-
Upstream Americas Controlled Document
Sierra Blanca/Cruz de Lorena Early Production Facility
Scope of Work
Project Sierra Blanca/Cruz de Lorena Early Production
Facility
Document Title Scope of Work
Document Number SB-1000-VA-5793-0003
Document Revision 02
Document Status Approved for Use
Document Type Scope of Work
Owner / Author James Alexander
Issue Date 03-Feb-14
Expiry Date None
ECCN EAR 99
Security Classification Restricted
Disclosure None
Revision History shown on next page
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Proprietary Information: This document contains proprietary
information and may not be partly or wholly reproduced without
prior written permission from SHELL Upstream Americas
Revision History REVISION STATUS APPROVAL Rev. Date Description
Originator Reviewer Approver 01 16-Dec-13 Issued for Review J.
Alexander See Below R. Elston 02 3-Feb-04 Approved for Use J.
Alexander R. Elston
All signed originals will be retained by the UA Document Control
Center and an electronic copy will be stored in Livelink
Signatures for this revision
Date Role Name Signature or electronic reference (email)
Construction Pablo Deblassi/ Mike Hanson
Engineering David Chapman/Duane Jubert/ Rajesh Patwari/Noel Lee/
Neil Skulski/ Mohamed Askar/ Jim Lemaire
IM/IT Stephen Brooks/Jonathan Trieu
Contracts and Procurement Jeremy Turpin/Daniel Caranti
Quality Wallace Hallum
HSSE/Technical Safety Daniel Fagan/Melissa Velasquez
Project Services Ron Windon/Melissa Morris/Emilie Cook
Operation Readiness/CSU Roger Balke/Kevin Capone
Environmental Gustavo Rosales/Richard Lewis
Project Delivery Arg Javier Suarez/Claudia Zapiola
Project Delivery Hou Rob Timmerman/Marc Villareal/Eddie
Murtagh/Daniel Marklin
APPROVER Rob Elston
Summary
Scope of Work for Sierras Blancas/Cruz de Lorena Early
Production Facility which is a subproject of the SB/CdL Early
Production System being executed by SHELL P&T Onshore
Projects.
Keywords
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information and may not be partly or wholly reproduced without
prior written permission from SHELL Upstream Americas
Argentina, Sierras Blancas, Cruz de Lorena, Early Production
Facility, EPF, Scope of Work
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TABLE OF CONTENTS EXECUTIVE SUMMARY
..............................................................................................
5 1. PROJECT BACKGROUND
..................................................................................
7 2. CONTRACTOR SCOPE OF WORK
.....................................................................
8
2.1. Engineering
..............................................................................................
9 2.2. Procurement
............................................................................................
17 2.3.
Construction............................................................................................
17 2.4. Mechanical Completion
...........................................................................
20 2.5. Flawless Project Delivery
..........................................................................
20 2.6. Commissioning and Start-Up Support
....................................................... 23 2.7.
Permit Support
........................................................................................
25
3. SPECIFICATION GAP ASSESSMENT PROCESS
................................................. 26 4. PROVIDED BY
SHELL
.......................................................................................
27 5. ADDITIONAL REQUIREMENTS
.........................................................................
27
5.1. Language
...............................................................................................
27 5.2. Units
......................................................................................................
28 5.3. Software
.................................................................................................
28
6. SCHEDULE
......................................................................................................
28 7. INTEGRATED PROJECT CONTROLS
.................................................................
28
7.1. General
..................................................................................................
28 7.2. Project Controls Plan (PCP)
.......................................................................
29 7.3.
Reporting................................................................................................
29 7.4. Project Management of Change
............................................................... 31
7.5. Project Calendar
.....................................................................................
32 7.6. Integrated Project Planning
.......................................................................
33 7.7. Progress Management
.............................................................................
37 7.8. Cost Control
............................................................................................
39
8. INFORMATION MANAGEMENT & DOCUMENT NUMBERING
.......................... 41 9. INTERFACE MANAGEMENT
............................................................................
41
9.1. General
..................................................................................................
41 9.2. Communication between SHELL and CONTRACTORs
................................. 42 9.3. Communication between
CONTRACTORs ................................................. 42
9.4. Meetings
................................................................................................
43 9.5. Review & Comment and Approval
............................................................ 44
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EXECUTIVE SUMMARY
The Early Production Facility is a centralized pilot facility
handling production from Sierras Blancas and Cruz de Lorena Blocks.
Nameplate capacity is 10,000 barrels of oil per day (bopd), 8MMSCFD
gas, and 1,000 barrels of water per day (bwpd). Oil will be
separated, stabilized, stored, pumped, and metered prior to
entering the oil export line. Gas will be separated, compressed,
dehydrated, and metered prior to entering the gas export pipeline.
Water will be separated, treated, filtered, and stored prior to
being injected into a nearby water disposal well. The scope of the
EPF begins at the outlet of the Gathering System and ends at the
inlet of the export pipelines which will be a pre-defined surface
flange near the edge of the EPF for oil and gas and at the flange
of the wing valve on the water disposal well. Included in the scope
of the EPF:
Civil Earthworks for EPF and access roads including civil
engineering and design All surface production and measurement
equipment (separators, chemical
injection, heaters, air coolers, instrumentation, control
systems, programming, etc) including requisite supports
Compressors with foundations (per geotechnical recommendations)
Oil and Water Storage Tanks including foundations LACT (Lease
Automatic Custody Transfer) Unit Gas export meter Interconnecting
pipe work including pipe supports and anchors Interconnecting
cabling and wire including supports and grounding Water Treating,
filtration, and pumping equipment Water disposal piping and
instrumentation from EPF to Water Disposal Well Fencing around
Water Disposal Well Pad Solar Power at Water Disposal Well Pad
Local power generation including load calculations Firewater system
Storm Water Management Roadways within site Control Room and
Accommodation Buildings Site perimeter fencing Surface
instrumentation on water disposal well head
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Onsite Communication Tower(s) for SCADA and IT from remote well
pad facilities Closed Circuit Televisions (CCTVs) for monitoring of
remote well pad facilities Installation in accordance with
applicable codes and standards Commissioning and Start-Up
Procedures/Manual including first fill calculations Equipment
systemization for startup (start up sequence with accommodations
for
start up, i.e. temporary fuel, temporary power, method for first
fills,) Commissioning and startup spares Operating spares for 2
years Operating procedures Black Start procedures Commissioning and
Start-Up Support Permit application support
Excluded from the scope of the EPF: Land Acquisition Disposal
Well and Well Head Operations Chemicals and diesel first fills for
facility equipment National, Provincial, and Municipal Permit
applications
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1. PROJECT BACKGROUND
SHELL has interests in three onshore blocks in the Neuqun region
of western Argentina as shown in the figure 1 below:
Figure 1. SHELL Interests in Argentina
Aquila Mora - 42,000 acres
Cruz de Lorena (CdL) - 39,000 acres
Sierras Blancas (SB) - 41,400 acres
Exploration and appraisal wells have begun to be drilled and are
being produced utilizing temporary well pad equipment. However,
flaring of gas and trucking of crude oil for long periods of time
is not aligned with SHELLs Onshore Operating Principles. Hence it
was decided to progress an Early Production System (EPS) that would
enable sustainable production. A schematic of the full EPS and how
the EPF fits in is provided below.
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Figure 2. Representative EPS Layout
2. CONTRACTOR SCOPE OF WORK CONTRACTOR Scope of Work consists of
all Engineering, Procurement, and Construction as well as
associated Project and Construction Management requisite for the
successful operation of the Early Production Facility in accordance
with Early Production Facility Basis for Design Part I
EPF-MFPM-AA-7704-000-0001-000 Revision 03 and Part II
EPF-MFPM-AA-7704-000-0001-000 Revision 03. Prior to submitting
Proposal, CONTRACTOR is expected and required to be familiar with
general conditions of the site including terrain, climate, road
accessibility, soil variability, etc. In addition, CONTRACTOR is
required to be well versed in all local legislative and regulatory
requirements including those applicable to local content
requirements, employment laws, and unions.
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CONTRACTOR shall validate concept design information provided by
SHELL and is encouraged to recommend alternatives to reduce cost
and/or improve schedule while maintaining the same functionality
such as that for Water Treating.
2.1. Engineering CONTRACTOR shall perform requisite engineering
and design in accordance with applicable codes, standards, best
design practices, and SHELL mandated DEM1 requirements. Design
shall mature in progression from Concept as proposed by SHELL to a
Final Engineered Design by CONTRACTOR with requisite review and
approval by SHELL. Reviews shall consist of document & drawing
reviews (2D), 3D Model Reviews, Constructability Reviews, Hazard
& Operability (HAZOP) reviews, and Pre-Start-UP Audit (PSUA)
reviews as described below. Formal document reviews shall be
submitted to SHELL via Document Control.
2.1.1. Document and Drawing Reviews
The following documents and drawings delivered as part of
CONTRACTORs Scope shall be reviewed and approved by SHELL as noted.
Documents requisite for other activities (i.e. HAZOP &
Permitting) is also indicated.
Define ID #
Execute ID # Document Name
Required for Permit
Application
Required for HAZOP
Approved by 1-Nov-
14
Issued for Review by 1-
Nov-14 IFC
Project Management
338 Project Execution Plan x
1517 Derogations and Deviations Log (Standards) x
331 Constructability Report x
179 CP Execution Plan, incl Project Category Plan (CPEP) x
346 1417 Project Organisation incl. roles, responsibilities,
resourcing and onboarding plan x x
399 Risk Management Plan & Risk Register x
406 1258 Interface Management Plan x x
395 462 Project Schedule - Level 3 x x
Health, Safety, Security, Environment & Social Performance
(HSSE & SP)
1615 1620 Construction Contractor's HSSE Management Plan x x
1613 457 Emergency Response Plan x x
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Define ID #
Execute ID # Document Name
Required for Permit
Application
Required for HAZOP
Approved by 1-Nov-
14
Issued for Review by 1-
Nov-14 IFC
1616 1621 Construction HSSE Readiness Review Report x x
1413 449 Process Safety Review (eg HAZOP) x x x
Project Services
1387 Project Specific Cost and Schedule Procedures x
1628 Schedule Basis Report x
1404 Project Controls Plan x
1404.1 Management Of Change Plan x
Quality Assurance
591 1433 Project Quality Plan (inc FATs & licensor reviews)
x x
Logistics
355 Logistics and Infrastructure Project Execution Plan x
Process Engineering & Technology
242 1213 Process Flow Schemes (PFS) x x x x
1497 1242 Equipment Listing x x x
241 Process Safeguarding Flow Schemes (PSFS) and Memorandum x
x
251 655 GHG (Greenhouse Gas) and Energy Management Plan x x
243 1214 Process Engineering Flow Schemes (PEFS/P&IDs) x x
x
249 1211 Relief, Flare and Vent Study Report x x x
420 Heat and Material Balance Report -Final x x x x
Mechanical, Materials, and Integrity
298 Corrosion Inhibition System Design & Test Proposal x
298.1 Functional Specification for the Corrosion Inhibition
system x
298.2 Corrosion Inhibition Test Proposal x
298.3 Establish Chemical Test Requirements x
298.4 List of pre-qualified corrosion inhibitors x
298.5 Specify/initiate corrosion inhibitor testing x
298.6 Select hydrotest chemicals. x
302 488 Welding & Weld Inspection Specifications x x
1219 Tie In List & Schedule - Final x
487 Vibration Assessment Report x
267 1247 Plot plans/ Mechanical General Arrangement Drawings/
Facilities layout report x x x x
269 HVAC Design Report x
270 Mechanical Static Equipment Data Sheets and Specifications x
x
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Define ID #
Execute ID # Document Name
Required for Permit
Application
Required for HAZOP
Approved by 1-Nov-
14
Issued for Review by 1-
Nov-14 IFC
1411 Materials and Corrosion Data Sheets and Specifications x
x
1411.1 Produce required materials specifications x x
1411.2 Produce required coating specifications x x
1411.3 Produce required cathodic protection specifications x
x
1411.4 Produce other material and corrosion integrity associated
equipment specifications x x
297 Materials Selection Report x x
297.1 Consider all type of deterioration x x
297.2 Consider design temperature and maximum operating
temperature x x
297.4 Review interactions between chemicals and materials x
x
300 Corrosion Management Framework x
300.1 Execute Failure Mode and Effects Analysis. x
300.4 Include erosion and sand handling. x
Electrical Engineering
238.1 1426.5.1 Electrical Bldg Layout x x
238.2 1525 Electrical One Line Diagram x x x
238.3.2 1426.5.2 Cable Routing Layout x x 1426.5.4 Lighting
& Receptacle Layout x x 1426.5.5 Grounding Layout x x x 1426.7
Panel Layout & Wiring Diagrams x 1426.8 Electrical Schematics
& Connection Diagrams x 1426.9 Electrical Heat Trace Drawings
(if applicable) x 1426.10 Electrical Installation Details x
1399.1 1426.11 Cable Schedule x x 1452.1 Protective Device
Settings (Breakers & Relays) x
283 1426.3 Electrical Equipment Data Sheets and Specifications x
x
278 1249 Electrical load list - Incl. Efficiency Column x x
x
280 1426.1.2 Electrical Power and Protection System Study x x
x
245 1217 Hazardous Area Classification Drawings x x x
Process Automation Controls and Optimization (PACO)
1642 1452 Telecoms Systems Design Package x x
1641 1634 Alarm Management Design Package x x
1639 1498 Instrumentation Design Package x x
667 Process Control Design Package x
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Define ID #
Execute ID # Document Name
Required for Permit
Application
Required for HAZOP
Approved by 1-Nov-
14
Issued for Review by 1-
Nov-14 IFC
257 1209 Instrumented Protection Systems and Fire & Gas
Design Package x x x
683 Process Control Detailed Design & Construction Package x
x x
684 Surveillance, Metering and Allocation Detailed Design &
Construction Package
x
Rotating Equipment
1398.9 Compressor surge control and protection x
275 Rotating Equipment Data Sheets and Specifications x x
273 Rotating Equipment Type Selection Report x x
Utilities, Energy, and Heat Transfer
1390 1435 Utility Flow Schemes (UFS) x x x x
1391 1449 Utilities Engineering Flow Schemes (UEFS/P&IDs) x
x
1412 Utilities and Heat Transfer Equipment Data Sheets and
Specifications x x
Civil, and Structural Engineering
289 1220 Site Master Plan / Facilities layout x x x x
238.504 Buildings, structural steel, and concrete design x x
238.505 Foundations design x x
238.506 Drainage & Primary Treatment Report x x
238.509 Underground cabling and piping design x x
238.512 Construction camps x
238.513 Temporary facilities x
238.514 Onshore site preparation x
238.516 Roads, paving, and fencing x x
288 Off Plot Civil Logistics/Infrastructure Requirements x
Pipelines
Maintenance and Integrity
1524 Spare Parts Strategy x
332 486 Reliability, Availability and Maintainability Report
addressing sparing, RRM and turndown
x x
Information Technology (IT)
Information Management (IM)
1643 1637 IM Scope of Work and Information Specification x x
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Define ID #
Execute ID # Document Name
Required for Permit
Application
Required for HAZOP
Approved by 1-Nov-
14
Issued for Review by 1-
Nov-14 IFC
Production Operations
1453 Alarm Catalogue x
440 Operating Procedures x
414 431 Commissioning and Start-up (CSU) Plan x X X
Miscellaneous
Vendor document requirement list X
Handling & shipping plan procedures X
Preservation Plan and procedures X
Drafting Standards X
Drawing title block X
* A list of descriptions for above deliverables can be found in
Appendix I. Supplementary Documents.
2.1.2. 2D and 3D Model Reviews
CONTRACTOR shall conduct 30%, 60%, and 90% 3D Model reviews to
afford the SHELL and CONTRACTOR teams to remain aligned and
identify potential concerns which are best demonstrated via a
visual representation of planned layouts. 2D drawing reviews shall
occur prior to 3D model reviews. Meeting minutes of the review
shall be captured including an action list, action owners, and time
to complete. 30% Model Review The focus of a 30% model review is on
accessibility, safety, layout, ergonomics and constructability. At
a minimum, the items listed below should be included in the 30 %
model review:
Location and orientation of all equipment including future
Designated areas for Pipelines, launchers, receivers Structures
(steel and concrete inclusive fire proofing) Containment Areas
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Electrical generators location Plot determining piping,
electrical corridors Main access ways / operational access; Major
piping and pipeways that influences equipment positions; Concrete
slabs, paving and roadways Packaged unit location and orientation
Escape routes (on grade and elevation) Pipe racks and main pipe
support structures Outline of underground electrical and
instrumentation trenches Main electrical and instrumentation cable
trays / racks Laydown areas Mobile crane aprons (based on available
cranes and on lifting study) Major Equipment Fencing
60% Model Review The focus of a 60% model review is on
engineering. The 60 % model review shall be carried out and closed
out prior to issuing the piping isometrics for construction. At a
minimum, the items listed below should be included in the 60 %
model review:
Closed out actions resulting from the 30 % model review All
other piping largely completed Ladders, stairs and platforms
Platforms for valves and equipment and operation Secondary
steelworks and bracing Eyewash and safety shower locations (per
applicable regulations) Pipe supports locations and types Local
operation panels Instrument transmitters and outlines of junction
boxes, secure instrument air vessels;
panels and cabinets inclusive stands, safety critical sensors /
switches Electrical equipment such as outdoor switchracks and
panels Aboveground instrumentation and electrical tray routing.
Package units (if any)
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90% Model Review This revision is intended to be a confirmation
of the results of the 60 % model review and prepare for
construction readiness. The model shall be completed to
include:
Closed out action items from 60% review Any late or special
items; Any change since the previous reviews; All remaining
piping.
2.1.3. Constructability Reviews
CONTRACTOR shall perform Constructability reviews to ensure
constructability issues and concerns are addressed as early as
possible during design development. CONTRACTOR may choose to
combine these reviews with other reviews (i.e., 2D, 3D, other).
CONTRACTOR, along with representation from the SHELL Team, shall
perform Constructability reviews to ensure constructability issues
and concerns are addressed as early as possible during design
development. Contractor may choose to combine these reviews with
other reviews (i.e., 2D, 3D, other). Proposed Constructability
Review Schedule:
Pre-Constructability Review - Frame Construction Strategy &
Deliverables o HSSE considerations o Application of modules o
Procurement strategy o Equipment inspection and release o Logistics
o Draft plot plan o Opportunities for modularization o Equipment
list and BOM with division of roles and responsibilities o
Contracting strategy o Construction input for project execution
strategy and project implementation
plans e.g. risks, o Initial project schedule and estimate
considerations
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o Document distribution matrix
Initial Plot Plan Review o Develop project specific plot plan
with equipment lay out, lay down area,
trailer area, muster area, smoking area o Consider terrain and
define special logistic requirements o Division of shop and field
activities o Construction equipment consideration 30% Model &
Constructability Review 60% Model & Constructability Review 90%
Model & Constructability Review
Prior to construction mobilization and the execution of any
field activities, CONTRACTOR must be able to demonstrate that they
are ready to proceed with construction. This involves verification
that management systems are in place, adequate planning has been
conducted, procedures and training requirements are completed, and
that the construction hazards have been adequately evaluated and
controlled. These activities should be accomplished through a
series of formal Construction Readiness Reviews (CRR) as outlined
below. Construction Readiness Review Schedule:
60 Day Construction Readiness Review 30 Day Construction
Readiness Review 7 Day Go / No Go Construction Readiness Review
After Action Review / Lessons Learned
2.1.4. HAZOP Reviews
CONTRACTOR shall host a Hazard and Operability (HAZOP) review
for the Early Production Facility. This review shall consist of a
SHELL Facilitated session focusing on Asset Integrity, Process
Safety, and Operability risks and will be attended by CONTRACTOR
staff and SHELL representatives. CONTRACTOR shall be responsible to
close out and incorporate all HAZOP findings as appropriate and
agreed by SHELL into the design of the EPF. SHELL will not accept
facility at Handover until all recommendations have been
closed.
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Prior to HAZOP, the 60% design review should have occurred to
eliminate the possibility of the HAZOP becoming a design
review.
2.2. Procurement CONTRACTOR shall comply with all applicable
local content legislation within the region of Neuqun and in
particular, Ley N2755: "Compre Neuquino". CONTRACTOR is responsible
to procure and pay for all requisite labor, material, equipment,
goods, and services required to perform all phases of work.
CONTRACTOR must have written approval from authorized COMPANY
representative prior to placing any Purchase Order (P.O.) to
vendors or SUBCONTRACTORS. Importation and associated customs
payments of material, equipment, and/or services procured from
outside Argentina is the responsibility of CONTRACTOR
SUBCONTRACTORs are required to meet SHELLs Safety Requirements.
CONTRACTOR shall provide a complete Vendor Document Requirement
List for approval for major equipment prior to procurement. In the
event CONTRACTOR does not have a VDRL, SHELL can provide. Although
not mandated, Emerson is preferred for instrumentation.
2.3. Construction Construction shall be in accordance with the
approved Issued for Construction (IFC) Drawings and Specifications.
CONTRACTOR is responsible to provide all labor, equipment, and
supervision required to perform work. This includes but is not
limited to bull dozers, scrapers, cranes, forklifts, onsite
material storage, power tools, welding machines, welding rods,
fuel, power, water, toilets, trash bins, structural steel, rebar,
concrete, silt fencing, geotextile fabric, gravel, paint,
consumables, etc. In addition, CONTRACTOR is responsible for any
temporary facilities and infrastructure required to perform work,
site security while under the care of CONTRACTOR, and waste removal
during construction. Site shall be kept clean and orderly during
the course of
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construction and all debris and waste shall be removed prior to
completing of Project. Waste disposal shall be in accordance with
all laws and regulations. Contractor shall provide temporary
service for cell phone and internet (WiFi) connectability at
location from beginning of construction until Handover to
Operations.
2.3.1. Civil Earth Works
CONTRACTOR is responsible for Access roads to site Clearing and
grubbing site Storing top soil, per applicable laws Leveling site
including compaction Drainage in accordance with applicable laws
and regulations Surfacing, Leveling, Compaction and Drainage of
plot space and roads Tank Containment with 1000 micron thick HDPE
liner & sump Signage Quarry Control, if required (Contractor
shall provide all the Documentation that SHELL
requests concerning Quarry Permits)
2.3.2. Civil/Structural/Architectural
CONTRACTOR is responsible for Installation of shallow and deep
foundations Fabrication and installation of racks and miscellaneous
supports Fabrication and installation of buildings and any
structures Stairs, platforms, walkways, cross-over stiles, etc
Windsocks, bollards, and barricades Signs (as per applicable codes
and standards) Perimeter fencing and gates with minimum standards
as per ASTM requirements Control Room and accommodations
2.3.3. Mechanical
CONTRACTOR is responsible for Shop and/or field fabrication for
interconnecting pipe Installation of all equipment, interconnecting
pipe
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Installation of underground piping & associated mechanical
integrity per design Installation of field erected tanks Painting
Integrity testing of installation
2.3.4. Electrical and Instrumentation
CONTRACTOR is responsible for Installation of all
instrumentation and electrical equipment Installation of electrical
generation and distribution equipment Developing and installing arc
flash and shock hazard labels Installation of telecommunication
tower Installation of tubing, cables, wires, and grounding
Installation of SCADA system including RTUs, HMI, VSAT Installation
of IT Systems including CCTV and VSAT Inspection & testing of
electrical equipment per NETA ATS or equivalent requirements
Installation of area lighting Programming validation including
early system interconnectability (ensuring the
processors communicate with each other) Calibration of
instrumentation Point to Point Testing Loop Testing
2.3.5. Quality Assurance/Quality Control
NOTE: All changes to IFC drawing shall be supported with an
approved MOC. CONTRACTOR is responsible for and to provide all
documentation in a binder for Non-Destructive examination
Hydrotesting Continuity Checks Loops Checks As-Built drawings for
P&IDs, One lines, wiring diagrams, Cause & Effect, Plot
Plan As-built Plot Plan showing all buried piping, cabling, tubing
Material Test Reports and Certifications Welding Operator
Qualification Records Welding reports
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X-Ray Reports Weld Map for High Pressure Flowline Proctor
testing Electrical equipment inspection and testing including
records of results
2.3.6. Material Management
CONTRACTOR is responsible for Material Management in terms of
storage, preservation, and tracking of items procured by
CONTRACTOR.
2.4. Mechanical Completion Mechanical Completion is defined as
the time at which all checks and tests of all equipment and
construction (mechanical, electrical, instrumentation, & civil)
are complete confirming that the installation is in accordance with
drawings and specifications and ready for commissioning in a safe
manner and in compliance with project requirements. A punch-list of
non-safety critical items shall be created by CONTRACTOR and
followed to closure. CONTRACTOR shall provide a Certificate of
Mechanical Completion stating the work is complete in accordance
with the approved Issued for Construction drawings and
Specifications.
2.5. Flawless Project Delivery Typically, over two thirds of
projects in Oil, Gas and Petrochemical industries experience costly
interruptions during the Commissioning, Start-Up (CSU), and Initial
Operation phases of the facility. Flawless Project Delivery (FPD)
is essentially a risk mitigation program focusing on a number of
high risk or Quality areas (Q Areas) for the Commissioning &
Start-Up. These risks are referred to as Flaws. A Flaw is a
learning that falls in a Shell defined Q-Area and is a deficiency
or failure which, if not remedied will manifest itself mostly
during Commissioning and Start-up phases in deferred production,
loss of HSE control, delayed schedule, or additional cost. Flaws
are mostly of a technical nature and result mostly from failures,
e.g. poor design, poor equipment specification, construction
practices and/or lack of appropriate QC and testing during
procurement & execution activities.
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Shell has a Global Flawlist which has been developed based on
the experiences from previous projects and are to be used as input
in developing the project-specific Flaws list for this project.
CONTRACTOR shall incorporate FPD into their work plans by assigning
focal person to coordinate plans with the support of SHELL to
develop and achieve delivery of a flawless project. CONTRACTOR
shall schedule time and provide the resources to implement the
following 5 Q-Area activities outlined in the table below.
Q-Area #
Q-Area Q-Area definition
Q01 Tightness Tightness of all components in a system is
essential for a Right First Time start-up. Tightness of a system
has two elements: external and internal tightness. External
tightness focuses on the leak free operation of all system
connections including flanges, caps, clamps, manholes, pump
casings, compressor casings, instrument fittings and all other
joints that require sealing for operation of a system. CONTRACTOR
shall 1) Ensure correct bolt tightening method is being followed.
(manual, torque wrench or hydraulic tensioning, correct sequence)
2) Check that lateral and parallel flange alignment is correct ( as
per specification) 3) Verify correct gaskets are being used,
installed gasket color coding is visible and gasket dimension is
correct.
Q02 Cleanliness & Preservation
Cleanliness of a system is essential for a Right First Time
start up. Emphasis shall be placed on building a clean plant. All
equipment shall be preserved at appropriate moments in
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Q-Area #
Q-Area Q-Area definition
different execution phases. CONTRACTOR shall 1) Secure vessel
and pipe openings 2) Installation methods for final internal
inspection 3) ensure nothing is stored in pipe or equipment
Q3c Mechanical Rotating Integrity
Ensure that Mechanical Rotating Equipment performs as per the
original Design Intent for all Operating Modes. It typically
addresses: bearing/coupling/complete failures, excessive vibration
and noise, seal/flange/casing/lube oil leakages and failures,
unauthorised deviations from PO documents, incomplete/incorrect
mechanical installation, cleanliness/fouling/corrosion/erosion,
preservation CONTRACTOR shall
1) Ensure excellence in workmanship with regards to compressor
and pump alignment, along with associated piping.
Q3d Instrumentation Integrity
Ensure that all control and safeguarding systems, including
their field instrumentation, perform as per design intent, both in
static and in a dynamic mode. It typically addresses problems with:
process control, (field) instruments, online and in-line
instrumentation, analysers, DCS, IPS, Data Historian, and 3rd Party
Instrument Systems. CONTRACTOR shall
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Q-Area #
Q-Area Q-Area definition
1) Verification of processor communication between systems and
packages
2) Clear instrument calibration requirements including alarm and
trip settings
3) Programming aligns with field devices and termination
location (loop terminations and programming match)
4) System operates in a fail safe mode
Q3e Electrical Integrity
Ensure that the electrical systems and components, e.g. power
supply, UPS, network distribution (e.g. ENMCS), motor control
systems (e.g. IMCS) correctly function. CONTRACTOR shall
1) Ensure Generator capacity is adequate (load study, account
for VDF filtration, etc.)
2) Verify Grounding is consistent between packages (solid/high
resistance)
3) UPS is available on all control and monitoring systems
(instrumentation, PLC, HMI, etc.)
2.6. Commissioning and Start-Up Support Commissioning and
Start-up will be performed by SHELL. CONTRACTOR shall work with
SHELL in developing a Commissioning and Start-Up Plan as well as
any training requirements. CONTRACTOR is responsible to provide
requisite documentation, document creation support, and actual
field support. CONTRACTOR is required:
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To provide and facilitate the formation and identification of
vendor resources for start-up activities.
To provide required information for the decision-making,
application and regulatory processes.
To provide guidance to address known and unknown project flaws
that materialize during pre-commissioning, commissioning and
start-up.
To provide reference manuals for all associated equipment To
provide a notebook that will contain as-built P&ID's on a
system by system basis,
partial commissioning check lists, instrument loop check list,
rotating equipment mechanical run log sheets, vibration and bearing
temperature logs, PSV calibration certification certificates and
the control loop checks lists, operational pressure tests, U1A
forms, Factory Acceptance Test (FAT) and Site Acceptance Test (SAT)
documentation, instrument detail, electrical detail.
i. Mechanical Completion Definition and Scope ii.
Pre-Commissioning Scope iii. Commissioning Scope (Safety Check,
System Commissioning) iv. System Boundary Limits (sub/system and
discipline boundaries) v. Electrical and Instrument circuit/loop
Inspection and Test Plan vi. Mechanical Completion and
Pre-Commissioning Verification and Punch
Listing vii. Punch list Management viii. Mechanical Completion
Files ix. Commissioning Files x. FAT Inspection Documentation: xi.
Initial start-up procedures
In developing the above, the following Engineering Documentation
Requirements and References will be included:
i. Electrical area classification drawings and register ii.
One-lines/Wiring & schematic diagrams/Cable & panel
schedules iii. Electrical equipment settings (VFDs, UPS, Breakers,
Relays, Generators) iv. Power Systems Study v. Instrument Indexes
with calibration ranges and alarm/trip set points
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vi. Piping Line Lists (including Pipe Class) vii. Marshalling
Box/Junction Box Schedules viii. Vendor Lists ix. Vendor Manuals
including all vendor documents/drawings, CONTRACTOR
CSU and Operating Manuals x. Commissioning Spares Lists xi.
Valve Lists xii. Cause and Effects Charts xiii. Trip
Register/Schedule xiv. System P&IDs xv. HVAC P&IDs xvi.
Schematic Diagrams for Piping xvii. Isometric drawings xviii.
Tagging Spreadsheets xix. Equipment Data Requisition Sheets xx.
Engineering Details (I&E, mechanical, civil, structural etc)
xxi. Underground Drawings xxii. Control Narrative
2.6.1. Final Handover Package
CONTRACTOR shall provide a Final Handover Package consisting of
all Engineering Deliverables updated per As-Builts. One (1)
hard-copy shall be provided in a notebook and an electronic copy
shall be provided with indexes in PDF.
2.7. Permit Support SHELL will prepare, apply and obtain all
national, provincial, and municipal permits requisite for the
construction and operation of the EPF. CONTRACTOR shall provide
Permit support to SHELL via generating required design documents
and assisting with answering clarifying questions as the need
arises. Documents identified as being required for Permitting shall
be brought to sufficient detail and Issued for Permitting within 60
calendar days from Contract Placement. Contractor shall share all
knowledge of required permits in the region along with common
issues or concerns with obtaining permits.
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3. SPECIFICATION GAP ASSESSMENT PROCESS SHELL will take the
approach of utilizing CONTRACTORs standards for engineering and
construction with the following caveats to ensure Asset Integrity
and Process Safety is intrinsic to the design:
All applicable codes and standards mandated by legislative
and/or regulatory bodies will be followed without exception
SHELLs Design Engineering Manual (DEM)1 (SHALL[PS]) requirements
that are code requirements and/or applicable and value adding will
be used
All of SHELLs applicable DEM2 requirements will be met which
consists of o Safe Siting of Occupied Portable Buildings from
process systems o Utilizing a Permit to Work Process o Utilizing a
Management of Change Process o Avoiding liquid release relief to
atmosphere o Avoiding tank overfill followed by vapor cloud release
o Avoid brittle fracture of metallic materials o Utilize Alarm
Management o Mitigation plan for H2S
Hence, non-DEM1 SHELL Design Engineering Practices (DEPs) will
not be provided to CONTRACTOR to follow unless CONTRACTOR does not
have a standard of their own to follow. In that event, the DEP will
be followed on an as convenient basis in which variances to
standards in those DEPs that are not followed are not documented.
Non-Process Safety Shalls (i.e., lower case shalls) in DEM1 DEPs
that are not followed will not be formally varianced. To ensure
CONTRACTORs Standards meet SHELLs ALARP (As Low As Reasonably
Practicable) aspiration for technical safety, a gap analysis will
be performed to identify any potential gaps between CONTRACTORs
Standards and SHELLs applicable DEM1 requirements. A list of
applicable DEM1 and DEM2 requirements has been generated and will
be provided to short listed CONTRACTORs to identify potential gaps
as well as identify cost and schedule implications to implement.
Short listed CONTRACTORs will be requested to indicate if their
standards meet the DEM1 requirements which will be validated by the
applicable Technical Authority (TA) in SHELL. In the event
CONTRACTORs Standards do not comply with an applicable DEM1
requirement, the deficiency will be evaluated within the context of
how else the risk may be mitigated (i.e., other barriers such as
operating procedures, different hardware, etc). If an acceptable
alternative risk mitigation is identified, the DEM1 requirement
will be
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derogated with the approval of the applicable TA1. In the event
an acceptable alternative risk mitigation is not identified,
CONTRACTOR will be required to meet the DEM1 requirement and
requested to provide a Cost and Schedule impact. Only after the
resolution of the gap analysis along with a full understanding of
the cost and schedule impacts associated with the mandated DEM1
requirements will the contract with CONTRACTOR proceed. Once
finalized, any variation from the approved Specifications and
Standards (CONTRACTORs or SHELLs) will be required to go through
the Project Change Management Process for approval by the
applicable Technical Authority to ensure Asset Integrity and
Process Safety is never inadvertently compromised.
4. PROVIDED BY SHELL The following documentation is provided to
support CONTRACTORs Engineering, Procurement, and Construction
efforts. Technical Early Production Facility Basis for Design Part
I: EPF-MFPM-AA-7704-000-0001-
000 Revision 03 Early Production Facility Basis for Design Part
II: EPF-MFPM-AA-7704-000-0003-
000 Revision 03 EPF Site Plan: SB-1000-MP-4024-0001 Revision 01
EPF Access Plan: SB-1000-MP-4024-0002 Revision 01 Geotechnical
Report To be provided later Interfaces Pipeline Tie-In Locations
(To Be Determined) Launcher and Receiver Locations (To Be
Determined) SCADA requirements for remote well pads (To Be
Determined)
5. ADDITIONAL REQUIREMENTS
5.1. Language The primary language for this Project and its
documents will be English with Spanish as Secondary except for
Permit Documents in Argentina which are required to be in Spanish.
Operating manuals are required to be translated into Spanish once
approved. In the event there is a conflict between English and
Spanish, English will prevail unless explicitly noted otherwise
contractually. Notes and Comments on drawings will be noted in
English and Spanish.
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5.2. Units Units will be SI Units. Double notation with US
Customary Units is not required and will not be used unless
absolutely necessary. Units typically expressed in US Customary
Units (i.e., nominal pipe size, flange ratings, etc) will not be
converted to SI.
5.3. Software SHELLs preferred software tools are listed below.
Alternatives proposed by CONTRACTOR must be approved by SHELL.
Reporting Microsoft Office Scheduling Primavera P6 or Microsoft
Project (with approval of SHELL) 2D Computer Aided Design AutoCAD
2012 or older 3D Computer Aided Design AutoDesk Plant 3D Process
simulation UniSim / HYSYS Pipeline hydraulics OLGA / PipeSim /
ProMax Power Systems Analysis SKM Power Tools for Windows ver
7.0
6. SCHEDULE SHELL has developed an overall Project schedule in
which CONTRACTORs schedule is required to adhere. Proposals for
schedule improvements based on CONTRACTORs ability to implement
faster will be considered. Work shall commence with a kick-off
meeting between SHELL and CONTRACTOR that will take place
approximately 1 week after placement of Purchase Order and it is
anticipated for the Early Production Facility to be mechanically
complete approximately 52 weeks later, subject to changes in the
plan approved by SHELL and/or events and conditions beyond
CONTRACTORs control.
7. INTEGRATED PROJECT CONTROLS
7.1. General
7.1.1. Introduction
It is the intent of SHELL that project controls (related to
project estimating, reporting and forecasting of cost and schedule
and risk management) will be executed using CONTRACTOR standard
processes/procedures as documented in CONTRACTORS Project Controls
Plan (PCP) submitted by the CONTACTOR based on EXECUTION PLAN and
PROGRAMME. These systems, tools, processes and procedures must
satisfy the project control requirements and principles as
specified in this Section. CONTRACTORS
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PCP, and supporting procedures, are subject to approval by
SHELL. Where CONTRACTOR PCP and Project Controls processes and
procedures do not meet COMPANY requirements CONTRACTOR will amend
their processes/procedures to meet these requirements.
7.1.2. Project Controls
CONTRACTOR will be fully responsible for implementing Project
Controls (relating to project reporting, cost, schedule, risk
management) for the WORK. The provisions of this Section specify
the minimum requirements for Project Controls on the WORK. SHELL
and CONTRACTOR agree that Project Controls shall be carried out on
the basis of the processes and procedures as set out in the Project
Controls Plan (PCP) prepared by the CONTACTOR.
7.2. Project Controls Plan (PCP) CONTRACTOR shall detail the
Project Controls processes and procedures applicable
for the WORK in the Project Controls Plan (PCP). PCP is to set
out CONTRACTORs methodologies, processes (including interface and
management of sub contractors), staffing of the Project Controls
organization (including number of positions and equivalent number
of people phased over time) and the systems that CONTRACTOR shall
implement consistent with the provisions of the CONTRACT.
In preparing the PCP, CONTRACTOR shall take account of and
comply with SHELLs project control requirements and principles as
specified in this Section.
CONTRACTOR shall submit the proposed PCP for COMPANY review no
later than twenty (20) calendar days from the PO PLACEMENT.
CONTRACTOR to submit for COMPANY review the detailed procedures
described in CONTRACTORs PCP no later than thirty (30) calendar
days, from the PO PLACEMENT, unless otherwise agreed with COMPANY
REPRESENTATIVE.
7.3. Reporting
7.3.1. General
CONTRACTOR shall provide the daily, weekly and monthly reports
described in this Section and all other reports required under the
CONTRACT or as otherwise agreed with COMPANY, at the times stated
or as soon as possible (where no time is stated).
CONTRACTOR shall maintain detailed information to support the
daily, weekly and monthly reports and shall make such information
available to SHELL as and when required by SHELL.
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CONTRACTOR shall prepare each report to such level and depth of
content, details and structure as agreed with SHELL in addition to
the minimum content set out in this Section. Each report shall
provide sufficient content and details to meet SHELLs reporting
requirements.
7.3.2. Monthly Project Management Report
CONTRACTOR shall submit to SHELL Monthly Project Management
Reports in accordance with the agreed Project Calendar. CONTRACTOR
shall manage the closure of all electronic and data systems
(including financial accruals) to meet the due date and ensure
accuracy of data. CONTRACTOR shall submit to SHELL a detailed
procedure which demonstrates CONTRACTORS methodology consistent
with this clause and the systems that CONTRACTOR shall implement to
comply with this Clause. CONTRACTORs Monthly Project Management
Reports shall contain such information and details as CONTRACTOR
and SHELL shall agree from time to time. As a minimum the monthly
report shall include the following main sections:
i. Health, Safety, Security & Environment & Social
Performance (days at zero, LTIs, TRCF, number of behavioral based
safety assessments);
ii. Executive Summary (Including any CONTRACTORS or
SUBCONTRACTOR issues and concerns)
iii. Planned and forecasted key milestones; iv. Cost Summary; v.
Physical Progress, Schedule Performance Index; vi. Risk Management;
vii. Logistics, number of transportations to and from site (miles
driven). viii. Management of Change (total number of approved
changes and potential
deviations); ix. Progress Photos, as applicable; x. Significant
achievements during the reported period.
7.3.3. Daily Reporting
During performance of WORK at any construction site, in a
fabrication yard, or in the field, CONTRACTOR shall submit to SHELL
daily reports for each such WORKSITE no later than the close of
business of the working day following the day covered by the
report. Daily reports shall contain, but not limited to the
following:
i. Construction permit requirements for the following day;
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ii. Any subcontractors present on WORKSITE in connection with
the WORK; iii. Issues and concerns, their consequences and
corrective action proposed or
taken. The scope of activities reported in Daily report will be
in line with the Work Breakdown Structure (WBS).
7.3.4. Project Monthly Cost Report
CONTRACTOR shall submit to SHELL Monthly Cost Report in
accordance with the agreed Project Calendar. The report shall be
submitted no later than five (5) working days after the end of the
Gregorian calendar Month. CONTRACTOR shall manage the closure of
all electronic and data systems (including financial accruals) to
meet the due date and ensure accuracy of data. CONTRACTORs Monthly
Cost Report shall contain such information and details as
CONTRACTOR and SHELL shall agree from time to time. As a minimum
the Monthly Cost Report shall include the following main subjects
and accompanying details:
i. Provide a narrative of the cost highlights, concerns and
mitigations, reasons for variances and changes to the anticipated
final cost
ii. Include CONTRACT PRICE (original and current) iii. Complete
Change Order Log (includes potential, pending and approved) iv.
Provide monthly expenditure of the physical progress achieved
against
defined milestone activities or against an agreed contract
activity breakdown based on the baseline, and the forecast (to-go)
expenditure of those and all activities as described in Section
8.4.
v. Include invoice summary with the following fields listed:
Invoice Number, Date, Amount, Date Payment Expected, Date Payment
Received, Amount Received, Amount Outstanding, and a Cumulative
Total at the bottom
vi. For provisional, reimbursable items a complete cost and
commitment report shall be provided
vii. Include a procurement summary, covering all materials,
equipment and services procured by CONTRACTOR with sufficient
granularity as agreed with COMPANY.
7.4. Project Management of Change CONTRACTOR shall establish its
Management of Change Procedure which shall implement and be
consistent with the provisions of the CONTRACT on management of
changes.
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CONTRACTORs Management of Change Procedure shall address all
changes from the agreed baseline EXECUTION PLAN and PROGRAMME the
WORK in relation to scope, cost and schedule and as a minimum
shall
i. Establish the baseline for Management of Change in relation
to scope, cost and schedule
ii. Recognize and communicate potential changes to the baseline
in an effective and timely manner to provide early warning of
potential changes
iii. Where possible develop and present mitigation options to
minimize impact to quality, cost and schedule
iv. Assess the impacts of the change to quality, cost and
schedule, ensuring all impacted areas of the project are
considered
v. Seek approval or instruction from SHELL as required
CONTRACTOR shall submit to SHELL for review, its detailed
Management of Change Procedure for implementing the provisions of
the CONTRACT and specifically this clause. CONTRACTORs detailed
management of change procedure shall describe CONTRACTORs
methodology and systems for implementing the provisions of the
CONTRACT.
7.5. Project Calendar SHELL will establish a Project Calendar
for the WORK with CONTRACTOR. CONTRACTOR shall develop and submit
its Project Calendar for review by SHELL.
CONTRACTORs Project Calendar shall provide details and clarity
on key dates, cut-off dates, meetings, submissions and any other
required detail, documentation and events that will occur on a
regular basis.
CONTRACTOR shall maintain the Project Calendar so as to align
with any agreed changes agreed with SHELL and the updated Project
Calendar shall be re-submitted as changes occur. In any event,
CONTRACTOR shall review and re-issue the Project Calendar every (3)
three months.
CONTRACTOR shall submit to SHELL for review, its detailed
Project Calendar procedure for implementing the provisions of the
CONTRACT and specifically this clause. CONTRACTORs detailed Project
Calendar procedure shall describe CONTRACTORs methodology and
systems for implementing the provisions of the CONTRACT.
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7.6. Integrated Project Planning
7.6.1. General
CONTRACTOR shall be responsible for all detailed planning,
scheduling and integration of the activities necessary to ensure
the performance and completion of the WORK in accordance with the
PROGRAMME, SCHEDULE OF KEY DATES, MILESTONES.
CONTRACTORs planning and scheduling shall encompass all phases
of the WORK, including those performed by its SUBCONTRACTORS.
CONTRACTOR shall structure the schedules in such a way that status
and progress can be aggregated in a precise and transparent way
from a lower level schedule to a higher level schedule.
CONTRACTOR is required to develop all schedules to a point that
it is acceptable to SHELL
Level III integrated baseline Schedule, once approved by
COMPANY, shall be saved as a Target or Primary Baseline schedule,
and unless a formal re-baseline or a formal change request is
approved by COMPANY, updated Level III integrated baseline can only
be used after full substantiation of CONTRACTOR to COMPANY and
approval by COMPANY.
7.6.2. Structure and levels of schedules
CONTRACTOR shall establish and maintain as a minimum, schedules
on the following Levels:
i. Level I - CONTRACT Master Schedule: One Page Project overview
of the WORK, reflecting the actual status as per the project
calendar by showing milestones, bars that are clearly labeled and
provide a comparison with the Baseline Plan. The actual status is
based on the aggregation from Level III to Level I Schedule taken
in consideration progress from other sources like Physical
Progress, Productivity, Earned Value, etc This Level I Schedule can
be reported in different software packages like Visio, Milestones
Professional or any software package as agreed with COMPANY.
ii. Level II CONTRACT Management Schedule: Schedule reflecting
the essential logic, key interface, contractual milestones and
activities which represent the status as per project calendar
derived from the Level III Integrated Plan and enables a comparison
with the baseline. The number of activities needed in this schedule
can vary, but should be enough to provide sufficient granularity
and agreed with SHELL to enable and support project management of
the WORK.
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iii. Level III Integrated Baseline Schedule / Integrated Plan:
Integrated Baseline Schedule will be developed and is consistent
with CONTRACT Management Schedule and maintained as the Integrated
Plan in alignment with the timely aggregation and the project
status, as per project calendar from more detailed schedules as
necessary and based on a robust precedence network principle;
sufficient detailed logic linked activities, resource loaded and
effective segregation between the different WORK by inclusion of
interface milestones. This schedule supports critical path analysis
and comparison with the baseline.
iv. Level IV / V Detailed schedules / Databases / Worklist /
Workpacks for Engineering, Procurement, Fabrication, Construction
and Handover Pre-Commissioning / Commissioning and Start-up for the
WORK. These schedules will be completely managed by CONTRACTOR and
form the basis of the day to day management of the WORK and will be
utilized to update the progress and status of the Baseline plan
(Level III).
7.6.3. Schedule Requirements
CONTRACTOR shall as a minimum adhere to the following
requirements while developing and maintaining schedules at their
subsequent level and enable aggregation of Level III to Level I
while maintaining the integrity of the schedules:
i. COMPANY Work Breakdown Structure (WBS); each activity in the
schedule shall be assigned the relevant WBS code.
ii. CONTRACTOR shall work with COMPANY to develop consistent
structures within the planning software.
iii. Schedules for Level II, III shall be utilizing PRIMAVERA
Project Management Release 6.1. (Or most current version) or any
other planning package as agreed with COMPANY.
iv. Level III Integrated Baseline Schedule / Integrated Plan
shall be resourced loaded at the activity level and will reflect
the essential resources needed in sufficient granularity to prove
robustness of the schedule e.g. Engineering discipline hours,
construction discipline hours.
To enable and facilitate schedule evaluation, periodic updating,
aggregation to higher level schedules and to meet the various
progress reporting requirements each activity in the Levels II /
III will be consistently assigned with the following
information:
i. Activity ID Coding ii. Activity coding as per PROJECT WBS and
Project Coding (e.g Area / Phase
/ System / Discipline / Responsibility, etc).
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iii. Activity descriptions for different types of work will be
unique, explicit and provide sufficient granularity to be
self-explanatory.
iv. Activity Duration, Remaining Activity Duration, Early Start,
Early Finish, (e.g. Actual Start / Actual Finish), Total Float,
Physical Progress %
Level III integrated schedule / Integrated Plan shall be
Construction and Commissioning driven and shall include all
linkages between these two distinct work phases to support overall
integrated schedule with sufficient granularity to support critical
path analysis.
Requirement of shutdowns if any, along with duration of each
shutdown for completion of various modifications, tie-ins etc.
shall also be reflected in the schedules.
Mandatory and Expected Finish constraints are not allowed in the
schedule. Open ends in the logic network, out of sequence,
redundant logic and extensive lags
are not allowed and need to be resolved before submission. The
use of extensive activity durations must be limited e.g.
engineering activities not
longer than 30 days, construction activities not longer than 60
days and commissioning activities not longer 30 days.
Scheduling settings will be agreed upfront with COMPANY but
otherwise should be based on retained Logic and delinked Physical
and Schedule progress.
Each month the updated Level III Integrated Plan shall be
submitted to SHELL electronically in native file format. Any
problems with the schedule will be discussed between SHELL and
CONTRACTOR before amendment of the schedule by CONTRACTOR.
Changes such as new, deleted or changed logic links, new or
deleted activities, modified descriptions, changed activity
durations and assigned resource changes will be documented and
transmitted to SHELL along with the updated Baseline Schedule.
7.6.4. Weekly Update Cycle:
In line with the Project Calendar and as a minimum every week
CONTRACTOR shall report on the status, showing progress of the
Level III Integrated Plan to the new status date and is able to
facilitate comparison of actual progress with the Baseline Schedule
on an activity-by-activity basis, by indicating the % Physical
Progress details on the activity bars, actual start and finish, and
estimate a start date for the activities that are not in progress
and an estimate of the remaining duration (or expected finish date)
for activities in progress.
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7.6.5. Interface Milestone Plan
CONTRACTOR shall develop and maintain an Interface Milestone
Plan detailing essential interfaces supporting the logical network
of the schedule related to the WORK (e.g. other contractors,
design, procurement, fabrication and construction) reflect the
timing of interfaces and allow resolution of any potential
discrepancies. CONTRACTOR shall update the Interface Milestone Plan
on monthly basis and issue the update to SHELL along with the
PROGRAMME.
7.6.6. Punchlisting, Systems completions, Handover and System
Dossiers.
CONTRACTOR shall establish and implement a systems completion
system and process that will provide actual status and control over
the technical and administrative completion of the PERMANENT WORK
in sufficient granularity.
CONTRACTOR will provide reports showing the status of the
discipline walkthrough, punchlisting, handover of facilities,
systems and subsystems and all documentation needed to support the
completion of the PERMANENT WORK.
7.6.7. Changes, Revision of Planning and Scheduling
Documents.
CONTRACTOR shall after the approval of SHELL of the proposed
changes and amendments, reflect and describe the impact of all
changes and amendments in the planning and scheduling
documents.
In case of any event or change having impact on the overall
project completion schedule, CONTRACTOR shall submit along with
each change, a detailed evaluation of the schedule impact if any,
due to change in scope/sequence of work etc. Justification for
schedule impact should be accompanied by a logic network, clearly
highlighting the impact of such changes on the completion of
intermediate milestones as well as on the overall project
completion.
CONTRACTOR shall note that the submission of Revised Schedules/
Recovery Schedules by CONTRACTOR and subsequent approval of the
same by COMPANY during the period of project implementation shall
not relieve CONTRACTOR from its obligations under the CONTRACT. All
such revisions shall only be treated as a part of the control
mechanism for effective monitoring, so as to arrest/minimize
progress slippages during the period of implementation.
7.6.8. Typical Schedules
Typical schedules for the WORK to be provided by CONTRACTOR in
accordance with the timing as agreed with COMPANY include but not
limited to:
i. Level I/II/III
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ii. 30 / 60 / 90 Days look ahead
7.7. Progress Management
7.7.1. General
CONTRACTOR shall provide accurate and timely reports on the
progress of the WORK, associated cost information and the status of
deliverables on the following basis:
i. The method of calculating progress shall reflect the amount
of effort (typically Man Hours) required to complete the WORK.
ii. All deliverables from the WORK will be monitored and
CONTRACTOR will propose the system to be used to achieve this,
however, the weightings for aggregating the progress and interim
progress achievement milestones shall be based on Man hours and
approved by SHELL. Proposed weightings are to be submitted by
CONTRACTOR within 45 (forty-five) days from the PO PLACEMENT.
Approved changes will be evaluated against the established progress
measurement system, method and weighting and on agreement with
COMPANY reported separately or included in the progress measurement
system as part of a re-baseline.
iii. All reports shall show, in an appropriate format, the
approved changes, deviations and variances and their effect on the
WORK and/or the SCHEDULE OF KEY DATES and/or the CONTRACT PRICE.
The layout of the reports shall reflect the WBS used by SHELL.
CONTRACTOR accepts that as the WORK progresses, SHELL may require
reports different from and in addition to those detailed in this
Section.
iv. The WORK shall be completely and comprehensively phased in
alignment with the EXECUTION PLAN and the PROGRAMME, SHELL approved
changes and amendments and a continuous and consistent progress
control shall be carried out throughout all phases of the WORK.
CONTRACTOR will ensure a consistent process is used over the whole
of the WORK to ensure the aggregated progress reported represents
the true progress achieved.
v. CONTRACTOR shall develop processes to capture, calculate and
report progress and baseline phased expenditure by activities under
Engineering, Procurement (including fabrication), Construction and
Commissioning per the example below:
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Figure 3. Example Phased Expenditure
vi. CONTRACTOR shall submit to SHELL for review, its progress
management procedure for implementing the provisions of the
CONTRACT and specifically this clause. CONTRACTORs detailed
progress management procedure shall describe CONTRACTORs
methodology and systems for implementing the provisions of the
CONTRACT.
7.7.2. Progress Monitoring and Measurement
Throughout the duration of the CONTRACT, CONTRACTOR shall
monitor progress of the WORK against the agreed progress
measurement Baseline:
i. The progress shall be aggregated up to the Level 2 Contract
Management Schedules and the Level 1 Contract Master Schedule for
reporting the total progress of the WORK. Progress shall be
assigned on the basis of physical completion of detailed activity
deliverables. CONTRACTOR shall promptly notify SHELL of any matter
concerning the WORK which if not resolved, is likely to affect the
achievement of the dates in the SCHEDULE OF KEY DATES.
ii. Progress shall be measured based on earned man-hours for
Engineering and Construction (including Fabrication). For
procurement progress shall be measured based on appropriate
milestones and weightings.
iii. All forecast dates are to be supported by observed rates of
progress. If the progress data does not support forecast dates then
CONTRACTOR is to either:
(a) revise the forecast dates in line with measured progress, or
(b) provide explanation to SHELL in the schedule report of how
the
shortfall in measured progress will be remedied during the
forecast timescale.
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7.8. Cost Control CONTRACTOR shall execute cost control of the
WORK during the term of the
CONTRACT in accordance with requirements of this Section.
CONTRACTOR shall establish a tiered level of cost control in
accordance with COMPANY agreed coding system and shall be fully
consistent with agreed Work Breakdown Structure. The coding system
shall reflect the SCHEDULE OF KEY DATES. All labor and other costs
shall be effectively monitored and controlled by CONTRACTOR for any
reimbursable elements.
CONTRACTOR shall maintain and report the following cost
information for reimbursable elements of the WORK, if any.
i. Summary job-hour report by Discipline/Activity ii. Summary
Cost and Commitment Report iii. Procurement Summary
CONTRACTOR shall provide an estimated monetary (Incurred Cost)
value for the full calendar month by the 25th of the month or the
Friday before if the 25th is on the weekend.
CONTRACTOR will make use of CONTRACTORs standard cost management
tool and systems, which shall be submitted (and demonstrated as
considered necessary) to SHELL for approval, including examples of
reports and documentation to be used, within thirty (30) days of
the PO PLACEMENT.
CONTRACTOR will supply electronic cost management data to SHELL
in an agreed format to minimize manual upload into SHELL
systems.
7.8.1. Budget Management
CONTRACTOR will use the CONTRACT PRICE as the budget for the
WORK and the basis for control and reporting. The budget will be
maintained by CONTRACTOR in line with all requirements of the
CONTRACT:
i. Work Breakdown Structure ii. Cost Breakdown Structure iii.
Management of Change
CONTRACTOR shall submit to SHELL for review, its detailed
procedure for budget management in accordance with the provisions
of the CONTRACT and specifically this clause. CONTRACTORs detailed
procedure shall describe CONTRACTORs methodology and systems for
implementing the provisions of the CONTRACT
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7.8.2. Work Breakdown Structure
A Work Breakdown Structure (WBS) is a hierarchical subdivision
of the work scope to be controlled. The purpose of the WBS is to
sub-divide a project into components where the work and associated
budget can be effectively managed and controlled.
CONTRACTOR will strictly conform to the WBS structure as
provided by SHELL for the PROJECT. Should CONTRACTOR have the need
to expand the WBS to lower levels, this is acceptable, providing
this structure rolls up to SHELL specified WBS.
SHELL will submit SHELL WBS to CONTRACTOR within seven (7) days
of the PO PLACEMENT.
CONTRACTOR shall submit within thirty (30) days of the PO
PLACEMENT any comments of the WBS for consideration by SHELL.
The WBS will be applied by CONTRACTOR to all reporting,
planning, cost control, forecasts, estimates and other relevant
project processes.
7.8.3. Cost and Forecasting Expenditures
CONTRACTOR shall provide a Contract baseline phased expenditure
of weekly-planned and defined milestone activities or against an
agreed Contract activities breakdown for carrying out the WORK.
CONTRACTOR shall also provide a monthly updated forecast phased
expenditure including approved change orders, if any, that will
accurately represent the Estimate at Completion (EAC) of the
WORK
CONTRACTOR shall submit to SHELL for review, its detailed
procedure for Cost and Forecasting Expenditures in accordance with
the provisions of the CONTRACT and specifically this clause.
CONTRACTORs detailed procedure shall describe CONTRACTORs
methodology and systems for implementing the provisions of the
CONTRACT, this clause, and SHELL standard procedures.
7.8.4. Cost Breakdown Structure (CBS)
A Cost Breakdown Structure (CBS) is a hierarchical
classification of project costs by the type of cost. The purpose of
the CBS, particularly in combination with the Work Breakdown
Structure (WBS), is to provide a uniform cost classification basis
for estimating, cost reporting and collection of historical project
cost data.
This clause should be read in conjunction with the clause on
Work Breakdown Structure (WBS).
Where CONTRACTOR utilizes a CBS different to SHELL standard, the
data provided to COMPANY should then be mapped across to COMPANY
standard. All reporting and deliverables to SHELL from CONTRACTOR
shall be provided with the conversion of coding already completed.
CONTRACTORs methodology for mapping and
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conversion of CONTRACTORs coding to COMPANY standard, shall be
submitted for review and approval by SHELL, within 3 (three) months
from the PO PLACEMENT.
8. INFORMATION MANAGEMENT & DOCUMENT NUMBERING Upon
successful award of Contract, all documents shall be transmitted to
SHELL via Document Control utilizing LiveLink with a transmittal
sent to [email protected] for subsequent
distribution internal to SHELL. CONTRACTOR will be provided a
designated LiveLink space to submit documents along with
instructions and any requisite training to utilize the site.
Documents shall be numbered in accordance with Shells Design
Document Numbering Procedure (SAU-COM-MFPM-JA-6017-0001) which will
be provided prior to award of Contract. A representative of SHELL
will coordinate with CONTRACTOR to ensure proper numbering and
submittal. During project development, documents shall be sent to
SHELL in PDF format. At the completion of the Project, all
documents shall be sent to SHELL updated to As-Built Status in PDF
(as part of the Final Handover Package) and native format All
documents shall be formatted to fit on A3 or A4 size paper. To
support SHELLs internal assurance tracking, CONTRACTOR shall
reference applicable Control ID numbers on transmittals and
documents. When two Control IDs are provided, both are to be
used.
9. INTERFACE MANAGEMENT
9.1. General Amongst the Project Team, Microsoft Office Outlook
will be the primary means for written communication for typical day
to day activities including minor clarifications, questions, and
general information sharing that does not impact scope, schedule,
or budget. Issues impacting scope, schedule, or budget shall be
documented using the Project Change Management Process.
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Email shall not be relied upon as the only means of trying to
work an issue and should only be used to the point in which an
issue is identified at which point real-time interpersonal
communication shall be utilized in the following order of
preference:
Face to Face Meeting Telephone Call
Documenting what was discussed, outcomes, and next steps via
email is acceptable and encouraged. Do not assume that people will
action something in an email simply because it was sent. These
action items are to be documented in the most relevant recurring
meeting action item log to document and track action items.
9.2. Communication between SHELL and CONTRACTORs All direction
to CONTRACTOR that may potentially lead to a Change Order or
Project Change Notice must be channeled through the Project
Delivery Focal. CONTRACTOR processes and forms for Requests for
Information, Technical Queries, Change Orders, etc will be
submitted to SHELL for approval and used to the greatest extent
possible. In the event none exist, templates will be provided by
SHELL for use. SHELL Document Control will be the conduit for
communication between SHELL and CONTRACTOR for:
Technical Document (drawings, calculations, studies, etc)
review, comment, approval
Technical Queries Requests for Information
The Project Delivery Focal will be the primary conduit for
communication between SHELL and CONTRACTOR for:
Cost Updates Schedule Updates Project Change Notices
9.3. Communication between CONTRACTORs The assigned Project
Delivery Focal(s) will be responsible to facilitate communications
between CONTRACTORs of separate scopes, if needed. Any
communication that may potentially lead to a Change Order must be
channeled through the Project Delivery Focal. All formal
documentation to be transmitted between CONTRACTORs of different
scopes will be distributed by SHELL. It is not to be assumed by the
Project Team that the individual CONTRACTORs communicate with each
other or that the communications that
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