
should work and how the Project Engineer interacts with other parties in PDO. It describes the
main tools to control and guide the Engineering project work, from initiation to successful hand
over and completion. This document applies the principles of SIEP 96-3000, Project
Management Guidelines, within a local Business Environment.
Compliance with this Code of Practice should ensure that integrity is maintained throughout the
design phase of all projects. An Asset is defined in the Product Flow Asset Integrity
Management System as having “Design Integrity” when:
 Operating envelope and performance requirements have been defined;
 Design procedures and specifications have been defined;
 The design meets the design specifications and performance requirements over the
complete operating envelope such that the risk of failure endangering the safety of
personnel, the environment or the asset value is as low as reasonably practicable (ALARP).
A key responsibility of the Project Engineer is the development of appropriate project execution
strategies and it is expected that the principles described in this document will be challenged
and, on occasion, deviated from. (The step out procedure is detailed in Section 5.0). Sufficient
interpretation from users is expected, and even encouraged, to steer projects to meet their
overall business objectives.
4 TARGET AUDIENCE
The main target audiences for this Code of Practice are members of the project teams within the
Engineering Function (Concept, Project and Discipline Support Engineers, Construction
Engineers, Heads of Projects and Team Leaders). Recognising, however, that the project
engineering process extends from opportunity identification to handover, operation and
abandonment, this document will also be of relevance to Petroleum, Process and Operations
Support Engineers as well as Planners and Economists.
In addition, the sections dealing with contracting, cost estimation, HSE and quality assurance
may be equally applicable to those managing non-hydrocarbon projects.
5 STRUCTURE OF THIS DOCUMENT
The contents of this document is reflected in figure 2.
This CoP describes the business processes which (Project) Engineers follow to develop facilities
in support of Asset developments. The document is structured into the sections listed below.
Section 1 Contains an introduction to the document.
Section 2 Defines the scope and objectives of the document.
Section 3 Outlines the roles and responsibilities of key personnel concerned with the
document.
Section 4 Details the practices to be followed when executing relevant activities.
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Section 5 Contains information concerning the application of the document and the
process for gaining approval for amendments or individual deviations.

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6 SCOPE & OBJECTIVES
7 SCOPE
It is recognised that Project Engineering, in its broadest sense, extends from opportunity identification or license acquisition through to abandonment. This Code
of Practice (CoP) covers the steps from concept development through detail design to construction, commissioning and handover of a facility (EPBM processes
A.11.04 through to A.12.04), within the PDO environment. The A.12.05 process is briefly covered in Section 4.1.8. In order to cover Project Management and
Engineering Activities comprehensively, reference is made to the Project Management Guidelines (EP 96-3000).
The opportunities for maximising business value are greatest at the initial phases of project development during concept selection and front-end design. In the
subsequent execution phase, the focus shifts from cost reduction to cost control. For this to be effective, it is essential that structured planning, work management
and resource allocation processes are followed.
PDO Engineering standards, Specifications, Guidelines and Procedures are only referenced in this Code of Practice if they have a direct impact on the overall
project engineering process. Discipline Standards are generally not referred to. For a full list of engineering control documents see ERD-00-01 printed as a wall
chart and accessible via the Business Control Documents (BCD) website on the PDO web. Individual CFDH’s can advise on the applicability of specific
discipline documents if required.
8 OBJECTIVES
Hydrocarbon life cycle and Project Engineering activities are reflected in figure 3.
The objective of this document is to define a framework within which projects can be executed successfully and where the integrity of design and engineering
activities may be assured. It is intended to assist Project Engineers in their task of completing projects to time, cost and specification. It describes project
engineering processes and makes reference to PDO’s Procedures and Guidelines so that more detailed information can be obtained.
9 FUNDAMENTALS OF THIS CODE OF PRACTICE
Project Engineering is a discipline based upon the application of appropriate skills, tools and systems rather than technological developments. Key to the success
of any project is constant focus on overall business objectives, maintaining customer support for development and execution strategies and the integration of all
related disciplines, particularly sub surface and operations, into the project management process.
Figure 4 illustrates the involvement of all disciplines throughout the project lifecycle.
Figure 5 illustrates the Corporate Planning and Budget cycle.
10 RELATED BUSINESS CONTROL DOCUMENTS
The documents which specifically relate to this Code of Practice in the standards hierarchy are presented below:

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Management System  Corporate Management Framework (CMF), PFAIMS,

HSEMS
Policy  Product Flow Asset Integrity (**Facilities and Wells
Integrity), Technology, Product Flow Asset Development,
Abandonment, Contracting & Procurement, HSE Protection
Code of Practice  Operate Wells and Facilities, Maintain Surface Facilities,
Competence Assurance and Assessment
Specification  Engineering Reference Documents, Guidelines and
Guideline  Procedures
SIEP-96-3000, Project Management Guidelines
** Previous name
11 REVIEW AND IMPROVEMENT
This CoP shall be reviewed and, if appropriate, updated annually in order to ensure that it reflects the current position with regard to Company Policies,
Management Systems, Procedures, Specifications, Guidelines and Organisation structure.
The Corporate Functional Discipline Head (CFDH) for Project Engineering is responsible for the content and upkeep of the CoP. Feedback from relevant parties
is welcome at any time. Such feedback will be reviewed by the CFDH and other relevant individuals, as necessary and a decision communicated back to the
originator. Improvements from feedback shall be incorporated as and when required.

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12 ROLES & RESPONSIBILITIES

13 ROLES & RESPONSIBILITY MATRIX
The roles and related responsibilities that are required to manage and implement this Code of
Practice are summarised below.

Role Related Responsibilities

Document Authority CoP Owner: responsible for specifying the priority of the document,
UED the life span, in years, the security class, the allowable media and
appointing the Document Custodian
Corporate Functional Responsible for the content and update of the overall document
Discipline Head (CFDH)
UEJ
Document Custodian Responsible for managing the original document, issuing the
UEJ/1 document and recording the update of the document.
Project Manager Responsible for Project Management and executing Engineering
(Engineering Team activities as specified in this CoP and associated procedures,
Leader) guidelines and specifications. Responsible for liaising with CFDH’s
to ensure that competent staff are deployed for the execution of
activities.
Head of Projects Responsible for ensuring compliance with this CoP and associated
procedures, guidelines and specifications.
Project Engineer Responsible for executing Project Engineering activities as specified
in the CoP and associated procedures, guidelines and specifications.

Generic Job Descriptions for the following are shown in Appendix D.

● Head of Projects OxE/2
● Project Engineer OxE/2x
● Head of Construction OxE/3
● Construction Supervisor OxE/3x
These Generic Job Descriptions contain the key responsibilities for project design integrity,
budget control and risk management including HSE. They may be adapted by individual Asset
Teams to address their own organisation or requirements (mentioning, for example, task and
targets on specific projects) though care must be taken to ensure that the key responsibilities
remain clearly assigned.

In line with ISO 14001 requirements, individuals with HSE-critical roles, should have included
in their job descriptions as a minimum, the HSE accountabilities in the PDO policy booklet and
their responsibilities in respect of HSE critical activities. Also the assigned authority levels
should be consistent with the stated accountabilities.

REFERENCE LISTING – ROLES AND RESPONSIBILITIES

 PL-38 Health, Safety and Environmental Protection – Policy,
Commitment and Accountabilities.

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14 PRACTICES TO BE FOLLOWED
15 PROJECT MANAGEMENT PROCESS
16 Corporate Planning and Budget Cycle
Refer to figure 5 for diagrammatic overview.
In order to initiate and execute concept studies and projects, relevant budget approval must be
sought and obtained in line with the Corporate Budget Cycle.
There are two Shareholder/Board meetings per year, the first shareholder and board meeting are
held in February/March, during which the Business Plans and Directions are presented for
approval and Firm Budgets are established for the current year. During Q2, project ranking is
agreed, and the programme build carried out which is then reviewed and agreed by
Management. In September and October, Shareholder and Board meetings are held, where firm
and pending budgets are presented for the following year. During Q4 and Q1, pending budgets
are firmed up and the Integrated Activity Plan for the next year is prepared, authorised and
issued.
Budgets may be presented and approved outside this cycle by means of the 'Urgent Decision
Procedure', but this should be limited to a restricted number of items and under exceptional
circumstances.
The main Corporate programme and budget cycle milestones are :

PROGRAMME/BUDGET CYCLE MILESTONE DESCRIPTION Period

1. 1 Performance Review Jan, Feb
2. 2 Appraisal Mtg./Strategy Review Feb
3. 3 Shareholders' Tech. Mtg. / Board Mtg. Feb, Mar
4. 4 Programme Building Apr, May, June
5. 5 Mid-year Budget Update July
6. 6 Mid-year Review July
7. 7 Programme & Budget MDC / Programme Documentation June, July, Aug
8. 8 Shareholders' Tech. Mtg. Sep
9. 9 Board Meeting Oct
10. Prepare and issue Integrated Activity Plans / end-year Budget updates Dec, Jan

REFERENCE LISTING – CORPORATE PLANNING AND BUDGET CYCLE

 See CLM web page Current Year Programme Cycle Plan – Issued by CLM Dept.
 See CLM web page Economics and Business Valuation Guidelines

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17 Main Engineering activities and milestones

Refer to figure 6 for milestones during project life cycle.
The project management discipline is based on meeting specific business objectives within a
certain timeframe by managing a group of resources (Money, Materials and People). In this
CoP the starting point is the development or update of an Asset Development Plan (ADP), and
from this stage to project close out, a logical set of project activities is defined as illustrated in
fig.6. To distinguish between these project activities and facilitate progress reporting, project
milestones are set to mark the completion of specific aspects during the project. In the
following sections these project activities are described.
The main project milestones are :

MILESTONE DESCRIPTION RELATED PROJECT ACTIVITY

1 ADP Approved ADP development or update & concept design
2 Budget Approved (Firm) Final ADP & concept design completed
3 Start Detailed Design (DD) FED completed & DD contract award
4 Start Procurement for long lead materials Front End Design
5 Start Procurement bulk materials and other Detailed Design
equipment
6 Issue of Construction Tender DD substantially completed
7 Start Construction Construction contract award
8 Substantial Completion of Construction Commence pre-commissioning
9 Facility Hand over Commissioning completed
10 Project Close-out Certificate approved Project close out

The ADP should not be confused with the Asset Reference Plan (ARP) which remains a "living
document" throughout the project lifecycle, capturing not only future development strategies, plans and
objectives but recording the background to project decisions, actual expenditure and production
performance. Lack of readily available data has been cited as one of the most common reasons for the
failure to perform structured Project Close Out or Post Investment Reviews and the ARP provides a
powerful vehicle for capturing and preserving this information.

REFERENCE LISTING – ASSET DEVELOPMENT

 GU-180 Asset Reference Planning Framework in PDO

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18 Development ADP and Conceptual design

The conceptual design phase is part of the ADP process and forms the Design Basis for Front End
Design (FED) activities.
 Objective
During this phase of project development, surface facility concept selection is made taking into
account the nature of the sub surface resource (hydrocarbon type and composition, well rates etc)
and overall business objectives (e.g. economic screening criteria, on-stream date, production
requirements, interfaces with related projects).
Risks and uncertainties, particularly related to petroleum engineering information, may be managed
by examining the impact on project economics of alternative development or execution concepts in
combination with a range of sub surface scenarios. This "Decision Tree Analysis" aims to maximise
the Expected Monetary Value (EMV) of the project and ensure that its economics remain robust
under the widest range of uncertainties. At this stage, the value of gaining additional information
(e.g. by acquiring additional seismic or appraisal data) should be assessed.
 Initiation
FDP, ARP, Business Plan, Facilities Change Proposal (FCP)
 Activities are focused on:
 Identification of Concepts & Concept Selection
 Concept Optimisation
 Cost estimates
 Ranking
 Final ADP ( including Project Execution Strategy, Contract Strategy, Inventory of LL items
etc.)
 Producing redundancy declarations
 Outline HSE Assessment

 Engineering deliverables
ADP report and associated information including Coarse HAZOP and HAZAN, if applicable.
The ADP should define which of the key project documents (refer to appendix A) have to be
prepared during project execution. Project Engineer shall document deliverables to be produced at
each stage and signed off by the Asset Team Leader.
The degree of definition required in the ADP depends on the complexity of the selected concept.
Key Concept Design Deliverables are listed in Appendix B1.
 Management Controls
 Budget review/approval (firm/pending/LT)

REFERENCE LISTING – DEVELOPMENT ADP & CONCEPTUAL DESIGN

 See CLM website Economic and Business Valuation Guidelines
 BDM/032/96 Asset Development Plans Guidance Notes
 ERD-00-19 WMS Procedures
 ERD-00-23 Cost Engineering

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 EP 95-0220 EP HSE Manual –Concept Development

 EP 95-0312 HAZID - HAZard Identification technique
 EP 95-0313 HAZOP – HAZard and OPerability technique.
 PR 1164 Fixed Asset Abandonment Procedure
 PR-1055 HSE Management Procedure – Hazards & Effect Management
 No document no. Capital Budget Proposal Guideline – Document Owner FCB - Issued Dec
‘96

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FRONT END DESIGN Figure 8

DELIVERABLES
PROCESS CONTROL
TECHOLOGY INPUT E.I.S
TO PROJECTS ASSET
GU-195 & PR-1055
By UES/2 DEVELOPMENT
OPERATIONS PLAN
BDM/032/96
INPUT TO Updated ADP
PROJECTS GU227
BDM/032/96

RESOURCES
& PROJECT HSE Spec
CONTRACTING MANAGEMENT HSE/96/01 & PR-1171
GU 251

Materials Selection
&
Corrosion Control
ERD-49-01-02

FRONT END
PROCUREMENT
Procure LL Materials 3 ENGINEERING Project Spec.
Appendix B1
ERD-00-06 / ERD-00-14

L.L. requisitions
See Supply procedure 5.3.4
No TA
Approval Process Control
ERD-00-02
Narrative
Yes

MAIN Standards
HAZOP Variance Log
ERD-00-02

EP 95-0313
Project Change
Proposal
To be developed
IPF REVIEW
Hazop Report
DEP 32.80.10.10
EP 95-0313

Yes
Design IPF Report
Change DEP 32.80.10.10

No

Management
Review

Capital Budget Proposal Guidelines

FED Note
To BUDGETS Deliverables
n = Milestone
DETAILED Document owned by FCB APPENDIX B1
DESIGN n = Milestone number

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19 Front-end design
· Objective
The objective of the Front End design activity is to complete the project definition phase, based on
the final ADP, in such a format that project execution activities (detail design, construction, etc.)
can meet:
 Specifications
 Schedule
 Budget
· Initiation
 ADP
 Approved budget for FED activities.
· Activities are focused on :
 Finalise Contract Strategy (and, if applicable, design contract preparation)
 Prepare Project specification
 Carrying out Main Hazop studies
 Carrying out IPF classification
 Cost estimate with breakdown at Sub BI/Activity level as basis for cost monitoring and control.
 Prepare final ADP
 Carry out Environmental Impact Assessment.
 Material Selection and Corrosion Control
 Order long lead materials
· Engineering deliverables
Front End Design Key Deliverables are listed in Appendix B1.
· Management Controls
 Change Control (scope change, design standards deviations)
 Technical review
 Management review
REFERENCE LISTING FRONT END DESIGN
 GU-251 Contract Procedures Guide FCS-PR2
 HSE/96/01 Health Safety and Environmental Protection Standards Manual
 PR-1171 HSE Management of Contracts Procedure
 EP 95-0230 EP HSE Manual – Design
 GU 195 Environmental Assessment Guideline
 PR 1055 HSE Management Procedure – Hazards and Effects Management
 ERD-00-02 Technical Authorities System (Under revision Feb ‘99)
 ERD-00-06 Preparation and contents of Engineering Drawings
 ERD-00-14 Project Drawing Procedures
 EP 95-0313 Guidance on Hazard and Operability (HAZOP) Studies
 ERD-00-19 WMS Procedures
 ERD-00-23 Cost Estimating
 No number Project Change Control Procedure *To be developed refer to UEJ.
 DEP 32.80.10.10 IPF Classification Guidelines
 No document no. Capital Budget Proposal Guideline – Document Owner FCB - Issued Dec ‘96
 GU 227 Guideline for Operations Input to Projects
 ERD-49-01 Corrosion Control Procedures
 ERD-49-02 Corrosion Management Strategy

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4.1.5 Detailed design

 Objective
The objective of the Detailed Design activity is to specify and procure all materials (including taking
deliver of LL Items requisitioned during FED) and to prepare construction work packages (work scopes,
drawings, manuals & procedures) such that the facility may be built, commissioned and started up.
 Initiation
 FED deliverables: project specification, scope of work, etc
 Approved budget for execution phase
 Activities are focused on :
 Prepare Detailed Design engineering package
 Hazop Studies on areas changed from the front end design only
 IPF classifications
 Issue material requisitions for bulk materials
 Update Project Plans (construction-, commissioning-, plans)
 Contract management
 Interface with Vendors
 Prepare Construction Scope of Work (contracting)
 EPMARS and MMS input
 SPIR forms (spares)
 Engineering deliverables
Detailed Design Key Deliverables are listed in Appendix B1
 Management Controls (review)
 Design review
 Change control
 Budget control
REFERENCE LISTING DETAILED DESIGN
 EP 95-0230 EP HSE Manual – Design
 EP-95-0310 Guidelines for the Preparation of HSE Management System and Cases
 PR-1171 HSE Management of Contracts
 GU-251 Contract Procedures Guide
 No document no. Capital Budget Proposal Guidelines – Document Owner FCB - Issued Dec ‘96
 ERD-00-02 Technical Authorities System
 ERD-00-06 Preparation and Content of Engineering Drawings
 ERD-00-12 Preparation of Plant Design Manual
 DEP 32.80.80.10 IPF Classifications guidelines
 ERD-00-14 Project Drawing Procedure
 ERD-00-18 Vendor Documentation
 ERD-00-19 WMS Procedures
 ERD-00-23 Cost Estimating Procedures
 EP95-0313 Guidance on Hazard and Operability (Hazop) Studies (Final).
 ERD-88-03 Guide to SAFOPS
 ERD-10-04 Gen. Specification for detailed design & eng. of oil /gas facilities
 PR-1169 Initial Start up Procedure
 DEP 70.10.90.81 SPIR - Spare Parts Interchangeability Records ( Standard forms in DEP 00.00.10.05)
 GU-110 EPMARS Codes Guidelines
 PR-1167 Maintenance Management System Asset and Activity Registration Procedure.
 PR-1032 EPMARS Approval Procedure for WSN’s & MCP’s
 Budget control

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Maintenance

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Construction and pre-commissioning

 Objective
The objective of construction and pre-commissioning phase is to complete the facility, on schedule,
within budget and to specification, and to carry out all tests necessary to confirm the integrity of the
installation prior to energising the equipment/facilities for commissioning tests.
 Initiation
 Procured materials (from Long lead and material requisitions)
 Standards selected
 Company Estimate
 Construction Contract, together with AFC drawings and work scope
 Construction & pre-commissioning execution plan
 HSE, Quality Specifications
 Approved RFA covering these activities
 Activities
 Execute construction (including Mob/Demobilisation/HSE workshops etc.)
 Progress monitoring & change control (FTR, variations)
 Contract management
 HSE review (Technical HSE Audit if applicable)
 Pre Start-up Audit
 Pre-commission/Prepare Initial Start up
 Engineering deliverables
 As-built drawings
 Pre-commissioning check lists, punch lists
 Certificate of Substantial Completion
 Deliverables are listed in Appendix B1
 Management Controls
 Change Control
 Budget Review
 HSE Review
REFERENCE LISTING CONSTRUCTION AND PRE-COMMISSIONING
 EP 95-0240 EP HSE Manual – Construction and Commissioning
 HSE/96/01 Health, Safety and Environmental Protection Standards Manual
 PR-1171 HSE Management of Contracts
 GU-251 Contract Procedure Guide - FCS-PR2
 ERD-00-02 Technical Authorities System
 ERD-00-05 Handover and As Built Documentation
 ERD-00-19 WMS Procedures
 PR-1169 Initial Start up Procedure
 GU-252 Content and Assessment of Contract HSE Plans
 PR-1153 Field Trouble Report Procedure
 ERD-26-02 Construction Specification for Facilities

23
24
Version 2.0 Authorised for Issue Project Engineering Code of Practice

25
21 Commissioning and Hand-over
· Objective
The objective of this phase is to test the facility, under operational conditions, to ensure that it
conforms with its design specifications. This is to ensure that all intended functions and duties of
the facility are met, such that it can be handed over to operations.
· Initiation
 Construction hand over certificate
 Punch list
 Operating and Maintenance manuals
 Relevant vendor documentation
 As built drawings
· Activities focused on are:
 Performing trip tests
 Tuning control systems
 Commissioning (Operations tasks)
 Acceptance by Operations
 Training of personnel
· Engineering deliverables
 Plant acceptance/Hand-over certificate
 System Commissioning Dossier
 Maintenance Histories
 Exception List
 Regulatory Certificates/Permits (If any)
· Management Controls
 Technical HSE Review
REFERENCE LISTING COMMISSIONING AND PRE-COMMISSIONING
 ERD-00-05 Hand over & As-Built Documentation
 PR-1169 Initial Start up Procedure
 GU-251 Contract Procedures Guide – FCS-PR2
22 Abandon Facilities
The Physical abandonment of facilities is the reverse of the construction and pre-commissioning
process. It assumes that the technical concepts, HSE studies, detailed engineering and
abadonment execution planning have been undertaken. Also the scope of abandonment varies
greatly depending whether it is total or partial abandoment. Execution of abandonment is
usually contracted out, however the same attention to detail in planning and management of
activities is required as in the creation of facilities.
· Activities focused on are:
 Arrange for facilities Isolation
 Define demolition and restoration requirement
 Prepare facilities for demolition
 Demolish and secure facilities
 Restore site
 Prepare for handover of site
REFERENCE LISTING ABANDON FACILITIES
 PR-1164 Fixed Asset Abandonment
 SP-1012 Specification for Site Preparation, Restoration and Abandonment

26
Version 2.0 Authorised for Issue Project Engineering Code of Practice

27
28

23 Close out
 Objective
The objective of this phase is to complete all remaining activities to complete the project (e.g.
documentation, administration, return of surplus materials, etc) and to capture the project’s learning
points for future reference.

Filing of project documentation should be via EDMS where possible.

Reference is made to figure 12 Close out

 Initiation
Hand-over certificates
 Activities focused on are :
 Resolve all liabilities (e.g. claims, variations)
 Action any outstanding punch list activities including warranty items
 Finalise as-built documentation
 Produce close out report
 Close budget
 Update project file
 Distribution of final as-built documents (drawings, manuals, etc)
 Return surplus materials
· Engineering deliverables
 As-built documents (especially design integrity documents listed in Appendix B2)
 Project Close-out Certificate (PCC)
 Project Close-out Report (where significant learning points exist)

REFERENCE LISTING CLOSE OUT

 ERD-00-19 WMS Procedure
 GU-251 Contract Procedure Guide - FCS-PR2
 PR-1150 Project Close-Out Procedure
24 Post Implementation Review (P.I.R.)
The purpose of the Post Implementation Review (PIR) is to re-appraise the project after
operational hand-over and assess whether the original objectives (economic and/or strategic)
have been met. The reasons for shortfalls or out performance should be determined and learning
points for the future identified.
PIRs will be carried out on the request of the Asset Manager or Engineering Functional Director
for:
 Major Projects (>$10m)
 New technology projects
 Projects with new/novel implementation methods (e.g. different contracting strategies)
 Projects with problems
The timing of these PIRs will depend on the particular circumstances of each specific project,
but in general should allow sufficient operational experience to have been accrued, for
meaningful conclusions to be drawn.
REFERENCE LISTING P.I.R.
 No document Guidelines required (Refer to UEJ)

28
Version 2.0 AuthorisedIssued for IssueComments Project Engineering Code of Practice

29
25 PROJECT MANAGEMENT TOOLS AND CONTROLS

26 Technical Authority (TA) System

· Objective of the system
To warrant the integrity of all PDO's facilities during design, construction and operations phases of a
development, with individual engineers and to ensure that technical authority is clearly defined.
Technical Approvals Process (ERD-00-02)
The TA system forms part of the technical approvals process within PDO and the design
consultant.
The design contract specifies minimum qualification and experience levels for contractor
personnel and individual staff approvals are carried out by the Contract Holder in consultation
with the relevant CFDH. The design contractor’s QA system specifies the review and
approvals process for all design documents before they are submitted to PDO. This QA system
must be subjected to regular audit by both PDO and the contractor.

Note: It is the design contractor's legal responsibility to provide a proper design and his QA
system should ensure this. However, as part of PDO's own technical assurance of the design, a
number of the deliverables will be reviewed to ensure compliance with the required standards,
as defined in the project specific QA plan.

30
 The project specific QA plan is prepared by the project engineer in consultation with other
discipline engineers and approved by the Engineering Team Leader. The PC based tool TIQAS,
or approved equivalent, shall be used in the preparation of this plan. The QA plan lists all
design deliverables and specifies which documents require PDO review. This recognises the
fact that it is not realistic to expect the PDO project team to carry out an in depth review of all
deliverables and that the criticality of certain deliverables will vary from project to project.
The project specific QA plan will define the deliverables to be reviewed on a specific project.
If deemed to be necessary, these could be in excess of those required by ERD-00-02.
In the absence of an approved project specific QA plan, the requirements of ERD-00-02 must
be followed for ALL design documents.

REFERENCE LISTING TECHNICAL AUTHORITY SYSTEM

 ERD-00-02 Technical Authority System (Under revision)
 via TIQAS Custodian TIQAS User Guide
 Gu-yy (Temporary no) Guidelines for the granting of Engineering Technical Authorities
 PR-xx (Temporary no) Procedure for the preparation of QA plans
 MS – 1001 PFAIMS: Product Flow Asset Integrity Management System
27 Design Integrity Documentation
 Design Integrity
 Terminology (As given in the Product Flow Asset Integrity Management System-PFAIMS)
Design Integrity has been defined in the introductory section of this document (1.2). Other
Integrity definitions such as Asset Integrity, Operating Integrity, Maintenance Integrity, and
Abandon Integrity can be found in the “Product Flow Asset Integrity Management System”.
 Role of Engineering
The role of engineering is to set, and ensure application of, Engineering guidelines and
procedures during the Front End and Detailed Design phases. Also to ensure that engineering
specifications are fit for purpose, suitable and applicable for specific projects, and to challenge
standards where deemed to be beneficial. Verification of the impact of deviating from industry
standards on costs and delivery and spares, should also be considered.
 Steps for achieving Design Integrity
1. Define key documents required for the project in the ADP (Reference Appendix A)
2. Key Documents specification.
3. To demonstrate and maintain Design Integrity, key documents are required to be produced and
kept up to date. The list of Design Integrity Key Documents is contained in Appendix B2. For
Documents specifically relating to Integrity management in the operations phase, see
Appendix B3. All Design Integrity documents shall be entered into the EDMS Business
Records database, for future reference.
4. Monitor Compliance during life cycle of facility
5. Updating of the Design Integrity documentation by Concept and Project Engineers. FCP
records shall be maintained of each modification to a facility.
6. Implementation and Monitoring.
28 Design Integrity Review
Whist compliance with the requirements of this CoP and associated control documents should
ensure Design Integrity, a periodic review may be carried out to confirm that no changes to a
facility have been made which singularly, or in combination with other unassociated
modifications, reduce the integrity of the installation. Such a Design Integrity Review
comprises:
1. Physical verification that the latest revision of the PEFSs and Cause & Effect drawings reflect
the as-built status of the installation.
2. A review or update of the Safeguarding Memorandum.
3. A complete or partial Hazop of the installation. If a full Hazop has previously been carried out,
then it is only required to Hazop the additions/extensions to the existing facilities.
4. A structured review of all deficiencies identified in the above steps, together with alternative
proposals for rectification. This review should yield individual modification proposals or
document the decision to accept the risks of the deficiency and should be approved by the
Asset Manager.
The DIR process including close out of remedial actions identified by DIR reviews is
monitored by the Design Integrity Performance Indicator (DIPI) which is reported by each
Product Flow Asset Team (PFAT) on a monthly basis.
REFERENCE LISTING DESIGN INTEGRITY MANAGEMENT
 BDM/184/97 Technical Integrity Internal Review
 PR-1232 Design Integrity Review Procedure
 PR-1012 Composite Integrity Performance Indicator (CIPI) Compilation
 PR-1169 Initial Start-up Procedure
 MS-1001 Product Flow Asset Integrity Management System
(Intentionally Blank)

33
29 Cost Estimation

34
 Cost estimates are to be prepared at the concept stage, preliminary budget proposal, firm budget
(basis for cost monitoring) and company estimates for design, EPC and construction tenders.
Guidelines for preparing cost estimates are in ERD-00-23.
Reference is made to Cost estimating purpose and accuracy levels, figure 14
Definitions :
Base estimate The base estimate is the total cost calculated from historical data, including
activity allowances (i.e. uncertainties which historically are known to occur, typically 5-15%)
but excluding contingencies.
Contingency Contingency is added to the Base estimate to allow for incomplete project
definition, estimate omissions, exchange rate uncertainties, but not for major scope changes.
50/50 Estimate The 50/50 estimate is obtained by adding the contingency to the Base estimate.
It is considered to have an equal probability of overrun or under-run. This estimate is the
reference estimate for Budget Proposals.
90/10 Estimate If the 50/50 estimate has an equal chance of being under or overspent, the
90/10 estimate is the cost that has only a 10% change of being exceeded. It is calculated by
adding an overrun allowance to the 50/50 estimate.
Constant Value Money (CVM) costs are expressed on the basis of the value of money at a
fixed point in time.
Money Of the Day (MOD) are costs expressed on the basis of the value of money at the time
when each cost is expected to occur.
Escalation is an allowance to convert CVM costs into MOD costs reflecting anticipated effects
of general inflation
Work break down structure. An estimate shall follow a pre-determined work break down
structure (WBS) as defined in ERD-00-19.
Note: In most cases, CVM is equivalent to Real Terms (RT) money and escalation is equal to
inflation. In some cases however, predicted specific market force adjustments (up or down),
may be included in escalation factors.

REFERENCE LISTING COST ESTIMATION

 SIEP 96-3000 Project Management Guidelines (Chapter 12)
 ERD-00-23 Cost Engineering
 ERD-00-19 WMS Procedures

35
 EWMS OVERVIEW Figure 15

Engineer’s
Interfaces PS6 Plan Interfaces
From To
CABCARS EPCRIS
Proj/BI No.&
Header
EWMS Value of Work
Done (VOWD)

EPCRIS
Ledger Actuals Central
Database
EPCRIS
EMA
(Multi User Access) Ledger Codes
Materials Data

INTERFACES APPLICABLE TO/FROM DATA TRANSFERRED

ERD WMS
CABCARS ERD-00-19 To Project No. & Title
BI No. & Title
Project Engineer
Work type 1 & 2
PS6 ERD-00-19 To WBS No. and Title
Start and Finish Date
Resources
VOWD
EPCRIS ERD-00-19 To Actual payments
EMA ERD-00-19 To Requisition/Item No. &
Title
Schedule details
Commitment & VOWD
Materials Status
EPCRIS ERD-00-19 From VOWD (Monthly)
Ledger Codes (Daily)

36
30 Planning, Accounting and Monitoring
· EWMS overview
The objective of the tool is to plan and control capital budget projects effectively and efficiently.
Secondly, it is a tool to report the project status to Management.
EWMS (Engineering Work Management System) is a Database tool that is driven by input data
from PS6 (Project Scheduler 6) which is updated monthly with actual and forecast VOWD, by each
Project Engineer. It provides information to EPCRIS (VOWD accruals and Ledger Codes ) and
BCAR (BIs and cost phasing).
Information processed in the Work Management System :
 Creation of a project (BI)
 Activity break down
 Planning/scheduling via PS6
 Plan and phasing into EWMS
 Approving budget in EWMS
 Generating ledger codes
 Generating RFA
 Reporting on VOWD
 End month processing
 Management reporting
 Project closing
· When to apply
The EWMS procedure is intended for use from project initiation stage to physical completion of the
project before raising a Project Completion Certificate.
Reference is made to figure 15 WMS Overview

REFERENCE LISTING PLANNING, ACCOUNTING AND MONITORING

 ERD-00-19 WMS Procedures
 No doc. no WMS User Guide
 No doc. no PS6 User Guide
 No doc. no Capital Budget Proposal Guidelines Document Owner FCB - Issued Dec ‘96

CP-117 Page 5 Jul 1999 37

31 Contracting
 Contract strategy
Notes for guidance and Contract Procedures are in development with FPC/2.
Refer to figure 13- Contract Strategy. The figure indicates the level of controlling factors in relation
to specific contract type.
· Contract Types
 E.P.C./Turnkey (Detailed Design, Procurement and Construction)
- Larger Type Projects
- Fully defined requirements
- Single Point Responsibility
- Build as Designed
- Total Cost known at Award
 Lump Sum ( Design & Build, Detailed Design, Procurement, Construction)
- Well defined Scope
- Final Cost known at Award
 Bills of Quantities (Construction Contracts)
- Less Defined Scope
- Rates against quantities
- Cost Estimate on initial quantities subject to re-measure
 Schedule of Rates (Service Contracts Civil, ME&I, Operations Maintenance)
- Adhoc scope
- Unit Rates for Work
- Final Cost Unknown
 Reimbursable (Conceptual Design, Detailed Design, Secondment )
- Undefined Scope
- Cost Plus
- Final Cost Unknown
 Contracting Process
 Prepare tender list (selection criteria, pre-qualification, etc)
 Tender Board approvals
 Tender preparation and issue (separate technical and commercial bidding may be applicable)
 Tender opening and evaluation
 Contract award
 Progress measurement
 Claims/Change control
 Contract close out
The contracting process is to be agreed between
 Commercial Services (OCM)
 Contract Owner (CO)
 Contract Holder (CH/Project Engineer)
 Scope of Work
The Scope of Work will be prepared by the Contract Holder. It will be sufficiently detailed to
support the pricing basis adopted for the Tender. The Scope of Work must also be defined in
sufficient detail to meet the requirements of executing and completing the work or project.
 Tender/ Contract Planning
Reviewed and agreed between Unit Contract Section and Contract Holder
 Tender Board Procedures
Reference is made to GU-251 - Contract Procedure Guide

39
  Change Control and Variations to Contract

Changes are formalised using Field Trouble Reports, Change Orders and Variation to Contract. The VTC
constitutes the only formalisation of any Changes between the two Contract Parties. The VTC provides
the overall control over the changes to the original work scope.
 Typical Contracting/Execution Strategies for multidiscipline projects in PDO

Type of Contract MINOR MEDIUM LARGE MAJOR

PROJECTS & PROJECTS PROJECTS
PROJECTS
FCP’s

Construction < Design < $200k Design < $500k Design> $500k
$100k Construction < $500k Construction >$500k Construction >
$500k

CONCEPT In –house In -house In-house In-house

DEVELOPMENT
(Consultant)

FRONT END In-house/ LDSC LDSC LDSC with Consultant

DESIGN Tendering

DETAIL DESIGN In-house/LDSC LDSC LDSC with Major Contractor

Tendering
& EPC

CONSTRUCTION DCMEI direct award DCMEI with Stand alone Contract Same as above
Tendering

COMMISSIONING In -house In- house Special Resource Same as above

(Vendor assistance)

REFERENCE LISTING CONTRACT MANAGEMENT

 GU-123 Procedure for Service Standard Contracts
 GU-124 Procedure for lumpsum Standard Contracts
 GU-251 Notes for Guidance Production of Contract Documentation
 PR-1151 Local Design Service Contract Operating Procedures
32 Materials Procurement
Materials procurement covers the activities associated with the materials take-off, specification of
materials, materials enquiries, technical commercial evaluation of bids, selection, ordering, expediting,
inspection, delivery, storage, preservation and issue of materials, equipment and spare parts required for
construction works. The supply focal point for these activities is the Project Materials Co-ordinator
(PMC), except for EPC contracts.
· Close co-operation is required between all parties involved :
 Project Engineer
 Design Consultant
 PMC
 Buyers
 Vendors
 Operations
 Construction

40
· During ADP development, a procurement strategy is prepared and agreed between Project
Engineer and PMC. A plan is made covering :
 Long Lead items
 Bulk items in general
 Project vendors list
 Required On Site dates (ROS dates)

41
· Material requisitions: generation, issue, authorisation, purchase
Materials Requisitions are generated as part of the design. The Project Engineer must review and
authorise requisitions which are then released to PDO Supply Dept or to the Contractor's suppliers,
who will then place a purchase order. Bonus or penalty clauses may also be applicable.
Refer to Supply procedure 5.3.4 for electronic processing / releasing of remote requisitions to
buyers.
· Integrity and Vendor Selection issues:
 Received quotations are technically and commercially evaluated
 Compliance ensured by using the Approved Vendors' List (AVME-xx-SU-yy)
 Use of MESC items in the vendor selection process (Project Engineer’s involvement not
required)
 Use of Non-MESC items requires more involvement of Project Engineers during selection
process
 Total life cycle cost evaluation may be applicable Procurement management is essential
(tracking, inspection, audit, factory / site acceptance testing)

REFERENCE LISTING MATERIALS PROCUREMENT

 SIEP 96-3000 Project Management Guidelines
 AVME-xx-SU-yy PDO Approved Vendors' List
 No doc. No Supply Procedures- contains all supply procedures within Supply
Dept
 No doc. no Supply Procedure (Project Remote Requisitions)
 GU-251 Contract Procedure Guide - FCS-PR2
33 HSE management
· Objectives
The strategic objectives of a design should include :
 The provision of a facility where the risks have been reduced to a level that is As Low as
Reasonably Practicable (ALARP)
 The provision of documentation to demonstrate the above, and to provide a link to the
operations phase.
· HSE in Design Phase
Specific issues for Engineering and Design (refer to EP 95-0230 and SIEP 96-3000, Chapter 2 & 3)
 HAZID
 HAZOP
 Physical Effect Modelling
 Human Factors
 QRA
 Fire Control and Recovery
 EIA
 HRA

42
· Contract HSE Management
 General:
HSE specifications are to be produced in line with the HSE Code of Practice CP-122, SIEP HSE
Manual EP-95000, HSE Management of Contracts PR-1171, including the following items:
- Identification of the principal Hazards to be addressed in the Contract HSE Plan: Hazard
Assessment and HSE specification
- Contract specific requirements for management of HSE risk (focus on ALARP)
- Definition of the scope of the Contract HSE Plan
- Identification of HSE Standards, procedures and guidelines
- PDO’s requirements of the Contractor for the management of sub-contractors
- Contractor training requirements
- Minimum pre-execution requirements
 Construction and Commissioning
The HSE management system of the bidding contractors and their HSE track record should be a
major part of the technical evaluation.
Specific issues for Construction and Commissioning (refer to EP 95-0240)
EP 95000 documents to be used in project activities :
EP number Title Project activity
95-0230 Design Front End Design (FED)/ Detailed Design (DD)

95-0240 Construction and Commissioning Construction & Commissioning

95-0310 HSE Management System & Cases Concept/FED/DD/Construction/Commissioning/Operations

95-0312 HAZID Concept/Detailed Design/Concept +DD

95-0313 HAZOP FED/DD

95-0314 Physical Effect Modelling Concept/FED/DD

95-0324 Human Factors Concept/FED/DD

95-0351 Fire Control and Recovery Concept/FED/DD/Construction

95-0352 Quantitative Risk Assessment Concept/FED

REFERENCE LISTING HSE MANAGEMENT

 PL-38 PDO HSE Policy
 CP-122 HSE Code of Practice
 HSE/96/01 Health Safety and Environmental Protection Standards Manual
 PR-1171 HSE Management of Contracts Procedure
 EP 95-000 EP HSE Manual (Guide)
34 Quality Assurance
· Reference documentation
Refer to ERD 84-02, Quality Assurance specifications for Engineering works
Objective is to assure the project quality by identifying procedures and control mechanisms to be
used during the project.
Consultant, Contractor and Vendor shall implement and comply with appropriate ISO standards
latest edition.

43
· Quality management control documents
 Project Quality Plan (PQP)
 Quality Control Plan (QCP)
REFERENCE LISTING QUALITY ASSURANCE
 DEP 82.00.10.10 Project Quality Assurance
 ERD-84-02 Quality Assurance Specifications for Engineering Works

44
35 APPLICATION & STEP-OUT APPROVAL
36 APPLICATION
This Code of Practice is applicable to the management and execution of all activities associated
with Design, Construction, Modification and Abandonment of Facilities
37 STEP-OUT APPROVAL
Any changes that need to be made to this Code of Practice shall be forwarded to the CFDH for
Project Engineering. If the change relates to a specific discipline, it should also be referred to
the respective CFDH for that discipline.
In common with other PDO Control Documents, Functional Discipline Head approval via the
Variance Control System (Refer to ERD-00-10), is required to gain support for any deviations
from the work processes described in this Code of Practice.

45
APPENDICES
APPENDIX A: EXAMPLE OF KEY PROJECT DOCUMENTS DEFINED IN AN ADP

DOCUMENT EXAMPLE OF REQUIREMENTS

Asset Development Plan  This document.
Design basis  Design basis is adequately covered in this ADP.
FED Design Review report  For this minor project the review of the design will be
performed and reported via the HAZOP. One report will
adequately cover both the FED and DD phases.
Operating, Control and  Philosophies are adequately covered in this ADP.
Safeguarding Philosophy
IPF classification review  No change to safeguarding and instrumented protection approach
to the plant, so IPF reviews will not be required.
Hazardous area classification  Update will be required around heat exchangers, but not around
drawing control valves or flowmeters.
Flare and vent study  Not required, as heat exchanger is not significant to flaring rates.
Critical valve list  Not required, as no critical valves are in the project scope.
HAZOP report  One HAZOP is sufficient for FED/DD stages.
HAZOP close-out report 
Safeguarding memorandum  No changes are anticipated to the text of the Safeguarding
Memorandum, as the design basis for the heat exchanger relief
valves will not be changed.
Detail Design review report  Not required.
Plant Operating Manual  Some changes may be needed to the small print of the operating
Addendum manual.
Vendor operating and  Manuals will be provided for the flowmeters and control valves.
maintenance manuals
Engineering Operations  This document is already out of date, and an update is outside
Reference Document (EROD) the scope of this project.
Pre-Start-up Audit report  Pre-Start-up audit is not required for this project.
Project Completion certificate 

Targets dates for each document will be defined by the project engineer when producing the scope for
detailed design.
The Engineering Team Leader shall approve the documentation list for each project during review of the
ADP.
The Head of Projects shall maintain a tracking system to monitor the preparation and approval of key
documentation for all projects within his team.

46
 APPENDIX B1: LIST OF KEY DELIVERABLES
Document Type Concept Design Front End Design Detailed Design Construction Commission &H/over Close -out
Plans ADP Plan containing : Updated Updated Construction Commissioning
QA QA ADP HSE Training
PEP ADP Construction
Cost estimates Contracting Strategy Commissioning
Engineering and Operations data
Philosophies Operating (initial) Design
Safeguarding & Instrumented Operating & Process Control
protection (initial) Safeguarding and Instrumented protection
Materials selection & Corrosion Blowdown, Relief
control
Sparing
Process control (Initial)
Reports / Conceptual Design Front End Design Review Detailed Design Review Company Estimate Pre-start-up Audit Project
Scope of Work Outline HSE Assessment Soil investigation Final HAZOP Scope change log ReportCommercial doc'n Close Out
Surplus Materials CP IPF Classification (Final) Commissioning Report Claims & variations
Endorsed redundancy declarations Materials Selection & Corrosion control Flare and Vent Vendor doc'n Lessons
report Project Scope change log Learnt
Route survey Estimate Review/Revision
Control Cost estimates Plant Data Book
HAZOP Construction Scope of Work
Environmental Impact Assessment Update to EPMARS and PACER
Environmental Impact Statement Materials Selection & Corrosion Control
IPF Classification report
Construction HSE Assessment.
Specifications & Documents Soil investigation CP detailed design Tech. Integrity Documents Pre-commissioning lists Handover
Route survey Design Basis & Design Review Safeguarding Memorandum Punchlists Exception list
Standards Variance Log Standards Variance Log Weld procedures/test rec'ds Plant acceptance test
Detail Design or EPC Tender Construction Tender Operating window & Corrosion
Corrosion Circuits/Materials Specification Corrosion Circuits/Materials Specification Control procedures
Calculations HSE
Drawings PFS PFS (updated) Updated FED documents As-Built drawings As-Built drawings
UFS UFS (updated) Data sheets Hazardous Area Classification
PSFS PEFS HV/LV schematics drawings Updated Engineering &
Mat Balance (Main Streams) UEFS Functional Logic Operations Reference Document.
Frozen Petroleum Engineering Material Balance(all streams) Relay diagrams
input C&E diagram Cable layouts
Preliminary Route Survey Tie-in schedule Equipment layouts
Plot Plans Plot Plans Wiring diagrams
Hazardous Area Hazardous Area Building layouts (final)
Tie-in schedule LL requisitions Foundation plans
Key single line diagrams Building layouts Bulk material requisitions
Building layouts (prelim) Critical valve list Steel structure details
Process control narrative Relief valve list Approved for Construction
Safeguarding & IPF narrative Safeguarding & IPF narrative (Updated) Drawings.
Certificates & Plant Operating Manual Construction h/over Plant Operating Manual Project
Manuals Vendor Maintenance Manuals Equipment operations & (Updated) Close Out
Commissioning Manual maintenance manuals Equipment Ops & Maint manuals
Design Reference Manual Subst.completion certificate Materials Certificates
48
APPENDIX B2: LIST OF DRAWINGS AND DOCUMENTATION FOR DESIGN
INTEGRITY

The following are the key drawings and documentation required to maintain design integrity of facilities.
ALL design integrity documents for ALL projects shall be entered into the EDMS Business Records
database, for future reference. In addition Assets shall be registered in PDO’s Maintenance Management
System (EPMARS & PACER-CM).
Document/ SAFEGUARDING MEMORANDUM PLANT DESIGN MANUAL
Drawing Ref: DEP 01.00.02.12-Gen “Preparation of Ref: ERD 00-12 “Preparation of Plant Design
Safeguarding Memoranda and PSFS” Manual”

Variance Register HAZOP Reports (Ref : EP95 0313)

Flare/Relief/Blowdown Studies Basis for Design
Design Integrity Register
IPF Classification Reports (DEP 32.80.10.10-)
Material Selection Philosophy and Corrosion
Control Procedures
HSE Assessment
CONTAINS Ultimate safeguards including their IPF studies.
Mitigating systems. Process description.
Penultimate safeguards. List of Hazop drawings.
Capacity-determining components. Changing pressure, flow, temp, level, quality
Interfaces with other units and systems. effects.
PSFS Hazards.
Summary IPF classification sheet HP/LP interfaces.
Operability, operations.
Asset consequences.
Production.
Recommendations.
OWNER OxE/2 OxE/2
CFDH UEP UEJ
Coast  
Interior
Site
Document/ PLANT OPERATING MANUAL MAINTENANCE/VENDOR MANUALS
Drawing Ref: ERD 10-05 “Preparation of Plant Ref: ERD 00-18 “Vendor Documantation”
Operating Manual”

As-built documentation Varies per equipment/discipline

Relief Valve List
Critical Valve List
Material selection philosophy and Corrosion
control procedures

CONTAINS HSE Mechanical

Process description. Electrical
Start-up Instrument
Normal operation. Telecomms
Alarms/trip settings.
Plant control and logging.
Shutdown.
Utilities and consumables.
Maintenance.
PFS, PEFS, Plot plans.
UFS, UEFS
Hazardous area drawings.
Cause and Effect diagram.
OWNER OxO/1 OxO/1
CFDH UOP UOM
Coast  
Interior  

49
 Site  

Document/ COMMISSIONING MANUAL MAINTENANCE HISTORIES

Drawing Ref: PR -1169 “Initial Start up Procedure” /AUDIT REPORTS

Variance Register Pre Start-up audit

Flare/Relief/Blowdown Studies Close out report

CONTAINS Technical description

Organisation of commissioning team
Procedures of Pre-commissioning
Procedures for commissioning
Procedure for performance testing
Safety Plan
Detail planning
OWNER OXE/2 OXE/2
CFDH UOP UOM
Coast  
Interior 
Site

The above Table indicates which are facility-specific documents and which are project -specific
documents. If the facility is affected by the project, then the relevant facility-specific documents shall be
updated by the project engineer.
The design integrity register currently does not exist. It is proposed that this register be made available
and accessible to site and Coast personnel, properly controlled and distributed to relevant staff and
locations.
Although the Operations, Maintenance and Commissioning manuals are not required to demonstrate
design integrity, they are of vital importance to Operating Integrity and Maintaining Integrity.
For the Electrical and Instrumentation disciplines, these list needs to be finalised.

APPENDIX B3: LIST OF DOCUMENTS FOR INTEGRITY MANAGEMENT IN THE

OPERATIONS PHASE

Reference/Guides
Operating and maintenance manuals ERD-10-05 (Preparation of Plant Operating Manual)
Maintenance histories PR-1169 (Initial Start-up Procedure)
Agreed Punch list PR-1169 (Initial Start-up Procedures)
Hand-Over certificate ERD-00-05 (Hand over and As-built documentation)
Project close out report Guidelines for the preparation of project close –out
reports ** Proposed
Regulatory certificates/permits (If Any)
Design Reports ERD-00-12 (Preparation of Plant Design Manual)
As built drawings ERD-00-05 (Hand over and As-built documentation)
System commissioning dossier PR-1169 (Initial Start up Procedure)

APPENDIX C: SUMMARY INPUT/ACTIVITIES/OUTPUT/STANDARDS PER

PHASE
Concept Input Activities Output Applicable

50
 Guidelines and
Procedures
Project Business Plan ARP Production forecast Refer to Appendix A0, BDM/032/96
Identification & FDP Capex/Opex costing B1 ERD-00-19
Engineering FCP Identification of projects ERD-00-23
Concept definition Capital Budget
Selection of concept Proposal Guideline
Concept optimisation from OCB
Project scheduling EP 95-0220
Economics
Planning & Cost estimates Costing Planning 25% Budget Schedule Capital Budget
Budgets Equipment Proposal Guideline
information from OCB
Redundancy Subsurface and Drafting of redundancy Management PR-1164
Declaration Surface declaration endorsement of SP-1012
development redundancy declaration
reviews
Front end Design Input Activities Output Applicable
Guidelines and
Procedures
Engineering ADP FED scope of Perform FED activities, Refer to Appendix B1 ERD-00-02
work Identified Scope of work for detailed BDM/032/96
scope changes design Design review
Identify LL /critical items
Planning & Cost estimates Costing Planning 15% Budget Project ERD-00-19
Budgets Equipment Schedule ERD-00-23
information EP-96-3000 Capital
Budget Proposal
Guidelines from
OCB
Hazop PFS, UFS, PSFS Hazop Study Hazop report EP 95-0313
PEFS, UEFS
Operating, Process
Control and Design
Philosophy
IPF Classification PFS, UFS, PSFS, IPF Classification exercise IPF report DEP 32.80.10.10
PEFS, UEFS, CEM
Operating, Process
Control and Design
philosophy
Materials selection ADP, FED scope of Materials selection & Materials selection & ERD-49-01,
& Corrosion work, FED Corrosion Control Study Corrosion Control ERD-49-02
Control Philosophy deliverables (Corrosion Impact Report
Assessment)
HSE Outline HSE Environmental Impact Environmental Impact HSE/96/01
Assessment Assessment T.A. Approval Statement, Updated GU 195
Design Change & Mgt Approval HSE Assessment PR 1055
Scope change Change control register EP 95-0230

Change Control Design Change & T.A. Approval Change control register ERD-00-02
Quality Assurance Scope change QA Mgt Approval Audit Audit report ERD-00-19
Plan ERD-84-02
Quality Assurance QA Plan Vendor Audit Monitor Audit report Drawing ERD-84-02
Document Control documents control ERD-00-06
Engineering ERD-00-14
documents
Document Control Vendor documents, Monitor Implementation of Drawing control ERD-00-06
Scope change Engineering (new) scope Change control register ERD-00-14
documents
Mgt. Approval
Design scope
Scope change Mgt. Approval Implementation of (new) Change control register GU-251
Contracting Design scope scope Issue FED tender FED Contract EP 96-3000
Concept Design Evaluate bids Contract mgt

51
 Scope of work for strategy Contract award
Front End Design
Contracting Concept Design Issue FED tender Evaluate FED Contract GU-251
Scope of work for bids Contract mgt strategy, SIEP 96-3000
Front End Design Contract award

Detailed Design Input Activities Output Applicable

Guidelines and
Procedures
Engineering FED scope of work, Perform DD activities, Refer to Appendix B1 SIEP-96-3000
FED deliverables, Hazop study, Vendor Initial Start up ERD-00-14
Identified Scope drawing review, Interface Procedures ERD-00-18
Change with vendors Procure Vendor documents EP 95-0313
materials Bulk materials EP 95-0230
Attend FAT & SIT requisitions
Conduct IPF study Operating manual
Prepare Construction Equipment manuals
Scope of Work
Design Review
Asset registration Operating and Register asset in EPMARS, Asset registration in GU-110
in the Maintenance maintenance PACER-CM. Load MMS & Corrosion PR-1167,
Management Philosophies. FED Inspection and Management System PR-1032
System deliverables, DD Maintenance activity
deliverables. details in EPMARS.
Load Materials data and
Corrosion Control data.
Planning &Budgets Vendor information Costing/ Budget update 10% Budget Project SIEP 96-3000
Contractor Planning Update PEP schedule Capital Budget
information Proposal Guideline
from OCB.
ERD-00-19
ERD-00-23
Hazop PFS, UFS, PSFS Hazop study Hazop Report EP 95-0313
PEFS, UEFS
Operating, Control
and Design
philosophy
IPF Classification PFS, UFS, PSFS, IPF Classification exercise IPF report DEP 32.80.10.10
PEFS, UEFS, CEM
Operating, Process
Control and Design
philosophy
HSE HSE Assessment Construction HSE HSE Specification HSE/96/01
Assessment EP 95-0230
PR-1171
Change Control Design Change & T. A. Approval Mgt. Change control register ERD-00-02
Scope change Approval ERD-00-19
Quality Assurance QA Plan Audit Audit report ERD-84-02
Document Control Vendor documents Monitor Drawing control ERD-00-18
Engineering Vendor documents ERD-00-06
documents register ERD-00-14
Contracting FED Documents Issue DD Tender Detailed Design GU-251
Evaluate bids, Contract SIEP 96-3000
Contract award Update Project Plan

Construction/ Input Activities Output Applicable

Pre-commission Guidelines
and
Procedures

Construction AFC drawings Carry out construction Refer to Appendix B1

Procured materials Interface with equipment New Facilities Plant
Construction Scope of suppliers modification

52
 Work Pre-commissioning
Planning &Budgets AFC drawings Planning Construction plan
Procured materials Progress monitoring Commissioning plan
Construction Scope of
work
HSE HSE Specification HSE Plan Update HSE Plan PR-1171
GU-252
EP 95-0240
Field trouble report AFC drawings Approval Change control register
Safety review HSE Plan Technical HSE Audit Audit report EP 95-0130
Contracting Construction Scope of Issue Construction Tender Construction Contract
Work Evaluate bids Contract
AFC Drawings award
Document Control AFC drawings Vendor Mark up as-built As-built drawings ERD-84-02
drawings information on AFC Construction hand-over
drawings cert.
Equipment hand-over
cert.
Punchlist Drawing list

Commission Input Activities Output Applicable

Hanover Guidelines
and
Procedures

Commissioning and Construction hand-over Execute commissioning Training plan ERD-00-05

Hand-over Certificate Pre- Training of personnel Plant acceptance test. PR-1169
commissioning test Exception list
Operating and Hand-over
Maintenance Manuals documentation
Training requirements
Close-out Input Activities Output Applicable
Guidelines
and
Procedures
Project Close out Plant acceptance Update project file Budget close out ERD-00-19
certificate, Final Distribute as-built certificate PR-1150
exception list’ drawings Project close out report
Hand-over certificate, Return surplus materials
Maintenance manuals
As-built drawings

53
 APPENDIX D – GENERIC JOB DESCRIPTIONS
HEAD OF PROJECTS PROJECT ENGINEER HEAD OF CONSTRUCTION CONSTRUCTION SUPERVISOR
To manage a multi-discipline team executing To be responsible for execution of assigned To lead and co-ordinate all engineering To supervise discipline construction activities in
engineering projects from completion of Asset project(s) from completion of ADPs to hand construction activities in the area to ensure that the area to ensure that all works are completed
Development Plans (ADPs) to hand over to over to Operations in accordance with the all works are completed in accordance with the according to design, on schedule and to
Operations in accordance with the Project Project Engineering Code of Practice and Project Engineering Code of Practice, appropriate levels of HSE & Quality.
Engineering Code of Practice and associated associated procedures, guidelines and according to design, on schedule and to
procedures, guidelines and specifications. specifications. appropriate levels of HSE & Quality.
Reporting to: Area Engineering Team Leader. Reporting to: Head of Projects. Reporting to: Area Engineering Team Leader. Reporting to: Head of Construction
TA-2 in Project Engineering (mandatory) TA-2 or 3 in Project Engineering TA-2 or 3 in Project Engineering TA-3 in own discipline
Responsible for: Responsible for: Responsible for: Responsible for:
Managing a multi-discipline team executing engineering The execution of assigned projects to specification Ensuring the completion of construction and Supervising the discipline construction and
projects. and within agreed cost and schedule constraints. (pre)commissioning activities according to the design, commissioning activities in a safe manner, within
Single point responsibility for design integrity, in a safe manner, within schedule and in accordance budget, within targets and in accordance with
To contribute to the execution aspects of the Asset
budget, cost control and schedule. with applicable Company Procedures and Technical applicable Company Procedures and Technical
Development Plan process, and after hand-over from concept
Specifications. Specifications.
group, execute the projects to agreed time and budget targets. To be a member of the ADP team to review and
challenge the front-end design and confirm the viability To prepare construction work plans, identify key resource To review the scope of construction works and identify for
To lead the team in the development of optimum execution
of schedule and budget, carrying out any further constraints and operation interfaces and to ensure, in co- any anomalies prior and during construction.
strategies on commercial, schedule, quality and HSE aspects.
engineering studies required to optimise the design. ordination with operation planners, that all relevant To monitor the HSE performance of all construction
To instigate project technical reviews and ensure that adequate information is included in the Integrated (IAP) activity plan
To develop project execution plans and contracting / contractors in the area (against the Departmental, Project
design, change control and variance controls are in place in for the area.
procurement strategies. or Contract HSE Plan) and to ensure that all work sites
each project.
To oversee the work on site for all disciplines including under his control are operating in a safe manner.
To develop a detailed project plan for the purpose of
To review and audit budgets to verify their accuracy, achieve mechanical, electrical, instrumentation and civil and to
schedule optimisation or recovery and financial To review Contractor’s plan and ensure Project targets are
optimum phasing and minimise the risk of excessive over or manage the interfaces between discipline activities.
reporting. To monitor and control project budgets and met.
under spend.
commitments and to report potential deviations in To manage the HSE performance of all construction To sign (within the limits of assigned Technical Auythority)
To maintain a tracking system to ensure that Key Integrity sufficient time to ensure that prior approval may be contractors in the area (against the Departmental, Project the testpack after completion of individual jobs making
Documentation (ref. CoP 117) is completed for all projects obtained for any over expenditure or rephasing. or Contract HSE Plan) and to ensure that all works under sure that the job has been done according to PDO
To approve the Project Quality Plan. his control are carried out in a safe and timely manner.
To exercise change control and variance control of each standards and regulation and site is cleaned of any scrap.
To ensure all necessary liaison with customers, support project. To seek line and discipline (CFDH) approval for Responsible for disseminating information concerning new To plan for station or part of station shutdown with
organisations and the Interior Construction Teams are carried any proposed deviations from PDO standards and or revised PDO standards to his team. Operations.
out in particular timely delivery of accurate as built drawings and procedures. To ensure that the approval of the Project Engineer is To review marked-up as built drawings of the completed
Project close-out to clients’ satisfaction. To ensure that all project documentation is reviewed and obtained for any proposed field change (e.g. FTR) which job before handover to Operations and Project Engineer.
To develop staff and contractor awareness of safety and approved according to the project / section QA plan and may have an impact on Design Integrity. To obtain similar To highlight any deviations from the original design to the
environmental issues. the Technical Authorities System. approval in the event that construction cannot be Head of Construction.
completed within the authorised value of the construction
Responsible for disseminating information concerning new or To manage procurement activities to ensure that
contract or Job Order. To foster continuous Business Improvement
revised PDO standards to his team. materials are obtained on schedule at the lowest
(lifetime) cost. To foster staff motivation and co-ordinate training &
To act as Contract holder for project specific design and development of subordinates (through EMPDS) to meet
construction contracts. To ensure that HSE exposure is minimised during the
current and future business needs.
design, construction and operating phases of the project
To foster staff motivation and co-ordinate training & and to instigate reviews as appropriate to confirm that To see all area construction activities through to a fully
development of subordinates (through EMPDS) to meet current residual risks are acceptable. inspected/tested completion, such that commissioning
and future business needs. (and future operation /maintenance) of newly constructed
To act as Company Representative on project specific
To foster continuous Business Improvement or modified facilities is trouble free.
design and construction contracts.
To act as Company Site Representative on construction
To ensure that Key Integrity Documentation is
contracts.
completed and handed over including as-built drawings
and operating manuals and to complete the Project To foster continuous Business Improvement
Close-out Certificate.
To foster continuous Business Improvement
APPENDIX E - GLOSSARY
Term Definition & Source

Acceptance Acknowledgement by operations that handed-over systems have been completed, and a final
punch list agreed by both parties.
Abandonment Remove , where appropriate, assets that reachthe end of their useful life and, using the best
available industry practices, to restore the environment as close as is reasonably practicable to
it’s original condition.
Activity The descriptive name of the unit of work (group of lower level activities or tasks) that has to
be carried out. This is a static definition compared to the dynamic process definition of how
the work is carried out. Work to be carried out as part of a process characterised by a set of
specific inputs and tasks that produce a set of outputs to meet customer requirements.
Appraisal Assessment of potential capability.
Approved for Drawing package approved for construction.
Construction (AFC)
As Builts Drawing or document modified in accordance with final installation, as commissioned.
Asset Anything that has value to the Company.
Asset Development Plan An integrated conceptual design and execution plan for a project including details of the
surface and subsurface optimisation studies carried out.
It documents the remaining uncertainties and the potential impact of these on the surface
facilities development.
Asset Manager The position which is accorded single point accountability by the Company chief executive
for all aspects of the management, including budgetary control, of a clearly defined asset or
group of assets, over part or all of its life-cycle in order to achieve corporate objectives.
Asset Reference Plan The plan that demonstrates that all activities, resources, threats and opportunities for
(ARP) improvement to a facility's technical integrity have been fully evaluated and the impact on
cash flow quantified over the life cycle.
Authorised Value (AV) The maximum amount that can be spent under a group of contracts, without seeking further
approval for additional expenditure from an Authorised Signatory or the Tender Board.
Authority The right to make, on behalf of the company, decisions which commit the Company to a
course of action incurring expenditure, deployment of resources and/or release of information
Base Estimate Comprises the activity estimate plus the activity allowances (i.e. those uncertainties which are
known historically to occur). Base Estimates do not carry any contingency or overrun
allowances.
Benchmarking A means to measure a process, organisation or strategy against others with the purpose to
improve the performance of the same.
Bid A document submitted by a third party detailing the terms and conditions with which they will
provide the goods and/or services as required and in response to the Company's enquiry or
tender document.
Budget A summary of the anticipated costs of all activities on clearly defined assets, or group of
assets, in a specific time frame.
Budget Item (BI) A discrete budget proposal covering a phase of a project or the acquisition of an asset, or set of
assets (part or all of a project).
Business Plan A document which describes the company’s business direction.
Calibration The precise measurement of control or monitoring equipment to enable it to perform the exact
requirements for which it was installed.
Capital Budget The aggregation of capital Budget items.
Cause and Effect Diagram A diagram used to identify, categorise and visually record possible causes of a problem or
effect. It helps to sort out and relate interactions among factors affecting a process. The
categories often chosen are generally related to man, machine, methods, material and
environment. (Note: also known as the fish bone diagram).
Certificate of Acceptance Certificate issued by authorised QC or QCS group after successful inspection and/or
surveillance.
Claim A request for payment of a sum of money alleged to be due under a contract.
Code of Practice The minimum guidelines for company employees expected on their honesty and integrity in
all aspects of the business. This includes avoiding conflicts of interest between company and
private activities; the offer, payment, soliciting and acceptance of brides in any form which are
 unacceptable.
Commissioning The testing and adjustment of an assembly, or system, and will compromise operational testing
under real or simulated (hydrocarbon) conditions to ensure it meets all acceptable Rules,
Regulations, Codes and Standards, fulfils its intended duty and is ready for hand-over to
operations. This is the overall process of bringing a new or modified facility into service. Its
prime purpose is to ensure that the facilities function as per design intent.
Commitment An agreement to do or accept something which usually involves amount of money to be paid
or resources to be consumed at a future time.
Company Representative The person ultimately responsible for a contract. The Company Representative is named in the
contract and can sign variations to the contract.
Company Site The person responsible for managing the site as defined in the General Conditions of Contract.
Representative
Conceptual Design The outline design developed prior to the Project Specifications utilising the Basis for Design.
Construction The project stage at which equipment and structures are installed/erected.
Contingency Funds added to base cost estimates in order to take into account the degree of uncertainty
inherent in the activity.
Contract An acceptance of legal relations between two or more parties for the transfer of goods or
services for value.
Contractor A third party (person or company) employed to complete a specific task on behalf of the
Company.
Corporate Concerning the Company as a whole.
Corporate Management A document which descibes the framework which integrates all the activities in a company.
Framework
Deliverable The output from an activity and/or process e.g. document, data, also called product.
Design and Engineering SIEP developed engineering standards.
Practice (DEP)
Detailed Design Design stage of the project during the execution phase. Final design based on project
specification.
Deviation A non-compliance with a formal requirement.
Document Paper or other material thing providing instruction, information, proof or evidence of
anything.
Document Owner Person assigned by management as responsible for the creation, content, issue, distribution,
implementation, update and control of a document.
Engineer, Procure and This is basically a modified type of turnkey contract but with the company providing a
Construct (EPC) management team to overview that of the Contractor.
Enquiry (or Tender) Issued to potential tenderers to obtain bids or quotations for the provision of services and/or
Document Entity goods. An item which can be individually described and considered, may be an activity,
process, product, organisation, asset, etc.
Estimate Project cost breakdowns designated as screening (± 40%), feasibility (± 25%), budget (± 15%),
or control (± 10%) estimates.
Estimate (50/50 Budget) Estimate which has equal probability of over or under-run.
Estimate (90/10 Budget) Estimate which has a 90% probability of under-run and 10% of over-run.
Execute Part of the Process Management Cycle, where the activity executor(s) carry out the
planned/scheduled work.
External standard A standard (e.g. ISO, EN, ANSI,, BS, API etc.) issued under the auspices of a non-Group
body.
Facility A group of equipment used to perform a useful function for the EP business.
Feasibility Study Study to examine if a Project Proposal is viable both technically and economically.
Feedback Part of the Process Management Cycle, where the lessons learned throughout the cycle are
advised to Management and the initiating activity(ies) Process Owner, and are incorporated
into the planning and scheduling activities. The aim is further improvement not only of this
process but also others affected by the same management or initiating activities.
Field A surface area and its underlying strata consisting of one or more reservoirs, all of which are
grouped on or are related to the same underlying geologic structural features and/or
 stratigraphic traps.
Field Development Plan A formal Project Specification for sub-surface and surface facilities, and the operational
(FDP) philosophy required to support a proposal for production from a new reservoir or an extension,
or any substantial supplementary schemes.
Firm Budget The approved budget which forms the basis for proceeding with the execution phase of the
project.
Firm Item A defined budget item which has been included in the Company's capital budget.
Focal Point An organisational representative through which all matters on a particular subject are
channelled.
Follow-up The activity which ensures that agreed action items resulting from an audit are implemented.
Forecast Measurements in the form of a performance indicator that ensures a 50/50% expectation
(chance) of achievement.
Form A document containing instructions between two or more parties and once filled in and
completed becomes a record.
Function A group of similar discipline organisational units that support a common mission or purpose.
Provides for pooling of expertise with supervision by personnel with the requisite knowledge.
Guideline A document which provides direction for managing a process or an activity
Handover The presentation of systems, with completed commissioning documentation and punch-lists as
appropriate, for transfer of responsibility to the Operator and/or Owner.
Hazard A set of conditions in the operation of a product or system with the potential for initiating an
accident sequence.
Input Information, data, documentation or material etc. necessarily required to enable execution of
an activity.
Installation The totality of Functional Assets installed on a single support structure (offshore) or
occupying a single land plot (onshore) performing several useful distinct but related functions
for the EP business.
Inspection An activity such as measuring, examining, testing or gauging one or more characteristics of an
entity and comparing the results with specified requirements in order to establish whether
conformity is achieved for each characteristic.
Integrated Planning The planning of a complete business process to an agreed time horizon to achieve its optimum
effectiveness and efficiency consistent with known information and agreed assumptions.
Job Description A document detailing the accountabilities of a position, it defines the responsibilities and
authorities given to the incumbent of that position.
Licence Block A specific tract of the earth defined by areal extent and possibly depth (numeric depth range or
stratigraphic units). The lease parcel is the basic unit of ownership for portions of the earth; it
may be offshore or onshore.
Line The organisational line of authority from MD down to individual staff. Each position within
the chain of command is responsible for ensuring that their sub-ordinate(s) have the requisite
authorities and resources available to enable them to perform their allocated tasks.
Furthermore each position should ensure adequate controls are in place to ensure that tasks are
performed as intended.
Long Term Item A budget proposal or forecast for which approval still needs to be sought but which is
included in the Company's long-term capital forecast.
Lump Sum (contract) With a lump sum contract, the Contractor is given defined starting and finishing points and
undertakes to perform the whole of the specified work at a fixed price.
Lump Sum with Bills-of- Bills-of-Quantities contracts are lump sum contracts with detailed bills of quantities forming a
Quantities (contract) precise definition of the scope of work. The tendered rates provide the means of agreeing the
cost of variations and a common basis for the comparison and analysis of competing Tenders.
Life Cycle Costs The total cost of ownership of an item of material, taking into account all the costs of
acquisition, personnel training, operation, maintenance, modification and disposal, for the
purpose of making decisions on new or changed requirements and as a control mechanism in
service, for existing and future items.
Management Review Formal evaluation by line management of the status and adequacy of the Company's-MS(s) in
place in relation to achieving the Company's objectives and complying with the Company's
policies.
Management System The system for managing the Company which provides for a structured framework of controls
at all levels to ensure that activities are executed in accordance with requirements. One of the
 key requirements is for continuous improvement.
Manual A document which gives guidance and contains explanations of rationale for the way a
particular aspect is to be approached, and where the resultant practice or method is outlined.
Material A physical asset acquired in standard measures to be used either to make an Equipment Item
or to be used as a consumable.
Milestone A major point fixed for review in a project or payment in a contract.
Network (Project) Scheduling method to determine critical paths of project.
Non-compliance Failure to follow defined procedures, instructions
Operation Those operating, maintenance and inspection activities performed following acceptance of a
system.
Overrun Allowance An amount of money added to a budget, at management discretion, to raise the reliability of
the budget to 90/10% probability of underrun/overrun.
Pending Budget Preliminary or early budget produced at the beginning of the Definition Phase of the Project.
Performance Indicator These are the metrics which are short term in nature, reflect the level of progress made
(PI) tactically or operationally in optimising output in line with the set of standards or goals.
Performance Test The formal testing of the equipment to demonstrate contractual guarantees.
Plan Part of the Process Management Cycle, where what has to be done is established and the
resources needed to do the work are identified. This is done for a given time horizon, usually
more than one year. The activity produces a document describing a set of future intentions.
Policy A guide to managerial action which documents the course of action.
Pre-Commissioning The checking, verification, testing, adjustment, calibration, etc. of item assemblies, loops, part
of systems or systems which are required to ensure all functional and operational actions are
according to applicable Rules, Regulations, Codes and Standards, and according to its
designed purpose and intended service including the completion of all applicable documents.
These items, assemblies, loops, part systems or systems shall be brought to the stage of Ready
For Commissioning when pre-commissioning is completed. Non operational works after
mechanical completion (e.g. flushing, cleaning, loop testing etc.) prior to commissioning.
Procedure Document describing the purpose and scope of an activity and the specific way the activity is
to be performed to achieve a satisfactory result. An auditable series of steps defining roles,
responsibilities and tasks which transform a defined input into a defined output.
Process Owner A position of delegated responsibilities for the performance (efficiency, effectiveness and
adaptability) of a process. This requires in consultation with the process participants to:
* develop and document the process;
* identify critical activities and risks;
* ensure appropriate controls are in place;
* establish performance measurements;
* monitor and analyse process performance;
* identify and implement improvements
Programme Proposal (PP) The company's planned activity level over the next five years including technology plans,
information plans, audit plans, etc.
Project The provision, within a given time frame, of item(s) required to achieve a set of specific
objectives.
Project Development Project plan developed at the start of the definition phase which,
Plan (PDP) once approved, provides the Basis for Design and initial execution strategy from which work
can proceed with development of the Project Specification.
Project Execution Plan Project Plan developed at the end of the definition phase as the basis for the execution phase.
(PEP) The Project Execution Plan is the central reference document used by the Project Manager to
carry out his job and is the principle vehicle by which others are committed to meeting the
Project deliverables.
Project Specification A technical description of the project and is the formal basis for detailed design.
Project Stages Within each phase the project progresses through stages e.g. Feasibility Study, Detailed
Design, Construction, etc.
Punch list A prepared list of items which require rectification or completion before a project can be
considered complete.
Quality Meeting agreed customer requirements. This has been derived from the international standard
on Quality ISO 8402 which defines quality as the totality of features and characteristics of a
product or service that bear on its ability to satisfy stated or implied needs
Quality Assurance (QA) All those planned and systematic actions necessary to provide adequate confidence that a
product or service will satisfy given requirements for quality.
Quality Control (QC) The operational techniques and activities that are used to fulfil requirements for quality.
Quality Planning (QP) The activities which establish the objectives and requirements for quality and for the
application of quality system elements.

Record A set of related data or words treated as a unit.

Reference Direction to another information source for further details.
Reference Material A document which provides information which can act as a basis for a manual, specification,
or activity.
Reimbursable Cost There are three types of Reimbursable Cost contract: the straight reimbursable cost, the
(contract) reimbursable cost plus fixed fee and the reimbursable cost with fluctuating fee.
Regulation A standard issued by a government body or regulatory agency with which an Opco must
comply.
Remedial Action That immediate action which is required to repair/rework/ recall etc. a non-conformance.
Required On Site (ROS) Latest date by which materials shall be available on site for fabrication.
Resources Everything that is required to perform an activity upon an asset. All costs are therefore
attributable to the consumption or availability of resources (including stand-by and surplus
capacity).
Responsibility The state of being required to undertake specific actions. The execution of a delegated task,
activity or process.
Review See audit; in the context of this report the words audit and review are used interchangeably.
Risk The combined effect of probability of occurrence of an undesirable event, and the magnitude
of the event.
Risk Aspects Those risks agreed by management requiring specific business control e.g. Health, Safety,
Environment, cost/money, data integrity, asset integrity, reputation, employee motivation etc.
Risk Management The process whereby decisions are made to accept a known risk or hazard or to eliminate or
migrate it.
Safety A state in which the risk of harm (to persons) or damage is limited to an acceptable level. [A
category of risk to be managed.]
Schedule Part of the Process Management Cycle, where the plan is converted into a detailed set of tasks
to be done within a discrete period and matched to the actual resources which will be used. A
schedule should be continuously rolled forward with a time horizon of usually no more than
one year.
Schedule of Rates This type of contract agrees a unit rate for each item or activity and is necessary when the
scope and/or quantities within the contract cannot be defined at time of contract award.
Scope of Work A description of the work to be carried out in a project together with the deliverables, targets
and constraints for each phase of the project. (During the life of a project the detail may
increase.)
Shutdown This is a general term for stopping production and bringing the facility to a safe status. It does
not necessarily entail making the plant hydrocarbon free or cleaning procedures.
Specification Document stating requirements.
Stakeholder Those parties/ companies who influence the performance of the company e.g. Shareholders,
customers, suppliers, contractors, industry bodies, local and national governments, employees
etc.
Standard A document providing rules, guidelines or characteristics for activities or their results, aimed
at the achievement of the optimum degree of order in a given text.
Star Rate A new unit rate, agreed during the execution of a service contract, covering an activity for
which no unit rate existed when the contract was awarded.
Start-Up The stage of commissioning when the plant is started to operate as designed. Those activities
performed and documented to ensure the successful completion of the initial start-up and
process testing, by the introduction of hydrocarbons.
Strategies Framework for plans to achieve the objectives. Used as a screen for possible plans.
Supplier Person or people delivering a product, service or advice.
Targets Goals identified and agreed for the following year, subsequently used as basis for performance
assessment.
Task A work or job instruction necessary to carry out part or all of the defined activity.
Technical Integrity The technical integrity of a facility is achieved when, under specified operating conditions,
there is no foreseeable risk of failure endangering safety of personnel, environment or asset
value.
Technical Specification The document that prescribes the requirements with which a product (or service) has to
conform.
Tender Board (TB) An independent management committee set up to authorise and monitor the placing and
handling of contracts in the Company.
Terms Of Reference A document that describes the work to be done, by whom it is to be done, to what standards
(TOR) and with milestone reviews and approvals.
Third Party Inspection Inspection by an agency independent of Owner of Contractor.
Turnkey (contract) A turnkey contract is a lump sum contract under which the Contractor designs, installs and
delivers the facility ready for operation and is fully responsible for all aspects of the project.
Variation Formal change to a contract.
Vendor Equipment or materials supplier.
Verification Confirmation by examination and provision of objective evidence that specified requirements
have been fulfiled.
Work Breakdown The work divided up into System Groups, Systems, Equipment, Materials etc. as appropriate
for the Accuracy Class of the estimate to be prepared. For each activity identified by the
process, who will control it (single point responsibility) and what will be produced is detailed.
The break down will be identified in line with data hierarchy in the cost database, and therein
with the Cost Coding Manual for Project Budget Estimating.
Work Order (WO) A document used to initiate work by a source external to the company
Work Request A document used to initiate work by the company.