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Petroleum Development Oman L.L.C.

Document Title: Specification for Commissioning and


Start-Up (Key Principals)

Document ID SP-2113

Document Type Specification

Security Unrestricted

Discipline Engineering and Operations

Owner UOP – Functional Production Manager

Issue Date December 2010

Revision 1.0
Revision: 1.0
Petroleum Development Oman LLC Effective: Dec-10

This page was intentionally left blank

This document is the property of Petroleum Development Oman, LLC. Neither the whole nor any part
of this document may be disclosed to others or reproduced, stored in a retrieval system, or
transmitted in any form by any means (electronic, mechanical, reprographic recording or otherwise)
without prior written consent of the owner.

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i Document Authorisation
Authorised For Issue – December 2010

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ii Revision History
The following is a brief summary of the 4 most recent revisions to this document. Details of all
revisions prior to these are held on file by the issuing department.

Revision Date Author Scope / Remarks


No.

1.0 Dec-10 Robin Norman UOP6 1st Issue


Draft Dec-10 Robin Norman UOP6 Draft for review

iii Related Business Processes


Code Business Process (EPBM 4.0)
EP.64 Design, Construct, Modify and Abandon Facilities
EP.65 Execute Operations Readiness and Assurance Activities
EP.71 Produce Hydrocarbons
EP.72 Maintain and Assure Facilities Integrity

iv Related Corporate Management Frame Work (CMF)


Documents
The related CMF Documents can be retrieved from the Corporate Business Control
Documentation Register CMF.

See Appendix 3

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TABLE OF CONTENTS
1 Introduction........................................................................................................................... 6
1.1 Purpose........................................................................................................................... 6
1.2 Review and Improvement............................................................................................... 6
1.3 Step-out Approval............................................................................................................ 6
2 Strategy................................................................................................................................. 7
Figure 1 – RACI Overview........................................................................................................ 8
3 Flawless Project Delivery...................................................................................................... 9
4 Asset Ownership and Asset Management Transfer Strategy..............................................10
4.1 Asset Ownership............................................................................................................ 10
4.2 Asset Management Transfer..........................................................................................10
4.3 Final Asset Management Handover...............................................................................11
4.4 Acceptance criteria........................................................................................................ 11
5 Commissioning Management System & Completions Tools...............................................13
5.1 Commissioning Management system structure.............................................................13
5.1.1 Strategy................................................................................................................... 13
5.1.2 Control.................................................................................................................... 13
5.1.3 HSE......................................................................................................................... 13
5.1.4 Flawless Project Deliver (FPD)...............................................................................14
5.2 Certification and Completions Management System....................................................14
5.3 Systemisation................................................................................................................ 14
6 Organisation........................................................................................................................ 16
Figure 2 – CSU Organisation at Pre-Commissioning / Commissioning.................................16
Figure 3 – CSU Organisation Post RFU.................................................................................17
7 Competence........................................................................................................................ 18
Appendix 1 – Definitions and Terminology.................................................................................20
Appendix 2 – Abbreviations........................................................................................................ 22
Appendix 3 – Reference Material...............................................................................................23

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1 Introduction
The Pre-Commissioning, Commissioning and Start-Up of facilities have been an area
of concern in PDO. The “Key Principles” detailed in this specification shall be used to
develop the “Commissioning and Start-Up Strategy” produced in the Select Phase.
IMPORTANT: The “Commissioning and Start-Up Strategy” is a DCAF deliverable.
The Key Commissioning and Start Up (CSU) Principles are aligned to the PDO
Procedure PR-1159 Engineering and Operations Commissioning and Start-Up
The Commissioning and Start-Up Phase of a Project is characterised by:
 The risks of producing (toxic sour) oil and gas at pressure for the first time in
the life of a facility;
 The requirement to utilise systems and procedures of the Operations
Management System (OMS) and Emergency Response (ER) system for the
first time;
 The requirement to ensure that Process Safety and Asset Integrity are assured
at all times;
 The complexity of operating a new facility where multiple parties are present
and multiple activities are being completed simultaneously;
 For a brown field development: Integration of the new facilities into the existing
operation;
IMPORTANT NOTE: For High H2S (Sour) Project an extra phase may be needed
where the facility is gassed up with sweet Hydrocarbons. Only once the facility has
been tested on sweet hydrocarbons the Sour hydrocarbons will be introduced.

1.1 Purpose
The purpose of this specification is to ensure the Commissioning and Start-Up Strategy
is consistent throughout all projects and addresses the Key Principals detailed here in.

1.2 Review and Improvement


Responsibility for the upkeep of this Specification shall be with Functional Production
Manager, UOP, the Owner. Changes to this Document shall only be authorised and
approved by the Owner.
Users of the Document who identify inaccuracy or ambiguity can notify the Custodian
or his/her delegate and request changes be initiated. The Requests shall be forwarded
to the Custodian using the “User Feedback Page” provided in the Appendix.
The Document Owner and the Document Custodian should ensure review and re-
verification of this document every 3 years.

1.3 Step-out Approval


Deviations (Step Outs) from this specification shall be governed by PR-1247 - Project
Change Control & Standards Variance Procedure, and require the authorisation of the
Project Manager and endorsement from the Specification Owner.

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2 Strategy
The PDO CSU strategy for Pre-Commissioning and Commissioning shall be direct
supervision by a PDO lead CSU team, but may augmented by CSU staff from a
specialist CSU contractor.
Utilities systems shall normally be pre-commissioned / commissioned ahead of any
other system to supply energy to all systems. The Start-up shall be supervised by the
Operations Team supported by the CSU team (refer to remark 1 in Figure 1 and
Section 4.2).
IMPORTANT NOTE: Support services for Pre-Commissioning and Commissioning
shall be provided by the EPC and this shall be reflected in the contracting strategy.
Such support services may include:
 Technician workforce
 Scaffold
 Riggers
 Material Support & Management
 Vendor call off
 Consumables supply
 First Fills
 Admin assistance
 Planners
 Test Equipment
 Tools
NOTE: Other strategies are possible, but they may place greater reliance on
contractor’s competence and capability to execute CSU activities. Recent experience in
PDO projects has shown major shortcomings in the EPC community.
The CSU strategy shall be part of the EPC Contract scope, roles and responsibilities.
The Scope shall include system milestone payments that meet optimum start up
sequence rather than area and commodity based payments.

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Figure1 RACI Overview compliments this strategy:


Responsible Pre-
Construction Commissioning Start-Up Operate
Parties Commissioning
Asset Owner Oil & Gas Director Oil & Gas Director Oil & Gas Director Oil & Gas Director Oil & Gas Director
PDO Operations
PDO Project PDO Project PDO Project Manager (NOTE) PDO Operations
Asset Manager
Manager Manager Manager PDO Project Manager
Manager
PDO Delivery
PDO Construction PDO CSU PDO CSU Team Leader PDO Delivery
Activity Lead
Manager Manager Manager PDO CSU Team Leader
Manager
PDO Operations
PDO CSU Team PDO CSU Team
Team
PDO Operations
Activity Team EPC
Team
EPC EPC PDO CSU Team

RFSU Introduction Project to Asset


Mechanical PSUA Transfer
of Hydrocarbons
Completion
(Process Fluids)

Figure 1 – RACI Overview


NOTE:- From the RFSU point forwards, through Start-Up and up to Final Handover, Operations
will assume the overall responsibility for; the ‘day-to-day’ management of the facility;
introduction of hydrocarbons; start-up activities; operations of hydrocarbon systems;
management of personnel on the facilities and access control; management of HSSE, PTW,
SIMOPS, MOPO and emergency response; OMS; hydrocarbon accounting; and production
management.

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3 Flawless Project Delivery


Flawless Project Delivery (FPD) shall be a structured process geared towards early
identification of potential flaws in a project and methods of ensuring dedicated
mitigation of these flaws. The process shall utilise a variety of inputs into a work
process. The work process shall continue through the life time of the project and shall
be carried by dedicated staff in the project organization (Refer to PR-1612 - Operations
Readiness and Assurance).
The FPD process will enable elimination of flaws that prevent systems from achieving
a smooth start-up and steady state (production) operations (at the specified capacity)
as soon as possible.
Application of FPD shall be mandatory in all projects exceeding 100 Million US$
value.

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4 Asset Ownership and Asset Management Transfer Strategy

4.1 Asset Ownership


Asset Ownership rests in PDO with the Oil or Gas Director in accordance with CP-115 -
Operate Surface Product Flow Assets - CoP and shall:
 be accountable for Production Operations Management in their Directorate;
 be accountable for all Assets in the Directorate (Asset Owner);
 be accountable for authorising asset abandonment within their Directorate, and
;
 provide members of the Technical Directors Group

4.2 Asset Management Transfer


The Construction Manager shall take the systems to Mechanical Completion
(verification via Completions Management System (CMS)), after which the CSU
Manager shall then take the systems through Pre-Commissioning and Commissioning.
The CSU Manager shall coordinate the Asset Management transfer from the Project
Manager to the Operations Manager. This Asset Management transfer shall be planned
and take place only after the acceptance criteria has been met.
On completion of a satisfactory Pre-Start-Up Audit, which shall include closeout of all
high (I) priority PSUA and A ‘punch list’ action items and verification that the facilities
are ready for start-up, management of the facilities shall be transferred from the
Project Team to Operations. Referred to as “Custody Transfer”.
NOTE: B and C punch list items shall also require to be closed prior to SU, or
transferred to an exception list.
From the RFSU point forwards, through Start-Up and up to Final Handover;
 Operations will assume the overall responsibility for; the ‘day-to-day’
management of the facility; introduction of hydrocarbons; start-up activities;
operations of hydrocarbon systems; management of personnel on the facilities
and access control; management of HSSE, PTW, SIMOPS, MOPO and
emergency response; OMS; hydrocarbon accounting; and production
management.
 Projects (including the contractor if applicable) shall remain responsible for
integrity performance; preservation and defect management of the facility;
shall supply all relevant procedures, materials and consumables; and
supporting manpower, including technical support, to allow safe operation and
performance verification of the facilities. Identified CSU team members will be
retained for the SU phase.
 During the initial start-up, functional and integrity tests, capacity test and
reliability proving periods, up to final acceptance of the plant, the project/
contractor shall support the asset manager with sufficient technical support,
labour and materials to evaluate performance, and to identify and rectify
technical malfunction or breakdown.

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 Depending on the contract, the contractor may have little responsibilities post
start-up, e.g. warranty issues and defect management. It may be necessary for
the asset manager to take ownership / leadership of follow-on activities with
technical assistance taken from in-house engineering contractor or the project
engineering contractor under the direction of the CSU team.
These considerations shall be incorporated in the Project (EPC) contract.

4.3 Final Asset Management Handover


Sustainable steady-state operations shall be achieved prior to completion of the
Execution Phase and Final Acceptance.
Sustainable steady-state operations shall be defined prior to FEED and will be
measured over an agreed period following Custody Transfer, during which time the
contractor shall provide “warrantee /guarantee” cover for the facilities.
Acceptance criteria shall be agreed between the Project Team and future Asset Owner
and be developed during FEED, thus avoiding any confusion / grey areas.
The acceptance criteria for final handover shall be and agreed with the future Asset
Manager and documented for each handover point as described above.
On completion of a satisfactory Final Acceptance Audit, the full responsibility for
management of the asset will be transferred to the Operations Manager, which closes
the Execution phase. Responsibilities of the Project shall cease at that point.
Any outstanding items at the time of provisional acceptance and final acceptance must
be documented and arrangements (budget, resources, plans, timeline), satisfactory to
both Project and the Asset Owner, recorded to deal with the outstanding items. At this
stage the CSU organisation and the project organisation can be abandoned.
Performance testing shall be carried out in accordance with procedures agreed in
advance by the equipment / system vendors and included in the overall Test Plan, in
order to demonstrate the contractual guarantees on equipment and systems.
Final acceptance shall be the point at which the Operations Manager accepts the full
ownership of the facilities from the Project Manager. Prior to final handover a final
Acceptance Audit shall be carried out. To meet the requirements for final acceptance a
number of pre-defined agreed conditions underpinned by the FPD methodology must
have been met and exceptions agreed. Those exceptions will be handed over including
budgets and resources.

4.4 Acceptance criteria


Performance testing shall confirm the operating envelopes and targets and may
include the following:
 Capacities
 Product Qualities (Sulphur Specifications in particular)
 Production sales specification: quality, amount;
 No flaring or flare limitation achieved;
 Noise levels;
 Nitrous oxide/ sulphurous oxide and carbon dioxide emissions;
 Produced water quality;
 Availability profile against timeline;
 Less than a certain number of trips in a certain period;

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 Less than a certain number of alarms in a certain period;


 No alarm overrides;
 Maximum flow;
 Turndown;
 Chemicals, utilities and catalyst consumption;
 Technical availability (uptime) in first year of operation;
 Achieving sustainable steady state against timeline;
 Asset Integrity Verification System, Safety Critical Equipment (SCE) and
Production Critical Equipment (PCE).
 Operations Integrity Assurance system definition (OIA)
 ESP; Ensure Safe Production is the standard for Live Operating Envelopes,
Alarm Management, and Handovers.

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5 Commissioning Management System & Completions Tools

5.1 Commissioning Management system structure


A Commissioning Management System will need to be developed in the Detail Design
phase. This system comprises of processes, practices and procedures that ensure the
effective management of the asset throughout the commission phase and will include
following elements as a minimum:

5.1.1 Strategy
 Commissioning Execution and Start Up Strategy (this document)
 Handover Procedure
 Systemization Procedure
 Start Up Network
 Commissioning Manual (PR-1159)

5.1.2 Control
 Manpower Resource Plan including Vendor mobilisation plan
 Level 4 Pre-Commissioning and Commissioning schedule
 Spade / Blinds Management Procedure
 Punch list Guidelines
 Commissioning procedures
 Commissioning Spares
 First fills/Chemical register
 System / Sub-system list
 System marked up drawings (PEFS, Elec, Instr etc.)
 Temporary equipment register
 GU-623 - Project Completion Management System CMS Guideline

5.1.3 HSE
 HSE plan and reporting system
 Commissioning Emergency response Procedures
 Journey Management Procedure
 Emergency Response Plan
 Waste Management Plan
 Permit To Work Manual

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5.1.4 Flawless Project Deliver (FPD)


 Q Plans (FPD implementation plan)

5.2 Certification and Completions Management System


An electronic database system shall be used to capture and track the status of all
system tags, subsystems and systems, and associated punch lists in a structured
manner, enabling verification and recording completion of check sheets and punch list
items.
The completions system approved by PDO is the Certification and Completions
Management System (CCMS) and is supplied by QEDi. The Use of CCMS shall be
mandatory in PDO for all projects.
Guidance on the use of CCMS will be in accordance with GU-623 - Project Completion
Management System CMS Guideline.
 CCMS shall be used to track all phases of construction mechanical completion,
hook-up and commissioning to ensure every system is checked and all
procedures are completed before the system is handed over.. This fit-for-
purpose, comprehensive certification program permits a wide range of
construction and commissioning check sheets to be easily tailored to fit the
specific requirements of each project.
 CCMS shall be used throughout the project execution process - from planning
and development to construction mechanical completions and handover,
through pre-commissioning and commissioning, to the handover to operations -
and includes complete phase-by-phase punch list tracking. The CCMS shall be
owned and populated by the Project Team under responsibility of the Project
Manager.
 Engineering information from indexes, cable schedules and equipment lists are
automatically loaded into the program and check sheets are assigned. The
scope of work shall be reviewed by system leads, then assigned to field
personnel to complete.
 CCMS has a wide range of reporting features to cover construction
performance, commissioning activities and punch list reports, and can also
determine handover status among the various teams generating graphs
showing planned and actual progress.
 CCMS is tailored to track progress of written commissioning procedures, which
other programs do not cover.
 CCMS is based upon Microsoft Access, which allows information to be easily
imported and exported. Authorized users may access comprehensive reporting
features while the construction and commissioning data are still secure, prior to
handover to operations.

5.3 Systemisation
Pre-Commissioning (sub system / discipline driven), Commissioning (system driven)
and Start-Up shall be ‘systems’ based. Early in the FEED phase of the project these
(sub) systems shall be defined and agreed, including all interfaces.
Systems shall be defined from a commissioning start-up point of view and be as ‘large
as possible’ parts of a unit to enable operations to make individual commissioning and
start-up progress.

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A system shall be a composite assembly of hardware that has a singular purpose within
a unit, that can be commissioned and brought to Ready For Start Up (RFSU) status, to
a significant extent, without dependency on other systems.
The (sub) systemization approach must be applied not only to process (including utility)
systems, but also non-process systems i.e. civil and building works, and all supporting
electrical, telecom and instrument facilities.
The main reason for systemization shall be to achieve Mechanical Completion (MC)
followed by Ready For start UP (RFSU) in a structured way, thus enabling the
introduction of hydrocarbons.

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6 Organisation
The Commissioning Process shall be a Project Deliverable hence the Project Manager
remains responsible for Commissioning and Start-Up until Final Handover. Start-Up i.e.
the Introduction of Hydrocarbons shall be effected by an Operations Team that is
competent in the operation of live hydrocarbon facilities.
Refer to Section 4.2 for a description of the responsibilities for the CSU manager and
the Operations Manager
The Commissioning Start-Up (CSU) Team shall start-up and operate the non-
hydrocarbon systems during commissioning activities until these systems are fully
proven and handover to Operations can be carried out. See Figures 2 & 3 below for
Organisation and Reporting relationships.
Oil And Gas Director

PDO Project PDO Operations


Manager Manager

PDO Project
Engineer

PDO CSU Delivery Team


Manager Leader

EPC Discipline PDO CSU


Support Team

Figure 2 – CSU Organisation at Pre-Commissioning / Commissioning

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At RFSU (point of hydrocarbon introduction) the organization and reporting


relationships shall be as Figure 3 below.
Oil And Gas Director

PDO Project PDO Operations


Manager Manager

PDO Project
Engineer

PDO CSU Delivery Team


Manager Leader

EPC Discipline PDO CSU PDO Asset


Support Team Operations

Figure 3 – CSU Organisation Post RFU


At RFSU the custody of the facility shall be handed over to the Operations Manager
who will be responsible for the introduction of hydrocarbons in accordance with first
start-up procedures which shall have been agreed with by Project and Asset Operations
Managers. These procedures shall incorporate sufficient steps and safeguarding
actions to verify that it is safe to start-up the plant, to increase throughput to nameplate
volumes and to hold at a steady state for an agreed, uninterrupted period. After
achieving steady state operations performance testing shall be carried out. Refer to
Figure 1 – RACI Overview.

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7 Competence
In the lifecycle of a facility the Commissioning and Start-Up period covers a relative
short period. The specific skills for the CSU process are difficult to build as staff tends
to be absorbed in the Operations organisation or if contract staff, will dissipate to a
next, possibly Non-PDO, project.
The CSU engineer shall show competence in the following:
1. Commissioning Organisation
 Staff Experience requirements
 Operator Involvement/ Integration
 Key Positions
 Functions and functional requirements
2. Commissioning Planning
 Understanding CSU scope
 Logic
 Schedule
 Commissioning Execution
 Work Scope method statements
 FPD methodology
3. Commissioning Deliverables
 Systemisation
 System Handover and punch listing
 Commissioning procedures
 CCMS
 Administration procedures
 (Vendor) Site support requirements
 Vendor procedures and documentation
 Training modules
 Commissioning spares
 First Fills
4. HSSE in Commissioning
 Permit to Work
 SIMOPS
 Risk Assessment Methodology and Job Hazard Analysis
 HSSE management and Operations HSSE Case
 Regulatory requirements
 Environmental Restriction (Flaring, water disposal etc)
 ER requirements during CSU

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5. Start-Up and Initial Operation


 PSUA (Pre-Start-Up Audit)
 RFSU (Ready for Start-Up)
 Handover processes
 Performance verification processes
 First start-up procedures
 Start-Up Time Line
 Use of KPI’s

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Appendix 1 – Definitions and Terminology


To prevent misunderstanding and confusion the following definitions and terminology
shall be used for the Commissioning and Start-Up process (ref. PR-1159).
Commissioning Process
The Commissioning Process verifies that equipment and systems that have not been
operated before, or have been modified, are brought into operation safely and in the
correct sequence.
Mechanical Complete (MC)
Mechanical completion is a milestone achieved when all specified work is complete
and subsequent acceptance inspection and physical testing is satisfactorily performed
and documented.
Pre-Commissioning
Pre-Commissioning activities undertaken after mechanical completion, but prior to
commissioning, are to prove and validate the functioning of equipment. Such activities
could involve the introduction of fluids into systems, but not hydrocarbons
Commissioning
These activities are those undertaken after pre-commissioning to dynamically verify
functionality of equipment and to ensure that systems, or facilities forming part of a
system, are in accordance with specified requirements to bring that system into
operation. Hydrocarbons are not introduced.
Pre-Start-Up Audit (PSUA)
Prior to introduction of hydrocarbons, a Pre-Start-Up Audit shall be carried out. The
audit shall verify key items such as:
 Facilities are constructed as per design;
 Operations philosophy is complied with;
 Asset integrity is verified and can be demonstrated;
 Necessary vendor support is identified and scheduled;
 Operations staff are sufficiently trained and competent;
 Operations Management System (OMS) is operable and ready for steady-state
operations;
 Commissioning ‘imperatives’ are in place and complied with;
 Project assurance in place;
 HSE-MS is in place;
 Confirm physical readiness for start-up;
 Emergency Response team and enablers tested and functional prior to start-up
The Pre-Start-Up Audit will be used to demonstrate the readiness of the facilities,
systems and operations organisation to operate.

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Ready for Start-Up (RFSU)


RFSU is considered as the point when all activities necessary to support the
introduction of hydrocarbons (process fluids), including all utility and process utility,
Process Automation System (PAS), safeguarding and shutdown systems have been
pre-commissioned, commissioned and integrity has been verified.
Start-Up
Following commissioning of the facilities, production of hydrocarbons (or process
fluids) starts, when product specifications are met the export or injection into
formations can commence.

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Appendix 2 – Abbreviations
The following abbreviations have been used in this specification.

CCMS Certification and Completion Management System


CMS Completion Management System
CSU Commissioning & Start-Up
DCAF Discipline Controls and Assurance Framework
EPC Engineering, Procurement, Construction
ER Emergency Response
FEED Front End Engineering Design
FPD Flawless Project Delivery
HSSE Health, Safety, Security, Environment
MC Mechanical Complete
MOPO Manual Of Permitted Operations
OMS Operations Management System
OR&A Operations Readiness and Assurance
ORP Opportunity Realisation Process
PAS Process Automation System
PDO Petroleum Development Oman
PEFS Process Engineering Flow Scheme
PSUA Pre Start Up Audit
PTW Permit to Work
RFSU Ready for Start-Up
SCE Safety Critical Element
SIMOPS Simultaneous Operations

Page 22 SP-2113 - Specification for Commissioning and Start-Up Printed 14/12/10


(Key Principals)
The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED.
Revision: 1.0
Petroleum Development Oman LLC Effective: Dec-10

Appendix 3 – Reference Material


CP-115 - Operate Surface Product Flow Assets - CoP
PR-1159 Engineering and Operations Commissioning and Start-Up
PR-1247 - Project Change Control & Standards Variance Procedure,
PR-1612 - Operations Readiness and Assurance
GU-623 - Project Completion Management System CMS Guideline
Flawless Project Delivery Process

Page 23 SP-2113 - Specification for Commissioning and Start-Up Printed 14/12/10


(Key Principals)
The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED.

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