SAEP-25

Previous Issue: New Next Planned Update: 15 August 2011 Page 1 of 48 For additional information, contact Branton, Minh Anh on 966-3-8739526

CopyrightSaudi Aramco 2005. All rights reserved.

Engineering Procedure SAEP-25 15 August 2006 Estimate Preparation Guidelines

Document Responsibility: Project Support & Controls Dept.

Saudi Aramco DeskTop Standards Table of Contents 1 Scope............................................................ 2 2 Applicable Reference Documents................. 7 3 Instructions.................................................... 7 4 Responsibilities........................................... 32 5 Exhibits....................................................... 35 Exhibit I Study Estimate Package Checklist.. 37 Exhibit II Budget Estimate Package Checklist. 39 Exhibit III ER Estimate Package Checklist... 41 Exhibit IV Company Estimate Package Checklist....................................... 43 Exhibit V Sample of 56D Form... 44 Exhibit VI Benchmarking Data Sheet.... 45

Document Responsibility: Project Support & Controls Dept. SAEP-25 Issue Date: 15 August 2006 Next Planned Update: 15 August 2011 Estimate Preparation Guidelines

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1 Scope

1.1 Purpose

This Engineering Procedure provides a consistent and uniform approach for Estimate Preparation applicable to Saudi Aramco capital projects. It is intended to be used by all personnel connected with the development and/or review of estimates.

1.2 Definition

An estimate is a key ingredient leading to development of an approved plan, which can be used for comparison with the progress of the project.

Following are the four (4) types of estimates presented in these preparation guidelines that are critical to project development and management:

1.2.1 Study Estimate

Study Estimate, sometimes referred to as Conceptual or Order of Magnitude Estimate, is primarily developed during the very early stage of project life cycle. It is often based on limited project data such as facility type, site location and list of equipment which form the basis for preliminary feasibility, partial cases, process selection alternatives, site location and layout studies of planned new projects or expansion of existing ones. Engineering work is at the initial stage which usually ranges from 0 to 1%.

It is typically used for studying alternatives aimed at providing options in establishing the most viable and cost effective solution to project development and execution necessary for making decisions on possible future projects.

1.2.2 Budget Estimate

Budget Estimate, also known as Preliminary Estimate, is prepared after major engineering decisions have been made. It is intended to define the cost of the baseline scope of work for a given project that is included in the capital plan. The Engineering work at this stage is about 5% complete. Budget estimate is based on the approved Design Basis Scoping Paper (DBSP) prepared by the Facilities Planning Department (FPD). (Refer to SAEP-1350)

1.2.3 Expenditure Request (ER) Estimate

This is a detailed estimate supporting the Expenditure Appropriation


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Request (ER) for the approval of fund allocations for a particular Budget Item (BI) and used as the basis for project cost control. It establishes a detailed baseline for the monitoring and control of the later phases of the project. It is used for variance reporting, productivity analysis, cost trend analysis, and control of construction. The ER estimate forms the basis from which the 56D form is developed. Engineering work at this stage in the project cycle ranges from 25% to 30%. The ER estimate is based on the approved Project Proposal. (Refer to SAEP-14)

1.2.4 Company Estimate

Company Estimate is a definitive estimate which is developed for the purpose of testing the reasonableness of bidders proposals for contracts, amendments and change orders (contract action). This estimate should reflect the price for which a given contract action would be awarded under competitive conditions in the current market environment.

An effective company estimate has the following key elements:

a well-defined scope of work a complete set of final drawings and related specifications a complete list of materials and special equipment requirements firm start-up and tentative completion date.

1.3 Estimate Accuracy

Accuracy is the measure of the quality and reliability of the estimate. Different types of estimate have varying levels of accuracy depending on the definition of scope and quality of information available.

Following are the different types of estimates with their corresponding anticipated accuracies:

Type of Estimate Design Engineering % Complete Estimate Accuracy

Study Estimate 0 to 1% 50% - 100% Budget Estimate 5% 40% Expenditure Request (ER) Estimate 25% to 30% 10% Company Estimate 30% to 100% 10%

1.4 Request for Estimate

1.4.1 General Requirements

Requests for estimates are processed online through the SAP Estimation


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and Project Management Information System (PMIS). This enables the users from Saudi Aramco Project Management Team (SAPMT), Facilities Planning Department (FPD) or any other Saudi Aramco organizations to initiate an estimate request directly online to Project Support & Control Department (PS&CD) through the SAP System. Various Estimating SAP Roles need to be granted prior to any initiation of estimate request and subsequent approval thereof by proper authorities. These are:

Requestor Role This role will allow the user to create or initiate an estimate request and submit it for approval within his organization. This role should be assigned to Saudi Aramco Supervisor level personnel or as delegated by Supervisors.

Request Approver Role This role will allow the user to make changes to an estimate request and authorize approval prior to submission to PS&CD. This role is only granted to Supervisors, Division Heads or Project Managers.

Access authorization to the above-mentioned SAP Roles is contingent upon the following:

Eligibility of the requestor for the requested role Completion of the SAP R/3 Access Request form Approval of the SAP R/3 Access Request form by the requestors

Department Manager.

As soon as the SAP R/3 Access Request forms have been signed by the users Department Manager and PS&CD Manager, the Computer Security Liaison (CSL) of SAP system grants access on the requested roles.

The application form for SAP Roles Access can be downloaded at the following Saudi Aramco Local Intranet Page address:

http://sapcc.aramco.com.sa/samd/documents/forms/SAP%20R3%20Access%20Request%20Form.doc

Refer to PS&CD Guidelines in Granting Access to SAP Estimation Roles or visit http://sapcc.aramco.com.sa/sapestimation/ for more details.


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1.4.2 Checklists of Required Documents

In order to determine if a submitted estimate package contains all of the elements and criteria required for processing and acceptance by the Estimator, checklists are hereto attached for necessary reference as follows:

Exhibit I, Study Estimate Package Checklist Exhibit II, Budget Estimate Package Checklist Exhibit III, Expenditure Request (ER) Estimate Package Checklist Exhibit IV, Company Estimate Package Checklist.

1.5 Application and Timing

1.5.1 Study Estimate

During the study phase, analysis of the preliminary scope definition and economics of the proposed project shall be thoroughly performed in order to:

decide whether to advance to the DBSP and Budgetary Project Scope Definition Phase

determine which of the viable alternatives to further develop during the DBSP and Budgetary Definition Phase

The Proponent (normally a Saudi Aramco operating department sponsoring the project; owner and/or user of the facility to be constructed) promotes the development of a project and works with FPD. Together they first develop a basic project description (facility type, capacity and probable site location) which PS&CD uses as the basis for the Conceptual or Study estimate based on the planning brief. This is done at the very early stage of project development.

1.5.2 Budget Estimate

After a thorough feasibility analysis and alternatives have been considered and developed, the Proponent and FPD shall continue to expand the scope of work to develop the Design Basis Scoping Paper (DBSP) based on more information and available resources.

When the project is adequately defined, it is submitted as a proposed Budget Item (BI) under the Capital Budget and Programs and presented to the Board of Directors for approval. The appropriate Saudi Aramco Project Management Team (SAPMT) is then assigned the responsibility for the execution of the project. The assigned SAPMT submits a request


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for Preliminary Engineering funds required for the development of the Project Proposal.

Budget estimates are based on the approved DBSP and updated whenever the scope of work or Expenditure Request Approval (ERA)/ Onstream dates change.

1.5.3 Expenditure Request (ER) Estimate

With the exception of Master Appropriation projects, Saudi Aramco requires an ER estimate for all Capital, Non-Capital and Expense Projects valued more than $2 million under the control of Engineering and Operations Services (E&OS).

A complete ER estimate based on the approved Project Proposal (PP) from SAPMT, FPD and Proponent organization signatory must be submitted to PS&CD at least four (4) weeks prior to submittal of the 56D Estimate to FPD Budget Director for Board, EXCOM and local approvals, as per Capital Program ER Processing Schedules. Full project funding is obtained upon approval of the ER estimate.

1.5.4 Company Estimate

Contract actions with financial impact require the preparation of a formal company estimate using standard estimating methods outlined in this engineering procedure.

Company Estimate is NOT required if:

there are at least three (3) technically qualified bids received in a competitively bid contract. If fewer than three (3) technically qualified bids are received, commercial proposals will not be opened until a Company Estimate is prepared. The Contract Signatory may, notwithstanding the above, direct that a Company Estimate be prepared.

a waiver of estimate is granted in accordance with Section 3.4.3. Insurance Policy renewals are in effect. the alternative method as described in Procedure 10, Paragraph G of

the Contracting Manual is utilized.

it involves uncustomized software licenses priced in accordance with published price lists, including any applicable or contractor-offered discounts


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1.6 Estimating Tool

Aspentech KBase software is the preferred estimating tool in the preparation of the estimates involving oil & gas type facilities. Another estimating tool such as the Timberline may be used provided that it contains all databases with recent cost information. Utilization of any other estimating software other than KBase and Timberline must be discussed with and approved by PS&CD.

Effective January 2008, Aspentech KBase shall be used as the mandatory estimating tool for any oil and gas processing projects greater than $100 million. Waiving of this requirement must be approved by the PS&CD Manager.

2 Applicable Reference Documents

The latest edition of the following applicable reference documents shall be applied:

Saudi Aramco Engineering Procedures

SAEP-12 Project Execution Plan SAEP-14 Project Proposal SAEP-1350 Design Basis Scoping Paper (DBSP) Preparation

& Revision Procedure

General Instructions

GI-0020.500 Expenditure Control Expenditure Request Forms

GI-0216.965 Cost Distribution Rates GI-0710.002 Classification of Sensitive Information

Saudi Aramco Contracting Manual

Saudi Aramco Materials System Specifications (SAMSSs)

Guidelines in Granting Access to SAP Estimation Roles

3 Instructions

All estimates shall be prepared within the established Work Breakdown Structure (WBS) for each facility type and Standard Code of Accounts (SCA) and shall be loaded to SAP PMIS for archiving purposes. Following are general guidelines for the preparation of estimates:

3.1 Study Estimate


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3.1.1 Study Estimate Preparation Plan

Prior to the preparation of the estimate package, the following shall be taken into consideration in the development of a Study Estimate Preparation Plan, but not be limited to:

feasibility and operability of the proposed project constructability of proposed facility adequacy of proposed process and related equipment as to the

intended purpose

sufficiency of proposed utilities and electrical requirements adherence of proposed size and plot plans, equipment and pipe rack

spacing to existing Saudi Aramco standards

site investigation comparison with similar facilities of previous projects (research of

typical drawings and historical data collection)

estimate model(s) and Work Breakdown Structure (WBS) if standard model does not exist

cost estimating tool to be utilized, if other than KBase for oil & gas facilities and Timberline for electrical and instrumentation

possible alternatives. 3.1.2 Study Estimate Package Contents

The Study estimate package shall contain the following, but not be limited to:

Table of Contents, Approval Sheet and Revision Control Project Summary Project Scope Design Basis Project Location and Conditions Related Projects Alternatives

Basis of Estimate Preliminary Scope of Work Estimate Methodology General Assumptions


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Contracting/Procurement Philosophy Project Schedule & Activities Construction Labor Man-hour & Rate Labor Productivity / Adjustment Factors Equipment Rates Indirect Costs Shipping & Handling Cost Factors Applied to Engineering, Materials & Construction Allowances Contingency

Material & Equipment Quotation & Pricing Cost Estimate

Following are Major Cost Elements of the estimate:

Demolition Civil/Architectural Works

o Clearing & Earthwork o Roads, Area Surfacing & Paving o Landscaping & Irrigation o Fencing o Foundations o Buildings

Structural/Steel Works Process & Utility Equipment Piping Electrical Power, Lighting & Grounding Communication Instrumentation Insulation & Fireproofing Painting/Specialty Coating Commissioning & Start-up Spare Parts Catalyst & Chemicals Custom Duties Bonds & Insurances Licensing Fees SAPMT & Support Costs


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Cash Flow & Expenditure Forecast Exclusions

Benchmarking 3.2 Budget Estimate

3.2.1 Budget Estimate Preparation Plan

The following shall be considered in the development of Budget Estimate Preparation Plan, but not be limited to:

Project scope of work Site development plan and investigation Specific plan and methodology for performing the market outlook

and project risk assessment, if required

Methodologies for developing estimate basis, Material Take-off (MTO), pricing of material and equipment, unit rate for engineering and construction based on current market conditions and project risk assessment

Equipment List with minimum specifications Identification of estimating software to be used for preparation of

Budget estimate, if other than KBase for oil & gas facilities and Timberline for electrical and instrumentation

Work Breakdown Structures (WBS) and Standard Code of Accounts (SCA) to be used for the project

Plan and methodology for developing internal and external Benchmarking data

Approved Design Basis Scoping Paper (DBSP) or up-to-date DBSP, if routing for approval, containing:

Infrastructure requirements Electrical and non-electrical utilities requirements Site conditions analysis Signed Land Use Permit (LUP).

3.2.2 Budget Estimate Package Contents

The Budget estimate package shall contain the following, but not be limited to:

Table of Contents, Approval Sheet and Revision Control


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Project Summary Project Scope Design Basis Project Location and Conditions Land Use Permit (LUP) Requirements Related Projects

Basis of Estimate Scope of Work Estimate Methodology General Assumptions Contracting/Procurement Philosophy Project Schedule & Activities Construction Labor Man-hour & Rate Labor Productivity / Adjustment Factors Construction Equipment Rates Indirect Costs Shipping & Handling Cost Factors Applied to Engineering, Materials & Construction Allowances Contingency

Material & Equipment Quotation & Pricing Cost Estimate

Following are Major Cost Elements of the estimate:

Demolition Civil/Architectural Works

o Clearing & Earthwork o Roads, Area Surfacing & Paving o Landscaping & Irrigation o Fencing o Foundations o Buildings

Structural/Steel Works Process & Utility Equipment Piping


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Electrical Power, Lighting & Grounding Communication Instrumentation Insulation & Fireproofing Painting/Specialty Coating Commissioning & Start-up Spare Parts Catalyst & Chemicals Custom Duties Bonds & Insurances Licensing Fees SAPMT & Support Costs Cash Flow & Expenditure Forecast Exclusions

Benchmarking. 3.3 Expenditure Request (ER) Estimate

3.3.1 ER Estimate Review Meetings

During the course of Project Proposal phase, a number of review and coordination meetings, depending on the complexity of the project, will be held by members of SAPMT, Engineering Contractor, and PS&CD in order to:

delineate responsibilities of all parties involved in preparation of the ER estimate

establish a clear communication channel among members ensure that all team members are fulfilling their responsibilities and

complying with all the requirements as set forth in this engineering procedure.

SAPMT shall have the overall responsibility of organizing the meetings, providing the required documents to PS&CD prior to review meetings and inviting all concerned parties to participate in the ER estimate and Scope Compliance Review meetings.

Initial Kick-off Meeting

3.3.1.1 The initial kick-off meeting will be conducted before the 30% completion of Project Proposal. An ER Estimate Plan, as described in Section 3.3.2, shall be prepared and completed


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prior to the Kick-off Meeting. PS&CD will take an active role in defining Saudi Aramco ER estimate preparation requirements and providing basic information to the SAPMT and Contractor.

3.3.1.2 Interim ER Estimate Review Meetings

The purpose of the interim meeting is to review the progress of the ER estimate preparation activities. The number of interim meetings should be established during the initial ER Review meeting.

Minimum one (1) week prior to the review meeting, SAPMT shall provide a complete set (hardcopy and electronic file) of the ER Estimate with support documents to PS&CD for review.

The interim review meeting deliverables shall include, but not be limited to:

ER Estimate as developed to date, with MTOs by Area and WBS

ER Estimate Basis ER Estimate Detailed Schedule A list of all scope changes from the DBSP identified to

date. The list will include itemized scope change with justification and cost/schedule impact for each deviation item

Multiple Discipline Drawings include PFD, P&ID, Plot Plan, One Line Diagrams, etc.

Major equipment quotations (as defined in Section 3.3.3.5)

Recent quotations for Engineering and Construction rates All Discipline Material Take-offs (MTOs) by Area and

WBS

Market Outlook Study and Project Risk Assessment, as required (Refer to Section 3.3.3.4).

3.3.1.3 Scope Compliance Review Meetings

Compliance Review meetings will be conducted, as deemed


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necessary, by SAPMT in coordination with FPD and PS&CD to ensure that the scope of Project Proposal is in compliance with the approved DBSP.

SAPMT shall prepare and provide all attendees with a complete list of accepted scope changes and relevant supported documents for the Scope Compliance Review meetings. PS&CD shall be responsible for validation of cost and schedule impacts for all scope changes.

A scope change is defined as any cost or scheduled deviation from the Approved DBSP. Following are examples of typical scope changes:

Equipment capacity and sizing changes Addition or deletion of equipment from the original list

provided to PS&CD in conjunction with the DBSP for preparation of the budget estimate

Plot Plan changes Process control plan or system changes (changes in I/O

counts, type of control system, etc.)

Other design changes as a result the following: Environmental Impact Assessment Preliminary Hazard Analysis (PHA) or Hazard and

Operability (HAZOP) studies

Project risk assessment Underground obstructions such as rock or utilities

interferences, etc.

Building Risk Assessment or any other Loss Prevention requirements

Savings realized from Value Engineering and other Value Practices

Site investigations. All scope changes shall be recorded in a special section in the ER Estimate Package. This section shall contain a list of all scope changes with justification, cost impact, schedule impact, initiator organization, date initiated/approved and any supported cost estimate documents.


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SAPMT shall maintain the list of the scope changes and continuously update it from the start of Project Proposal until the ER Estimate is complete.

3.3.1.4 Final ER Estimate Review Meeting

A final meeting will be conducted for the purpose of reviewing and finalizing the fully-developed ER estimate prior to endorsement of the 56D Estimate.

A complete ER Estimate Package must be completed in accordance with the established ER Estimate Plan and submitted to PS&CD/PCED at least four (4) weeks prior to the 56D Estimate submittal due date to FPD Budget Director. Refer to Section 3.3.3 for ER estimate deliverables.

After receipt of the ER Estimate package, PS&CD will conduct a meeting with SAPMT and Engineering Contractor to review and finalize the estimate as deemed necessary.

Minimum of two (2) weeks prior to 56D Estimate submittal due date to FPD Budget Director, SAPMT shall provide PS&CD the Project Proposal sheet approved by SAPMT, FPD and Proponent and a copy of the Technical Meeting minutes with a complete list of all finalized items with detailed cost estimate of impacted items. These documents are required for finalizing the 56D Estimate for submittal to FPD Budget Director.

When the ER Estimate is over or under by more than 10% of the Budget Estimate, PS&CD and SAPMT shall jointly prepare a scope reconciliation and comparison between the approved Budget and the established ER Estimate. The review shall include a list of all scope changes from DBSP which will be part of the ER Estimate package.

3.3.2 ER Estimate Plan

SAPMT shall be responsible for developing an ER Estimate Plan which will be reviewed and discussed during the initial kick-off meeting. At the minimum, the ER Estimate Plan should contain:

Project scope of work Site development plan and investigation


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A detailed schedule with major and interim milestones for completing the ER Estimate deliverables

A quality control plan for estimate preparation Specific plan and methodology for performing market outlook and

project risk assessment for selected projects greater than $300 million (refer to Section 3.3.3.4)

Methodologies for developing estimate basis, material take-offs (MTOs), pricing of material and equipment, unit rate for engineering and construction based on current market conditions and project risk assessment

Plan and methodology for developing internal and external benchmarking

Identification of estimating software to be used for preparation of ER Estimate

Work Breakdown Structures (WBS) and Standard Code of Accounts (SCA) to be used for the project

A list of ER Estimate deliverables required for interim review and final review

An organization chart of the estimating team Roles and responsibilities of all involved parties in developing the

ER Estimate and identifying point of contact from each organization.

3.3.3 Estimate Package Contents

The ER Estimate Package shall contain the following, but not be limited to:

3.3.3.1 Table of Contents, Approval Sheet and Revision Control

3.3.3.2 Project Summary

Provide a brief synopsis of the objectives, scope and current progress of the project. Following shall be incorporated into the project summary:

a) Project Scope

Describe briefly what is to be accomplished by the project, such as project activities to be achieved, physical facilities to be built, demolished, or revamped,


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etc. This information will be a summary of work described in the current Design Basis Scoping Paper (DBSP) and/or Project Proposal scope of work.

b) Design Basis

Provide a synopsis of how the project is to be accomplished by summarizing the projects basis of design.

c) Project Location and Conditions

Define the location of the project (indicate whether onshore or offshore, etc.) and site conditions.

d) Related Projects

Identify related finished or on-going projects, if any.

3.3.3.3 Basis of Estimate

The Basis of Estimate defines the methodology, identifies the determination of assumptions used in estimate development and describes how these criteria affect the outcome of the estimate. The basis of estimate shall constitute in a comprehensive manner, the following:

Detailed Scope of Work Estimate Methodology General Assumptions Contracting/Procurement Philosophy Detailed Basis of the ER Estimate Construction Schedule & Activities Construction Labor Man-hour and Rate Labor Productivity/Adjustment Factors Equipment Rates Indirect Costs Shipping & Handling Cost Factors Applied to Engineering, Materials & Construction Allowances Contingency Project Overhead & Profit (OH&P) Factors


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Currencies Exceptions or deviations to these guidelines, including

justification.

3.3.3.4 Market Outlook Study & Project Risk Assessment

PS&CD/PCED will coordinate with SAPMT to identify projects worth $300 MM or greater that will be required to do a Market Outlook Study and Project Risk Assessment. Market trends and project risks are assessed to avert potential impacts on project development and execution. Results of these studies shall be included in the basis of estimate and contingency rates shall be recommended accordingly. These shall include, but not be limited to, the following:

Worldwide demand for Engineering and Construction services

Market conditions that affect major equipment procurement pricing and delivery

Trends related to supply and demand of major equipment and bulk material in the Middle East that could affect schedule and costs on the project

Availability of Engineering Contractors to undertake LSTK contracts in Saudi Arabia

Assessing the financial markets and institutional support for current and future Middle Eastern projects

Project risks study on constructability, tie-in execution, environmental, security and other factors related to a specific project

Forecast of Engineering Contractors Overhead and Profit Margins

Any other factor that can impact the future cost of the project.

Following are some of the resources that can be used in developing a Market Outlook study:

Trade Organizations Trade Magazines Financial Institutions studies and surveys Government studies and surveys


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Industry studies and surveys Manufacturers and Suppliers data.

3.3.3.5 Material & Equipment Quotation & Pricing

a) Quotation Requirements

The following are general guidelines for major bulk material item and equipment quotations:

1) Three (3) technically and commercially approved quotations for items over $250,000

2) Two (2) technically and commercially approved quotations for item with value of $50,000 to $250,000

3) One (1) quotation or validated in-house data shall be required for items valued less than $50,000

4) Quotations shall be provided in a Bid Tabulation format with recommended selection

5) The SAPMT shall provide the Engineering Contractor all Saudi Aramco novated equipment and licensed purchase orders to include in the Estimate

6) Quotations shall be valid through Expenditure Request Approval (ERA) date.

All quotations for Engineered Items will include a technical & commercial evaluation as a prerequisite for their use in the ER Estimate. Material and equipment pricing shall include packaging, freight, customs clearance, material handling and delivery to job site. This cost item will be clearly and separately identified in each package.

Saudi Aramco Vendors Price/Volume Discount Purchase Agreement (VDPA), if applicable, shall be included in the quotation documentation.

Quotations for major equipment shall include Vendor representative cost per day (10 hours/day) for providing assistance to Saudi Aramco during construction and pre-commissioning. The cost for vendor representatives


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is included in SAPMT cost as described in Section 3.3.3.6.r.

It is recommended that quotations shall be solicited from at least three (3) Saudi Aramco approved vendors to avoid potential delays due to lack of responses. Quotations for long-lead and major/engineered equipment items should start as early as possible due to the potential of prolonged technical clarification.

The following items need to receive quotations, regardless of value:

Cables, conduits, and cable trays Cement Lined Carbon Steel Piping Stainless Steel and Alloy Piping sizes above 8 and

Carbon Steel Piping sizes above 10

b) Material Take-off (MTO)

All material Take-off (MTO) will be based on NEAT quantities as shown on project drawings and other documents. Any recommended or required allowances such as rounding off, cut/waste, etc. will be identified as a separate line item.

Material Take-off (MTO) quantities will be in Imperial Units.

It is recommended to start MTOs only when the scope is substantially complete in each area of work. Early MTO preparation could cause errors and omissions due to scope changes at a later date.

c) Material Sources

Material can be procured for Saudi Aramco projects from the following sources:

Contractor Provided Material Saudi Aramco Provided Direct Charge (DC)

Material Saudi Aramco Provided SAMS Material


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The material sources are outlined in the Project Execution Plan (PEP). However, if Project Execution Plan (PEP) is not available, the SAPMT shall determine the material sources.

The material sources will determine the application of overhead factors associated with each type of procurement. Pricing for material from Saudi sources will be obtained from Saudi Aramco Material Department (MD). Suggested material factors shall be highlighted and applied to the total material costs.

d) Material Overhead & Profit

Overhead & Profit (OH&P) percentages for Engineering Contractor-furnished bulk material and equipment shall be identified, if applicable, and included in the ER Basis of Estimate document.

3.3.3.6 Cost Estimate Work Breakdown Structure (WBS) Level

The ER Cost Estimate shall be prepared and organized in accordance with the approved Work Breakdown Structure (WBS) and Code of Accounts (COA). As defined in the Work Breakdown Structure, a facility or work area shall include, but not be limited to, the following:

a) Demolition

Quantities and cost items to be demolished and labor/equipment hours required for accomplishing the demolition work activities shall be provided.

b) Civil/Architectural Works

For both civil and architectural works, the following shall be incorporated in the ER Cost Estimate:

1) Clearing & Earthwork

Quantities and costs for site development and preparation items such as grading, ponds and/or linings, dykes, tank pads, culverts, catch basins, manholes, storm water and sewer piping and any other required earthwork shall be provided.


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2) Roads, Area Surfacing & Paving

Quantities and costs for in-plant and offsite roads and paving shall be provided. Any additional items that may be required, such as Road Right of Way (ROW) development, cut and/or fill prior to actual paving shall be provided.

3) Landscaping & Irrigation

Quantities and cost for all specified landscaping shall be provided.

4) Fencing

Quantities and costs for fencing subdivided by classification shall be provided.

5) Foundations

For spread footing concrete foundations, quantities, dimension, type of foundation and pricing must be identified. Preliminary design checks will be required for special foundations such as large towers or large rotating equipment packages.

For pile foundations, the following shall be provided:

A piling take-off by foundation type Piling specification/material description Unit price quotations Preliminary designs and quantity take-offs for

formed concrete pile caps.

6) Buildings

Building quantities and pricing based on size, type and key materials of building construction shall be provided. The estimate will highlight non-standard items included in a particular building that will have an impact on the cost of that building.


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c) Structural/Steel Works

The structural/steel works estimate shall include volumetric sketches showing dimensions for the pipe racks, equipment structures and platforms that are not part of specific equipment supplied by Vendors. The quantities of structures in tonnes will be separated and grouped as Heavy (>60 kg/m), Medium (>30 and < 60 kg/m), Light (>10 and


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Pipe fabrication shop location will be identified whether at a remote location or at the job site.

f) Electrical

At a minimum, the electrical package will include the scope, quantities and costs of the following electrical work relevant to the project, but not be limited to:

Power & Control Cable Control Stations Lighting & Small Power Fittings/Cable/

Terminations Earthing System Cable Glands/Terminations Cathodic Protection (Impressed Current Type) Welding Outlets Distribution Boards Relay Panels/Annunciators Bus Ducting Electrical Heat Tracing Miscellaneous Electrical Systems Cable Ladder Rack/Tray/Conduit Cable Trenches & Duct Banks Major Electrical Equipment.

g) Communication

At a minimum, the communication package will include the scope, quantities and costs of the following systems, as applicable:

Fiber Optic System Switching Transmission Premises Distribution (PDS) LAN (Data) Mobile Radio SCADA Telephone


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Plant Paging Video Conferencing Security Systems Intrusion Detection Security Access Control TV Monitoring Systems Computer and related equipment Temporary Communications.

h) Instrumentation

At a minimum, the instrumentation package will include the scope, quantities and costs of the following, but not be limited to:

Instrument Piping Instrument Electrical

This includes cabling for:

Highway, fiber-optics, hard-wired interface cables between the Process Interface Buildings (PIB), Central Control Room (CCR), and Analyzers

Fire and gas detectors and alarms based on the relevant layout drawings

Multi-core, serial link cables from Substations to the Process Interface Buildings (PIB) for MCC/DCS interface

Multicore cables from equipment packages to the Process Interface Building (PIB).

Instrument Protection Fire Proofing Major instrumentation equipment that require

quotations:

DCS Systems ESD Systems Compressor Control Vibration Monitoring


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Analyzer Equipment and Housing Custody Metering Control Valves larger than 8 Surge Control Systems Training Simulators Special Process Instrumentation System.

i) Insulation & Fireproofing

Piping insulation will be quantified by type and thickness and priced based on the P&IDs and Line List.

Fireproofing for structural steel & equipment support will be quantified and priced separately.

Equipment insulation not supplied by the Equipment Vendor will be quantified and priced.

j) Painting/Specialty Coating

This cost element includes field painting/special coating for material and equipment, field touch-up of shop painted materials, field lining of pipe and field erected tanks (if applicable). Equipment painting will be included in the equipment pricing.

Structural Steel painting will be included in the unit price of steel.

k) Commissioning & Start-up Spare Parts

Separate price lists for Start up/Commissioning spare parts shall be provided. This cost item is to be estimated separately. Capital or long term operating spares are not included in the ER Estimate, unless the scope specifically calls for them.

l) Catalyst & Chemicals

Initial fill catalysts or chemicals for start-up of equipment shall be identified and estimated separately unless the catalysts/chemicals are specified to be included in the cost of equipment. No allowance shall be made for operating catalyst or chemicals.


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m) Custom Duties

Estimate shall include custom duties for all materials imported into Saudi Arabia.

n) Bonds & Insurances

Bonds and insurances (if applicable) will be identified and estimated separately.

o) Licensing Fees

Licensing scope and fees (if applicable) will be identified and estimated separately.

p) Project Proposal Costs

Project Proposal Costs include PP Engineering Contractor, SAPMT and other costs such as travel, office, relocation, PMT supports, etc. The estimate should be separated into design IK, design OOK and field construction support with manpower requirements identified by equivalent Saudi Aramco salary grades and disciplines.

q) Detail Design Costs

This cost item includes costs for performance of Detail Design work. For LSTK contracts, procurement of material and equipment will also be part of this cost item. Following are some of components required for estimating this cost item:

Equivalent A-size Drawing Analysis will include a matrix of design and drawing deliverables calculated into equivalent A-size drawings

Detail Design man-hours based on equivalent A-size drawings and hourly rates

Procurement support man-hours based on the number of Purchase Requisitions

Project Management and Administration Man-hours Engineering support costs during construction

(home office & procurement)


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Other expenses, such as soil investigation, project control/support, CAD cost, special studies, etc.

Estimated Engineering Rates applied to the project over the project duration.

r) SAPMT & Support Costs

This cost item includes SAPMT and support costs during detail design, construction and commissioning phases which cover:

Saudi Aramco personnel Supplementary Manpower (CTS/MTS) plus clerical

support costs Project Inspection Pre-commissioning supports SAPMT travel and relocation related costs Catering & Accommodation costs for SAPMT,

CTS, Contractor and clerical support in remote area construction sites

Vendor representative and consultant costs Survey Services Other expenses based on project requirements.

s) Exclusions

Land Costs Financing VAT Process Development Operating Costs Client Cost.

3.3.3.7 ER Estimate 56D Form

The ER estimate 56D form reflects, at summary level, the total project cost as determined through the development of the ER estimate. This document is prepared by PS&CD and co-signed by SAPMT Project Manager and PS&CD/PC&ED General Supervisor. One (1) 56D form is required for every job order phase. Sample of 56D form is shown in Exhibit V.


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3.3.3.8 Project Proposal Package

The Project Proposal (PP) Package is a fundamental requirement in the Expenditure Request Approval (ERA) process and a prerequisite for endorsement of the 56D. It includes all drawings, specifications and other related design documents. The approved Project Proposal sheet signed by SAPMT, FPD and Proponent organization Department Managers shall be part of the Project Proposal (PP) Package.

3.3.3.9 Project Execution Plan

An approved Project Execution Plan (PEP) is required for projects in excess of $50 million. It has the potential of impacting the total project costs through a variety of ways and should be a primary reference in establishing the estimate basis.

For all other projects, a simplified Contracting Plan shall be established at the Kick-off Meeting with a material procurement plan, and shall form a basis for the ER estimate preparation. (Refer to SAEP-12)

3.3.3.10 Project Schedule

A detailed Project Schedule shall be included in the ER package for project development status monitoring.

3.3.4 Benchmarking

Benchmarking is an improvement process used to discover and incorporate project cost, schedule, front-end loading, value improvement and operability into project execution strategy.

The benchmarking process will be centralized so that all benchmarking activities are managed through PS&CD/PCED. Benchmarking will be conducted at study, late stages of the DBSP, early stages of the Project Proposal as well as towards the completion of a project. Projects will be selected by PS&CD for either external or internal benchmarking.

The objective of Benchmarking analysis at the early stage of Project Proposal is to identify and compare key project parameters such as project scope, quantity, cost, schedule, value practices and execution strategy, against the Companys internal historical statistics of similar projects. The project data also are used for benchmarking against the


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industry world class projects with similar scope. The result of the benchmarking analysis can be used for improving project execution plan.

3.3.4.1 Internal Benchmarking Requirements

For all projects except community projects, school and home-ownership, SAPMT shall provide key project data to PS&CD/PCED for internal benchmarking purposes. A sample of benchmarking data sheet is shown in Exhibit VI.

3.3.4.2 External Benchmarking Requirements

PS&CD/PCED will coordinate with SAPMT to identify projects with value of $100 MM or greater to be benchmarked. Projects less than $100 MM may be benchmarked if related to core business. PS&CD/PCED will perform the leading role for the selection of the Consultant and development of benchmarking criteria, and implementation of the formal benchmarking study.

The analysis starts as early as the study phase and DBSP, or at any appropriate stage of the Project Proposal development, but no later than 90% Project Proposal progress, comparing key parameters of the project with an external industry-wide database. The analysis would address key project outcomes and associated risk based on the Project Proposal effort to-date. As a minimum, the following areas should be addressed and compared to industry norms, Gulf Region and Best in Class:

Status of front-end loading (FEL), i.e., project definition, at the time the benchmark analysis is prepared

Use of value improvement practices The projected total installed cost (TIC) of the project An analysis of the contingency requirement based on

project scope and FEL Engineering as a percentage of TIC Time required for total project execution (ERA through

Onstream) Time required for the construction phase Expected time required for start-up Long lead material deliveries comparison


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General or specific requirements included in the Project Proposal Scope of Work that are non- industry standards

Execution strategies. 3.4 Company Estimate

Company estimate shall be prepared in accordance with Saudi Aramco Estimating Standards, provisions of the Contracting Manual and applicable Terms & Conditions of the contract. It shall be presented by work area as defined in the scope of work and contain the following, but not be limited to:

quantities for material take-offs (MTOs) pricing of labor and equipment unit rates used in the Contract Bid quotations for material and equipment prices historical in-house pricing back-ups 3.4.1 Preparation and Processing of Company Estimates $1 million or less

Estimates for contract actions expected to cost $1 million or less shall also be prepared in accordance with the guidelines in Section 4.4.1, except that it is the responsibility of the Proponent/Requestor to ensure that the Estimator is adequately informed regarding the scope of work. Such estimates shall be handled by the Requestors organization in accordance with its own established procedure.

3.4.2 Preparation and Processing of Company Estimates more than $1 million

When a contract action is anticipated to involve expenditure in excess of $1 million, the Proponent/Requestor shall prepare or may request PS&CD to prepare a Company Estimate. (Refer to Section 4.4.1)

Estimates which are prepared by the Requestor and submitted to PS&CD for review and approval must be submitted sufficiently in advance of bid closing to permit an adequate review to be carried out. The time required will vary in proportion to the complexity of the estimate.

Company Estimates shall be prepared in duplicate and sealed in an envelope identified with the contract number, amendment or change order number, if applicable, and title. PS&CD shall deposit the estimate in the designated Bid Box on or before the bid closing date and the Contract Representative shall be promptly notified.


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3.4.3 Modification and Waiver of Company Estimate

Refer to Procedure 9 of the Saudi Aramco Contracting Manual for detailed information pertaining to change orders and waiver requirements and procedures.

4 Responsibilities

The Project Control & Estimating Division of the Project Support & Controls Department (PS&CD/PCED) shall be responsible for the preparation, development, review and approval of Study and Budget estimates. Conversely, SAPMT shall be responsible for the preparation of the ER estimate and PS&CD/PCED will review the final ER Package and prepare and endorse the 56D to be co-signed by PS&CD/PCED General Supervisor and the SAPMT Project Manager.

4.1 Study Estimate

4.1.1 Preparation

The Study Estimate is prepared by PS&CD/PCED upon formal request of the Requestor. Refer to Section 1.4 for Request for Estimate procedures. The Requestor shall provide the necessary documents outlined in Exhibit I.

4.1.2 Review & Approval

The Estimate Review Committee (ERC) within the PS&CD/PCED is tasked to review and approve the estimate. The General Supervisor approves and signs Study estimates for:

Oil & Gas Estimates valued $50 million Infrastructure Unit valued $10 million EI&C Unit valued $10 million. The unit supervisors review and sign estimates that are valued less than the above-mentioned levels.

4.1.3 Distribution

An Estimate Viewer Role in the SAP Estimating System is granted to authorize personnel within the Proponent/Requestors department to view Study estimate reports by assignment only. Refer to PS&CD Guidelines in Granting Access to SAP Estimation Roles for details.

4.2 Budget Estimate


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4.2.1 Preparation

The Budget Estimate is prepared by PS&CD/PCED upon formal request of the Requestor. Refer to Section 1.4 for Request for Estimate procedures. The Requestor shall provide the necessary documents outlined in Exhibit II.


The Estimate Review Committee (ERC) within the PS&CD/PCED is tasked to review and approve the estimate. The General Supervisor approves and signs Budget estimates for:

Oil & Gas Estimates valued $10 million Infrastructure Unit valued $5 million EI&C Unit valued $5 million. The unit supervisors review and sign estimates that are valued less than the above-mentioned levels.

4.2.3 Distribution

An Estimate Viewer Role in the SAP Estimating System is granted to authorize personnel within the Proponent/Requestors department to view Budget estimate reports by assignment only. Refer to PS&CD Guidelines in Granting Access to SAP Estimation Roles for details.

4.3 ER Estimate

4.3.1 Preparation

PS&CD/PCED shall ensure that SAPMT and Engineering Contractor adhere to established ER estimate preparation and project development guidelines.

The Saudi Aramco Project Management Team (SAPMT) shall:

be responsible for preparation of the ER estimate and provides project documents as required to complete the ER Estimate

coordinate with PS&CD/PCED to identify and define Work Breakdown Structure (WBS) to be used for the Project

work with the Engineering Contractor to ensure the cost estimate is complete and accurate in accordance with the project scope as described in the approved Project Proposal.


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The Engineering Contractor shall:

assist SAPMT in the preparation of a complete and accurate ER cost estimate

provide dedicated and experienced Estimators and other resources as required for the preparation of the ER Estimate

assign a QA/QC Estimator separate from the Estimating team to perform periodical audits to ensure compliance with the guidelines.


PS&CD/PCED shall review the ER estimate prepared by SAPMT and prepare and issue the final 56D. Upon review and concurrence with SAPMT, PS&CD/PCED shall endorse the 56D to the FPD Budget Director for Board, EXCOM and local approvals.

The PS&CD/PC&ED General Supervisor approves and signs all ER estimates. The final 56D will be signed by PS&CD/PC&ED General Supervisor and SAPMT Project Manager or designated signatory.

4.3.3 Distribution

An Estimate Viewer Role in the SAP Estimating System is granted to authorize personnel within the Proponent/Requestors department to view ER estimate reports and 56D form by assignment only. Refer to PS&CD Guidelines in Granting Access to SAP Estimation Roles for details.

4.4 Company Estimate

4.4.1 Preparation

For an expected contract action that is valued at $1 million or less, the Requestor shall prepare the Company Estimate and submit in the Bid Box.

For a contract action that is valued over $1 million, the Requestor may:

prepare the Company Estimate and submit it to PS&CD for review and approval

request the PS&CD to handle the estimate preparation and submit the completed Company estimate in the Bid Box.


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The General Supervisor of PS&CD/PCED approves and signs all Company estimates valued $1 million. The unit supervisors review and sign estimates below $1 million.

4.4.3 Distribution

Company estimate prepared by PS&CD will be placed in the Bid Box and a summary copy shall be provided to the Requestor.

4.5 Confidentiality

PS&CD manages and maintains cost and scheduling data that are very critical for Business Plan functions, Accountability Reports and Capital Program information that are being used on a regular basis by Senior and Middle Management including PMT, Finance, FPD and long-range planning in generating essential information for Saudi Aramco Executive and Board members.

Cost estimates are highly confidential in nature and the information contained therein shall be restricted, managed and accessed only by authorized personnel as determined by PS&CD. Hence, distribution of such shall be strictly limited. Public disclosure of classified and sensitive information could result in significant security breach, thus, Saudi Aramco reserves the right to impose corresponding administrative actions to transgressors.

Furthermore, estimates are to be classified by the SAPMT as either Restricted or Confidential and shall be marked and handled accordingly in accordance with GI-0710.002.

5 Exhibits

Exhibit I Study Estimate Package Checklist

Exhibit II Budget Estimate Package Checklist

Exhibit III ER Estimate Package Checklist

Exhibit IV Company Estimate Package Checklist

Exhibit V Sample of 56D Form

Exhibit VI Benchmarking Data Sheet Revision Summary 15 August 2006 New Saudi Aramco Engineering Procedure.


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EXHIBITS

TABLE OF CONTENTS

EXHIBIT I STUDY ESTIMATE PACKAGE CHECKLIST EXHIBIT II BUDGET ESTIMATE PACKAGE CHECKLIST EXHIBIT III ER ESTIMATE PACKAGE CHECKLIST EXHIBIT IV COMPANY ESTIMATE PACKAGE CHECKLIST EXHIBIT V SAMPLE OF 56D FORM EXHIBIT VI BENCHMARKING DATA SHEET


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EXHIBIT I STUDY ESTIMATE PACKAGE CHECKLIST

Following are minimum documents required to accompany the Study Estimate Request to PS&CD:

Description

Preliminary Scope Description

FPD Feasibility Study or Study by Process Engineering

Planning Brief

Draft DBSP OR Study Report

Facility Plot Plan

Equipment List and Preliminary Sizes/Capacities and Specifications

List of All New Buildings

Process Flow Diagrams

Electrical Requirements including: SCECO, Main Substation, Unit Substation, High Voltage & Medium Voltage and UPS

Preliminary Utilities Requirements

Preliminary DCS & ESD I/O Count

Offsites & Utility Study Reports

Offsites Tankage & Flare Requirements

Fire Protection & Safety Requirements

Communications Requirements including SCADA


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Description

Pipe Segment Lengths and Thickness

Scraper Launcher/Receiver Stations and associated equipments & specifications

Pipe Routing Soil Description (sand, rock, rocky soil, etc.) and Terrain (flat, rolling hills, mountains, etc.). Geotechnical report or confirmation should be attached.

Requirements for LUP, ROW, Major and Minor Road Crossings

Pump Station and associated facilities requirements

Main Isolation Valve Stations and associated equipment

Requirements for MOVs and GOVs

ERA and Onstream Dates


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EXHIBIT II BUDGET ESTIMATE PACKAGE CHECKLIST

Following are minimum documents required to accompany the Budget Estimate Request to PS&CD:

Description

Approved DBSP

Copy of DBSP if routing for approval

On-plot and Off-plot Facilities Description & Layout

Process Flow Diagrams and/or Process Engineering Study

Budget Brief

Process Equipment List, Sizes, Capacities & Specifications

Major Mechanical/Civil/Utilities/Offsites & Electrical Scope Description

Electrical Single Line Diagrams, SCECO, Main Substation, Unit Substation Requirements, UPS, High & Medium Voltage Requirements

Offsites Tankage, Waste Treatment & Flare Requirements

Utilities Requirements: Air, Steam, Fuel Gas & Cooling Water (H & M Balances)

Scope Description for Demolition

Summary of Site Visit Report

Geotechnical Report

Communications Requirements including SCADA

Field Instrumentation including Analyzers. Transmitters, ESD Valves, etc.


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Description

DCS & ESD Scope including I/O Count

Fire Protection & Safety Requirements

Security Requirements: CCTV, IDAS, etc.

Environmental Assessment (Contamination)

Contracting Strategy (from PMT)

Number of Studies for Project Proposal with Potential Impact

Pipe Segment Lengths and Thickness

Scraper Launcher/Receiver Stations and associated equipments & specifications

Pipe Routing Soil Description (sand, rock, rocky soil, etc.) and Terrain (flat, rolling hills, mountains, etc.). Geotechnical report or confirmation should be attached.

Requirements for LUP, ROW, Major and Minor Road Crossings

Pump Station and associated facilities requirements

Main Isolation Valve Stations and associated equipment

Requirements for MOVs and GOVs

ERA & Onstream Dates


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EXHIBIT III ER ESTIMATE PACKAGE CHECKLIST

Following are minimum documents required to accompany the ER Estimate Request to PS&CD:

Description

Approved Project Proposal

Approved Technical Review Meeting Minutes

Project Scope Summary including New as well as Demolition of Existing Facilities.

Internal/External Benchmarking Data

Piping and Instrument Diagrams (P&IDs)

Plot Plan showing Major Facilities/Buildings

Proposed Piping Layout and Routing

Electrical scope with One-line Diagrams, MTO Quantities for Transformers, Switchgear, etc,

Field Instrument Specifications and Data Sheets

Control System (DCS) Scope with I/O counts, Block Flow Diagrams and Vendor Quotations

Communications System Scope including MTO and Quotations

Fire Protection, Safety and Security Requirements

Building/Equipment Data Sheets

Material Specifications including Materials Diagram.

DC Surplus, etc,

Identify Start-Up Spares


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Description

Catalyst, Chemicals & Licensor Fee Costs.

HAZOP Review Report if applicable.

Site Survey and Soil Data Report

List of Deviations from DBSP with Cost/Schedule Impact

Copy of Approved Waivers

SAPMT/PMC, Insp., CMT & Other related costs

Detail Engineering Equivalent A size Drawings count and manhours

Exploratory Trenching

Environmental Assessment (Contamination)

Approved Project Schedule

Approved Project Execution Plan

Contracting and Material Procurements Plans. Identify Customs Duties.

Detail Design Location i.e., (IK or OOK)

Draft ER Brief and BISI (from FPD)

Facility Location and Camp Requirements

Identify Commissioning and As-Built Requirements

Quality Material Take-Off (MTO)

Process Equipment List, Sizes, Capacities & Specifications.

Recent (valid for 3 months) Quotations for Major Equipment & Material


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EXHIBIT IV COMPANY ESTIMATE PACKAGE CHECKLIST

Following are minimum documents required to accompany the Company Estimate Request to PS&CD:

Description

Detailed Scope of Work

Applicable Drawings (P&IDs, Plot Plans, Detail/Isometrics/One Line Diagrams, Marked-up Drawings for Changes, etc.)

Basis of Estimate

Detailed Estimate, if available

Contract Schedule C including Time Unit Rates and Work Unit Rates used

Material Take-offs (MTOs)

Recent Quotations for Major Equipment & Materials and Unit Requisition greater than $10,000

Approved Project Schedule


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EXHIBIT V SAMPLE OF 56D FORM


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EXHIBIT VI BENCHMARKING DATA SHEET for

CRUDE PRODUCTION FACILITY (GOSP)

BUDGET ITEM (BI) : ERA :

JOB ORDER (JO) : ERC :

DESCRIPTION :

AREA NAME PARAMETER UOM QUANTITY COST UNIT COST

QUANTITY OF SCRAPER TRAPS EACH $ $

QUANTITY & SIZE (INCHES) OF TRAP A EACH

QUANTITY & SIZE (INCHES) OF TRAP B EACH

QUANTITY & SIZE (INCHES) OF TRAP C EACH

INLET FACILITY

TOTAL INSTALLED COST (INLET FACILITY) DOLLARS $ $

UNIT CAPACITY MBD $ $

NUMBER OF HIGH PRESSURE TRAPS EACH NUMBER OF INTERMEDIATE PRESSURE TRAPS EACH

NUMBER OF LOW PRESSURE TRAPS EACH

WATER CUT % VOL

GAS OIL RATIO

CRUDE TYPE (AL/AM/AXL/ASL) or API

PRODUCTION TRAP

TOTAL INSTALLED COST (PRODUCTION TRAP) DOLLARS $ $

UNIT CAPACITY MMSCFD $ $

HP COMPRESSORS QUANTITY EACH

HP COMP DRIVER TYPE (MOTOR/CGT) EACH

IP COMPRESSORS QUANTITY EACH

IP COMP DRIVER TYPE (MOTOR/CGT) EACH

LP COMPRESSORS QUANTITY EACH

LP COMP DRIVER TYPE (MOTOR/CGT) EACH

HP COMPRESSORS TOTAL HP HP

IP COMPRESSORS TOTAL HP HP

LP COMPRESSORS TOTAL HP HP

GAS GATHERING

TOTAL INSTALLED COST (GAS GATHERING) DOLLARS $ $


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NUMBER DESALTING STAGES EACH

UNIT CAPACITY MBD $ $ WET CRUDE HANDLING &

WOSEP TOTAL INSTALLED COST (WET CRUDE HANDLING & WOSEP) DOLLARS $ $

UNIT CAPACITY MBD $ $ CONDENSATE STABILIZATION TOTAL INSTALLED COST (CONDENSATE

STABILIZATION) DOLLARS $ $

CRUDE

STABILIZATION UNIT CAPACITY MBD $ $

UNIT CAPACITY MBD $ $

QUANTITY OF PUMPS EACH

PUMPS TOTAL HP HP

PUMP DRIVER TYPE (MOTOR/CGT) EACH

WATER INJECTION FACILITY

TOTAL INSTALLED COST (WATER INJECTION FACILITY) DOLLARS $ $

COGENERATION

FACILITY ISO RATING MW $ $

TONNAGE STEEL (PIPERACK) TONS $ $

TONNAGE PIPE TONS $ $

WIDTH OF PIPERACK LM

LENGTH OF PIPERACK LM

HEIGHT PIPERACK LM

LEVELS OF PIPERACK EACH

TOTAL LENGTH OF ALL PIPES LM

TOTAL INSTALLED COST (PIPERACK) DOLLARS $ $

PIPERACK & PIPING

TOTAL INSTALLED COST (PIPING) DOLLARS $ $

SITE PREPARATION SM $ $

CONCRETE CM $ $

STRUCTURAL STEEL TONS $ $

FENCING LM $ $

CONTROL BUILDINGS (ALL BLDGS) SM $ $

PIBS (ALL BLDGS) SM $ $

OTHER TYPES OF BUILDING SM $ $

SUBSTATION SM $ $ TOTAL INSTALLED COST (SUPPORT BLDGS ONLY) DOLLARS $ $

SUPPORT INFRASTRUCTURE

TOTAL INSTALLED COST (INFRASTRUCTURE) DOLLARS $ $


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BOILER QTY EACH $ $

BOILER CAPACITY LBS/HR

BOILER PRESSURE PSIG

COOLING TOWER CAPACITY GPM $ $

AIR COMPRESSOR QTY EACH $ $

AIR COMPRESSOR CAPACITY SCFM

FLARE SIZE SCFM $ $

FIREWATER SYS CAPACITY GPM $ $

NITROGEN GEN SYS CAPACITY SCFM $ $

WATER TREATMENT FACILITY GPM $ $

OFFSITES & UTILITIES

TOTAL INSTALLED COST (OFFSITES & UTILITIES) DOLLARS $ $

TRANSMISSION LINE LENGTH KM $ $

TRANSMISSION LINE VOLTAGE KV

SWITCHYARD VOLTAGE KV $ $

MAIN SUBSTATION EACH $ $

MAIN SUBSTATION KVA $ $

UNIT SUBSTATION EACH $ $

UNIT SUBSTATION KVA $ $

ELECTRICAL CABLE TRAY LM $ $

ELECTRICAL CABLE LM $ $

ELECTRICAL

TOTAL INSTALLED COST (ELECTRICAL) DOLLARS $ $

DIGITAL CONTROL SYSTEM (DCS) I/O $ $

EMERGENCY SHUTDOWN SYSTEM (ESD) I/O $ $

VIBRATION MONITORING SYSTEM (VMS) I/O $ $

WORKSTATIONS QTY EACH $ $

NEW TRANSMITTERS QTY EACH $ $

INSTRUMENTATION CABLE TRAY LM $ $

INSTRUMENTATION CABLE LM $ $

PROCESS CONTROLS

TOTAL INSTALLED COST (PROCESS CONTROLS) DOLLARS $ $

FIBER OPTIC CABLES LM $ $

COMMUNICATION EQUIPMENT EACH $ $ COMMUNICATIONS TOTAL INSTALLED COST (COMMUNICATIONS) DOLLARS $ $

OTHERS LIST MISCELLANEOUS FACILITIES EACH $ $


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ENGINEERING (PROJECT PROPOSAL) MHRS $ $

ENGINEERING (DETAIL DESIGN) MHRS $ $

ENGINEERING (PMT SUPPORT) MHRS $ $ ENGINEERING

TOTAL COST (ENGINEERING) DOLLARS $ $

DIRECT CONSTRUCTION MHRS $ $

INDIRECT CONSTRUCTION MHRS $ $

CONSTRUCTION (PMT SUPPORT) MHRS $ $ CONSTRUCTION

TOTAL COST (CONSTRUCTION) DOLLARS $ $

CRUDE PRODUCTION FACILITY (GOSP) MBD $ $

ACTIVITY DESCRIPTION IN MONTH(S)

PROJECT PROPOSAL (PP) DURATION

PROJECT PROPOSAL (PP) TO ERA DURATION

DETAIL DESIGN DURATION

ERA-MCC DURATION

CONSTRUCTION DURATION

START-UP & COMMISSIONING DURATION

SCHEDULING

MATERIAL & EQUIPMENT WITH MORE THAN 6 MONTHS LEAD-TIME DELIVERY

VALUE PRACTICES LIST OF VALUE PRACTICES IMPLEMENTED

CONTRACTING STRATEGY

TYPE OF CONTRACT TO BE EXECUTED (LSTK, OPENBOOK, LSPB, LSCR, etc.)

SAEP-25

Documents

Transcript of SAEP-25