This document summarizes the Oman EPC Projects Summit 2015, which focused on improving project delivery amid low oil prices. Key discussions centered around: - Establishing in-house FEED offices to better align operational and design aspects of EPC projects. - The importance of clear scope definitions, risk assessments, and project planning to facilitate successful transitions from FEED to construction. - Best practices for contracting strategies that incentivize safety, quality and minimize disputes between clients and contractors. - Evaluating offshore EPC risks particularly related to complex logistics, environmental requirements, and cost estimations during FEED.

1. OMAN EPC PROEJCTS SUMMIT 2015 SUMMARY AND RECOMMENDATIONS
"Oman EPC Projects Summit is extremely important, particularly now, when the world is faced with the
challenge of low oil prices. Oman EPC has created the platform whereby operations and service
providers can sit together to redefine their projects to ensure success within these new parameters.
Cost control is key in order to deliver projects as close to schedule as possible".
Mohammed Al Harthy, Former CEO, Oman Society of Petroleum Services (OPAL) and Chairman of
Summit Day One
Question asked to Leandro Cuberos, Corporate Functional Head of Project Services, PDO after delivering
his presentation on: ‘Defining key success factors for achieving best practice project management’,
What is the one thing that is important for EPC contractors to know when working with PDO?
Reducing the risk on contractors through EP + C contracts and how they select their project teams is
considered to be very important.
PANEL DISCUSSIONS SUMMIT DAY ONE
INTERACTIVE PANEL DISCUSSION: Improving the transition from FEED to EPC phase
 Defining which departments are essential or influential in the design stage from the client stage
 Evaluating the impact of awarding the FEED process to a consultant versus a contractor
 Examining the result of assigning a project management consultant (PMC) to interface with the
client and EPC Contractor
Panellists:
Madhu Pillai, Projects Director, Kentz Engineering and Vice President – International Regions, AACE
International
Haitham Mokhtar (CEng/CMarEng),, Senior Projects Engineer, ADMA-OPCO
Dipl.-Ing. Juergen Freisewinkel, Head of International Automation Solutions, Actemium
Moderated by: Mohamed Al-Harthy, Former CEO, Oman Society for Petroleum Services (OPAL)
Key points:
 With the drop in oil prices, it is critical to streamline and evaluate unnecessary costs
 Need to calculate value per staff member with a balance of experience versus new talent.
Evaluate skill-sets and move round organisation where they can add most value.
 Data management is very important in order to provide the opportunity to interpret it and
achieve value and reliable decision-making.
 Successful projects rely on the right amount of resource being available in the right place, at the
right time.
 The scope of work must be clear and defined.
PANEL DISCUSSIONS SUMMIT DAY TWO
INTERACTIVE PANEL DISCUSSION: Reviewing the impact of offshore E&P projects on Oman’s economy,
industry and environment
 What are key opportunities and challenges of developing offshore platforms?
 Could these projects impact the shipping industry and risk of terrorist threats?
 Will there be an impact on the environment and how can we minimise it?

2.  What lessons can be learnt from regional NOCs and EPC Contractors?
Panellists:
Akachidike Kanu, Facilities & Production Senior Engineer, Repsol, Spain
Haitham Mokhtar, C.Mar.Eng/C.Eng., Senior Projects Engineer, ADMA-OPCO
Ibrahim Fahmy (CEng/CMarEng), Senior Marine and Safety Specialist, ZADCO
Moderated by: Mohamed Al-Harthy, Former CEO, Oman Society for Petroleum Services (OPAL)
Key points:
 Opportunities for local contractors – installation and ancillary services. Offshore requires EPIC
contracts, I = Installation.
 Monitoring and maintenance is a challenge, technology is required and at the moment is
dominated by international players but there are plenty of asset management opportunities
coming up.
 Oman has deeper offshore requirements which require steep and narrow platforms enabled
through heavy and advanced equipment and experienced engineers.
 Offshore is double the investment.
 Transporting materials 100km offshore is a logistical challenge and the resourcing must be
carefully planned.
 Safety standards are very different in relation to the environment, this can be the difference
between which engineers can work onshore and offshore.
 UAE has learnt that lifecycle of platforms and equipment should be extended from 25 years to
50+ otherwise the number of modifications required to extend the life-cycle is cost prohibitive
and time consuming. This needs to be considered in the design phase.
 NOCs need synergy to standardise regulations, approaches and best practices.
INTERACTIVE PANEL DISCUSSION: Balancing the objectives of the EPC client and Contractor in order to
successfully achieve the project goals
 Summary of Round Table discussions A - D
 Understanding client goals, needs and requirements to align the offering and manage
expectations
 Determining what would help EPC clients to manage project risks
 Discussing what helps an EPC Contractor deliver projects more effectively
 Evaluating the impact of penalities and incentives in relation to contractor performance
 Examining development of contractor performance management systems
 Re-establishing alignment of contractor and client requirements
Panellists:
Sayee Raghunathan, Engineering Specialist, CSD, Saudi Aramco
Patrick Brady, Head of QA/QC - Qurayyah IPP, Hajr Electricity Production Company
Alex Haynes, Regional VP Business Development Middle East, Amec Foster Wheeler
Tarun Joshi, Organisational Development Manager, OCTAL Petrochemicals
Graham Taylor, Manager of Projects –EURMENA, WorleyParsons
Moderated by: Mohamed Al-Harthy, Former CEO, Oman Society for Petroleum Services (OPAL)
Key points:
 Risk should be put with the person who is best placed to manage that risk.
 Client and contractor must collaborate to resolve conflicts, compromise is key to negotiating a
settlement without involving the courts.

3.  A thorough and clear document keeping system is required in order to review and track
decisions and actions required throughout project.
 Penalties don’t motivate performance from the contractor, when scope definition is clear and
concise, both parties must take a pragmatic approach and consider splitting the difference.
 ICV and safety must be priorities and in order to ensure contractor wants to go above and
beyond, must set minimum KPIs, stretch targets and financial rewards in order to align behavior
with project/client goals.
 Collaborative culture can be driven by the client from the start.
SUMMIT DAY ONE ROUND TABLES
ROUND TABLE: Establishing an in-house FEED office to align operational aspects of EPC projects
Round Table Leader: Paul Bennington, Manager, PDO FEED Office, Petroleum Development Oman
(PDO)
Risk:
FEED variation – time!
High set-up costs
Relationship between contractor and company
Not cost effective for small companies
Consider scale of future portfolio of work
Opportunity:
Common platform for deliverables
Controls costs
Time saving
Hire dedicated estimation staff
ROUND TABLE: Viewstar ICS integrated solution for automation - Value of integrated engineering
through automation and SCADA
Round Table Leader: Dipl.-Ing. Juergen Freisewinkel, Head of International Automation Solutions,
Actemium

4. Full presentation can be reviewed on our website: www.omanepcprojects.com
Risks:
Access in time
Complexity of pipeline systems
Availability
Opportunities:
Environmental issues
Security
Reliability
Performance
Efficiency, back-up
Leak detection, leak localization
Information in time
Protect investment/assets
Predictions, training
Best practices:
Network – pipeline
Early involvement in design
Continuous monitoring
ROUND TABLE: Managing EPC project execution risks during front-end engineering and design (FEED),
construction and commissioning phases
Round Table Leader: Haitham Mokhtar, Senior Projects Engineer, ADMA-OPCO
RISK OPPORTUNITY BEST PRACTICE
FEED Scope creep
Contractor licence to
remain valid
Schedule estimation
Architect interface
Possible change with
minimum cost
Identify standards
Competitive FEED
Constructability reviews
FEED endorsement
Extensive FEED
Risk feasibility
HSEIA

5. EPC Poor cost estimation
Schedule estimation
Local legislation
changes
Poor FEED
Availability of historical
accurate data
Conflict with landlords
and getting proper
approval
Low oil prices
EPC contractor is FEED
contractor
Operators to listen to
contractor
Involve operations
Updated vendor list
LLI procured by
company
Laser scanning Q3D
models
COMM Poor EPC quality
Poor FEED
Operational changes
Non qualified team
Sudden travelling
requirements
Early involvement of
Comms team
Pre start-up audit
Commissioning pack
management
(system/sub system)
Availability of GOOD
commissioning
specialist
GENERAL Utilise all available
lessons learnt
Communication plan
Interface management
Updated vendor list
Phase to phase
communication
MOC (Management of
Change)
Document control
Early environment of
operations team
ROUND TABLE: Improving the quality of front-end planning by utilising a Project Definition Rating
Index (PDRI) as a risk management tool
Round Table Leader: Madhu Pillai, Projects Director, Kentz Engineering and Vice President –
International Regions, AACE International
Design XXXXXX 0.5
Planning XXXXXX 0.75
Cost XX 0.25
Risk XXX 0.25
It was agreed that planning and then design are the most crucial components in delivering projects.
ROUND TABLE: Exploring the impact of international quality standards on the outcomes of EPC
projects
Round Table Leader: Patrick Brady, Head of QA/QC - Qurayyah Independent Power Plant (IPP), Hajr
Electricity Production Company

6. RISK OPPORTUNITY BEST PRACTICE
PROFIT Not complying with
quarterly plan
Time schedule
Inadequate knowledge
when developing docs
Non specific
Lack of knowledge of
the system
Standardising
operations
Identifying waste
Simplification of
methods of work
Systemised work
practices
Tailor procedures to
specific projects
Thinking for themselves
Pre-audits and
continuation
KPIs
Line of defense
Follow procedures
Ensure procedure fits
purpose – validate pro
Combine with HSE
Report to highest level

7. Observations
Improve the company’s
performance
Identification of
problems at early stage
REPUTATION Integrity
Deep water horizon
Only as good as your
last job
Quality’s remembered
long after price’s
forgotten
Increased re-work
Reduces business
Regular audits and
system in place
Rules and
responsibilities
Repeat business
Increase in enquiries
Benchmarking
Other industries
STATUS V-V QA taken as a means in
itself as opposed to a
means to an end
Lack of understanding
of the costs of trade off
Robust QA Certification to ISO
9000
ROUND TABLE: Evaluating the feasibility of various client contracting strategies for the EPC Contractor
in Oman
Round Table Leader: Alex Haynes, Regional Vice President Business Development Middle East, Amec
Foster Wheeler
CLEAR OWNERSHIP
ALLOCATION OF RISK
ALL CONTRACTOR ALL CLIENT
LSTK EPCM E&P RR
Benefits:
Confirmed price
Defined Schedule
Can take advantage of low
price
Easier to mould the
contract to incentivize
quality, safety and ICV
Possibility to Convert to
You can control
Quality & Safety
Work with the
contractor in a
Partnership
Can control Quality,
safety and ICV
Needs to work as a
true partnership – so

8. Contractors better at EPC –
let the specialists do this
type of work. Let clients
focus on what they are
good at.
Clear Ownership
You need a PMC
LSTK once the project
risks and execution are
more defined
Ability to order LLI’s
early to assist schedule.
Bulks can be Lump
Sum.
You may need a PMC
Can drive meaningful
ICV
Ability to order LLI’s
early to assist
schedule.
Shortens the tender
process
Defined tender
packages for the
Construction scope –
can drive down costs
Time/Schedule delays
Cost?
E&P contractor can
convert to an IPMT.
involves more client
effort
Can cap man hours to
avoid over-
engineering if needed
Able to drive
innovation for a
project
Contractor can roll
into IPMT role in the
later stages
Short tender process
Issues and resulting behaviours:
Long tender process
Drives the contractor to
Variations or
Claims
Cutting corners on Safety
or Quality
Does not lend itself to
meaningful ICV
Short term solutions can
cause issues for Ops and
Maint for future years.
No control over quality of
resources
Long tender process
You are still open to
claims from
subcontractors.
Need a strong
interface team
between client and
contractors
Client management
increases – need a
large owners team
Silver plated
engineering risk
Control of Change can
be difficult in the early
stages
You are still open to
claims from
subcontractors.
No clear ownership
Risk of Increased man
hours
Risk of Cost increases
Can lead to Gold
plated engineering
Schedule risks
Needs a strong and
mature client team
Who owns the project
and responsibility? RR
mindset in the
contractor.
ROUND TABLE: CLIENT PERSPECTIVE: Responsibilities of client, project managers and contractors to
avoid disputes and claims in EPC projects
Round Table Leader: Tarun Joshi, Organisational Development Manager, OCTAL Petrochemicals

9. Full presentation can be reviewed on our website: www.omanepcprojects.com
Key points:
Remedy
Collaboration
Contract – use as a management tool
Records
Partnership
Periodic review
Improve capabilities of contracts
Trust
It was agreed that the ‘client’ is the most responsible for avoiding disputes, as opposed to EPC
contractor, project manager, FEED consultant etc.
The contract was considered to be the biggest issue for client, as opposed to internal problem, delays,
vendor rating, design, quantity, specification etc.
ROUND TABLE: Understanding how to deliver efficient project cost estimations to minimise risk and
deliver accurate cost expectations
Round Table Leader: Graham Taylor, Manager of Projects – Europe, Middle East & North Africa
(EURMENA), WorleyParsons

10. Key points:
Accuracy of information
Schedule – have
Incentives for cost savings
Gain share structure

11. OFFSHORE PLATFORMS FOCUS DAY
Phase 1: Evaluating EPC project risks during the front-end engineering and design (FEED) phase
• Considering the implications for delivering complex logistics and environmental requirements
• Evaluating technical issues and estimating a rough investment cost
• Avoiding significant changes during EPC phase by reflecting the objectives of the client and any
project-specific requirements within the FEED package
Session facilitated by: Akachidike Kanu, Facilities & Production Senior Engineer, Repsol, Spain
Phase 2: Ensuring best practice project management across the transition from the FEED to
construction phase
• Managing the FEED endorsement to detailed design transition
• Planning the procurement strategy in order to minimise delays within the installation phase
• Conducting a thorough risk assessment to mitigate potential hazards
• Preparing for the commissioning phase and handover to Operations
Session facilitated by: Haitham Mokhtar C.Mar.Eng/ C.Eng., Senior Projects Engineer, ADMA-OPCO
Phase 3: Determining effective construction methodologies for the installation phase
• Understanding the vessel type options and requirements for heavy lift equipment
• Mapping the procurement and supply chain path
• Developing the sequence procedures to minimise project delays and cost overruns
Session facilitated by: Ibrahim Fahmy, Senior Marine and Safety Specialist, ZADCO
Link to online video resource: https://www.youtube.com/watch?v=fuAPbA8JIMs