Early Engagement in FEED to Overcome Engineering Challenges – Delivering Fast Track EPC Projects
Authors: Subramanian Senthilkumar , Wasnik Rakesh Vasant , Singh Harendra , Kamal Faris Ragheb , Takieddine Oussama Halim 
Published: November 2019

Early completion of Detailed Engineering is vital for ever demanding compressed schedules of mega Oil & Gas projects. FEED and EPC Detailed Engineering stages are the most significant phases which dictate the overall project schedule. Timely and effective engagement of EPC engineering resources at FEED stage contributes significantly to meet challenges of fast track projects. This paper highlights benefits derived by early engagement of EPC Engineering team in FEED based on case studies.

The potential disrupters for delivering fast track projects are many; early finalization of Long Lead Items is the key challenge to ensure timely delivery of materials. The challenges faced by the EPC Engineering team have cascading impact on downstream activities ultimately affecting project delivery. In order to mitigate the Detailed Engineering challenges, early engagement of EPC Engineering team in FEED is essential to achieve: Integrated Team –Alignment of all StakeholdersEliminating Lengthy Cycle of FEED VerificationEarly review of all FEED DeliverablesEarly Procurement of Long Lead itemsParticipation in HAZOP/Model/Constructability ReviewOptimized Project ScheduleMitigating Project Risks

Early engagement enables EPC Engineering team participation in review of FEED design, safety/design review workshops and value engineering processes held during FEED and share Lessons Learnt from previously executed projects. Major advantage is it enables early commencement of the critical items procurement using FEED deliverables which are alreaqdy reviewed & finalized along with EPC Contractor, thereby results in reducing the overall project schedule. This integrated approach helps in enhanced definition of the FEED deliverables which reduces the total project risk and thus potentially the EPC contract cost. It also shorten the overall project execution time, as it is possible to avoid EPC contract tendering, EPC proposal preparation, the Owner's assessment of different bids and the subsequent clarifications / negotiations with EPC Contractors. This strategy will suit to all types of projects and Clients, where schedule is the key project driver and will definitely be beneficial in fast track projects. From NPCC's experience, this approach is especially suitable for: New projects having standard design facilities e.g. wellhead towers, pipelinesExpansion of existing facilities e.g. replacement/addition of similar processing trains, pipelines

Recent experiences demonstrate, an optimization of project schedule is possible by integrating FEED with Detailed Engineering stage. This requires contracting strategies that are different from traditional contracts i.e. Cost-Reimbursable or LSTK and use hybrid methods combining salient features of traditional contracts.

NPCC has successfully executed fast track projects based on integrated FEED and EPC approach. This paper presents the case studies and outlines the recommendations to mitigate the EPC engineering challenges through experience on recent projects. The project execution strategy based on integrated involvement from all stakeholders ensures uniformity and consistency throughout all project execution stages. In current Oil & Gas scenario, industry focus is shifting towards fast track projects, the proposed approach offers benefits to all stakeholders.