Oman Refineries and Petrochemicals

Project Execution Plan

Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

TABLE OF CONTENTS

1. SCOPE

2. GENERAL
2.1 OWNER
2.2 PROJECT GOALS, OBJECTIVES AND KEY SUCCESS FACTORS
2.3 PROJECT SCHEDULE REQUIREMENTS
2.4 CONTRACTUAL REQUIREMENTS
2.5 ORGANISATION AND MULTI-OFFICE ORGANISATION
2.6 INFORMATION TECHNOLOGY (IT) REQUIREMENT AND TOOL
2.7 APPLICABLE CODES AND STANDARDS

3. PROJECT EXECUTION STRATEGY AND IMPLEMENTATION PLANS & PROCEDURES

3.1 HEALTH, SAFETY, SECURITY AND ENVIRONMENT (HSSE)

3.2 QUALITY MANAGEMENT
3.3 PROJECT ORGANISATION AND MANPOWER
3.4 PROJECT TEAM BUILDING/INDUCTIONS
3.5 CONTRACT REVIEW
3.6 PROJECT MANAGEMENT
3.7 RISK MANAGEMENT
3.8 INSURANCE
3.9 IN COUNTRY VALUE
3.10 COMMUNICATION AND CO-ORDINATION
3.11 PROJECT CONTROLS
3.12 ENGINEERING
3.13 DOCUMENT CONTROL & MANAGEMENT
3.14 PROCUREMENT, TRANSPORTATION AND LOGISTICS
3.15 MATERIAL CONTROL
3.16 SUBCONTRACTING
3.17 CONSTRUCTION
3.18 PRE-COMMISSIONING, COMMISSIONING, START-UP AND PERFORMANCE
TESTING
3.19 TRAINING
3.20 FINAL DOCUMENTATION INCLUDING AS-BUILT
3.21 PROJECT CLOSE OUT
4.0 CONTRACTOR’S ORGANISATION

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

1. SCOPE

This Project Execution Plan describes the methods and activities required to be executed by
CONTRACTOR, as the lump sum Engineering, Procurement, Construction, Testing,
Commissioning, Performance Testing and Completion Contractor, for the Sohar Refinery
Improvement Project of Oman Refineries and Petrochemicals Company LLC, Sultanate of
Oman.

Definitions

Contractor JV of Daelim Industrial Co. Ltd. and Petrofac International Limited

JV Joint Venture

JV Leader Daelim Industrial Co. Ltd.

JV Members Daelim Industrial Co. Ltd. and Petrofac International Ltd.

Owner Oman Refineries and Petrochemicals Company LLC (ORPC)

Project Sohar Refinery Improvement Project (SRIP)

Seller Any agency or organization selling goods or services to the JV

Members (may also be referred to as ‘Vendor’ in Project
documentation)

Subcontractor Any agency or organization executing any part of the Works under a
contract with the JV Members, individually or as part of the JV

Works All services and works required to be carried out by the Contractor to
meet the Owner’s requirements, and may include temporary works for
the Contractor’s sole use

References

• Contract Vol. 6.1 Part 2: Job Instructions – Section 1, Project Management

• S-000-5141-001 Engineering Execution Plan
• S-000-5140-001 Procurement Execution Plan
• S-000-5622-001 Construction Execution Plan
• S-000-5710-001 Pre-Commissioning and Commissioning Execution Plan
• S-000-5520-001 Project Quality Plan

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

• S-000-5130-001 Project Controls Plan

• S-000-5241-001 Project Health, Safety, Security & Environment (HSSE) Plan
• S-000-5140-001 Correspondence Procedure
• S-000-5140-101 Procurement Numbering Procedure
• S-000-5131-302 Organization Chart : Functions & Responsibilities

2. GENERAL PROJECT INFORMATION

2.1 OWNER

Oman Refineries and Petrochemicals Company LLC (Owner) in the Sultanate of Oman
has entered into a Contract with a JV of Daelim Industrial Co. Ltd. (based in Seoul,
Republic of Korea) and Petrofac International Limited (based in Sharjah, United Arab
Emirates) for expansion of facilities at the existing Sohar Refinery in Oman, for the
production of various downstream products.

As part of the overall project, ORPC has separately entered into a number of licensor
documents with the following technology providers for the units mentioned against each
name:

Sl. No. Process unit License provider

1 Hydrocracker Unit Chevron Lummus Global LLC
2 Delayed Coker Unit CB&I Lummus B.V.
3 Sulphur Recovery Unit Black & Veatch Corporation
4 Hydrogen Generation Unit Lurgi GmbH
5 Isomerisation Unit UOP LLC
6 Kerosene Merox Unit UOP LLC
7 LPG Merox Unit UOP LLC
In addition, Owner had separately initiated procurement of the following long lead items
(LLIs) which are being novated to the Contractor:

a) Reactor Package – ordered on ATB Riva Calzoni: include three (3) high pressure
reactors as well as two (2) hot high pressure separator vessels
b) Centrifugal Pumps Package (High Pressure Pumps) – ordered on Flowserve BV:
include ten (10) High Pressure Pumps with drives and auxiliaries
c) Centrifugal Compressor Package – ordered on Nuovo Pignone S.p.a (Oil & Gas
Business of GE Company): includes one steam turbine driven Recycle Gas
Compressor along with auxiliaries and sub-systems
d) Reciprocating Compressor Package – ordered on Howden Thomassen Compressors
BV: include three (3) motor driven Make-up Hydrogen Compressors along with
auxiliaries and sub-systems

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

Contractor to work with the above mentioned technology providers and novated Sellers,
as well as various other Sellers and sub-Contractors, to achieve the required completion
of the Contract requirements.

Owner has contracted scope of work in a greenfield area which will encompass new
process units, utility and offsites units, and storage, as well as a brownfield area within the
existing Sohar Refinery, for revamp of existing units and tie-ins to existing facilities.

2.2 PROJECT GOALS, OBJECTIVES AND KEY SUCCESS FACTORS

Contractor is fully committed to work with the Owner as a team to meet project objectives.
These include,

• carrying out the design, engineering, procurement, manufacturing, testing,

installation, construction, testing, commissioning, start-up and performance testing
of the plant with the ultimate goal of providing a complete, safe, reliable, operable,
maintainable and efficient plant

• work for the greenfield as well as brownfield aspects of the work; in the brownfield
areas work with the Owner’s permit-to-work system

• complete all aspects of the work, whether of a permanent or temporary nature,

necessary and/or required for the Sohar Refinery Improvement Project

• drive the concept of Health, Safety and Environment (HSE) management throughout
all phases of the project and ensure that all targets, measured by key performance
indicators, are fully met

• fully co-operate with Owner, and appreciate Owner’s requirements and be

responsive to their needs

• Obtain necessary permits and approvals from statutory authorities

• Comply with all the local and Omani laws and regulations

• achieve all Contract milestones, which reflect a construction driven engineering and
procurement schedule

• take a pro-active approach and fully co-operate with and support the Owner
regarding all project interfaces and ensure efficient interface co-ordination with other
project parties by timely resolution of interface issues and close-out of interface
actions

• achieve In Country Value (ICV) in line with the agreed ICV Plan

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

• develop and maintain a good working relationship with Subcontractors and Sellers
and other stakeholders by conducting business in an ethical, professional, fair and
reasonable manner

• provide a complete set of ‘as-built’ documentation to the Owner required for taking
over the facilities

• accomplish the entire project works within the target schedule and contract price

2.3 PROJECT SCHEDULE REQUIREMENTS

The Contract requires that Initial Acceptance of the facilities should happen within thirty
six (36) months after 25-Nov-2013, the Effective Date of Contract.

Contract also requires that Final Acceptance of the facility should happen after completion
of the Defects Liability Period or twelve (12) months after Initial Acceptance.

To meet the above, Contractor will submit the Level III schedule for Owner’s approval
which affects a 34 months working schedule.

2.4 CONTRACTUAL REQUIREMENTS

The contractual requirements between the Owner and the Contractor are spelt out in the
Contract dated 25-Nov-2013.

The Contract also has the following Appendices which form part of the Contract:
• Appendix A – Owner’s Requirement [this includes seven (7) Addendums and twenty
eight (28) Circulars]
• Appendix B – Payment Schedule & Terms
• Appendix C – Schedule of Permissions to be obtained by the Owner
• Appendix D – Work Programme and Key Milestones
• Appendix E – Completion Tests, Performance Guarantees and LDs
• Appendix F – Safety Targets
• Appendix G – Form of Direct Payment
• Appendix H – Form of Performance Bond
• Appendix I – Form of Advance Payment Bond
• Appendix J – Key Personnel
• Appendix K – Minimum Insurances
• Appendix L – Form of Novation Agreement
• Appendix M – Form of Parent Company Guarantee
• Appendix N – Training of Owner’s Personnel

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

• Appendix O – Tripartite Agreement

• Appendix P – Approved Vendor and Subcontractor List
• Appendix Q – Limited Notice to Proceed
• Appendix R – ITT Volumes 5 & 6 Indices

2.5 ORGANISATION AND MULTI OFFICE EXECUTION

Contractor is a Joint Venture (JV) between Daelim Industrial Co. Ltd. (‘Daelim’) and
Petrofac International Ltd. (‘Petrofac’). Daelim is the JV Leader.

The scope of work has been split appropriately by the JV Members. To the Owner
however, the JV will work as a single, united entity.

Contractor Project Management team will be stationed in Daelim’s office in

Seoul/Petrofac’s office in Sharjah. Contractor shall be fully responsible for the overall
performance of the execution of the Contract. The project will be executed under the
guidance and supervision of a dedicated Project Director who will be responsible for the
performance of the Contract.

Engineering for the units/plant areas in each JV Member’s scope will be carried out in one
of each Member’s Engineering offices – in Seoul, South Korea, for JV Leader Daelim, and
Mumbai, India, for JV Member Petrofac. A dedicated office area will be provided for the
Owner’s team in Seoul as well as the JV teams in Seoul and Mumbai. Contractor will
assign competent resources to execute the project. It is envisioned that at least for the
initial phase of the Engineering part of the project, JV Member Petrofac’s lead engineers
for each Engineering discipline will be stationed at JV Leader Daelim’s office in Seoul to
have direct interface with and liase more effectively between the two Engineering teams,
as well as act as a part of the JV Engineering interface with the Owner’s Engineering team
which is expected to be stationed there.

Smartplant (SP) 3-D 30%, 60% and 90% model reviews are planned to be done at JV
Leader Daelim’s office in Seoul along with Owner.

Procurement will be done either using Daelim’s ‘Ensemble’ procurement software for the
Daelim procured items, and Petrofac’s ‘Vision’ software for the Petrofac procured items, or
will be done exclusively using one of these two systems for procurement by both JV
partners.

Inspection and testing [including factory acceptance testing (FATs)] will be done as
required at the Seller manufacturing locations.

Transmittals of engineering/procurement/inspection and testing phase documentation,

including Contractor generated drawings/documents, requisitions and of Seller

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

documentation, to/from the Owner’s document system, will happen from a JV platform
residing in Daelim’s office in Seoul or Petrofac’s office in Sharjah.

Construction, Pre-commissioning and Commissioning will be supervised and executed by

the JV teams mobilised to Sohar Refinery site, along with Subcontractors and Seller’s
personnel. Construction, Pre-commissioning and Commissioning software will be
appropriately located and hosted to cater to this phase of the project.

The project will be executed in line with the SRIP Project specifications utilizing the
Contractor’s established engineering standards, procedures, guidelines covering design,
engineering, procurement, testing/inspection and construction phases of the work, all in
accordance to a Quality System conforming to ISO 9001.

2.6 INFORMATION TECHNOLOGY (IT) REQUIREMENTS AND TOOLS

The following approach will be used for IT usage for the project:

Engineering software
a) SP3D will be used for 3-D modeling of the plant, and extraction of 2-D drawings, for
Piping, Civil, Electrical, Instrumentation and Telecommunication layouts. This will
work on global workshare concept, with mirrored databases functioning at both
Daelim Seoul and Petrofac Mumbai offices.
b) SPPID will be used for P&ID generation.
c) SPI will be used for Instrumentation engineering deliverables like data sheets, wiring
drawings, termination drawings. The Daelim and Petrofac databases will be separate,
and will be merged on necessary occasions like when deliverables to Owner need to
be provided, or if required to be provided merged to the Integrated Control and Safety
System (ICSS) Seller.
d) SPEL will be used for Electrical Engineering final as-built stage deliverables. SPEL
will be hosted at one location, either at Daelim or at Petrofac office.
e) 2-D drawings will be generated and presented in AUTOCAD format.

Procurement software
Procurement record and tracking will be done either using Daelim’s ‘Ensemble’
procurement software.

Construction, Pre-commissioning and Commissioning

As informed earlier, Construction, Pre-commissioning and Commissioning software will be
appropriately located and hosted to cater to this phase of the project.

Documentation
Petrocept DC at Petrofac’s side, and Daelim’s EDMS at Daelim’s side will be used as a
depository/tracking mechanism/reporting mechanism for Engineering and Seller
deliverables.

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

2.7 APPLICABLE CODES AND STANDARDS

All international and national codes, standards and recommended practices referred in the
Contract as applicable shall be followed by the Contractor. The edition/version/revision
current as on the Effective Date shall be considered relevant.

3. PROJECT EXECUTION STRATEGY AND IMPLEMENTATION PLANS & PROCEDURES

3.1. HEALTH, SAFETY, SECURITY AND ENVIRONMENT (HSSE)

Contractor has a HSSE Management System (HSSEMS) which provides the framework to
enable the implementation of the specified standards, procedures, and practices in a
consistent manner. The HSSEMS defines the application of HSSE into the work practices,
processes, and systems for Engineering / Design, Procurement, Construction, and
Commissioning involving Project execution and delivery. Contractor’s HSSEMS identifies
the requirements relating to HSSE and provides the baseline for application and Project
execution in compliance with the Health, Safety, and Environmental Management Systems
requirements prescribes in OHSAS 18001:2007 and ISO 14001:2004 respectively.

Contractor’s HSSEMS shall meet the requirements and be compatible with Owner’s HSSE
Management System and shall demonstrate alignment with the Contract requirements.

Contractor shall develop a Project HSSE Plan (Doc. No. S-000-5242-001) which is the
highest level Project HSSE document and, as such, defines the execution strategy, HSSE
Management and methodologies for implementation. It is designed to complement the
Project Execution Plan and provide a disciplined framework for management of HSSE
aspects for the Project. It is the link document for Contractor HSSE Management System
for the Project application.
The approach to HSSE for design and in the field is “risk-based” , and as such, the Project
HSE Philosophy identifies the assessments and studies to be undertaken to certify that all
the necessary measures and safeguards can be identifed and catered for to ensure an
inherent safe design, safe execution, and risk reduction to ALARP. In addition to the risk-
based approach, Contractor shall also fully meet the requirements, specifications, and
standards of the Owner.
The Project HSSE Plan has been developed based on the Owner’s requirements and the
HSSE Management systems of the Contractor to:

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

• Ensure clear HSSE objectives and expectations are defined

• Ensure management commitment to achieve high level of performance and a

continuous improvement throughout the execution of the Project

• Describe the arrangements in place for the management of HSSE during the execution
of the Project.

• Identify hazards and provide safeguards / measures to prevent, control, or mitigate the
hazards to ensure that risk is reduced to ALARP.

• Construct and complete the plant without harm or injury to anyone or damage the
environment by adopting the principles of zero tolerance

• Develop mechanisms such that all personnel understand the hazards and the
safeguards in place.

• Set performance targets such that the expectations of the Project are known and
understood by all.

• Implement an effective Training and Communication program for the Project

• Implement an incentive program to encourage all personnel on meeting the HSSE

performance targets.

• Specify the mechanisms in place for the review and monitoring of the HSSE
performance to ensure that the objectives and targets are achieved and to identify
where opportunities for improvement are available.
Contractor shall implement an effective Hazard and Effects Management process
throughout all the phases of the project. Equipment integrity is assured through design,
construction, and procurement in accordance with recognized Codes, Standards, and
Practices. Potential hazards in new and existing plants shall be identified systematically.
The risks shall be evaluated using qualitative and quantitative techniques, and reduced to
levels as low as reasonably practical (ALARP) by appropriate engineering and managerial
methods.
Hazard Identification Risk Assessment (HAZID) shall be conducted prior to commencement
of major permanent works. Temporary works, including camps and offices, shall be
controlled through JSAs specific for the activity. HAZID shall consider potential risk
exposures of the Project and where additional controls, workshops, training etc… are
required to review and manage the risks. HSSE workshops shall be held to cover the
mobilisation Phase and construction phases, and these workshops will be conducted prior
to the start of the relevant activity.

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

CONTRACTOR shall provide required competent HSSE resources (people, equipment,

materials, and information) in line with Owner’s HSSE and Regulatory requirements that
shall be required to implement the HSSEMS and deliver the Project HSSE Plan effectively.
During engineering and procurement, the Lead HSE Engineer will be within the engineering
organization, and will be responsible for all technical safety and loss prevention activities,
including all safety studies and design safety issues.
Contractor shall assign a Project HSSE Manager from its permanent staff for the entire
duration of the Project. The Project HSSE Manager will be responsible for the development
and implementation of the Project HSSE Plan and the creation of a safe working
environment during the execution of the Project. The Project HSSE Manager will report
directly to the Project Director and functionally to the HSSE Director, who in turn reports to
President and CEO of CONTRACTOR. He will be based initially in Sharjah office for
approval of all procedures, and move permanently to the project site.
During construction and commissioning, a team of site HSSE Advisors and Medical,
Environmental, Competency & Training, and Security personnel shall provide support to
ensure full implementation of the HSSE Plan requirements.
CONTRACTOR shall ensure that all personnel, including Sub-Contractor personnel are
fully trained and competent to perform all work activities, including all HSSE aspects of the
work.
Effective communications are vital to the successful implementation of the HSSEMS and
Project HSSE plan. Therefore, the Contractor shall ensure effective communication with
Ownver and Sub -Contractors.
The implementation of HSSEMS is accomplished through the establishment and
maintenance of HSSE Plans, operational procedures, and controls to ensure that the
project HSSE policy, objectives and targets can be met. Effectively implementing Golden
rules of Safety will be another key element of operational controls.
Contractor shall develop sub plans and operational control procedures to support the HSSE
Management System based on its own standards and procedures as well as Owner’s
HSSE requirements.
Compliance Assurance is an integral part of the Contractor’s HSSE Management System
and fundamental in the review and improvement process. Contractor Project Manager and
Project HSSE Manager are responsible to set a compliance assurance program and to
ensure its implementation. It consists of different levels of audit for system compliance,
inspections, and reviews during the execution of the project.
Contractor Project Manager, with the support of Project HSSE Manager, shall coordinate
the pre-qualification process of all prospective Sub-Contractor Companies and shall ensure
that those Companies have the capabilities to comply with the Contract HSSE requirements.

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

Contractor shall ensure that Fitness to work process, Health Risk Assessments, Drug &
Alcohol policy, and general health requirements are implemented throughout the execution
of the Project.
Contractor shall develop Security Management Plan (Doc. No. S-000-5242-006) and
Emeregency Response Plan (Doc. No. S-000-5242-005) to implement an effective
HSSEMS.
Contractor places prime importance on Environmental issues, and as such, Contractor shall
develop and Environmental Management Plan (Doc. No. S-000-5242-003) and Waste
Management Plan (Doc. No. S-000-5242-004). An Environmental,Aspects and Impacts
Register shall be developed in order to identify and manage the environmental
risks/aspects associated with CONTRACTOR project activities. The register shall also
include details of management and mitigation measures to be implemented throughout the
execution of the Project.

3.2. QUALITY MANAGEMENT

Contractor will undertake to implement a quality management system for the Project with
the following objectives:

 to design, build and Commission a plant that produces to specification, is intrinsically

safe in terms of integrity, constructability, operability and maintainability, and is
environmentally sound
 to cost effectively implement the work processes and execution methods, while
continually improving through the application of ‘lessons learned’ from experience
gained on subject and other projects.
 To maintain a focus on stakeholder satisfaction, both internally and externally

The project will be executed in accordance with Contractor’s established engineering and
quality standards and procedures covering design, engineering, procurement, inspection
and testing, and construction phases of the work, all in accordance with Quality systems
conforming to ISO 9001-2000. Subcontractor work procedures will be reviewed and
approved by CONTRACTOR. Key procedures shall be submitted to Owner for review and
approval. The Project Quality Plan will be implemented for all phases of the project.
Compliance with the plan will be confirmed by planned project audits. The Project Quality
Plan is put in place to assure conformance with the Contract in every respect.

The Project Quality Manager reports to the Project Director for ensuring that the Project
Quality Plan is being implemented and the required quality is being achieved.

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

CONTRACTOR will be responsible for inspection of Seller supplied equipment and

materials and for surveillance inspection, performance, testing (including FATs) and final
inspections.

The level of inspection intervention and visit frequencies will depend on the criticality of
equipment, defined in the quality section of each requisition/Subcontract.

CONTRACTOR will lead all site quality management and control activities. CONTRACTOR
will assign a Site Quality Manager, QC Coordinators, welding engineer, QC engineers and
discipline inspectors. Subcontractor quality control personnel will be integrated in the site
Quality team under the direction of the Site Quality Manager.

The project implementation process required for performing, monitoring and measuring all
significant activities and their sequence, interactions are determined for this project in order
to achieve error/defect free deliverables and facilities.

3.3. PROJECT ORGANISATION AND MANPOWER

Contractor shall nominate two Project Sponsors (one from each JV partner) to serve as an
active link between the Owner and Contractor’s Senior Management.

Contractor shall identify and appoint a Contractor’s Representative who will lead the JV
Directorate. He shall be knowledgeable in all aspects of the Contract and the Work, and
shall be responsible for all aspects of the work, from the commencement until final
acceptance. This responsibility shall include the provision of all services necessary to
ensure that the Project proceeds in an orderly and timely manner in accordance with the
Contract.

Contractor’s JV shall comprise a dedicated full-time project execution team, under the
responsibility of the Project Director. The Project Director is responsible for all the phases of
the project and discipline activities, including HSSE, Project Controls, Quality, Engineering,
Procurement, Quality Assurance and Quality Control, Inspection and Testing, Construction,
Pre-commissioning and Commissioning. The Project Director’s responsibilities also include
co-ordination/liaison with Owner and Subcontractors.

The Project Director shall be supported by the following key project task force personnel
who each in turn will be supported by staff and discipline specialists:

• Deputy Project Director

• Project HSE Manager
• IT Manager

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

• Project Manager
• Interface Co-ordinator
• QA/QC Manager
• Project Controls Manager
• Project Contracts Manager
• Engineering Manager
• Project Procurement Manager
• Home Office Construction Support Manager
• Site Manager
• Commissioning Support Manager

Deputy Project Director (DPD) reports to Project Director and deputizes for him during his
absence. The DPD focuses on ensuring that CONTRACTOR offices comply with the
requirements of the Contract by achieving the targets, ensuring adherence to the Project
Quality Plan, and allocation of adequate resources for the performance of the execution
teams.

Project HSE Manager is supported by the site HSSE personnel. He is responsible to

promote and encourage a high level of HSSE awareness, ensure adequate and timely
HSSE control over all phases of the project, and continue to maintain strict vigil on all HSSE
aspects of the job execution.

IT Manager reports to the PD and is responsible for setting up and maintaining the IT
network between the various JV offices and the Owner’s systems, hosting the various
software used for the project, ensuring adequate licenses for all users, co-ordinating with
the project and engineering teams, and ensuring a trouble-free seamless IT system for the
project.

Project Manager reports to the PD and is responsible for internal & external coordination for
all pre-order & post order activities for all Purchase Orders placed for the project, including
equipment, bulk materials and services. Also, he has overall responsibility for interfacing
and enabling the construction, pre-commissioning and commissioning teams. Project
Manager is supported by a dedicated team of Project Engineers.

Interface Co-ordinator reports to the PD and is responsible for ensuring effective interfacing,
exchange of information, and seamless work flows between the JV partners.

QA/QC Manager is responsible for developing the Project Quality Plan for all the Quality
Assurance & Quality Control aspects of the project, ensuring adequate QA/QC and
inspection coverage for the project, and handling of NCRs. The Project Quality Plan will
outline the overall framework of the project Quality Assurance program.

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

Project Controls Manager reports to the PD and his responsibilities include Project Controls,
Cost control, Project Administration, Document Control, etc. The project controls team led
by the Project Control Manager and is responsible for preparing schedules, reports,
monitoring progress, etc. The Project Controls Manager will coordinate all Project Controls
activities throughout the Project and will be the point of contact for the Owner’s
Representatives on all matters relating to scheduling, progress control, cost control, and
invoicing.

Project Contracts Manager reports to PD and is responsible to administer contracts,

develop subsequent agreements, monitor the performance of Subcontracts and assist the
Project Management team on contractual matters. All variation orders will be coordinated
and monitored by the Project Contracts Manager.

Engineering Manager reports to the PD and is responsible for leading the engineering task
force and coordinating all engineering activities throughout the Project. He will be the point
of contact for the Owner’s representatives on all matters relating to design and engineering
activities. He shall be responsible for the engineering activities carried out in the JV leader’s
office as well as the overall JV engineering activities and in addition liason with the Field
Engineering team. He shall supervise the development of a comprehensive set of
engineering specifications, which provide the parameters and requirements for all aspects
of the engineering, and design of the facilities. He shall ensure that a system is in place to
issue technical documentation in sufficient copies for Owner’s review, approval and
information. The Engineering Manager shall be supported by the Deputy Engineering
Manager who is responsible for the JV partner engineering and co-ordinating with the JV
leader’s engineering team.

Project Procurement Manager (PPM) reports to PD and will be responsible for all
purchasing/buying activities including floating of Request for Quotations, expediting
quotations, preparing Letter of Award and Purchase Orders, and directing the procurement
task force. The Deputy Procurement Manager reports to the Procurement Manager and
carries out the daily procurement activities with the help of the team of buyers and
expeditors.

Home office Construction Support Manager reports to the PD and is responsible for
providing construction inputs and interfacing with engineering and procurement during
preparation of subcontract ITB, constructability study, review of layout and other
construction drawings, preparation of Project schedule etc. He also supports site manager
in building up site infrastructure and enabling facilities and resource mobilisation.

Site manager reports to PD and is responsible for overall construction management and
field construction work including implementation of project HSSE and Quality systems at
site, Subcontract administration, field materials management, and field project controls. He
is supported by Construction managers and respective Field managers responsible for
HSSE, QA/QC, Project planning and controls, Field Engineering, Project Support services,

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Job No : 120476 / JI-02022

Interface management . He is responsible for liaising with authorised representatives of

Owner as Contractor representative at site.

Commissioning Manager is responsible for providing pre-commissioning & commissioning

input into all other phases of the works, preparing all related procedures / formats, carrying
out pre-commissioning and commissioning, and start-up and performance tests.

Reference can be made to the project organisation charts in subsequent sections in this
Project Execution Plan document.

3.4. PROJECT TEAM BUILDING/INDUCTIONS

Contractor’s JV office in Seoul shall host the initial interfaces among the Owner’s and JV
project execution teams. The starting phase of the project will need the Owner and
Contractor’s execution teams interacting and discussing with each other the project
setups including IT awareness, and execution methodologies. The interactions will then
continue throughout the Project cycle in a mutually beneficial and co-operative manner.

3.5. CONTRACT REVIEW

Contractor shall undertake a Contract review immediately starting after the Effective date.
The issues brought out as part of the Contract review shall be discussed between
Contractor and Owner for mutual techno-commercial resolution.

3.6. PROJECT MANAGEMENT

Contractor is responsible for overall management and execution of the Project. The
Contractor’s goals in this regard will be driven by

a) HSSE and quality conscious construction execution

b) close integration of the engineering, procurement, inspection & testing,

construction and commissioning schedules to meet Project milestone
requirements

c) recognition of time constraints when working in live plant areas

d) close working with Owner

The execution strategy for the Project shall include:

• preparation of resource mobilization histogram/plan to ensure timely availability during

each stage of project execution

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• close co-ordination with the Owner for work permits etc.

• establishing a work permit system at the initial phase of the project

• establishing a system for acquiring security pass for site mobilization/site visits

• close interaction involving Owner for negotiations and further work on novated Sellers
and their products

• regular meetings, in liaison with Owner, and wherever required with other agencies to
sort out interface issues

• effective use of electronic media, especially e-mails/Internet etc. for better co-
ordination with Owner, Sellers, Subcontractors & site teams

• co-ordination with the Subcontractors’ management to ensure timely resource

mobilization

• working closely with Owner to ensure that Commissioning & Performance Tests
follow immediately after Pre-commissioning

• utilization of skilled & experienced personnel

• early involvement of Construction and Commissioning personnel in

engineering/procurement

• maximization of off-site pre-fabrication

• fast track follow up of novated Long Lead Items engineering and drawing/document
reviews/approvals

• expediting to ensure timely delivery to site

• early deputation of the engineering team to site for collecting all the relevant data

• making a clear definition of scope with regards to decommissioning & demolition

• leveraging the market situation to lock in vendors to meet budget and to book
capacity

• establishing clarity early in the Project regarding Owner’s involvement in quality and
inspection/testing aspects

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Job No : 120476 / JI-02022

• establish Owner’s requirement for drawing/document review related to engineering as

well as procurement (Seller’s documentation)

• checking the Lessons learned from previous similar Contracts

The key activities which are planned to achieve the Project goals are -

• Early mobilization: In order to gain early momentum and to gain from the extensive
tendering / ITT review / pre-award engineering work carried out, there will be a
comprehensive hand over of the project details from the bidding stage proposal task
force to the Project execution teams. This includes internal kick-off meetings carried
out very early in the proposal and post-award stage. Also, key project execution team
personnel are identified early and assigned to the job towards the end of tendering
phase.

• Lessons Learned: As part of a continuous improvement strategy, lessons from

previous similar projects are carefully reviewed and informed to the project team.
Applicable items are incorporated into the project technical design basis or execution
strategy.

• Contract review: Contract scope review is carried out to arrive at a comprehensive

Project target free to the extent possible of ambiguities and inconsistencies.

• Design review: Technical aspects of the project are reviewed as per the project
procedure and action items are recorded and continuously tracked till close-out.

• Risk review (technical, execution, schedule and commercial) & mitigation plan: A
detailed risk review is carried out (sometimes separate sessions for separate aspects)
and mitigation plans are proposed.

• Execution strategy & resource requirements: Based on the above, detailed

discussions are held to finalise the execution strategy & resource requirements.

• Preparations of plans, procedures, schedule & budget: The finalised execution

strategy & resource requirements are reflected in the various plans, procedures and
schedule & budget.

• Kick-off meeting with Owner: Kick-off meeting with Owner carried out to apprise
Owner of the Project execution philosophy and plans, teams involved, strategies
planned, communication channels defined and way forward outlined, based on the
expectations of the Owner.

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Contract No. 21297
Job No : 120476 / JI-02022

The following sections constitute major project execution activities and outline the
Project execution strategy.

3.7. RISK MANAGEMENT

Risk management in the Project will aim to minimize the impact of potential Project
exposures and to take advantage of the opportunity for improvement. Contractor will
organize workshops on a regular basis to identify risks. The frequency of these
workshops is dependent on the need. Contractor will identify main areas of attention and
risk issues and these will be discussed with Owner on a regular basis. These issues will
be captured in an action register with possible solution options.

The risk register shall be prepared and submitted at the early stage of the engineering
phase and shall be updated on a monthly basis and circulated to Orpic for information.

The risks beyond acceptable limits will be identified in a structured manner and, based
on historical experience, be listed. The risk identification relates to costs time and
deliverables, as well as issues related to security, liabilities, information, technology,
safety, health, environment and new technologies involved. Also interaction between
risks needs to be considered.

Solutions to eliminate, mitigate or transfer risks, decisions to accept risks and plans to
take advantage of opportunities, should be based on known procedures to avoid
introduction of new risks. When a risk is identified it needs a contingency plan to identify
the undesirable effects and response actions necessary. When deemed necessary
provisions in terms of time float/monetary risk budgets
should be made. Alternatively the risk can be mitigated through subcontracting,
insurance or simply accepted. Risk responses will be clearly documented.

3.8. INSURANCE

Contractor shall provide the applicable insurance covers specified in Appendix K and
satisfying the conditions of Clause 20 in the Contract. These insurances will be provided
jointly or individually by JV Members, as applicable. Contractor will ensure necessary
insurances are provided by Subcontractors and Sellers.
Contractor will make sure that all the insurances are renewed whenever they are due.
Construction All Risks and Third Party Liability Insurance shall be arranged by Owner in
accordance with Appendix K of the Contract.

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Job No : 120476 / JI-02022

3.9. IN COUNTRY VALUE

• Contractor shall ensure to spend 20% of the Contract value for local spend.

• Contractor shall make provision for employing specialized sub- contractors and
Omani labour recruited in the region.

• Contractor and Subcontractor shall make provision for recruiting thirty percent (30%)
of Omani staff and labour for all job categories, which include on job training.

Contractor will maximize the Omanization and local content as much as possible in
limitation of available Sub-contractors in Oman based on the Approved Vendor List and
also based on the minimum quality and schedule requirements in Contract.

3.10. COMMUNICATION AND CO-ORDINATION

Communication and co-ordination between Owner’s and Contractor’s personnel shall

essentially happen in some selected manner, based on the phase of the Project.

During the engineering/procurement/inspection and testing phase, interactions shall

happen in person and electronically at the JV Leader’s office in Seoul.

During the construction, Pre-commissioning and Commissioning phases, interactions

shall happen in person at site and electronically between the JV members offices in
Seoul/Sharjah and Owner’s offices.

Correspondence shall be as per Doc. No. S-000-5140-001.

3.11. PROJECT CONTROLS

The project control plans will be based on Contractor’s standard project control systems
and procedures, reflecting Owner’s minimum requirements.

The plans will address key control activities, including:

- Planning and Scheduling

- Progress Control
- Cost Control
- Reporting

The Contractor's project controls plans will include:

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Job No : 120476 / JI-02022

- Work Breakdown Structure (WBS)

- Schedule Levels
- Monitoring
- Schedule evaluation and analysis
- Resource control
- Performance evaluation and analysis
- Progress measurement
- Re-scheduling
- Updating
- Scheduling software
- Reporting

Contractor’s project control plans will identify the specific procedures, methods, forms
and techniques for effective project control during the execution of the Work. This will
address the Contractor’s formation of a JV and will cover all the offices where the Project
is executed. This will also address and comprehend any planning and scheduling
activities performed by its SubContractors. In addition, Contractor’s schedules will
incorporate all schedules prepared by its Seller’s and Subcontractors; and such
schedules shall highlight the interdependencies between the Seller and Subcontractor
schedules and those of Contractor.

The time schedule hierarchy of the project that Contractor will develop and maintain will
comprise as a minimum four levels in which each successively lower schedule level
depicts the project activities in more detail. The structure and detail of the schedules will
be such that the schedule status can be
summarized from the detailed level.
The schedule levels are –
• Early Work Schedule
This will reflect all activities to be performed during the first 3 months of the Project
including all project mobilization and project set-up requirements.

• Level 1: Project Master Schedule (PMS)

The PMS, the highest level of the schedule network, shows major project milestones,
interfaces, key dates and key activities. The PMS has a time scaled bar-chart format
with a maximum of 100 activities. It shall be updated and issued monthly.

• Level 2: Project Level 2 Schedule

The Project Level 2 Schedule(s) will allow schedule and progress control at a more
detailed level than Level 1 and shall identify relevant project milestones and
activities within engineering, procurement, construction, Commissioning and Start-
up. It shall be a logic network based schedule and shall be updated by means of an
under-laying detailed schedule.

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Job No : 120476 / JI-02022

The Logic Network Schedule (LNS) shall be a precedence based critical path
method network using Primavera software.

• Level 3: Project Detailed Schedule

The Project Detailed Schedule(s) shall be developed by the Contractor for the EPC
phase and shall be the basis for planning, progress monitoring and reporting. It shall
be a logic network based schedule, which will clearly identify the critical and sub-
critical paths. It shall reflect the EPC phase activities through detailed engineering,
requisitioning, purchasing and delivery of material at site, construction, pre-
commissioning. The updated schedule for actuals against the plan will be issued on
a monthly basis

• Level 4: Engineering/Procurement/Construction Level 4 Schedules

Each major phase of the project – Engineering, Procurement, Construction & Pre-
commissioning, and Commissioning & Startup shall have their own Level 4
Schedules.

3.12. ENGINEERING

Key strategy:
a) Priorities based upon the path of construction
b) Data collection given priority
c) Involvement of construction, commissioning personnel in engineering

Engineering will be performed by a dedicated project task force to be based in the JV

members offices in Seoul, South Korea, and Mumbai, India. The team will be led by an
experienced Engineering Manager reporting to Project Director. Each of the disciplines
will be headed by an experienced lead engineer. To ensure best practices from both JV
Members, each shall assign a lead engineer.

Refer the Engineering Execution Plan (Doc. No. S-000-5141-001) for more details.

The Project Engineering Manager will supervise the development of a comprehensive

set of engineering specifications, which provide the parameters and requirements for all
aspects of the engineering, and design of the facilities.
Contractor will provide discipline responsibilities and methodology reporting to the
Project Engineering Manager and ensure that the engineering organization provides
services of sound engineering practice.

The design review by the Owner shall be the review/approval/keep for information
activities pertaining to Contractor’s and Seller’s drawings/documents, as well as formal
participation in the workshops for
 PFD screenings
 Plot plan review

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Job No : 120476 / JI-02022

 Constructability reviews
 P&ID screenings
 HAZOP reviews
 SIL classification
 3D model reviews
 Ergonomic reviews
 RBM/RBI reviews
 Prestart-up safety assessment
 HSSE reviews

The 3D model reviews by Owner and Contractor’s engineering team shall be held at
30%, 60% and 90% model completion.

Contractor will provide individual equipment criticality rating and shall identify the
equipment inspection and maintenance needs (with the assistance of Seller inputs). It
will identify and qualify all preventative and condition monitoring needs and intervals and
thus provide a basis for determining manning levels, potential subcontracted services,
spare part requirements and operational budget estimates.

Contractor shall maintain a database for Risk Based Maintenance (RBM)/Reliability

Centred Maintenance (RCM) which will contain an equipment list, results from any
Failure Modes and Effect Analysis (FMEA) done, equipment criticality rating, and
maintenance requirements or references to the same. The extent of inspection and
testing levels will be based on the equipment criticality rating, and will be defined in
individual requisitions. There will be four (4) levels of criticality, determining the impact
of any risk related to equipment -
1) catastrophic impact
2) very serious impact
3) moderate impact
4) no serious impact

3.13. DOCUMENT CONTROL & MANAGEMENT

Correspondence Procedure (Doc. No. S-000-5140-001), Procurement Document

Numbering (Doc. No. S-000-5140-101) and other project numbering procedures to be
issued outline the framework for generation of all technical documentation in relation to
the Project. Technical documentation typically comprises of drawings, data sheets,
calculations, specifications, manuals, reports etc. These procedures will not supersede
or replace any contractual requirement. These procedures will also apply to the
documentation generated by the Sellers and SubContractors.

Document control procedures are generated considering the following objectives:

• Owner’s specific requirements incorporated within the Project procedures.

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Job No : 120476 / JI-02022

• uniform and well defined documentation management system followed across the
project.

• efficient identification and retrieval of technical documentation consistent with the

Owner’s filing systems, EDMS systems and document registers.

• ensure single point access/submission of Project documentation.

Documentation will follow either the JV Leader Daelim’s Electronic Document

Management System (EDMS), or JV Member Petrofac’s ‘Petrocept DC’ system, or a
third common option. For procurement, JV Leader Daelim’s ‘Ensemble’ system or JV
Member Petrofac’s ‘Vision’ system, or a third common option will be followed.

The single focal point for the implementation of the document control procedures shall
be the document controller in JV Leader Daelim’s Seoul office during the engineering/
procurement/inspection and testing phase. He will have extensive links and
communication with JV Member Petrofac’s offices in Mumbai and Sharjah, and will be
focal point for the Owner’s document controllers. During the construction phase, JV
Member Petrofac’s Sharjah office or the Contractor’s JV site office shall have prime
responsibility and will be the focal point for the Owner.

The project management, engineering management and QA/QC teams will ensure that
the documents generated for the Project comply with established procedures and project
Contractual specifications. At all levels the teams will ensure that the drawings and
documents generated by the Sellers Vendors comply with the relevant Company
procedures.
Seller documents management:
The drawings and documentation requirements from each Seller will be listed on the
required documentation sheet which forms a part of the Inquiry/Purchase Requisition.
This ‘Supplier Document Requirement List’ (SDRL) will identify the

• required date of submission for each category of drawing/document

• category for each drawing/document i.e. whether to be submitted for approval, or

for review, or as information etc.

• drawing/document to be reviewed at Seller’s works (typically certificates)

• drawings/documents required to be included in the MRB, or IOMs etc.

• submission requirements in electronic or hard copy format

and so on.

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Seller is required to translate the requirements of the SDRL into a register of individual
documents known as the Vendor Document register (VDR).

The VDR shall list all drawings/documents and ancillary information .Once agreed, the
VDR effectively replaces the SDRL. The VDR in itself is not used to record the status of
documents, but to provide the basic information for loading into the Seller documentation
registers in the finally used Seller documentation handling software. The VDR shall be
considered to be a “live” document for the duration of the Purchase Order.

All drawings and data including Seller’s standard drawings shall be checked for accuracy,
clarity, completeness and conformance with the applicable codes specifications etc.
before submitting to Owner.

Seller shall ensure each document carries either the Document Decal or a Seller
Document A4 Cover Sheet. These shall be given to the Seller along with the Purchase
Requisition.

After the Purchase Order (P.O.) placement, the Expeditor/ Project Engineer will follow-up
with the Seller for submission of data/document indicated in SDRL/ VDR.

The document controllers will check the quality, drawing/document number, revision and
legibility and record the Seller document within the Vendor Document Register (VDR)
module and forward a of the same to the concerned discipline Lead Engineer as per the
Seller document review flowchart. Seller documents shall be reviewed internally by the
Requisition originating discipline and shall be subject to interdisciplinary checks (IDC) as
required. On receipt of internal discipline comments the originating discipline will then
compile all the comments on the Seller drawings/documents and return the same to the
Seller via the Document Controller with appropriate review code.

Review of selected Seller documents by Owner will be carried after review and coding of
Seller documents by Contractor. Parallel reviews if required will be done as necessary in
the interest of Project performance as a whole.

All document controllers will maintain a document register for relevant documentation.

3.14. PROCUREMENT, TRANSPORTATION AND LOGISTICS

The key strategies to be taken up during procurement to meet Project goals are

a) early procurement of equipment & materials, in line with project specifications and
Approved Project Vendor List.

b) procurement plan & action to support construction sequence

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c) Contractor’s approach to optimize cost through aggressive price negotiations

Contractor will develop and implement a project specific Project Procurement Plan which
will detail procurement objectives, strategy, Seller management, purchasing, expediting
and transportation.

In view of the current market conditions, availability of Seller shops may be problematic
and long deliveries have to be anticipated for certain package/ specialty items. In line
with the construction driven approach early procurement is a key aspect for ‘on time’
successful implementation of the Project.

To mitigate this risk Contractor will adopt the following early procurement approach:

• early preparation and issue of Inquiry Requisitions for long lead Items/ critical
items.

• requesting quotations from approved and competent Sellers

Contractor’s Procurement team will plan and execute activities to ensure that the
procurement of equipment, materials and services is in compliance to the technical and
quality requirements, budget and overall Project schedule.

The Procurement and Project teams will seek to strike the correct balance between cost
and recognition of the need to ensure timely delivery. The focus will be on areas of
critical delivery, quality and compliance with both Owner and Contractor standards and
requirements.

The Procurement Team will focus on the selection of quality Vendors having high degree
of conformity to Project specifications, satisfactory performance track record and
reasonable after sales support services.

CONTRACTOR may significantly advance the ordering depending on the market

conditions, commodity price trends etc. CONTRACTOR will initiate procurement actions
based on the ITT documentation and CONTRACTOR verification, for the initial batch of
Inquiry Requisitions. Such philosophy entails working in parallel with engineering
progress and considered that Owner will be supportive of CONTRACTOR’s endeavours
towards early ordering and will accord their approval for the technical documents
associated with Procurement within the agreed approval cycle.

Besides the Project Procurement task force, dedicated expeditors and project engineers
will be assigned with the responsibility for Seller management. This team will be
responsible for all pre and post award coordination with the Owner, Engineering
disciplines, QA/QC, inspectors, and logistics in-charges. Expediting task force will

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comprise of desk expeditors, field expeditors, and shop expeditors (mobilized at specific
Seller shops). Towards maintaining an effective strategy for expediting, continuous in-
field monitoring of the Sellers and supporting expeditious movement of inspection and
expediting personnel will be supported.

The logistics team shall be responsible for safe and timely movement of all material from
Seller shops around the world to the Site including customs and port clearances and
material storage at site storage areas.

3.15. MATERIAL CONTROL

CONTRACTOR will develop and implement a Project specific materials management

plan which will outline the procedures for definition, quantification, supply, control and
reporting of all materials and equipment including spare parts, required to be
incorporated into the facilities.

The materials controls team in coordination with Project Procurement Manager will be
responsible for the implementation and overall monitoring of the materials management
system and plan.

Contractor will be using an integrated material management system, which will be linked
to the procurement management software modules used in the Project.

3.16. SUBCONTRACTING

The Subcontracting team will be responsible to finalize subcontracts with support of the
Contractor’s offices in Sharjah and Seoul.

Contracts/Subcontracts manager located at Site with the support of Contract engineers

will be responsible to administer the Subcontracts. The construction management team,
under the responsibility of the Site Manager, will perform the management of the
construction part of these Subcontracts.

The Project Quality Manager and Site Quality Manager will confirm compliance of
Subcontractors with the Project Quality Plan by routine audits.

Subcontractors will use the single Contract HSSE management plan. The project and
site HSSE managers will confirm compliance by routine audits and key performance
indicators.

3.17. CONSTRUCTION

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The overall construction of the facilities will be planned meticulously and executed
smartly by a strong and committed construction management team from the Contractor’s
side, backed up with robust systems and procedures in place and proven experienced in
the construction management and execution of mega projects.

Construction Management:
The Construction management team’s organizational structure will be designed to
support main working areas exclusively i.e process areas, utilities/off-sites areas and
work inside the existing Sohar Refinery.
Each of these areas will have a dedicated construction management team under a
Construction Manager/Construction Superintendent reporting to the Site Manager.
Linked across this organization are functional groups with distinct responsibilities.
These functions provide the work processes, procedures, monitoring/control and
expertise to deliver efficient, responsible, and safe construction that meets or exceeds
acceptable level of performance in all aspects – quality, cost, schedule and
sustainability while completing all the work with no harm to person, asset and the
surrounding environment.
All Construction work will be subcontracted to competent & experienced
Subcontractors after due diligence and adequate evaluation. The construction
management team will be commensurate with the nature and scope of the Project with
responsibility for management of subcontracts and hands-on supervision of
Subcontractor’s work, covering all aspects of work (HSSE, Quality, and Schedule)
through experienced & dedicated multi-disciplinary team.

Construction management leadership:

Contractor’s construction team recognizes that construction success demands
delivering predictable, superior results in every facet of Contractor’s work that in turn
provides value to Owner. Achieving success requires a clearly articulated leadership
model where everyone is aware of their roles, responsibilities and expectations for
performance.
To bring about clarity in leadership, the Site Manager will develop and sustain a
conducive work environment in which all team members will understand their role,
responsibilities and inter-relationships with each other, thus enabling the team to work
together in delivering results that meet the intended objective of the Project.
Key elements in achieving leadership clarity include:
• communication that is timely, comprehensive and unmistakable
• understanding of goals, tasks and expectations by each team member
• orientation, training and instruction on policies and procedures
• accountabilities with routine evaluation and feedback.

Key objectives performance standards:

The success of the Contractor’s construction team will be driven by the following key
objectives performance standards:

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• HSSE excellence - completely accident and incident free construction.

• Schedule - achieve mechanical completion within the agreed time frame,
managing interface during the revamp and tie-in operation & meeting Project quality
objectives and deliverables. Ensuring seamless turn-over, integrating construction
schedule and execution plan underpinning pre-commissioning & commissioning
priorities.
• Construct as designed - deliver the project as per scope conforming to approved
for construction and other relevant Contractor and Subcontractor drawings and
documents, including quality plans.
• Sustainability - execute the project in a sustainable manner that is sensitive to
local need and aspiration and bring values to the surrounding community by pursuing
conscious and rational efforts in enhancing local content as much possible locally and
from within Oman, while enabling initiatives such as workforce development though
training in order to leave an imprint of positive impression on the region.

Construction Strategy:
• identification of key senior construction personnel early with a clear corporate
commitment to maintain the identified personnel throughout the required construction
phases of the project
• mobilization of Site Manager and experienced construction specialists to the
Contractor’s engineering offices to participate in review of layout during early
engineering phase and to provide inputs for Constructability
• mobilization of work crews in a progressive manner in accordance with the
schedule requirements and workload projection. Construction manpower is provided by
subcontractors & normal working hours are 10 hours/day, 6 days/week.
• identification and execution of Early Works - topographic and geotechnical survey,
site preparation and temporary facilities installation as per an engineered and approved
plan starting early upon availability of access to the site and required clearance for
commencement of work.
• Alignment of construction sequence/path of construction with the overall project
schedule and embedding the same in the construction schedule. Finalisation of the
programme of work for all areas in advance taking into consideration the schedule and
achieved progress. In general, the following sequence of work will be followed:
- mobilisation
- site surveys
- site preparation /temporary facilities including construction of traffic
island and construction gates
- piling work
- construction of main Substations
- construction of other buildings
- underground facilities
- foundations
- pre-cast pipe racks

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Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

- structural steel erection

- fabrication of piping
- piping erection
- equipment and vessel installation
- electrical installation
- instrumentation installation
- painting, insulation and fireproofing
- interface/tie-in works
- Mechanical Completion/Pre-commissioning
- Commissioning & System Turnover
- Performance Testing and start-up
- site clearing & demobilization

After major commodity progress, the overall execution program will be oriented and
aligned with the commissioning requirement, with aim to assure availability of
permanent utilities for commissioning and start-up of the plant.

Constructability:
The Project constructability program will be initiated from an early stage of the
Project. Constructability aspects will be captured normally as part of 30%, 60% and
90% 3-D model review. The strategy of constructability is to proactively engage
construction expertise from the beginning of the design process, so that when
design is completed specific attributes related to constructability and preassembly
are incorporated.
Examples of the elements within these programs include:
a) determining the optimum path of construction
b) incorporating best practices while reducing construction complexity.
c) integrating HSSE considerations and requirements into the design and
purchasing cycles
d) optimizing workplace efficiency
e) identifying opportunities to preassemble work offsite
f) evaluating capabilities of remote preassembly at shops and yards
g) performing technical studies for heavy haul and heavy lifts
h) supporting procurement through evaluation of traffic and logistics
i) facilitating management integration and continuity in project deliverables.
Suggestions, ideas and opportunities related to constructability and preassembly will
be processed in accordance with the respective plans, with approvals by the
Managers of Engineering, Procurement and Construction as appropriate.

3.18. PRE-COMMISSIONING, COMMISSIONING, START-UP AND PERFORMANCE

TESTING

The basis for successful Pre-commissioning, Commissioning and Start-up resides in the
paperwork and the planning, and thus these activities should commence early in the

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

project. Key Commissioning personnel as required will be mobilized along with the
Project Management and Engineering discipline teams and will be integrated with the
Project task force during the early stages. They will closely interact with the Owner’s
Commissioning personnel to understand the requirements, operating philosophies,
sequences etc. As the project progresses through the engineering and construction
phases, key personnel from the Engineering and Construction groups will also be
progressively moved to work with the Commissioning team to maximise knowledge
transfer and continuity. Early involvement of the Commissioning team and early
movement of Engineering personnel in particular the Process and Instrumentation
disciplines will ensure that plant design and associated databases and documentation
etc. are developed in a manner which will facilitate a safe and efficient start-up.

The plans and procedures etc. developed by the Commissioning team will clearly
document the progressive and hierarchical discipline, subsystem/area, system and multi-
system work scope required to satisfy the overall Project execution schedule.
Mechanical Completion, Commissioning, start-up and turnover activities will be
progressed and recorded through an extensive system of check sheets, inspection and
test records, procedures and reports, which will also recognize and satisfy certification
requirements.

Various personnel of the Commissioning team will endeavour to recognize and

differentiate between the requirements of Mechanical Completion, Pre-commissioning,
Commissioning, start-up and turnover and acceptance at an early stage.

It is also envisaged that experienced members of the Owner’s project and operations
groups will be integrated into the team to take on an active role.

Furthermore, Contractor recommends that the Owner give consideration to seconding

selected trainee operators and technicians to the Commissioning team where the
learning opportunities will be substantial; this approach has proved beneficial on other
projects.

The work scope will be planned in a logical manner reflecting the progressive
development from discipline to system to multi-system activities, phased as necessary to
integrate with construction activities and existing plant shutdown schedules. Safety will
be of primary importance and the plan will recognize all Permit To Work (PTW) issues,
particularly isolation of ‘live’ systems from adjacent/simultaneous construction activities.
Indeed it is precisely this type of issue, which necessitates early involvement of the
Commissioning team during the design phase. Licensor support will be obtained by
Contractor wherever required. Any additional support if the Contractor feels necessary
shall also be obtained from the respected Licensor

The key Commissioning staff will be integrated into the Construction team and will do
the Commissioning, start-up and initial operation in a seamless fashion in order to

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

ensure the most effective learning process are achieved. The transition from bulk
completion to system/sub-system completion will be closely monitored/ driven to achieve
scheduled milestones. The technicians involved in the initial operations may be used
during Pre-commissioning, Commissioning, start-up, and initial operations to achieve
minimal disruption between the phases of completion.
A Pre-Commissioning and Commissioning Execution Plan and associated Pre
commissioning, Commissioning and start-up manuals will be developed during the
engineering phase of the project, which take into account the Commissioning logic, start-
up and operational requirements.

Contractor will utilize a specific software for the Pre-commissioning and Commissioning
activities. This will be the Project electronic Completions and certification system. The
pre-Commissioning/Commissioning team will manage the verification and testing scope
of work from construction through to Commissioning.

As the construction, Commissioning and operations team use the same database, then
systems and sub-systems can be verified for functional performance and during
handover the requisite documentation and acceptance certification can be generated.

The final documentation from Commissioning will be the Ready For Start-Up (RFSU)
Dossiers. Contractor will compile documentation pertaining to the commissioning
activities in a RFSU dossier arranged by system/subsystem. The RFSU dossier will
contain all information required to demonstrate that the Subsystem has reached the
RFSU stage.

3.19. TRAINING

The training of operations and maintenance personnel of Owner as stipulated in ‘Volume

6.1 Part 2: Job Instructions – Section 7 Training’ in the Contract will generally be the
guideline for developing and arranging the same.

Contractor will develop detailed training plans for the classroom based sessions and on-
job at Site. On-job training at site will be more of a practical nature and be aimed at
maintenance and operational staff. This training will be conducted largely by Seller
specialists and supplemented by Contractor personnel where appropriate. The scope will
be targeted towards complex equipment and packaged units, for example the
DCS/SIS/FGS/VMS, analyzers, compressors, special valves etc.

Contractor shall include Owner’s requirements for training by Suppliers in all relevant
requisitions, as optional scope.

The purpose of the training is that Owner acquires the ability to operate and maintain the
plant while achieving optimum performance, availability and reliability of the facilities.
The employees of maintenance, production and process engineering sections, including

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

Owner’s maintenance employees shall obtain a sound understanding of the equipment

on site prior to start-up.
Three groups shall be distinguished:

• Plant operation (production)

• Production support, process and process control engineers (engineering)
• Maintenance personnel and support engineers (reliability, maintenance)

In general the trainer can assume an audience with adequate proficiency and experience
in refineries or the process industry.
There are some common elements that shall be part of each Seller provided training:
- the lecture and material shall be in English.
- the trainer shall ensure proper interpretation of the drawings by the trainees.
- any service agreements shall be discussed with the maintenance employees.

Training shall be given at the premises of Owner. If the location is not suitable the Seller
shall find alternative accommodation. Training at Seller’s premises will require prior
approval from Owner.

Training by Technology Providers is not part of the Contractors Scope.

3.20. FINAL DOCUMENTATION INCLUDING AS-BUILT

The As-Built Drawings will be prepared as per the Owner requirements defined in the
‘AB’ column in the ‘Specification for EPC Documents requiring CLIENT’s Review’ (Doc.
No. S-000-5140-104 Rev. 1) in the Contract.

The Contractor’s Site team will keep a true and up-to-date mark up of drawings and
documents to reflect site comments/modifications and forward these to the engineering
offices after successful Commissioning of the system. The engineering office will
incorporate site modifications and issue necessary copies of as-built drawings and
documents as per Contract for COMPANY reference and record.

General Remark: Documentation and data shall be provided in the formats requested by
the owner as per the project specs and the data shall be compatible with the IT system
as per the Contract. It is considered that such IT requirements are covered elsewhere in
Contract.

3.21. PROJECT CLOSE-OUT

Contrcator will issue a formal project close out report at the end of the project,
incorporating details from all relevant discipline and groups.

General Remark: Lessons learnt session shall be conducted to capture project lessons

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

learnt

4. CONTRACTOR’S ORGANISATION

The Contractor will have a comprehensive Project execution organisation which will see
through the complete Project cycle till hand over/Final Acceptance.
Any change in the key personnel as identified in Appendix J of the Contract will be with the
approval of the Owner.

Project nominated personnel including key personnel are shown in the table below. Also
refer the Organograms attached to this Project Execution Plan document.

Position Nominated Personnel

Hyeuk Joon Kwon /
Executive Sponsors
S. Sankaran
Project Director Yong Sang Yi

Deputy Project Director Raffaele Foti

Project HSE Manager Jeong Hyun Ryu

IT Manager Dong Wook Seo

Mukeshkumar Sohanlal Gupta,

Project Manager
Srikantiah Nagaraj Srikanth
Noh Gyu (James) Park
QA/QC Manager
Sebastian Zeferino Fernandes
Dae Woo Lim, Duk Geun Ju,
Dong Hyun Kim, Hyun Gi Yoon,
Aniruddha Kumar Bose, Srinivas
Narasimhan Sundar Rajan,
Amitaabh Bhandari, Sanjay Nair,
Project Engineers / Area Manager
Srinivasa Suresh Kumar
Srirangam, Subbarao
Venkateshwarlu Jyesta, T.
Devaraj, Bhaveshkumar Dalubhai
Patel
Project Controls Manager Atul Mishra

Deputy Project Controls Manager Won Ji Yoon

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 Oman Refineries and Petrochemicals
Project Execution Plan
Company LLC.
S-000-5131-301
Sohar Refinery Improvement Project
Rev.0
Sultanate of Oman
Contract No. 21297
Job No : 120476 / JI-02022

Position Nominated Personnel

Engineering Manager Hee Kwan Yoon
Deputy Engineering Manager Sridhar Laxmanan
Project Procurement Manager Moon Duck Koh
Deputy Procurement Manager Adam Samuel Suryakumar
Head Office Construction Support
Kyung Hak Kim / Sanjib Bhadra
Manager
Site Manager Roy Hanks
Commissioning Manager Won Cheol Kim
Process Lead Engineers Dong Yun Song/ Srinivasa Rao
Ki Hyun Seong/ Vineet Ramesh
Piping Lead Engineers
Chandra Bhargava
Byung Seul Yoo/ Manjusha
HVAC/FF Lead Engineers
Deshpande
Civil/Structural/Architectural Lead Joo Myoung Kim/Hong Ki
Engineers Byun/Subrata Mukherjee
Sun Key Jeon/ Jayanarayanan
Static Lead Engineer
Sivarama Pillai
Goo Choong Jung/ Shyam
Rotating Lead Engineer
Gajanan Shirpurkar
Hee Duk Hong/ Sakkia Simmon
Electrical Lead Engineer
Vijayakumar
JowaHo Lee/ Hiren Champaklal
Instrument Lead Engineer
Upadhyay
Telecommunications Lead Engineer Gurcharan Jeet Singh
Mahmoud Mohamed Gamel
Metallurgy/Materials Lead Engineer
Abdul Hafez

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