FRONT-END ENGINEERING DESIGN (FEED)
The front-end engineering section of this guide is split into 2 sections; the following overview of front-end activities, and a companion narrative on front-end best and value improving practices () VIP’s
1.0 INTRODUCTION 2
2.0 ACTIVITY FUNCTIONS 5
3.0 BACKGROUND 5
- OBJECTIVES & GROUND RULES 6
- PRE-AWARD 7
6.0 KICK-OFF 7
7.0 EXECUTION STRATEGY 7
8.0 DATA GATHERING 8
9.0 OPTION DEVELOPMENT & SELECTION 8
10.0 REPORTS 9
11.0 BASIC ENGINEERING 9
INTRODUCTION
The front-end engineering section of this guide is split into 2 sections; the following overview of front-end activities, and a companion narrative on front-end best and value improving practices (VIP’s) in IMS/13/02/TG/03/02.
The attractions of JBH to front-end engineering include:
- opportunities for involvement in a project at the earliest possible time
- positioning for follow-up EPC phase work
- building a trusting relationship with a client in an evolutionary phase of his commercial business
- following a trend where clients are outsourcing more work previously completed in-house
- an early demonstration of capability to clients
- high value/technology sector of the hydrocarbons engineering business.
The usual objectives of front-end engineering are to:
- optimise design to satisfy functional requirements at lowest life cycle costs, without compromising health, safety and environmental considerations
- define the scope of a development facility/plant, so that estimates can be produced to a level of confidence required for project sanction
- provide execution plan, scope and contract bid packages for EPC phase
- complete project definition so that EPC and start-up become routine and free of late design changes and rework.
Operators vary in their approach and terminology for front-end definition activities or Front End Loading (FEL). Some (Conoco/Dupont) attach labels FEL1-3 to Feasibility, Conceptual and Preliminary Engineering phases. Others (ExxonMobil) break it down into Business, Facility and Project Planning. BP Appraises, Selects and Defines. Chevron Preliminary Evaluates, Collects Data & Generates Alternatives and Refines Selected Alternatives. JBH has used Feasibility, Conceptual, Basic Engineering and FEED as either a collective term for all three or as an alternative to Basic Engineering, downstreamers tending to use Basic and upstreamers FEED.
Most western clients prefer to have up to 3 approval steps at the front-end, which are used as a pre-sanction screening mechanism to prioritise development investments. This also facilitates technical input/review from off-project personnel. Definition work is only completed to a level necessary to optimise technical selection, make directional decisions and produce the required accuracy of estimates at each stage. Each phase has inputs and output deliverables to enable the start of the next stage.
At the final step, an optimal design, execution plan, cost estimate +/- 10-15%, schedule are produced for sanction approval. To avoid re-engineering, or where fast-track opportunities dictate, some clients may prefer to roll all 3 front-end phases into one.
At the Feasibility stage technology concept alternatives are identified, which are screened and selected during Conceptual engineering, when PFD’s, equipment list, long lead specs and preliminary plot plans are produced. Basic engineering will develop P&ID’s to AFD, and long lead enquiries are issued. A project execution plan is prepared to support estimates, schedules, risk assessments, and to identify the optimum methods and resources for implementation. A contractual package for the execution phase is also produced i.e. lump sum turnkey bid package.
Some clients, including those in the Middle East with their multi-EPC LSTK contracting preference, tend to want to take P&ID’s beyond AFD, especially where there are Korean EPC bidders with limited front-end engineering capability. Hence the need to define how far do you go beyond AFD on a fixed manhour budget.
A typical sequence of pre-sanction project definition activities is shown below.
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