SAEP-1350 Design Basis Scoping Paper

Engineering Procedure
SAEP-1350 15 November 2011

Design Basis Scoping Paper (DBSP)
Preparation and Revision Procedure
Document Responsibility: Facilities Planning Department
Saudi Aramco DeskTop Standards

Table of Contents
1 Background....................................................... 3
2 Purpose of the DBSP........................................ 3
3 DBSP Applicability............................................ 7
4 DBSP Implementation....................................... 7
5 DBSP Contents............................................... 20
6 DBSP Review Procedure................................ 34
7 DBSP Approval............................................... 35
8 Distribution of Approved DBSP....................... 36
9 DBSP Revisions.............................................. 36
Attachment A - Definitions..................................... 38
Attachment B - DBSP Development Process........ 40
Attachment C - DBSP Development Checklist…... 41
Attachment D - FPD Divisional Responsibilities…. 43
Attachment E - DBSP Approval Sheet................... 44
Attachment F - DBSP Contributors
Identification Page................................ 45
Previous Issue: 20 April 2008 Next Planned Update: 15 November 2016

Revised paragraphs are indicated in the right margin Page 1 of 45
Primary contact Goings, Robert Clifton on 966-3-8800303
Copyright©Saudi Aramco 2011. All rights reserved.

Document Responsibility: Facilities Planning Depart ment SAEP-1350
Issue Date: 15 November 2011 Design Basis Scoping Paper (DBSP)
Next Planned Update: 15 November 2016 Preparation and Revision Procedure
Detailed Table of Contents

1 Background................................................................................................................ 3
2 Purpose of the DBSP................................................................................................. 3
3 DBSP Applicability................................................................................................... 7
4 DBSP Implementation............................................................................................... 7
5 DBSP Contents........................................................................................................ 20
5.1 Approval Sheet............................................................................................... 20
5.2 DBSP Contributors Identification Page.......................................................... 21
5.3 Design Basis Scope Definition....................................................................... 21
5.4 DBSP Sections................................................................................................ 23
5.4.1 Purpose of Facilities......................................................................... 23
5.4.2 Present Situation.............................................................................. 23
5.4.3 Location Analysis............................................................................ 25
5.4.4 Interfaces.......................................................................................... 26
5.4.5 Design Objectives............................................................................ 27
5.4.6 General Project Design Basis.......................................................... 28
5.4.7 Description of Proposed Facilities................................................... 29
5.4.8 Scope Evaluation to Date................................................................. 29
5.4.9 Additional Study Requirements during Project Proposal……….... 30
5.4.10 Constructability and Logistical Assessment.................................... 31
5.4.11 As-Built Drawing Assessment......................................................... 31
5.4.12 Value Engineering Study................................................................. 31
5.4.13 Surplus and Excess Material............................................................ 32
5.4.14 Project Schedule.............................................................................. 32
5.4.15 Appendices....................................................................................... 32
6 DBSP Review Procedure......................................................................................... 34
7 DBSP Approval....................................................................................................... 35
8 Distribution of Approved DBSP.............................................................................. 35
9 DBSP Revisions....................................................................................................... 36
Attachment A - Definitions.............................................................................................. 38
Attachment B - DBSP Development Process................................................................... 40
Attachment C - DBSP Development Checklist................................................................ 41
Attachment D - FPD Divisional Responsibilities............................................................. 43
Attachment E - DBSP Approval Sheet............................................................................. 44
Attachment F - DBSP Contributors Identification Page................................................... 45
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1 Background
Since 1982, Saudi Aramco Corporate Management has endorsed the concept that
Project Proposals for individually engineered Budget Items (BIs) will be supported by
Design Basis Scoping Papers (DBSPs). Facilities Planning Department (FPD) is
responsible for preparation and development of these DBSPs. Consistent with this
direction, the procedures for preparing, approving and revising DBSPs contained in this
document are mandatory for all organizations involved in developing capital projects,
including FPD, the Proponent and the Construction Agency.
2 Purpose of the DBSP
2.1 The DBSP is a “contract” between the DBSP signatories to further develop the
proposed project in a manner that will ensure that the project's stated Business
Objective is achieved in an economical (i.e., cost effective) manner.
2.2 The DBSP, together with the Saudi Aramco Engineering Standards and the
existing as-built drawings, shall provide:
2.2.1 The Project Proposal engineering contractor the definitive information

required to fully, and, to a large extent, independently develop a
project scope during Project Proposal development, which achieves the
project's stated Business Objective (i.e., its purpose) in an economical
manner.
2.2.2 The Construction Agency the information required to effectively plan

and execute Project Proposal development.
2.3 The DBSP is an integral part of the overall capital project planning process, in
that it broadly describes the project scope required to achieve a stated Business
Objective in an economical manner, and the bases which shall be used to further
develop the project scope during the Project Proposal Phase, as indicated in the
following overview of the planning process:
2.3.1 Qualitative Assessment Phase – The primary purpose of Qualitative

Assessment Phase is to complete the analysis required to decide
whether to proceed with developing a conceptual project scope and
Conceptual Cost Estimate for a proposed project. During this phase:
2.3.1.1 The Proponent, most often, identifies and describes in

preliminary terms an opportunity or a need to expand or
improve Saudi Aramco's operations. The required project
information is stipulated in FPD's Submittal Requirements
for New Projects.
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2.3.1.2 FPD qualitatively assesses the Business Case for the

proposed project. More specifically, FPD:
a) Clearly defines the Business Objective of the
proposed project.
b) Describes the operating environment in which the
stated Business Objective would have to be achieved.
c) Qualitatively assesses the Net Benefits of the project.
2.3.2 Preliminary Economic Evaluation Phase – The primary purpose of the

Preliminary Economic Evaluation Phase is to develop the information
required to decide:
 Whether to recommend to the Proponent that the proposed project

be included in the Business Plan.
 For projects scheduled for approval in the second year of the
upcoming Business Plan, whether to proceed with the Study Phase.
During this phase, FPD develops a preliminary project scope definition

and evaluates the economics of the proposed project, as required.
2.3.3 Study Phase – The primary purpose of the Study Phase is to complete
the analysis required to:
 Decide whether to advance to the DBSP and Budgetary Project

Scope Definition Phase.
 Determine which of viable alternatives to further develop during
the DBSP and Budgetary Project Scope Definition Phase.
During this phase, FPD identifies and evaluates viable alternatives for
achieving the stated Business Objectives, taking into account the
anticipated operating environment, and confirms that the Business
Case is still supportive of continued development.
2.3.4 DBSP and Budgetary Project Scope Definition Phase – The primary
purpose of the project scope which would economically (i.e., cost
effectively) achieve the stated Business Objective in the anticipated
operating environment. The DBSP and Budgetary Project Scope
Definition are two related, albeit separate, work products that should
generally be completed concurrently. During this phase:
2.3.4.1 FPD, with assistance from other organizations, establishes

and clearly describes “what” facility capabilities are to be
provided in the DBSP. More specifically, FPD:
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a) Clarifies the definition of the project's Business

Objective (i.e., the project's purpose) and the
description of the operating environment in which this
Business Objective would have to be achieved, as
required to provide the Construction Agency and the
Project Proposal engineering contractor the proper
framework in which to further develop the project
scope.
b) Describes, in broad terms, the facilities to be provided
to economically achieve the stated Business Objective
in the anticipated operating environment, more
specifically:
i) The types of facilities.
ii) The corresponding facility design bases:
 Technical design bases (i.e., the required

capabilities for the proposed facility, as a
whole, and individual scope elements).
 Economic evaluation bases (i.e., project
specific economic evaluation bases to be
used to further develop the proposed project
scope during Project Proposal development).
iii) Specific facility attributes determined during
DBSP development as being needed, and
therefore not subject to change without FPD's
approval.
c) Describes specific studies, which are to be performed
by the Project Proposal engineering contractor, to
further define the facilities which would actually be
built, together with all of the evaluation parameters,
including any supplemental economic evaluation
bases, required to complete these studies.
2.3.4.2 FPD, with assistance from other organizations, also

develops a preliminary description of the actual facilities
that might be built (i.e., a description of “how” the required
facility capabilities could actually be achieved) and clearly
documents this description in the Budgetary Project Scope
Definition.
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The project scope definition in the DBSP and Budgetary

Project Scope Definition shall together be sufficient for
PMOD to develop a Capital Budget Cost Estimate.
The DBSP, including the Budgetary Project Scope

Definition, is provided to the Construction Agency and the
Project Proposal engineering contractor for use as a basis
for further developing the project scope during the Project
Proposal Phase.
2.3.5 Capital Budget Economic Evaluation Phase – The primary purpose of

the Capital Budget Economic Evaluation Phase is to decide whether to:
 Recommend to the Proponent that the proposed project be included
in the Annual Capital Budgets.
 Seek Approval of the DBSP.
 Initiate the Project Proposal.
During this phase:
2.3.5.1 PMOD develops, in close coordination with FPD, separate

Capital Budget Cost Estimates for:
a) The project scope described in the completed DBSP
and Budgetary Project Scope Definition.
b) Each major element of project scope which FPD does
not support.
2.3.5.2 FPD re-evaluates the proposed project using the Capital

Budget Cost Estimate for the project scope described in the
completed DBSP and Budgetary Project Scope Definition
to determine if the Business Case is still supportive of
continued development.
2.3.6 Project Proposal Phase – The primary purpose of this Project Proposal
Phase is to further define the proposed project's scope, consistent with
the project's stated Business Objective and the anticipated operating
environment.
During this phase, the Project Proposal engineering contractor further

defines the actual facilities to be built, in sufficient detail to obtain an
ER Cost Estimate from PMOD.
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2.3.7 ER Approval Phase – The primary purpose of the ER Approval Phase

is to:
 Finalize the Business Case development.
 Decide whether to recommend that the proposed project be
presented to Management Committee for approval.
 Prepare the necessary documents for presentation to Management
Committee for its consideration.
During this phase:
2.3.7.1 PMOD develops the ER Cost Estimate, in close

coordination with the Construction Agency.
2.3.7.2 FPD re-evaluates the proposed project using the ER Cost

Estimate to determine that the Business Case is supportive
of project approval and implementation.
2.4 Definitions of the key terms used throughout this DBSP Procedure are presented
in Attachment A.
3 DBSP Applicability
Project specific DBSPs are generally required for fixed–scope engineered Budget Items,
except for:
 BI-1900 Budget Items.
 Budget Items for repetitive standard design facilities, if a project-specific DBSP is

deemed unwarranted by a team consisting of representatives from FPD, the
Proponent, and the Construction Agency. Examples of repetitive projects include
warehouses, roads, security fences, and home ownership developments.
 Projects for which the Proponent controls all scope development and planning, such
as master appropriation Budget Items for offshore platforms/flowlines and onshore
flowlines.
 Off-the-shelf (i.e., pre-engineered) purchased items, such as helicopters and crude
oil tankers.
4 DBSP Implementation
A simplified flow chart of the DBSP development process is presented in

Attachment B, DBSP Development Process. The major elements of this process and
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the corresponding tasks are described in this section. The primary objectives of these
guidelines are to:
 Ensure that stated “Purpose of the DBSP” (Reference Section 2) is achieved.
 Ensure that FPD's project scope recommendations are well founded and would
achieve the project's stated Business Objective in an economical (i.e., cost effective)
manner.
 Improve the quality and consistency of the DBSPs.
 Improve the productivity of FPD and the other organizations primarily involved in
the preparation of DBSPs.
4.1 Initiate DBSP/Assign Team Representatives
4.1.1 Formally notify the proposed project's Proponent, the Construction

Agency, and the Environmental Protection Department.
4.1.1.1 When DBSP development is scheduled to start
4.1.1.2 Of any specific support requirements.
4.1.2 The Proponent, the Construction Agency and the Environmental

Protection Department (EPD) assign representatives to work with FPD
in the development of the DBSP, on either a part-time or fulltime basis,
as required to effectively contribute to the DBSP development.
4.2 Describe Project's Business Objective and Operating Environment
4.2.1 Clarify, as required, the definition of the proposed project's Business

Objective (i.e., the project's purpose), in terms of Saudi Aramco's
Strategic Direction and Business Plan objectives.
4.2.2 Expand and clarify, as required, the description of the operating

environment in which the Business Objective would have to be
achieved (i.e., the present situation which warrants consideration of the
proposed project).
4.3 Prepare DBSP Execution Plan
4.3.1 Search FPD files for previously completed DBSPs for similar facilities,
which effectively describe “what” facility capabilities are to be
provided, consistent with this DBSP Procedure, for use as a “go-by.”
4.3.2 Prepare an execution plan for developing the DBSP consistent with the
requirements stipulated in this DBSP Procedure, which:
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4.3.2.1 Is commensurate with the importance of the proposed

project (e.g., capital investment, Net Benefits).
4.3.2.2 Identifies and prioritizes the major tasks that will be

completed (i.e., the scope of work required to complete
each section of the DBSP).
4.3.2.3 Identifies the major parameters/considerations, which are

likely to impact project scope, the corresponding
justification, and ultimately Management's decision.
4.3.2.4 Identifies and prioritizes the required information and likely

sources for this information.
4.3.2.5 Identifies the resources, internal and external to FPD and

Saudi Aramco (e.g., engineering contractor for developing
the Budgetary Project Scope Definition), which will likely
be required.
4.3.2.6 Estimates the amount of time, actual time and calendar

time, required to complete the DBSP.
4.3.3 Review DBSP execution plan with FPD Supervision (e.g., Coordinator)
to ensure that:
4.3.3.1 The plan is sufficiently well defined to develop a project

scope, consistent with the project's stated purpose (i.e., its
Business Objective).
4.3.3.2 FPD's supervision is aware of and supportive of the

resource requirements.
4.4 Develop Project Scope
Further develop the proposed project's scope, more specifically the alternative
selected during the Study Phase, to confirm the types of facilities to be provided
and the corresponding design bases.
4.4.1 Establish the extent to which the project scope needs to be defined in
the DBSP to effectively achieve the project's stated purpose (i.e., its
Business Objective). This extent will depend in large part on the
complexity of the analysis and perspective required to establish
economical project scope (i.e., the extent to which an understanding of
the operating environment in which the project's stated Business
Objective would have to be achieved and the economic evaluation
criteria is required). In its simplest form, the project scope definition
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could be limited to a description of the required capabilities for the

project, as a whole, and the conditions at each of the physical
interfaces. A more complex definition could include descriptions of
each major scope element of the project, consistent with the purpose of
a DBSP.
4.4.2 Visit, as required, the site of the proposed project.
4.4.3 Obtain an approved Land Use Permit (LUP), if required by

GI-0002.716 (Reference Section 5.1), if a request has not already been
submitted (Section 5.2 of GI-0002.716 stipulates that an LUP request
should be submitted before DBSP start).
4.4.3.1 Coordinate request with the Proponent. This request shall

either be made by the Proponent or, as a minimum,
endorsed by the Proponent.
4.4.3.2 Formally submit a request to the Work Director for the

Area Planning Group (APG) of the Infrastructure Planning
Division of FPD (i.e., the organization responsible for
issuing LUPs) for review as early in the planning process as
reasonably possible, if a formal request has not already
been made. Typically, an average of six weeks is required
to process the LUP request, assuming that there are no
outstanding concerns.
4.4.3.3 Follow-up with the assigned APG Planning Engineer on the

LUP progress and the resolution of any outstanding issues,
if any.
4.4.3.4 Obtain an approved LUP for the proposed project before

issuing the draft DBSP for review. As a minimum, this
LUP shall be tentatively approved to confirm that there is
no conflict regarding ownership of the designated site for
the proposed facilities.
4.4.3.5 Include the approved LUP, or tentatively approved LUP, in

the draft DBSP issued for review.
4.4.3.6 Finalize the LUP request and obtain an approved LUP

before issuing the DBSP for approval.
4.4.3.7 Include the approved LUP in the DBSP issued for approval.
4.4.3.8 Ensure that the APG Work Director receives a copy of the
draft DBSP and approved DBSP, regardless of their need
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for LUPs (i.e., the APG Work Director shall be on the

respective DBSP distribution lists). The APG Work
Director shall review these documents for compliance with
the above LUP requirements.
Exceptions to the above LUP requirements shall be reviewed with the

IPD Coordinator on a case-by-case basis.
4.4.4 Establish the location of each physical interface between the existing
and proposed facilities (e.g., inlet and outlet process streams, inlet and
outlet utility streams, entrance and exit roadways), as definitively as
reasonably possible
4.4.5 Fully characterize the conditions at each interface (e.g., for process
streams - pressure, temperature, and fluid composition). Preliminary
characterizations should have already been completed as part of the
Study Phase. Note that for some aspects of these characterizations, it
may be more appropriate and reasonable to provide ranges.
4.4.6 Refine, as required, the economic evaluation bases (e.g., the bases for
determining the Net Benefits that the Kingdom would realize) to be
used to further develop the project's scope, in conjunction with
Business Analysis
4.4.7 Refine, as required, the assessment of the project's overall capabilities to

confirm the capabilities which can be justified, preferably on the basis of
economics (e.g., capacities, process capabilities). A preliminary
assessment of these capabilities should have been completed during the
Study Phase.
4.4.8 Complete all studies required to confirm “what” is to be provided (e.g.,

the types of facilities and the corresponding facility design bases).
4.4.9 For each element of the proposed project's scope that needs to be
defined in the DBSP.
4.4.9.1 Describe the element's function.
4.4.9.2 Prioritize its importance relative to other scope elements

[i.e., the relative extent to which it contributes to achieving
the project's stated purpose (i.e., its Business Objective)].
4.4.9.3 Define the required capabilities to an extent consistent with

the purpose of a DBSP.
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4.4.9.4 Independently identify viable alternatives for performing

the scope element's stated function and achieving the
required capabilities, taking into account the anticipated
operating environment (e.g., for process plants – the
number of process trains and the capacity of each train; for
equipment, the number and size of each piece of
equipment). These alternatives should include:
a) Alternatives which would not fully provide the
required capabilities.
b) The use of existing facilities, modified as and to the
extent required.
4.4.9.5 Review the alternatives with FPD's Supervision (e.g., Work

Director, Coordinator) to ensure that a reasonable range of
alternatives has been identified.
4.4.9.6 For each alternative, independently establish the minimum

scope (i.e., scope with the least initial capital investment),
consulting with other appropriate organizations (e.g.,
Petroleum Engineering, Consulting Services, Safety &
Industrial Security, Loss Prevention, Communications, IT,
Pipelines, Process & Control Systems, Power Distribution)
as required.
4.4.9.7 Document the scope for each alternative, in sufficient detail

to develop a Study Cost Estimate.
4.4.9.8 Incrementally evaluate the economics of each viable

alternative for each scope element, sequentially comparing
each alternative to the alternative with the next lowest
initial capital investment.
a) Assesses the extent to which the stated Business
Objective would be achieved.
b) Describes the quantifiable and qualitative Net Benefits
that the Kingdom would likely realize, considering the
anticipated operating environment.
c) Quantify the Net Benefits of each alternative, to the
extent reasonably possible.
d) Develop or obtain a Study Cost Estimate for the
alternative.
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e) Develop estimates of other expected life cycle costs,

such as operating and maintenance costs (fully
burdened to account for the Company's overhead costs
directly related to its employees) and sustaining
capital investments (e.g., capitalized maintenance).
f) Determine the total life cycle cost, including the Study
Cost Estimate of the initial capital investment.
g) Quantify, to the extent reasonably possible, the Study
Cost Estimate of the initial capital investment and the
estimates of the total life cycle costs in terms that
provide additional perspective about the
reasonableness of the project costs (e.g., unit costs,
such as $/MMBTU, $/BBL, $/Tonne, $/beneficial
employee and $/square meter).
h) Compare the Net Benefits that can be readily
quantified to the corresponding total life cycle cost.
i) For the qualitative benefits of each alternative,
quantify the value which would have to be attributed
to these benefits to achieve the designated economic
hurdle rate:
i) Total value
ii) In terms that provide added perspective about
the reasonableness of the qualitative benefits
(e.g., unit benefits).
4.4.10 Document FPD's assessment of the most economical alternative for

each scope element (i.e., the alternative which most strengthens the
Business Case).
4.4.11 Review the selected alternatives with FPD's Supervision (e.g., Work
Director, Coordinator) to ensure that the appropriate alternatives have
been selected.
4.4.12 Review each of the selected alternatives with the Proponent to:
4.4.12.1 Ensure the Proponent understands each of the alternative's

and the underlying rationale for the alternative.
4.4.12.2 Identify additional alternatives, and obtain additional

information pertaining to these alternatives (e.g.,
information on project scope and benefits).
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4.4.13 Independently validate the reasonableness of the additional information

provided by the Proponent, and, to the extent required, supplement this
information with information from other sources (e.g., documented
industry practices, consultants)
4.4.14 Qualitatively assesses the extent to which each additional alternative

would incrementally contribute to achieving the stated Business
Objective in the anticipated operating environment
4.4.15 Reviews with the Proponent FPD's qualitative assessment of each

additional alternative for each project scope element to:
4.4.15.1 Ensure the Proponent understands the corresponding

incremental Net Benefits.
4.4.15.2 Determine whether a preliminary economic evaluation is

warranted.
4.4.16 Independently evaluates each additional alternative for each scope

element, as required to determine the extent to which it impacts the
proposed project's Business Case
4.4.17 Reviews with the Proponent FPD's assessment of each additional

alternative for each element of project scope to:
4.4.17.1 Ensure the Proponent understands:

a) The extent to which the Business Case would be
impacted by each additional alternative.
b) The Net Benefits of each additional alternative.
4.4.17.2 Advise the Proponent and the Proponent's Business Line of

the project scope which FPD does not support, and the
underlying rationale.
4.4.17.3 Obtain confirmation from the Proponent of the project

scope to be included in the DBSP.
4.4.18 Document the additional scope to be included in the initial draft DBSP.
4.4.19 Document the project scope to an extent consistent with the purpose of
a DBSP, as described below (Reference DBSP Contents).
4.4.20 Review the initial draft DBSP with FPD Supervision (e.g., Work
Director, Coordinator) to ensure that it is consistent with this DBSP
Procedure.
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4.5 Identify the additional studies which Project Proposal engineering contractor
needs to perform to further develop the project scope. These evaluations may
include:
 Additional front-end scope evaluations required to define the types of
facilities to be provided (i.e., evaluations which should be completed during
DBSP development). Ideally, all reasonable efforts should normally be
made to complete all front-end scope evaluations during DBSP
development. However, if additional front-end scope evaluations are
required, the DBSP shall stipulate that FPD will actively participate in
performing these evaluations and establishing the required facility design
bases.
 Environmental evaluations, other than the Environmental Assessment

already stipulated in SAEP-14, Project Proposal). These evaluations shall be
identified with the assistance of EPD and listed in the draft DBSP, which is
issued for formal review.
 More definitive project scope definition studies, such as hydrologic surveys,
pipeline route surveys, pipeline surge analyses, and risk assessments, other
than the Preliminary Hazard Analysis (PHA) already stipulated in SAEP-14,
which FPD, the Proponent and other concerned organizations agree are
required during Project Proposal development.
For each study:
4.5.1 Define the objective (i.e., purpose) of the study.
4.5.2 Establish the scope of each study.
4.5.3 Establish the required evaluation parameters, including the economic

evaluation bases (e.g., Net Benefits/consequences from the Kingdom's
perspective and the bases for valuing these benefits/consequences).
4.6 Assess the major constructability and logistical issues specific to the proposed
project, such as:
 Accessibility to the proposed site (e.g., availability and type of roads) and/or
the site of the proposed facilities within an existing facility (e.g., limitations
due to existing facilities, such as pipe racks).
 Load restrictions (i.e., weight bearing capabilities) of access roads and
bridges.
 Height clearances of bridges which extend across access roads.
 Available sea port and airport facilities, including:
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- Locations, relative to the proposed project.

- Equipment handling capabilities, specific to the proposed project's
requirements.
This preliminary assessment should generally be completed with assistance from

the Construction Agency.
4.7 Assess existing as-built drawings to determine:
4.7.1 The extent to which the existing drawings must be updated to reflect
as-built facilities.
4.7.2 The extent to which existing drawings are available in an appropriate

format (i.e., an electronic drawing format supported by Saudi Aramco
at the time of DBSP development).
4.7.3 The time required to modify existing drawings and the corresponding
impact on the project completion schedule.
This preliminary assessment should generally be completed with assistance from

the Construction Agency.
4.8 Identify and evaluate major surplus equipment and excess materials available
within Saudi Aramco (e.g., Saudi Aramco's inventories) for possible use on the
proposed project, as an alternative for achieving the proposed project's stated
purpose in a more cost effective manner, to the extent deemed necessary to
provide the Construction Agency and Project Proposal engineering contractor a
sound basis for further developing the proposed project's scope. This preliminary
assessment should generally be completed with assistance from the Construction
Agency.
4.9 Document the results of the above tasks in an initial draft of the DBSP, in
accordance with this DBSP Procedure.
4.10 Value Engineer the project scope, as described in the initial draft of the DBSP.
A Value Engineering Study shall be facilitated by PMOD on:
 Projects with an initial capital investment of over $50 million, unless FPD
and PMOD mutually agree that a Value Engineering Study is not warranted.
 Other projects for which FPD determines a Value Engineering Study would
be beneficial, subject to PMOD's agreement.
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For these projects:
4.10.1 Issue the initial draft DBSP, and if available, the initial Budgetary
Project Scope Definition to PMOD for a Value Engineering Study,
along with an explanation of the project scope which FPD does not
support.
4.10.2 Constructively contribute to the Value Engineering Study by:
4.10.2.1 Explaining the project's stated purpose (i.e., its Business

Objective), and the operating environment in which this
Business Objective would have to be achieved (i.e., the
framework used to develop the project scope presented in
the initial draft DBSP and initial Budgetary Project Scope
Definition).
4.10.2.2 Explaining the parameters, including the economic bases,

used to evaluate the various alternatives and further develop
the project scope.
4.10.2.3 Explaining the rationale for the alternative chosen during the
Study Phase for further development during the DBSP and
Budgetary Project Scope Definition Phase. This explanation
shall include a review of the other alternatives that were
considered.
4.10.2.4 Explaining the rationale for each element of the proposed

project scope, as described in the initial draft DBSP and the
initial Budgetary Project Scope Definition.
4.10.2.5 Participating in the establishment of the framework for the

Value Engineering Study (e.g., assessing suggested changes
to the framework used to develop the proposed project
scope).
4.10.2.6 Participating in the development and/or evaluation of other

alternatives identified during the Value Engineering Study:
a) Alternatives for achieving the stated Business
Objective in the anticipated operating environment.
b) Alternatives for each individual project scope
element.
4.10.3 Modify the initial project scope to reflect the Value Engineering Study
recommendations which FPD agrees would strengthen the Business
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Case.
4.10.4 Identify the Value Engineering Study recommendations which were

not incorporated in the draft DBSP, and explain the rationale for not
incorporating each of them.
This Value Engineering Study shall generally focus on the description

of “what” facility capabilities are to be provided, more specifically:
 The types of facilities.

 The corresponding facility design bases.
- Technical design bases (i.e., the required capabilities for the
proposed facility, as a whole, and individual scope elements).
- Economic evaluation bases (i.e., project specific economic
evaluation bases to be used to further develop the proposed
project scope during Project Proposal development).
 Specific facility attributes determined during DBSP development
as being needed, and therefore not subject to change without FPD's
approval.
4.11 Update the initial draft DBSP to reflect the Value Engineering Study
recommendations to which FPD agrees.
4.12 Formally review the draft DBSP
4.12.1 Review the draft DBSP with FPD Supervision (e.g., Work Director,
Coordinator) to ensure that the appropriate Value Engineering
recommendations have been properly incorporated.
4.12.2 Issue draft DBSP for formal review by all involved organizations.
4.12.3 Review and address comments received from these organizations.
4.12.4 Formally review FPD's responses to comments with all involved

organizations.
4.12.5 Document the changes to be made to the DBSP, along with FPD's
assessment of the extent to which each change is consistent with the
proposed project's stated purpose (i.e., its Business Objective).
4.13 Complete the DBSP by incorporating changes to be made to the project scope
definition, including:
 The project scope which FPD supports.
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 Any additional project scope which FPD does not support.
Note that the DBSP, itself, should not distinguish between the project scope
supported by FPD and the project scope not supported by FPD.
4.14 Document the project scope which FPD does not support and the underlying
rationale.
4.15 Formally advise the Proponent of:
4.15.1 The project scope which FPD supports, together with the underlying
rationale.
4.15.2 The additional project scope which FPD does not support, together
with the underlying rationale.
4.15.3 Any significant issues which could materially impact the Business
Case for the proposed project.
4.16 Review the completed DBSP with the Construction Agency, as required, to
ensure that the Construction Agency fully understands:
4.16.1 The proposed project scope, and the underlying rationale.
4.16.2 The bases for evaluating alternatives for achieving the stated Business
Objective during Project Proposal development.
The two primary elements of the Capital Budget Economic Evaluation Phase of
the overall project planning process are also shown in the schematic of the
DBSP Development Process, as the results of this economic evaluation may
impact the project scope defined in the DBSP issued for approval.
4.17 Develop Capital Budget Cost Estimate
Capital Budget Cost Estimates shall generally be completed by PMOD for:

 The project scope described in the DBSP and the Budgetary Project Scope
Definition.
 Each major element of project scope which FPD does not support, as
stipulated in the formal request for the Capital Budget Cost Estimate.
The cost estimates for the project scope which FPD does not support shall be
comparable to the cost estimate for the project scope described in the DBSP and
Budgetary Project Scope Definition (i.e., they should reflect the full cost of the
project scope element, so that FPD can reasonably establish the initial capital
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investment of a project, assuming one or more of the individual project scope

elements is deleted from the proposed project's scope).
FPD effectively contributes to the development of the Capital Budget Cost

Estimates by:
4.17.1 Issuing to PMOD the Capital Budget cost estimate request, complete
with:
4.17.1.1 The updated draft DBSP (i.e., the draft DBSP to be issued
for approval), including the Budgetary Project Scope
Definition.
4.17.1.2 A description of each major element of project scope which

FPD does not support, as stipulated in the formal request for
the Capital Budget Cost Estimate.
4.17.2 Constructively ensuring that PMOD clearly understands the proposed

project scope.
4.18 Confirm that the Business Case (i.e., the business rationale) supports continued
development of the proposed project, based on the Capital Budget cost estimate.
4.18.1 If the Business Case supports continued development, seek DBSP

Approval.
4.18.2 Otherwise, either:
4.18.2.1 Redefine the project scope with the objective of achieving

an adequate Business Case, or
4.18.2.2 Recommend cancellation of the project.
The questions presented in Attachment C, DBSP

Development Checklist, highlight key considerations in the
DBSP development process. The FPD Divisions generally
responsible for developing the DBSPs for each Business
Line are presented in Attachment D, FPD Divisional
Responsibilities.
5 DBSP Contents
5.1 Approval Sheet
All DBSPs shall include an Approval Sheet to document the approval of the
DBSP by authorized representatives of the Proponent and FPD, the two
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organizations primarily involved in the DBSP development, Process and Control

Systems Department (P&CSD) as well as the Environmental Protection
Department (EPD) and the appropriate Construction Agency. The format
stipulated in Attachment E, DBSP Approval Sheet, shall be used in all DBSPs.
5.2 DBSP Contributors Identification Page
All DBSPs shall include a sheet to document the FPD Planner, who is
responsible for the overall DBSP and ensuring that the DBSP is prepared and
developed in accordance with this DBSP Procedure, and the major contributors
from each of the organizations primarily involved in preparing the DBSP. The
format stipulated in Attachment F, DBSP Contributors Identification Sheet, shall
be used in all DBSPs.
5.3 Design Basis Scope Definition
5.3.1 General Requirements
All DBSPs shall effectively describe:
5.3.1.1 The Business Case, more specifically the Business

Objective, the anticipated operating environment in which
this Business Objective would have to be achieved, and the
business rationale (i.e., the anticipated Net Benefits) for the
proposed project scope.
5.3.1.2 In broad terms, the facilities to be provided to economically

achieve the stated Business Objectives in the described
operating environment, more specifically:
a) The types of facilities.
b) The corresponding facility design bases:
i) Technical design bases (i.e., the required
capabilities for the proposed facility, as a whole,
and individual scope elements).
ii) Economic evaluation bases (i.e., project specific
economic evaluation bases to be used to further
develop the proposed project scope during
Project Proposal development).
iii) Specific facility attributes (e.g., number of
pumps) determined during DBSP development
as being needed, and therefore not subject to
change without FPD's approval.
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5.3.1.3 Specific studies, which are to be performed by the Project

Proposal engineering contractor, to better define the
facilities that would actually be built.
Preliminary descriptions of the actual facilities that might be

built (i.e., “how” the required facility capabilities could
actually be achieved in an economical manner, including
equipment quantities and sizes, major engineering design
parameters, process descriptions), developed for purposes of
obtaining a Capital Budget Cost Estimate, shall not be
included in the body of the DBSP. This Budgetary Project
Scope Definition shall be provided in a separate Appendix to
the DBSP (e.g., titled “Budgetary Project Scope Definition”).
The opening paragraph of this Appendix shall be as follows:
"The project scope definition in the body of the DBSP takes
precedence over the Budgetary Project Scope Definition
presented in this Appendix. The Scope Definition presented
in this Appendix is provided only as a starting point for
Project Proposal development. The Construction Agency
and the Project Proposal engineering contractor shall ensure
that this Scope Definition is validated during Project
Proposal Development, as a means of economically
achieving the project's stated Business Objective in the
anticipated operating environment. This obligation,
notwithstanding, material changes to this Budgetary Project
Scope Definition must be approved by FPD.
5.3.2 Specific Requirements
5.3.2.1 All DBSPs shall be prepared in accordance with this DBSP

Procedure, irrespective of the type of facilities involved.
As indicated, each DBSP shall consist of 15 sections, one
for each of the key elements of the design basis scope. It is
recognized that the information required in each DBSP
section may vary somewhat from project to project. If a
particular section of the DBSP is deemed to be unnecessary,
then this conclusion shall be so noted, along with a brief
explanation.
5.3.2.2 All references to a particular element of the design basis

scope and each proposed project scope element shall be
consolidated in the appropriate DBSP section, to reduce
redundancy and eliminate conflict.
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5.3.2.3 Project scope and design basis clarifications included in the

documents contained in the Appendices to the DBSP
(e.g., agreed clarifications made during the DBSP review
meeting, specific conditions stipulated in Land Use
Permits), shall also be presented in the appropriate DBSP
section (i.e., the body of the DBSP), to better describe the
proposed project scope, the corresponding design bases, and
Project Management's scope of work, and thereby eliminate
conflict and avoid confusion. Appendices shall generally
be referenced in the appropriate DBSP section.
5.3.2.4 References to Mandatory Saudi Aramco Engineering

Requirements (e.g., SAESs, SAEPs, SAMSSs), or lists
thereof, shall generally not be included in the DBSP,
primarily to avoid redundancy and potential conflict with
SAEP-14, Project Proposal. SAEP-14 specifically stipulates
that “projects shall meet the requirements of Mandatory
Saudi Aramco Engineering Requirements (MSAERs), which
are in effect on the Project Proposal approval date.”
The exceptions to this general rule are when the applicability
of a particular Requirement still needs to be resolved or when
a waiver of a particular Requirement needs to be obtained
during Project Proposal development. In such cases, the
particular issue shall be explained in the relevant facility
description in Section 7, Description of Proposed Facilities,
for the Construction Agency's use in planning and executing
Project Proposal development.
5.4 DBSP Sections
5.4.1 Section 1 - Purpose of Facilities
This section shall provide a concise statement of the purpose (i.e., the
Business Objective) of the proposed facilities (i.e., what is to be
achieved in terms of Saudi Aramco's Strategic Direction and Business
Plan objectives, as opposed to the host Operating Plant and/or System).
For example: “The purpose of the facilities is to support the corporate
strategy to maintain MSC, by providing accommodations, buildings,
shops, and other support facilities required for producing the remote
Shaybah field at a rate of 500 MBCD.”
5.4.2 Section 2 - Present Situation
This section shall explain the business reason for developing the
proposed project. More specifically, this section shall:
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5.4.2.1 Highlight a broadly defined business reason for the

proposed project (e.g., the circumstances which warrant the
proposed project, in terms of a Business Plan objective, as
opposed to operational considerations). For example:
a) For a proposed project which would increase in-
Kingdom fuel supplies - a forecast fuel supply deficit
(as opposed to increasing the capacity of an existing
gas plant or refinery).
b) For a project which would increase the reliability of a
refinery – a demonstrated deterioration in the
reliability of refined products supplies to end-use
customers to a level established as unacceptable (as
opposed to increasing the reliability of the refinery,
itself).
5.4.2.2 Describe the anticipated operating environment in which

the stated Business Objective would have to be achieved.
The description shall be:
a) Broad, encompassing relevant aspects of the operating
environment at:
i) The Kingdom level (e.g., the net impact on the
Kingdom's petrochemical and crude exports; the
opportunity values for fuel and petrochemical
feedstocks from the Kingdom's perspective;
other companies which may already or could
also contribute to the same business purpose)
ii) Saudi Aramco level (e.g., the net impact of the
proposed project on other Saudi Aramco related
Operating Systems; the means by which other
related Operating Systems could contribute to
achieving the stated Business Objective in the
event of a partial or complete shutdown of the
proposed facilities)
iii) The Operating System level (e.g., the net impact
of the proposed project on a group of related
facilities that contribute to a common business
purpose; the extent to which other related
facilities could contribute to achieving the stated
Business Objective)
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iv) The Operating Plant level (e.g., the impact of the

proposed project on the facility in which this
project would be built)
b) Presented primarily in terms of business
considerations. References to operational
considerations should generally be in support of the
business considerations.
The information provided in this section is particularly

important, as it provides the Project Proposal
engineering contractor the appropriate framework in
which to further develop the project scope.
5.4.3 Section 3 - Location Analysis
This section shall provide an overview of the physical location of the

proposed facilities, to the extent required to effectively orient the
Construction Agency and the Project Proposal engineering contractor.
5.4.3.1 For grass-roots (i.e., standalone) projects, information

specifically applicable to the proposed facilities shall
generally be provided as follow:
a) General region.
b) Nearest village, town, or city.
c) Nearby or adjacent physical facilities, such as roads,
pipelines, process or manufacturing plants, schools,
hospitals, and environmentally sensitive areas.
d) Availability of temporary construction facilities
(laydown and fabrication yards, camps, offices and
utilities).
e) Characteristics of construction utilities (e.g., water –
available quantity and quality by water type,
electricity – available quantity by voltage).
f) Topography of the proposed site.
g) Soil conditions.
h) Characteristics of water available at the proposed
site (e.g., well water).
i) Site weather conditions.
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5.4.3.2 For projects located within an existing facility (i.e., the host
facility), the following information shall generally be
provided:
a) Location of the proposed facilities in relationship to
other facilities, particularly the physical interfaces
between the proposed facilities, existing facilities and
planned facilities (e.g., as indicated in a Master Plan
for the existing facility).
b) Availability of temporary construction facilities
(e.g., laydown and fabrication yards, camps, offices,
utilities) within or in the vicinity of the existing facility.
c) Characteristics of construction utilities (e.g., water –
available quantity and quality by water type,
electricity – available quantity by voltage).
d) Topography of the proposed site.
e) Soil conditions.
f) Site weather conditions.
Additional details (e.g., a map to show the location of

the proposed grass-roots project; a schematic and/or
plot plan to show the location of the proposed
facilities relative to the existing facilities;
geotechnical soil surveys; site weather conditions)
shall be presented in an Appendix (e.g., Proposed
Facilities), as required to effectively describe the
proposed location.
An approved Land Use Permit (LUP) shall also be

provided in the same Appendix.
5.4.4 Section 4 - Interfaces
This section shall provide a description of each of the following project

interfaces in separate subsections:
5.4.4.1 Related Budget Items
Describe other Budget Items which may impact the

engineering design and/or construction of the proposed
facilities. Each description shall summarize how and the
extent to which the related Budget Item will impact the
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engineering design and/or construction. Generally, Budget

Items that will be completed prior to the proposed project's
Project Proposal development should not be described, as
the related facilities will already exist.
5.4.4.2 Project Physical Interfaces
Describe the physical interfaces between the proposed

facilities and the existing facilities (e.g., process, utility, and
communication tie-ins), as definitively as reasonably
possible (e.g., a flange for process piping). Generally, the
physical interfaces should also be shown schematically and
geographically in an Appendix (e.g., Proposed Facilities).
For projects which would replace and/or upgrade existing
facilities, the existing facilities shall be described, to the
extent required to effectively guide the Construction Agency
and Project Proposal engineering contractor during Project
Proposal development, in an Appendix (e.g., Existing
Facilities), referenced in this section. A complete description
of physical interfaces is particularly important, as a means of
defining the "battery limits" of the proposed project.
5.4.4.3 Project Operating Interfaces
Describe operational requirements, restrictions and

constraints which may impact the engineering design,
construction and/or start-up of the proposed facilities
(e.g., shutdown requirements, special maintenance
considerations, temporary facilities requirements, such as
bypasses & utility supplies, special security requirements).
5.4.4.4 Demolition Activities
Describe significant demolition activities that are included

in the proposed project scope (e.g., demolition of existing
facilities prior to and after construction of the proposed
facilities).
5.4.5 Section 5 - Design Objectives
This section shall provide a description of the physical design

objectives (i.e., the functions) of each major project scope element.
For example: “This BI will provide a Residential/Industrial Complex
(RIC) to serve as a site for maintenance of hydrocarbon processing
facilities located in the Shaybah field and to provide the support
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systems required to ensure an efficient working and living environment

at the remote Shaybah field. A communications building will be
located nearby to support the RIC and Shaybah field communications
requirements. An airstrip will be connected to the RIC from the east
side to eliminate possible expansion towards the oil field and to allow
easy access for materials and personnel. The airstrip will be lighted
and designed to allow overnight flights for an airplane the size of a
Boeing 737.”
Note that the Design Objectives are different from the Purpose of
Facilities, in that they describe the functions performed by the
proposed facilities, while the Purpose describes the Business Objective
of the proposed facilities (i.e., what is to be achieved in terms of Saudi
Aramco's Strategic Direction and Business Plan objectives).
5.4.6 Section 6 - General Project Design Basis
This section shall describe the general design bases, which apply to the
entire project, as opposed to any specific project scope element.
Examples of these common design bases are as follows:
 For process facilities, the characterization of hydrocarbon streams
and utilities entering and exiting the battery limits (i.e., the physical
interfaces) of the proposed project, to the extent required by the
Project Proposal engineering contractor to define the project scope
required to obtain an ER Cost Estimate.
 For infrastructure facilities
- The characterization of the people to be served by the proposed
project (e.g., numbers, functions).
- The characterization of anticipated traffic patterns.
- Characterization of equipment (e.g., vehicles - numbers, sizes
and weights) to be accommodated by the proposed project.
- General land-use guidelines (e.g., setbacks, landscaping, and
parking guidelines).
While every effort should be made to fully define each general project
design basis prior to DBSP approval, in situations where this is not
reasonably possible (e.g., a project schedule acceleration), each
preliminary design basis shall be identified as such, along with the date
by which FPD will provide the final design basis, to allow the
Construction Agency and the Project Proposal engineering contractor
to plan accordingly.
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Design bases specific to individual elements of the proposed project's

scope shall be provided in the following section, “Description of
Proposed Facilities,” along with the description of related facilities.
The units of measure for the proposed project, established in

conjunction with the Proponent and the Consulting Services
Department (CSD), shall also be stipulated in this section.
5.4.7 Section 7 - Description of Proposed Facilities
This section shall describe each element of the project scope:
5.4.7.1 The type of facility to be provided.
5.4.7.2 The corresponding technical design bases (i.e., the required

capabilities).
5.4.7.3 Specific facility attributes determined during DBSP

development as being needed.
If required, more detailed supporting information should

generally be provided in an Appendix (e.g., Proposed
Facilities).
The opening paragraph of the section shall be as follows:

“The project scope definition presented in this section is
fixed, unless the Project Proposal engineering contractor is
able to successfully demonstrate to FPD that there is a more
economical (i.e., cost effective) means of achieving the
project's stated purpose (i.e., Business Objective), given the
anticipated operating environment. This restriction,
notwithstanding, the Project Proposal engineering
contractor shall further define the actual facilities to be built
(i.e., “how” the required capabilities are to be achieved),
consistent with the project's stated purpose and the
anticipated operating environment.”
5.4.8 Section 8 - Scope Evaluations to Date
5.4.8.1 This section shall provide a summary of the evaluations

performed prior to and during DBSP development to define
the project scope, as it appears in the DBSP, including the
evaluation bases (e.g., economic evaluation bases).
These evaluations shall be described in sufficient detail to
effectively guide the Construction Agency in its efforts to
plan and execute Project Proposal development, and the
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Project Proposal engineering contractor in its more detailed

project scope development.
5.4.8.2 This section shall also identify project scope which is not
subject to additional front-end evaluation during Project
Proposal development, and thereby reduce Project Proposal
development cost.
During DBSP development, energy optimization

opportunities should be identified and evaluated on case by
case bases. Study reports, minutes of meetings, letters, and
other supporting documentation shall be clearly referenced
and, if practical, included in an Appendix (e.g., Proposed
Facilities). It is particularly important to document
instances in which the DBSP scope differs from the scope
recommended by studies or other scope evaluations, due to
Proponent preferences or other considerations.
5.4.9 Section 9 - Additional Study Requirements during Project Proposal
5.4.9.1 This section shall describe each of the specific evaluations,

which is to be completed during Project Proposal
development. Each description shall include the objective
(i.e., purpose) of the study, the scope of the study, and all
required evaluation parameters, including the economic
evaluation bases (e.g., Net Benefits/consequences from the
Kingdom's perspective and the bases for valuing these
benefits/consequences). These evaluations may include:
 Additional front-end scope evaluations required to
define the types of facilities to be provided (i.e.,
evaluations which should be completed during DBSP
development). The DBSP shall stipulate FPD's active
participation in performing these evaluations and
establishing the required facility design bases.
 Environmental evaluations, other than the

Environmental Assessment already stipulated in
SAEP-14, Project Proposal), as determined by the EPD.
This list of environmental studies shall be included in
the draft DBSP which is issued for formal review.
 The need for detailed evaluation of specific energy
optimization opportunities should be identified in the
draft DBSP issued for formal review.
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 More definitive project scope definition studies, such as

hydrologic surveys, pipeline route surveys, pipeline
surge analyses, and risk assessments, other than the
Preliminary Hazard Analysis (PHA) stipulated in
SAEP-14, which FPD, the Proponent and other
concerned organizations agree are required during
Project Proposal development.
These evaluations shall be described in sufficient detail

to effectively allow the Construction Agency to plan
and execute Project Proposal development.
5.4.9.2 This section shall also describe any additional project

specific economic evaluation bases needed to develop
project scope which would achieve the project's stated
purpose in an economical manner.
5.4.10 Section 10 - Constructability and Logistical Assessment
This section shall provide a preliminary assessment of the

constructability and logistical issues specific to the proposed project,
such as:
 Accessibility to the proposed site (e.g., availability and type of
roads) and/or the site of the proposed facilities within an existing
facility (e.g., limitations due to existing facilities, such as pipe
racks).
 Load restrictions (i.e., weight bearing capabilities) of access roads
and bridges.
 Height clearances of bridges which extend across access roads.
 Available sea port and airport facilities, including:
- Locations, relative to the proposed project.
- Equipment handling capabilities, specific to the proposed
project's requirements.
Additional details (e.g., reports) shall either be included in an

Appendix to the DBSP (e.g., Proposed Facilities) or referenced
as available at a specific location.
5.4.11 Section 11 - As-Built Drawing Assessment
This section shall provide a preliminary assessment of the extent to

which existing drawings must be updated to reflect as-built facilities
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and the extent to which existing drawings are available in an

appropriate format (i.e., an electronic drawing format supported by
Saudi Aramco at the time of DBSP development). The time required
to modify existing drawings shall be reflected in the project completion
schedule.
5.4.12 Section 12 - Value Engineering Study
This section shall summarize the following information for projects

requiring a Value Engineering Study (Reference the criteria stipulated
in Section 4, “DBSP Implementation”):
5.4.12.1 The results of the Value Engineering Study conducted on

the initial draft DBSP and, if available, the initial Budgetary
Project Scope Definition to confirm that the proposed
project scope would economically achieve the project's
stated business purpose (e.g., at the minimum life cycle
cost).
5.4.12.2 The extent to which the results of the Value Engineering

Study were incorporated in the final versions of the DBSP
and Budgetary Project Scope Definition.
A more detailed explanation of the extent to which the

results were incorporated shall be provided in an Appendix
to the DBSP (e.g., Proposed Facilities). Additionally, the
Value Engineering Study report shall either be provided in
the same Appendix, or be referenced as available at a
specific location.
5.4.13 Section 13 - Surplus and Excess Material
This section shall provide the results of any preliminary assessments of

the use of surplus and excess materials completed during DBSP
development.
5.4.14 Section 14 - Project Schedule
This section shall provide the project milestone schedule. The milestone
dates include, but are not necessarily limited to, the following:
 DBSP issue to Construction Agency.
 Project proposal start.
 Project proposal completion.
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 ERA.
 Beneficial use.
 ERC.
5.4.15 Section 15 - Appendices
This section shall provide additional information, as required to

effectively guide the Construction Agency in its efforts to plan and
execute Project Proposal, and the Project Proposal engineering
contractor in its development of project scope.
Suggested Appendices and the information (i.e., attachments) which

may be included in each Appendix are:
5.4.15.1 Existing Facilities
Description of the existing facilities, to the extent required

to effectively guide the Construction Agency and
engineering contractor during Project Proposal
development.
5.4.15.2 Proposed Facilities

a) Correspondence applicable to establishment of the
design basis and/or preliminary scope (e.g., Letters of
Permission from Government Ministries or
Authorities).
b) Master plans design guidelines
c) Project scope evaluations (e.g., Study Report,
preliminary Environmental Impact Assessment,
preliminary process safety/HAZOP Analysis).
d) More definitive information on the location of the
proposed project (e.g., a map to show the location of
the proposed grass-roots project; a schematic and/or
plot plan to show the location of the proposed
facilities relative to the existing facilities;
geotechnical soil surveys; site weather conditions).
e) More definitive information on the physical interfaces
between the existing and proposed facilities (e.g.,
schematics and/or plot plans showing the physical
interfaces).
f) More definitive design basis information.
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g) Value Engineering Study report.

h) Approved Land Use Permit.
i) Minutes of DBSP Review Meetings.
j) Economics Evaluation Bases for Project Proposal
Development.
5.4.15.3 Budgetary Project Scope Definition
All documentation of the preliminary project scope

definition, more specifically the preliminary description of
actual facilities which might be built (i.e., a description of
"how" the required facility capabilities, as described in the
DBSP, could actually be achieved).
6 DBSP Review Procedure
6.1 The sequence of reviews during DBSP development, as more fully described
above (Ref. DBSP Implementation) is summarized below:
6.1.1 DBSP Execution Plan
FPD Supervision (e.g., Work Director, Coordinator) reviews.
6.1.2 Project Scope Development
6.1.2.1 The alternatives for performing the scope element's stated

function and achieving the required capabilities that are to
be further evaluated.
FPD Supervision (e.g., Work Director, Coordinator)

reviews.
6.1.2.2 The selected alternative for each scope element

 First, FPD Supervision (e.g., Work Director,
Coordinator).
 Then, the Proponent reviews.
6.1.3 Initial draft DBSP

 First, FPD Supervision (e.g., Work Director, Coordinator) reviews.
 Then, PMOD reviews for its Value Engineering Assessment, if
required.
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6.1.4 Updated draft DBSP (post Value Engineering)
 First, FPD Supervision (e.g., Work Director, Coordinator) reviews.

 Then, the organizations primarily involved in the DBSP
development review.
6.1.5 Completed DBSP (post formal DBSP review)
FPD Supervision (e.g., Work Director, Coordinator) reviews.
6.1.6 Business Case
FPD reconfirms the Business Case, based on the Capital Budget Cost
Estimate.
6.2 The depth of the reviews should depend on the type and significance of the
project involved and the extent to which it impacts various Business Lines.
The list of organizations from which review and comment on the draft DBSP are
to be solicited shall be developed from the appropriate FPD Division
Distribution List and included with the draft DBSP. FPD will be responsible for
coordinating the review meetings and input from the solicited organizations.
7 DBSP Approval
7.1 Approval of the DBSP shall be obtained from the Proponent, Engineering
Services, and Project Management. Signature authority shall not be lower than
designated below:
Proponent The Administrative Area Head
Engineering Services:
 Manager, Facilities Planning Department
 Manager, Process and Control Systems Department
(Process and Control Scope items)
 Manager, Environmental Protection Department
(Environmental)
Construction Agency Manager or General Manager

(Project Schedule) (depending on capital investment)
7.2 The appropriate format for the DBSP Approval Sheet is provided in
Attachment E.
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8 Distribution of Approved DBSP
8.1 FPD shall transmit the approved DBSP, including the Budgetary Project Scope
Definition, to the responsible Construction Agency as the basis for Project
Proposal preparation. The original of the signed Approval Sheet will be retained
in FPD's Budget Item (BI) File. Copies of the approved DBSP shall be given to
the Proponent and other Organizations represented during the review process.
Two copies shall be sent to the Technical Information Center.
8.2 Other copies shall be distributed in accordance with the latest FPD Division
Distribution List. Each FPD Division is responsible for maintaining an up-to-
date standardized Distribution List for its DBSPs, which reflects the needs of its
Proponents and other involved organizations.
9 DBSP Revisions
9.1 FPD must approve all revisions to the DBSP. Circumstances, which may
warrant consideration of a revision, are:
9.1.1 Changes in the behavior of reservoirs or wells, or new analyses of

fluids.
9.1.2 Changes in market conditions, producing strategy, program objectives,

cash avails, government requirements, or business conditions.
9.1.3 Changes in Proponent or user preferences, operating/maintenance

philosophy, or other non-technical causes.
9.1.4 Technical breakthroughs, which potentially have major, impact on the

project's cost and/or economics.
9.2 FPD's evaluation of each proposed scope modification shall include:
9.2.1 An assessment of the extent to which the proposed project scope

modification is consistent with the stated Business Objective, and
Saudi Aramco's Strategic Direction and Business Plan objectives.
9.2.2 An incremental economic evaluation of the proposed scope

modification, using the previous scope as a basis.
9.3 The Construction Agency and Project Proposal engineering contractor shall
contribute to this evaluation, as required, by providing a description of the
proposed scope modification in sufficient detail to obtain a Capital Budget Cost
Estimate and an assessment of the impact of the proposed modification on the
project schedule. Additionally, they shall provide an assessment of the impact
of each proposed scope modification on the Project Proposal cost and schedule.
Page 36 of 45
9.4 Based on the results of the evaluation, FPD shall formally recommend to the
Proponent that the proposed scope modification be adopted, rejected, or studied
further.
9.5 If the Proponent concurs with FPD's recommendatio n to:
9.5.1 Adopt the proposed modification, FPD shall prepare and issue an
addendum to the pertinent sections of the DBSP for review and
approval.
9.5.2 Reject the proposed modification, the DBSP will not be amended.
9.5.3 Further study the proposed modification, FPD shall complete the
required analysis, assisted as required by the Construction Agency and
the Project Proposal engineering contractor.
9.6 If the Proponent does not concur with FPD's recommendation to:
9.6.1 Adopt the proposed modification, FPD shall formally advise the
Proponent that FPD does not support the Proponent's decision.
9.6.2 Reject the proposed modification, FPD shall prepare and issue an
addendum to the pertinent sections of the DBSP for review and
approval, and formally advise the Proponent that FPD does not support
the Proponent's decision.
9.6.3 Further study the proposed modification, FPD shall formally advise the
Proponent that FPD does not support the Proponent's decision.
Revision Summary
15 November 2011 Revised the “Next Planned Update.” Reaffirmed the content of the document, and
reissued with editorial changes to replace the primary contact person, PS&CD to PMOD,
etc.
Page 37 of 45
Attachment A – Definitions
Terms Definition
Budget Item A discrete project that has been defined and evaluated to the
extent required for Management to include it in the Business Plan
and commit additional resources to further develop the information
required by Management, and if deemed appropriate, the Board of
Directors, to make reasonable business decisions regarding the
continued development of the project.
Budgetary Project Scope A preliminary description of the facilities that might actually be built
Definition (i.e., "how" the required facility capabilities could be achieved),
defined in sufficient detail to develop a Capital Budget Cost
Estimate, when combined with the information provided in the
DBSP.
Business Case The information required to make reasonable business decisions
regarding a proposed capital project, including its scope,
throughout its development. For purposes of the DBSP, it
consists of:
 A clearly defined Business Objective, in terms of Saudi
Aramco's Strategic Direction and its Business Objectives.
 A comprehensive description of the anticipated operating
environment, at the Kingdom level, the Saudi Aramco level, the
Operating System level, and the Operating Plant level, in which
the stated Business Objectives would have to be achieved.
 A comprehensive description of the quantifiable and qualitative
Net Benefits that the Kingdom would likely realize.
 A description of the proposed project, itself.
 An explanation of the business rationale (e.g., economics) of
the proposed project. In the DBSP, this explanation shall
generally be limited to an explanation of the anticipated Net
Benefits.
Business Line Saudi Aramco's basic organization structure. Currently, there are
five business lines.
Business Objective The purpose (i.e., what is to be achieved) of the proposed project,
broadly stated in terms of Saudi Aramco's Strategic Direction and
Business Plan objectives, as opposed to operational
considerations at the Operating Plant level and/or Operating
System level).
Capital Budget Cost Estimate An estimate of the initial capital investment, deemed to have an
accuracy of ± 40%.
Conceptual Cost Estimate An estimate of the initial capital investment, deemed to have an
accuracy of ± 70%.
Construction Agency The organization responsible for design, procurement and
construction of facilities covered by an individual Budget Item
(e.g., a department within the Project Management Administrative
Area).
Page 38 of 45
Terms Definition
EPD Environmental Protection Department.
ER Cost Estimate A definitive estimate prepared in support of the funding request
document. Project Support & Controls Department (PMOD)
normally prepares this estimate and has the primary responsibility
to ensure that the ER Cost Estimate satisfies all Company
standards for format and quality. If the ER Cost Estimate is
prepared by the Construction Agency, it must be reviewed and
endorsed by PMOD.
ERA Expenditure Request Approval date – The date project funding
becomes available upon approval by the Executive Committee
(EXCOM) or Board.
ERC Expenditure Request Completion date - The date on which the
Performance Acceptance Certificate (SA 7214) is signed off, for
the project. It is close to, but need not match, the "beneficial use"
or "on-stream" dates for the facilities, which are the dates on which
the Proponent begins to use the facilities.
FPD Facilities Planning Department.
Net Benefits The benefits after taking into account other actions which could
contribute to partially or wholly achieving the project's stated
Business Objective (i.e., other mitigating actions). For example,
the Net Benefits of a project which would increase the reliabilit y of
a particular facility would take into account the capabilities of other
related facilities to also contribute to achieving the stated Business
Objective.
Operating Plant A facility which is capable of contributing to achieving a Business
Objective on a stand-alone basis.
Operating System A group of related facilities that contribute to achieving a common
Business Objective.
Project Proposal A document prepared by the Construction Agency which defines
the actual facilities to be built, in sufficient detail to obtain an ER
Cost Estimate from PMOD. The Project Proposal scope also
provides the baseline for measuring Project Change Requests
(PCRs) after funding approval.
Proponent Organization responsible for the operations of, or owner of,
facilities covered by the DBSP. Normally, this will be an
Administrative Area within a Business Line.
PMOD Project Support & Controls Department.
SAEP Saudi Aramco Engineering Procedure.
SAES Saudi Aramco Engineering Standard.
SAMSS Saudi Aramco Material System Specification.
Study Cost Estimate An estimate of the initial capital investment, deemed to have an
accuracy of ± 50%.
Page 39 of 45
Attachment B – DBSP Development Process
Page 40 of 45
Attachment C – DBSP Development Checklist
General Considerations
Does the Business Case support further development, based on the Capital Budget Cost Estimate?
Does the project scope definition presented in the body of the DBSP, together with Saudi Aramco's
Engineering Standards and existing as -built drawings, provide sufficient information for:
 The Project Proposal engineering contractor to independently develop project scope that achieves the
project's stated Business Objective in a economical manner.
 The Construction Agency to effectively plan and execute Project Proposal development?
Does the body of the DBSP effectively describe:
 The Business Case, and
 The types of facilities to be provided, along with the corresponding technical design base s, economic
evaluation bases, and required facility attributes?
Are all preliminary descriptions of the actual facilities that might be built (e.g., equipment quantities and sizes,
major design parameters, process descriptions) required to obtain a Capital Budget Cost Estimate
engineering consolidated in a separate document (i.e., the Budgetary Project Scope Definition)?
Is the proposed project's Business Objective clearly defined, documented , and reviewed with the Proponent?
Specific Considerations
Is the proposed project's Business Objective clearly defined, documented and reviewed with the Proponent?
Is the anticipated operating environment broadly described, encompassing relevant aspects of the operating
environment at the Kingdom level, the Saudi Aramco level, the Operating System level and the host Operating
Plant level?
Has an execution plan for developing the DBSP been prepared and reviewed with FPD Supervision?
Has the extent to which the project scope needs to be defined in the DBSP been established?
Have the economic evaluation bases to be used to further develop the project's scope, been established in
conjunction with Business Analysis?
Have the justifiable project capabilities required to effectively achieve the project's Business Obje ctive been
established?
Have all required LUPs been formally requested and approved?
Are the physical locations of the proposed facilities described to the extent required to effectively ori ent the
Construction Agency and the Project Proposal Contractor?
Are the physical interfaces between the existing and proposed facilities described to the extent required to
effectively define the project's "battery limits"?
Are the conditions at each of the interfaces fully characterized?
Page 41 of 45
Specific Considerations
Have alternatives for each major project scope element been identified and properly evaluated to establish a
justifiable project scope?
Is each project scope element effectively described, consistent with the purpose of the DBSP and the most
recent DBSP Procedure?
Has the project scope definition and the underlying rationale been reviewed with FPD Supervision and the
Proponent?
Are all references to a particular project scope element consolidated in the appropriate DBSP section?
Are all scope evaluations performed prior to and during DBSP development described in the DBSP?
Are all evaluations to be completed during Project Proposal development described in the DBSP, together
with all required evaluation parameters?
Are the Value Engineering recommendations which strengthen the Business Case incorporated in the DBSP?
Has the Proponent been formally advised of the project scope, as described in the DBSP, which FPD
supports and the project scope which FPD does not support?
Page 42 of 45
Attachment D – FPD Divisional Responsibilities
Business Lines Responsible FPD Divisions

Upstream OFPD/IT&E/IPD
Operations Services GFPD/IPD/IT&E
Downstream MFPD/IT&E/IPD/OFPD
Engineering & Project IPD/MFPD
Management
Industrial Relations IPD/IT&E
Information Technology IT&E
Legend:
OFPD : Oil Facilities Planning Division
GFPD : Gas Facilities Planning Division
IPD : Infrastructure Planning Division
MFPD : Manufacturing Facilities Planning Division
IT&E : Information Technology and Electrical Facilities Planning Division
Page 43 of 45
Attachment E – DBSP Approval Sheet
Budget Item No:

Budget Item Title:
Approval – Proponent
Administrative Area Head

(Vice President or Executive Director)
Signature Date
Approval – Engineering Services
Manager
Facilities Planning Department
E-4760, Dhahran
Signature Date
Approval – Process & Control Systems Department

Manager
Process & Control Systems Department
E-2540A, Dhahran
(Process & Control Scope Items) Signature Date
Approval – Environmental Protection Department

Manager
Environment Protection Department
E-3600A, Dhahran
(Environmental Considerations) Signature Date
Concurrence – Construction Agency

General Manager/Manager Projects*
(Project Schedule Considerations) Signature Date
* Enter Applicable Projects Area
Page 44 of 45
Attachment F – DBSP Contributors Identification Page
FPD Team Members
Name Responsibility Division Signature Date

AAA Overall DBSP OFPD
BBB Electrical Scope IT&ED
CCC Utility Scope IPD
Members from Other Departments
Name Responsibility Department

DDD Proponent Representative OFPD
EEE Construction Agency Representative IT&ED
FFF Process Simulation IPD
Page 45 of 45

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Engineering Procedure

SAEP-1350 15 November 2011

Saudi Aramco DeskTop Standards

Previous Issue: 20 April 2008 Next Planned Update: 15 November 2016

Copyright©Saudi Aramco 2011. All rights reserved.

Detailed Table of Contents

2 Purpose of the DBSP

2.2.1 The Project Proposal engineering contractor the definitive information

2.2.2 The Construction Agency the information required to effectively plan

2.3.1 Qualitative Assessment Phase – The primary purpose of Qualitative

2.3.1.1 The Proponent, most often, identifies and describes in

2.3.1.2 FPD qualitatively assesses the Business Case for the

2.3.2 Preliminary Economic Evaluation Phase – The primary purpose of the

 Whether to recommend to the Proponent that the proposed project

During this phase, FPD develops a preliminary project scope definition

 Decide whether to advance to the DBSP and Budgetary Project

2.3.4.1 FPD, with assistance from other organizations, establishes

a) Clarifies the definition of the project's Business

 Technical design bases (i.e., the required

2.3.4.2 FPD, with assistance from other organizations, also

The project scope definition in the DBSP and Budgetary

The DBSP, including the Budgetary Project Scope

2.3.5 Capital Budget Economic Evaluation Phase – The primary purpose of

During this phase:

2.3.5.1 PMOD develops, in close coordination with FPD, separate

2.3.5.2 FPD re-evaluates the proposed project using the Capital

During this phase, the Project Proposal engineering contractor further

2.3.7 ER Approval Phase – The primary purpose of the ER Approval Phase

During this phase:

2.3.7.1 PMOD develops the ER Cost Estimate, in close

2.3.7.2 FPD re-evaluates the proposed project using the ER Cost

 Budget Items for repetitive standard design facilities, if a project-specific DBSP is

A simplified flow chart of the DBSP development process is presented in

4.1 Initiate DBSP/Assign Team Representatives

4.1.1 Formally notify the proposed project's Proponent, the Construction

4.1.1.1 When DBSP development is scheduled to start

4.1.1.2 Of any specific support requirements.

4.1.2 The Proponent, the Construction Agency and the Environmental

4.2 Describe Project's Business Objective and Operating Environment

4.2.1 Clarify, as required, the definition of the proposed project's Business

4.2.2 Expand and clarify, as required, the description of the operating

4.3 Prepare DBSP Execution Plan

4.3.2.1 Is commensurate with the importance of the proposed

4.3.2.2 Identifies and prioritizes the major tasks that will be

4.3.2.3 Identifies the major parameters/considerations, which are

4.3.2.4 Identifies and prioritizes the required information and likely

4.3.2.5 Identifies the resources, internal and external to FPD and

4.3.2.6 Estimates the amount of time, actual time and calendar

4.3.3.1 The plan is sufficiently well defined to develop a project

4.3.3.2 FPD's supervision is aware of and supportive of the

4.4 Develop Project Scope

could be limited to a description of the required capabilities for the

4.4.2 Visit, as required, the site of the proposed project.

4.4.3 Obtain an approved Land Use Permit (LUP), if required by

4.4.3.1 Coordinate request with the Proponent. This request shall

4.4.3.2 Formally submit a request to the Work Director for the

4.4.3.3 Follow-up with the assigned APG Planning Engineer on the

4.4.3.4 Obtain an approved LUP for the proposed project before