Scope of Work

Upstream Americas
Controlled Document
Sierra Blanca/Cruz de Lorena Early Production Facility
Scope of Work
Project
Sierra Blanca/Cruz de Lorena Early Production Facility
Document Title
Scope of Work
Document Number
SB-1000-VA-5793-0003
Document Revision
02
Document Status
Approved for Use
Document Type
Scope of Work
Owner / Author
James Alexander
Issue Date
03-Feb-14
Expiry Date
None
ECCN
EAR 99
Security Classification
Restricted
Disclosure
None
Revision History shown on next page
SB-1000-VA-5793-0003
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Revision History
REVISION STATUS
APPROVAL
Rev.
Date
Description
Originator
Reviewer
Approver
01
02
16-Dec-13
3-Feb-04
Issued for Review

Approved for Use
J. Alexander
J. Alexander
See Below
R. Elston
R. Elston
All signed originals will be retained by the UA Document Control Center and an electronic copy will be stored in Livelink
Signatures for this revision

Date
Signature or electronic
reference (email)
Role
Name
Construction
Pablo Deblassi/ Mike Hanson
Engineering
David Chapman/Duane Jubert/ Rajesh

Patwari/Noel Lee/ Neil Skulski/
Mohamed Askar/ Jim Lemaire
IM/IT
Stephen Brooks/Jonathan Trieu
Contracts and Procurement
Jeremy Turpin/Daniel Caranti
Quality
Wallace Hallum
HSSE/Technical Safety
Daniel Fagan/Melissa Velasquez
Project Services
Ron Windon/Melissa Morris/Emilie Cook
Operation Readiness/CSU
Roger Balke/Kevin Capone
Environmental
Gustavo Rosales/Richard Lewis
Project Delivery Arg
Javier Suarez/Claudia Zapiola
Project Delivery Hou
Rob Timmerman/Marc Villareal/Eddie

Murtagh/Daniel Marklin
APPROVER
Rob Elston
Summary
Scope of Work for Sierras Blancas/Cruz de Lorena Early Production Facility which is a subproject of
the SB/CdL Early Production System being executed by SHELL P&T Onshore Projects.
Keywords
SB/CdL Early Production Facility
Scope of Work
Revision 02
UA Upstream Americas
Proprietary Information: This document contains proprietary information and may not be partly or
wholly reproduced without prior written permission from SHELL Upstream Americas
SB-1000-VA-5793-0003
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Argentina, Sierras Blancas, Cruz de Lorena, Early Production Facility, EPF, Scope of Work
Scope of Work
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TABLE OF CONTENTS
EXECUTIVE SUMMARY .............................................................................................. 5
1.
PROJECT BACKGROUND .................................................................................. 7
2.
CONTRACTOR SCOPE OF WORK ..................................................................... 8

2.1. Engineering .............................................................................................. 9
2.2. Procurement............................................................................................ 17
2.3. Construction............................................................................................ 17
2.4. Mechanical Completion ........................................................................... 20
2.5. Flawless Project Delivery .......................................................................... 20
2.6. Commissioning and Start-Up Support ....................................................... 23
2.7. Permit Support ........................................................................................ 25
3.
SPECIFICATION GAP ASSESSMENT PROCESS ................................................. 26
4.
PROVIDED BY SHELL ....................................................................................... 27
5.
ADDITIONAL REQUIREMENTS ......................................................................... 27

5.1. Language ............................................................................................... 27
5.2. Units ...................................................................................................... 28
5.3. Software ................................................................................................. 28
6.
SCHEDULE...................................................................................................... 28
7.
INTEGRATED PROJECT CONTROLS ................................................................. 28

7.1. General .................................................................................................. 28
7.2. Project Controls Plan (PCP) ....................................................................... 29
7.3. Reporting................................................................................................ 29
7.4. Project Management of Change ............................................................... 31
7.5. Project Calendar ..................................................................................... 32
7.6. Integrated Project Planning ....................................................................... 33
7.7. Progress Management ............................................................................. 37
7.8. Cost Control............................................................................................ 39
8.
INFORMATION MANAGEMENT & DOCUMENT NUMBERING .......................... 41
9.
INTERFACE MANAGEMENT ............................................................................ 41

9.1. General .................................................................................................. 41
9.2. Communication between SHELL and CONTRACTORs ................................. 42
9.3. Communication between CONTRACTORs ................................................. 42
9.4. Meetings ................................................................................................ 43
9.5. Review & Comment and Approval ............................................................ 44
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EXECUTIVE SUMMARY
The Early Production Facility is a centralized pilot facility handling production from
Sierras Blancas and Cruz de Lorena Blocks. Nameplate capacity is 10,000 barrels of oil
per day (bopd), 8MMSCFD gas, and 1,000 barrels of water per day (bwpd). Oil will be
separated, stabilized, stored, pumped, and metered prior to entering the oil export line.
Gas will be separated, compressed, dehydrated, and metered prior to entering the gas
export pipeline. Water will be separated, treated, filtered, and stored prior to being
injected into a nearby water disposal well. The scope of the EPF begins at the outlet of
the Gathering System and ends at the inlet of the export pipelines which will be a predefined surface flange near the edge of the EPF for oil and gas and at the flange of the
wing valve on the water disposal well.
Included in the scope of the EPF:
Civil Earthworks for EPF and access roads including civil engineering and design
All surface production and measurement equipment (separators, chemical

injection, heaters, air coolers, instrumentation, control systems, programming, etc)
including requisite supports
Compressors with foundations (per geotechnical recommendations)
Oil and Water Storage Tanks including foundations
LACT (Lease Automatic Custody Transfer) Unit
Gas export meter
Interconnecting pipe work including pipe supports and anchors
Interconnecting cabling and wire including supports and grounding
Water Treating, filtration, and pumping equipment
Water disposal piping and instrumentation from EPF to Water Disposal Well
Fencing around Water Disposal Well Pad
Solar Power at Water Disposal Well Pad
Local power generation including load calculations
Firewater system
Storm Water Management
Roadways within site
Control Room and Accommodation Buildings
Site perimeter fencing
Surface instrumentation on water disposal well head
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Onsite Communication Tower(s) for SCADA and IT from remote well pad facilities
Closed Circuit Televisions (CCTVs) for monitoring of remote well pad facilities
Installation in accordance with applicable codes and standards
Commissioning and Start-Up Procedures/Manual including first fill calculations
Equipment systemization for startup (start up sequence with accommodations for

start up, i.e. temporary fuel, temporary power, method for first fills,)
Commissioning and startup spares
Operating spares for 2 years
Operating procedures
Black Start procedures
Commissioning and Start-Up Support
Permit application support
Excluded from the scope of the EPF:
Land Acquisition
Disposal Well and Well Head
Operations
Chemicals and diesel first fills for facility equipment
National, Provincial, and Municipal Permit applications
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PROJECT BACKGROUND
SHELL has interests in three onshore blocks in the Neuqun region of western Argentina as
shown in the figure 1 below:
Figure 1. SHELL Interests in Argentina
Aquila Mora - 42,000 acres

Cruz de Lorena (CdL) - 39,000 acres
Sierras Blancas (SB) - 41,400 acres
Exploration and appraisal wells have begun to be drilled and are being produced utilizing
temporary well pad equipment. However, flaring of gas and trucking of crude oil for long
periods of time is not aligned with SHELLs Onshore Operating Principles. Hence it was
decided to progress an Early Production System (EPS) that would enable sustainable
production. A schematic of the full EPS and how the EPF fits in is provided below.
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Figure 2. Representative EPS Layout
2.
CONTRACTOR SCOPE OF WORK
CONTRACTOR Scope of Work consists of all Engineering, Procurement, and Construction

as well as associated Project and Construction Management requisite for the successful
operation of the Early Production Facility in accordance with Early Production Facility
Basis for Design Part I EPF-MFPM-AA-7704-000-0001-000 Revision 03 and Part II EPFMFPM-AA-7704-000-0001-000 Revision 03.
Prior to submitting Proposal, CONTRACTOR is expected and required to be familiar with
general conditions of the site including terrain, climate, road accessibility, soil variability,
etc. In addition, CONTRACTOR is required to be well versed in all local legislative and
regulatory requirements including those applicable to local content requirements,
employment laws, and unions.
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CONTRACTOR shall validate concept design information provided by SHELL and is

encouraged to recommend alternatives to reduce cost and/or improve schedule while
maintaining the same functionality such as that for Water Treating.
2.1. Engineering
CONTRACTOR shall perform requisite engineering and design in accordance with
applicable codes, standards, best design practices, and SHELL mandated DEM1
requirements.
Design shall mature in progression from Concept as proposed by SHELL to a Final
Engineered Design by CONTRACTOR with requisite review and approval by SHELL.
Reviews shall consist of document & drawing reviews (2D), 3D Model Reviews,
Constructability Reviews, Hazard & Operability (HAZOP) reviews, and Pre-Start-UP Audit
(PSUA) reviews as described below. Formal document reviews shall be submitted to
SHELL via Document Control.
2.1.1. Document and Drawing Reviews
The following documents and drawings delivered as part of CONTRACTORs Scope shall
be reviewed and approved by SHELL as noted. Documents requisite for other activities
(i.e. HAZOP & Permitting) is also indicated.
Define
ID #
Execute
ID #
Required for
Permit
Application
Document Name
Required for
HAZOP
Approved
by 1-Nov14
Issued for
Review by 1Nov-14
IFC
Project Management
338
Project Execution Plan
1517
Derogations and Deviations Log (Standards)
331
Constructability Report
179
CP Execution Plan, incl Project Category Plan (CPEP)
346
1417
399
Project Organisation incl. roles, responsibilities, resourcing and

onboarding plan
Risk Management Plan & Risk Register
406
1258
Interface Management Plan
395
462
Project Schedule - Level 3
Health, Safety, Security, Environment & Social Performance (HSSE & SP)
1615
1620
Construction Contractor's HSSE Management Plan
1613
457
Emergency Response Plan
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Define
ID #
Execute
ID #
1616
1621
Construction HSSE Readiness Review Report
1413
449
Process Safety Review (eg HAZOP)
Restricted
Required for
Permit
Application
Document Name
Required for
HAZOP
Approved
by 1-Nov14
Issued for
Review by 1Nov-14
IFC
x
Project Services
1387
Project Specific Cost and Schedule Procedures
1628
Schedule Basis Report
1404
Project Controls Plan
Management Of Change Plan
1404.1
Quality Assurance
591
1433
Project Quality Plan (inc FATs & licensor reviews)

Logistics
355
Logistics and Infrastructure Project Execution Plan
Process Engineering & Technology

242
1213
Process Flow Schemes (PFS)
1497
1242
Equipment Listing
241
Process Safeguarding Flow Schemes (PSFS) and Memorandum
251
655
GHG (Greenhouse Gas) and Energy Management Plan
243
1214
Process Engineering Flow Schemes (PEFS/P&IDs)
x
x
249
1211
Relief, Flare and Vent Study Report
420
Heat and Material Balance Report -Final
Mechanical, Materials, and Integrity

298
Corrosion Inhibition System Design & Test Proposal
298.1
Functional Specification for the Corrosion Inhibition system
298.2
Corrosion Inhibition Test Proposal
298.3
Establish Chemical Test Requirements
298.4
List of pre-qualified corrosion inhibitors
298.5
Specify/initiate corrosion inhibitor testing
298.6
Select hydrotest chemicals.
302
267
488
Welding & Weld Inspection Specifications
1219
Tie In List & Schedule - Final
487
Vibration Assessment Report
1247
Plot plans/ Mechanical General Arrangement Drawings/ Facilities

layout report
269
HVAC Design Report
270
Mechanical Static Equipment Data Sheets and Specifications
x
x
Scope of Work
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Define
ID #
Execute
ID #
1411
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Required for
Permit
Application
Document Name
Required for
HAZOP
Approved
by 1-Nov14
Materials and Corrosion Data Sheets and Specifications
1411.1
Produce required materials specifications
1411.2
Produce required coating specifications
1411.3
Produce required cathodic protection specifications
1411.4
297
297.1
Produce other material and corrosion integrity associated

equipment specifications
Materials Selection Report
Consider all type of deterioration

Consider design temperature and maximum operating
temperature
297.2
297.4
Review interactions between chemicals and materials
300
Corrosion Management Framework
Issued for
Review by 1Nov-14
IFC
300.1
Execute Failure Mode and Effects Analysis.
300.4
Include erosion and sand handling.
x
Electrical Engineering
238.1
1426.5.1
Electrical Bldg Layout
238.2
1525
238.3.2
1426.5.2
Electrical One Line Diagram

Cable Routing Layout
1426.5.4
Lighting & Receptacle Layout
1426.5.5
Grounding Layout
1426.7
Panel Layout & Wiring Diagrams
1426.8
Electrical Schematics & Connection Diagrams
1426.9
Electrical Heat Trace Drawings (if applicable)
1426.10
Electrical Installation Details
1426.11
Cable Schedule
1452.1
Protective Device Settings (Breakers & Relays)
283
1426.3
Electrical Equipment Data Sheets and Specifications
278
1249
280
1426.1.2
245
1217
1399.1
x
x
Electrical load list - Incl. Efficiency Column
Electrical Power and Protection System Study
Hazardous Area Classification Drawings
Process Automation Controls and Optimization (PACO)

1642
1452
Telecoms Systems Design Package
1641
1634
Alarm Management Design Package
1639
1498
Instrumentation Design Package
667
Process Control Design Package
Scope of Work
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Required for
Permit
Application
Define
ID #
Execute
ID #
257
1209
Instrumented Protection Systems and Fire & Gas Design Package
683
Process Control Detailed Design & Construction Package
684
Surveillance, Metering and Allocation Detailed Design &

Construction Package
Document Name
Issued for
Review by 1Nov-14
IFC
Required for
HAZOP
Approved
by 1-Nov14
Rotating Equipment
1398.9
Compressor surge control and protection
275
Rotating Equipment Data Sheets and Specifications
273
Rotating Equipment Type Selection Report
Utilities, Energy, and Heat Transfer

1390
1435
Utility Flow Schemes (UFS)
1391
1449
Utilities Engineering Flow Schemes (UEFS/P&IDs)

Utilities and Heat Transfer Equipment Data Sheets and
Specifications
1412
Civil, and Structural Engineering

289
1220
Site Master Plan / Facilities layout
238.504
Buildings, structural steel, and concrete design
238.505
Foundations design
238.506
Drainage & Primary Treatment Report
238.509
Underground cabling and piping design
238.512
Construction camps
238.513
Temporary facilities
238.514
Onshore site preparation
238.516
Roads, paving, and fencing
288
Off Plot Civil Logistics/Infrastructure Requirements
x
Pipelines
Maintenance and Integrity

1524
332
Spare Parts Strategy

486
Reliability, Availability and Maintainability Report addressing

sparing, RRM and turndown
Information Technology (IT)
Information Management (IM)

1643
1637
IM Scope of Work and Information Specification
Scope of Work
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Define
ID #
Execute
ID #
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Required for
Permit
Application
Document Name
Required for
HAZOP
Approved
by 1-Nov14
Issued for
Review by 1Nov-14
IFC
Production Operations
414
1453
Alarm Catalogue
440
Operating Procedures
431
Commissioning and Start-up (CSU) Plan
Miscellaneous
Vendor document requirement list
Handling & shipping plan procedures
Preservation Plan and procedures
Drafting Standards
Drawing title block
* A list of descriptions for above deliverables can be found in Appendix I.

Supplementary Documents.
2.1.2. 2D and 3D Model Reviews

CONTRACTOR shall conduct 30%, 60%, and 90% 3D Model reviews to afford the SHELL
and CONTRACTOR teams to remain aligned and identify potential concerns which are
best demonstrated via a visual representation of planned layouts. 2D drawing reviews
shall occur prior to 3D model reviews. Meeting minutes of the review shall be captured
including an action list, action owners, and time to complete.
30% Model Review
The focus of a 30% model review is on accessibility, safety, layout, ergonomics and
constructability. At a minimum, the items listed below should be included in the 30 %
model review:
Location and orientation of all equipment including future
Designated areas for Pipelines, launchers, receivers
Structures (steel and concrete inclusive fire proofing)
Containment Areas
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Electrical generators location
Plot determining piping, electrical corridors
Main access ways / operational access;
Major piping and pipeways that influences equipment positions;
Concrete slabs, paving and roadways
Packaged unit location and orientation
Escape routes (on grade and elevation)
Pipe racks and main pipe support structures
Outline of underground electrical and instrumentation trenches
Main electrical and instrumentation cable trays / racks
Laydown areas
Mobile crane aprons (based on available cranes and on lifting study)
Major Equipment
Fencing
Restricted
60% Model Review

The focus of a 60% model review is on engineering. The 60 % model review shall be
carried out and closed out prior to issuing the piping isometrics for construction. At a
minimum, the items listed below should be included in the 60 % model review:
Closed out actions resulting from the 30 % model review
All other piping largely completed
Ladders, stairs and platforms
Platforms for valves and equipment and operation
Secondary steelworks and bracing
Eyewash and safety shower locations (per applicable regulations)
Pipe supports locations and types
Local operation panels
Instrument transmitters and outlines of junction boxes, secure instrument air vessels;
panels and cabinets inclusive stands, safety critical sensors / switches
Electrical equipment such as outdoor switchracks and panels
Aboveground instrumentation and electrical tray routing.
Package units (if any)
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90% Model Review

This revision is intended to be a confirmation of the results of the 60 % model review and
prepare for construction readiness. The model shall be completed to include:
Closed out action items from 60% review
Any late or special items;
Any change since the previous reviews;
All remaining piping.
2.1.3. Constructability Reviews

CONTRACTOR shall perform Constructability reviews to ensure constructability issues and
concerns are addressed as early as possible during design development. CONTRACTOR
may choose to combine these reviews with other reviews (i.e., 2D, 3D, other).
CONTRACTOR, along with representation from the SHELL Team, shall perform
Constructability reviews to ensure constructability issues and concerns are addressed as
early as possible during design development. Contractor may choose to combine these
reviews with other reviews (i.e., 2D, 3D, other).
Proposed Constructability Review Schedule:
Pre-Constructability Review - Frame Construction Strategy & Deliverables
o HSSE considerations
o Application of modules
o Procurement strategy
o Equipment inspection and release
o Logistics
o Draft plot plan
o Opportunities for modularization
o Equipment list and BOM with division of roles and responsibilities
o Contracting strategy
o Construction input for project execution strategy and project implementation
plans e.g. risks,
o Initial project schedule and estimate considerations
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o Document distribution matrix
Initial Plot Plan Review
o Develop project specific plot plan with equipment lay out, lay down area,
trailer area, muster area, smoking area
o Consider terrain and define special logistic requirements
o Division of shop and field activities
o Construction equipment consideration
30% Model & Constructability Review
Prior to construction mobilization and the execution of any field activities, CONTRACTOR
must be able to demonstrate that they are ready to proceed with construction. This
involves verification that management systems are in place, adequate planning has been
conducted, procedures and training requirements are completed, and that the
construction hazards have been adequately evaluated and controlled. These activities
should be accomplished through a series of formal Construction Readiness Reviews (CRR)
as outlined below.
Construction Readiness Review Schedule:
60 Day Construction Readiness Review
30 Day Construction Readiness Review
7 Day Go / No Go Construction Readiness Review
After Action Review / Lessons Learned
2.1.4. HAZOP Reviews

CONTRACTOR shall host a Hazard and Operability (HAZOP) review for the Early
Production Facility. This review shall consist of a SHELL Facilitated session focusing on
Asset Integrity, Process Safety, and Operability risks and will be attended by
CONTRACTOR staff and SHELL representatives. CONTRACTOR shall be responsible to
close out and incorporate all HAZOP findings as appropriate and agreed by SHELL into
the design of the EPF.
SHELL will not accept facility at Handover until all
recommendations have been closed.
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Prior to HAZOP, the 60% design review should have occurred to eliminate the possibility
of the HAZOP becoming a design review.
2.2. Procurement
CONTRACTOR shall comply with all applicable local content legislation within the region
of Neuqun and in particular, Ley N2755: "Compre Neuquino".
CONTRACTOR is responsible to procure and pay for all requisite labor, material,
equipment, goods, and services required to perform all phases of work. CONTRACTOR
must have written approval from authorized COMPANY representative prior to placing
any Purchase Order (P.O.) to vendors or SUBCONTRACTORS.
Importation and associated customs payments of material, equipment, and/or services
procured from outside Argentina is the responsibility of CONTRACTOR
SUBCONTRACTORs are required to meet SHELLs Safety Requirements.
CONTRACTOR shall provide a complete Vendor Document Requirement List for approval
for major equipment prior to procurement. In the event CONTRACTOR does not have a
VDRL, SHELL can provide.
Although not mandated, Emerson is preferred for instrumentation.
2.3. Construction
Construction shall be in accordance with the approved Issued for Construction (IFC)
Drawings and Specifications.
CONTRACTOR is responsible to provide all labor, equipment, and supervision required
to perform work. This includes but is not limited to bull dozers, scrapers, cranes, forklifts,
onsite material storage, power tools, welding machines, welding rods, fuel, power, water,
toilets, trash bins, structural steel, rebar, concrete, silt fencing, geotextile fabric, gravel,
paint, consumables, etc.
In addition, CONTRACTOR is responsible for any temporary facilities and infrastructure
required to perform work, site security while under the care of CONTRACTOR, and waste
removal during construction. Site shall be kept clean and orderly during the course of
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construction and all debris and waste shall be removed prior to completing of Project.
Waste disposal shall be in accordance with all laws and regulations.
Contractor shall provide temporary service for cell phone and internet (WiFi)
connectability at location from beginning of construction until Handover to Operations.
2.3.1. Civil Earth Works
CONTRACTOR is responsible for
Access roads to site
Clearing and grubbing site
Storing top soil, per applicable laws
Leveling site including compaction
Drainage in accordance with applicable laws and regulations
Surfacing, Leveling, Compaction and Drainage of plot space and roads
Tank Containment with 1000 micron thick HDPE liner & sump
Signage
Quarry Control, if required (Contractor shall provide all the Documentation that SHELL
requests concerning Quarry Permits)
2.3.2. Civil/Structural/Architectural
Installation of shallow and deep foundations
Fabrication and installation of racks and miscellaneous supports
Fabrication and installation of buildings and any structures
Stairs, platforms, walkways, cross-over stiles, etc
Windsocks, bollards, and barricades
Signs (as per applicable codes and standards)
Perimeter fencing and gates with minimum standards as per ASTM requirements
Control Room and accommodations
2.3.3. Mechanical
Shop and/or field fabrication for interconnecting pipe
Installation of all equipment, interconnecting pipe
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Installation of underground piping & associated mechanical integrity per design
Installation of field erected tanks
Painting
Integrity testing of installation
2.3.4. Electrical and Instrumentation

Installation of all instrumentation and electrical equipment
Installation of electrical generation and distribution equipment
Developing and installing arc flash and shock hazard labels
Installation of telecommunication tower
Installation of tubing, cables, wires, and grounding
Installation of SCADA system including RTUs, HMI, VSAT
Installation of IT Systems including CCTV and VSAT
Inspection & testing of electrical equipment per NETA ATS or equivalent requirements
Installation of area lighting
Programming validation including early system interconnectability (ensuring the

processors communicate with each other)
Calibration of instrumentation
Point to Point Testing
Loop Testing
2.3.5. Quality Assurance/Quality Control

NOTE: All changes to IFC drawing shall be supported with an approved MOC.
CONTRACTOR is responsible for and to provide all documentation in a binder for
Non-Destructive examination
Hydrotesting
Continuity Checks
Loops Checks
As-Built drawings for P&IDs, One lines, wiring diagrams, Cause & Effect, Plot Plan
As-built Plot Plan showing all buried piping, cabling, tubing
Material Test Reports and Certifications
Welding Operator Qualification Records
Welding reports
Scope of Work
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X-Ray Reports
Weld Map for High Pressure Flowline
Proctor testing
Electrical equipment inspection and testing including records of results
Restricted
2.3.6. Material Management

CONTRACTOR is responsible for Material Management in terms of storage, preservation,
and tracking of items procured by CONTRACTOR.
2.4. Mechanical Completion
Mechanical Completion is defined as the time at which all checks and tests of all
equipment and construction (mechanical, electrical, instrumentation, & civil) are complete
confirming that the installation is in accordance with drawings and specifications and
ready for commissioning in a safe manner and in compliance with project requirements.
A punch-list of non-safety critical items shall be created by CONTRACTOR and followed
to closure.
CONTRACTOR shall provide a Certificate of Mechanical Completion stating the work is
complete in accordance with the approved Issued for Construction drawings and
Specifications.
2.5. Flawless Project Delivery
Typically, over two thirds of projects in Oil, Gas and Petrochemical industries experience
costly interruptions during the Commissioning, Start-Up (CSU), and Initial Operation
phases of the facility. Flawless Project Delivery (FPD) is essentially a risk mitigation
program focusing on a number of high risk or Quality areas (Q Areas) for the
Commissioning & Start-Up. These risks are referred to as Flaws.
A Flaw is a learning that falls in a Shell defined Q-Area and is a deficiency or failure
which, if not remedied will manifest itself mostly during Commissioning and Start-up
phases in deferred production, loss of HSE control, delayed schedule, or additional cost.
Flaws are mostly of a technical nature and result mostly from failures, e.g. poor design,
poor equipment specification, construction practices and/or lack of appropriate QC and
testing during procurement & execution activities.
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Shell has a Global Flawlist which has been developed based on the experiences from
previous projects and are to be used as input in developing the project-specific Flaws list
for this project.
CONTRACTOR shall incorporate FPD into their work plans by assigning focal person to
coordinate plans with the support of SHELL to develop and achieve delivery of a
flawless project.
CONTRACTOR shall schedule time and provide the resources to implement the following
5 Q-Area activities outlined in the table below.
QArea
Q-Area
Q-Area definition
Tightness
Tightness of all components in a system is essential for a Right

First Time start-up. Tightness of a system has two elements:
external and internal tightness.
#
Q01
External tightness focuses on the leak free operation of all system

connections including flanges, caps, clamps, manholes, pump
casings, compressor casings, instrument fittings and all other joints
that require sealing for operation of a system.
CONTRACTOR shall
1) Ensure correct bolt tightening method is being followed.
(manual, torque wrench or hydraulic tensioning, correct sequence)
2) Check that lateral and parallel flange alignment is correct ( as
per specification)
3) Verify correct gaskets are being used, installed gasket color
coding is visible and gasket dimension is correct.
Q02
Cleanliness
&
Preservation
Cleanliness of a system is essential for a Right First Time start

up. Emphasis shall be placed on building a clean plant.
All equipment shall be preserved at appropriate moments in
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Q-Area definition
#
different execution phases.
CONTRACTOR shall
1) Secure vessel and pipe openings
2) Installation methods for final internal inspection
3) ensure nothing is stored in pipe or equipment
Q3c
Mechanical
Rotating
Integrity
Ensure that Mechanical Rotating Equipment performs as per the

original Design Intent for all Operating Modes.
It typically addresses: bearing/coupling/complete failures,
excessive vibration and noise, seal/flange/casing/lube oil
leakages and failures, unauthorised deviations from PO
documents,
incomplete/incorrect
mechanical
installation,
cleanliness/fouling/corrosion/erosion, preservation
CONTRACTOR shall
1) Ensure excellence in workmanship with regards to
compressor and pump alignment, along with associated
piping.
Q3d
Instrumentati
on Integrity
Ensure that all control and safeguarding systems, including their

field instrumentation, perform as per design intent, both in static
and in a dynamic mode.
It typically addresses problems with: process control, (field)
instruments, online and in-line instrumentation, analysers, DCS,
IPS, Data Historian, and 3rd Party Instrument Systems.
CONTRACTOR shall
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1) Verification of processor
systems and packages
communication
between
2) Clear instrument calibration requirements including

alarm and trip settings
3) Programming aligns with field devices and termination
location (loop terminations and programming match)
4) System operates in a fail safe mode
Q3e
Electrical
Integrity
Ensure that the electrical systems and components, e.g. power

supply, UPS, network distribution (e.g. ENMCS), motor control
systems (e.g. IMCS) correctly function.
CONTRACTOR shall
1) Ensure Generator capacity is adequate (load study,
account for VDF filtration, etc.)
2) Verify Grounding is consistent between packages
(solid/high resistance)
3) UPS is available on all control and monitoring systems
(instrumentation, PLC, HMI, etc.)
2.6. Commissioning and Start-Up Support

Commissioning and Start-up will be performed by SHELL. CONTRACTOR shall work with
SHELL in developing a Commissioning and Start-Up Plan as well as any training
requirements.
CONTRACTOR is responsible to provide requisite documentation,
document creation support, and actual field support.
CONTRACTOR is required:
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To provide and facilitate the formation and identification of vendor resources for startup activities.
To provide required information for the decision-making, application and regulatory

processes.
To provide guidance to address known and unknown project flaws that materialize
during pre-commissioning, commissioning and start-up.
To provide reference manuals for all associated equipment
To provide a notebook that will contain as-built P&ID's on a system by system basis,
partial commissioning check lists, instrument loop check list, rotating equipment
mechanical run log sheets, vibration and bearing temperature logs, PSV calibration
certification certificates and the control loop checks lists, operational pressure tests,
U1A forms, Factory Acceptance Test (FAT) and Site Acceptance Test (SAT)
documentation, instrument detail, electrical detail.
i. Mechanical Completion Definition and Scope
ii. Pre-Commissioning Scope
iii. Commissioning Scope (Safety Check, System Commissioning)
iv. System Boundary Limits (sub/system and discipline boundaries)
v. Electrical and Instrument circuit/loop Inspection and Test Plan
vi. Mechanical Completion and Pre-Commissioning Verification and Punch
Listing
vii. Punch list Management
viii. Mechanical Completion Files
ix. Commissioning Files
x. FAT Inspection Documentation:
xi. Initial start-up procedures
In developing the above, the following Engineering Documentation Requirements and

References will be included:
i. Electrical area classification drawings and register
ii. One-lines/Wiring & schematic diagrams/Cable & panel schedules
iii. Electrical equipment settings (VFDs, UPS, Breakers, Relays, Generators)
iv. Power Systems Study
v. Instrument Indexes with calibration ranges and alarm/trip set points
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vi. Piping Line Lists (including Pipe Class)

vii. Marshalling Box/Junction Box Schedules
viii. Vendor Lists
ix. Vendor Manuals including all vendor documents/drawings, CONTRACTOR
CSU and Operating Manuals
x. Commissioning Spares Lists
xi. Valve Lists
xii. Cause and Effects Charts
xiii. Trip Register/Schedule
xiv. System P&IDs
xv. HVAC P&IDs
xvi. Schematic Diagrams for Piping
xvii. Isometric drawings
xviii. Tagging Spreadsheets
xix. Equipment Data Requisition Sheets
xx. Engineering Details (I&E, mechanical, civil, structural etc)
xxi. Underground Drawings
xxii. Control Narrative
2.6.1. Final Handover Package
CONTRACTOR shall provide a Final Handover Package consisting of all Engineering
Deliverables updated per As-Builts. One (1) hard-copy shall be provided in a notebook
and an electronic copy shall be provided with indexes in PDF.
2.7. Permit Support
SHELL will prepare, apply and obtain all national, provincial, and municipal permits
requisite for the construction and operation of the EPF. CONTRACTOR shall provide
Permit support to SHELL via generating required design documents and assisting with
answering clarifying questions as the need arises. Documents identified as being
required for Permitting shall be brought to sufficient detail and Issued for Permitting
within 60 calendar days from Contract Placement. Contractor shall share all knowledge
of required permits in the region along with common issues or concerns with obtaining
permits.
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SPECIFICATION GAP ASSESSMENT PROCESS
SHELL will take the approach of utilizing CONTRACTORs standards for engineering and
construction with the following caveats to ensure Asset Integrity and Process Safety is
intrinsic to the design:
All applicable codes and standards mandated by legislative and/or regulatory

bodies will be followed without exception
SHELLs Design Engineering Manual (DEM)1 (SHALL[PS]) requirements that are

code requirements and/or applicable and value adding will be used
All of SHELLs applicable DEM2 requirements will be met which consists of

o Safe Siting of Occupied Portable Buildings from process systems
o Utilizing a Permit to Work Process
o Utilizing a Management of Change Process
o Avoiding liquid release relief to atmosphere
o Avoiding tank overfill followed by vapor cloud release
o Avoid brittle fracture of metallic materials
o Utilize Alarm Management
o Mitigation plan for H2S
Hence, non-DEM1 SHELL Design Engineering Practices (DEPs) will not be provided to
CONTRACTOR to follow unless CONTRACTOR does not have a standard of their own to
follow. In that event, the DEP will be followed on an as convenient basis in which
variances to standards in those DEPs that are not followed are not documented. NonProcess Safety Shalls (i.e., lower case shalls) in DEM1 DEPs that are not followed will not
be formally varianced.
To ensure CONTRACTORs Standards meet SHELLs ALARP (As Low As Reasonably
Practicable) aspiration for technical safety, a gap analysis will be performed to identify
any potential gaps between CONTRACTORs Standards and SHELLs applicable DEM1
requirements. A list of applicable DEM1 and DEM2 requirements has been generated
and will be provided to short listed CONTRACTORs to identify potential gaps as well as
identify cost and schedule implications to implement.
Short listed CONTRACTORs will be requested to indicate if their standards meet the
DEM1 requirements which will be validated by the applicable Technical Authority (TA) in
SHELL.
In the event CONTRACTORs Standards do not comply with an applicable DEM1
requirement, the deficiency will be evaluated within the context of how else the risk may
be mitigated (i.e., other barriers such as operating procedures, different hardware, etc).
If an acceptable alternative risk mitigation is identified, the DEM1 requirement will be
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derogated with the approval of the applicable TA1. In the event an acceptable
alternative risk mitigation is not identified, CONTRACTOR will be required to meet the
DEM1 requirement and requested to provide a Cost and Schedule impact.
Only after the resolution of the gap analysis along with a full understanding of the cost
and schedule impacts associated with the mandated DEM1 requirements will the contract
with CONTRACTOR proceed.
Once finalized, any variation from the approved Specifications and Standards
(CONTRACTORs or SHELLs) will be required to go through the Project Change
Management Process for approval by the applicable Technical Authority to ensure Asset
Integrity and Process Safety is never inadvertently compromised.
4.
PROVIDED BY SHELL
The following documentation is provided to support CONTRACTORs Engineering,

Procurement, and Construction efforts.
Technical
Early Production Facility Basis for Design Part I: EPF-MFPM-AA-7704-000-0001000 Revision 03
Early Production Facility Basis for Design Part II: EPF-MFPM-AA-7704-000-0003000 Revision 03
EPF Site Plan: SB-1000-MP-4024-0001 Revision 01
EPF Access Plan: SB-1000-MP-4024-0002 Revision 01
Geotechnical Report To be provided later
Interfaces
Pipeline Tie-In Locations (To Be Determined)
Launcher and Receiver Locations (To Be Determined)
SCADA requirements for remote well pads (To Be Determined)
5.
ADDITIONAL REQUIREMENTS
5.1. Language
The primary language for this Project and its documents will be English with Spanish as
Secondary except for Permit Documents in Argentina which are required to be in
Spanish. Operating manuals are required to be translated into Spanish once approved.
In the event there is a conflict between English and Spanish, English will prevail unless
explicitly noted otherwise contractually. Notes and Comments on drawings will be noted
in English and Spanish.
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5.2. Units
Units will be SI Units. Double notation with US Customary Units is not required and will
not be used unless absolutely necessary. Units typically expressed in US Customary Units
(i.e., nominal pipe size, flange ratings, etc) will not be converted to SI.
5.3. Software
SHELLs preferred software tools are listed below.
CONTRACTOR must be approved by SHELL.
Alternatives proposed by
Reporting Microsoft Office
Scheduling Primavera P6 or Microsoft Project (with approval of SHELL)
2D Computer Aided Design AutoCAD 2012 or older
3D Computer Aided Design AutoDesk Plant 3D
Process simulation UniSim / HYSYS
Pipeline hydraulics OLGA / PipeSim / ProMax
Power Systems Analysis SKM Power Tools for Windows ver 7.0
6.
SCHEDULE
SHELL has developed an overall Project schedule in which CONTRACTORs schedule is

required to adhere. Proposals for schedule improvements based on CONTRACTORs
ability to implement faster will be considered. Work shall commence with a kick-off
meeting between SHELL and CONTRACTOR that will take place approximately 1 week
after placement of Purchase Order and it is anticipated for the Early Production Facility to
be mechanically complete approximately 52 weeks later, subject to changes in the plan
approved by SHELL and/or events and conditions beyond CONTRACTORs control.
7.
INTEGRATED PROJECT CONTROLS
7.1. General
7.1.1. Introduction
It is the intent of SHELL that project controls (related to project estimating, reporting and
forecasting of cost and schedule and risk management) will be executed using
CONTRACTOR standard processes/procedures as documented in CONTRACTORS
Project Controls Plan (PCP) submitted by the CONTACTOR based on EXECUTION PLAN
and PROGRAMME. These systems, tools, processes and procedures must satisfy the
project control requirements and principles as specified in this Section. CONTRACTORS
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PCP, and supporting procedures, are subject to approval by SHELL. Where

CONTRACTOR PCP and Project Controls processes and procedures do not meet
COMPANY requirements CONTRACTOR will amend their processes/procedures to meet
these requirements.
7.1.2. Project Controls
CONTRACTOR will be fully responsible for implementing Project Controls (relating to
project reporting, cost, schedule, risk management) for the WORK. The provisions of this
Section specify the minimum requirements for Project Controls on the WORK.
SHELL and CONTRACTOR agree that Project Controls shall be carried out on the basis of
the processes and procedures as set out in the Project Controls Plan (PCP) prepared by the
CONTACTOR.
7.2. Project Controls Plan (PCP)
CONTRACTOR shall detail the Project Controls processes and procedures applicable
for the WORK in the Project Controls Plan (PCP). PCP is to set out CONTRACTORs
methodologies, processes (including interface and management of sub contractors),
staffing of the Project Controls organization (including number of positions and
equivalent number of people phased over time) and the systems that CONTRACTOR
shall implement consistent with the provisions of the CONTRACT.
In preparing the PCP, CONTRACTOR shall take account of and comply with SHELLs
project control requirements and principles as specified in this Section.
CONTRACTOR shall submit the proposed PCP for COMPANY review no later than
twenty (20) calendar days from the PO PLACEMENT. CONTRACTOR to submit for
COMPANY review the detailed procedures described in CONTRACTORs PCP no
later than thirty (30) calendar days, from the PO PLACEMENT, unless otherwise
agreed with COMPANY REPRESENTATIVE.
7.3. Reporting
7.3.1. General
CONTRACTOR shall provide the daily, weekly and monthly reports described in this
Section and all other reports required under the CONTRACT or as otherwise agreed
with COMPANY, at the times stated or as soon as possible (where no time is stated).
CONTRACTOR shall maintain detailed information to support the daily, weekly and
monthly reports and shall make such information available to SHELL as and when
required by SHELL.
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CONTRACTOR shall prepare each report to such level and depth of content, details
and structure as agreed with SHELL in addition to the minimum content set out in this
Section. Each report shall provide sufficient content and details to meet SHELLs
reporting requirements.
7.3.2. Monthly Project Management Report

CONTRACTOR shall submit to SHELL Monthly Project Management Reports in accordance
with the agreed Project Calendar. CONTRACTOR shall manage the closure of all
electronic and data systems (including financial accruals) to meet the due date and ensure
accuracy of data. CONTRACTOR shall submit to SHELL a detailed procedure which
demonstrates CONTRACTORS methodology consistent with this clause and the systems
that CONTRACTOR shall implement to comply with this Clause.
CONTRACTORs Monthly Project Management Reports shall contain such information
and details as CONTRACTOR and SHELL shall agree from time to time. As a minimum the
monthly report shall include the following main sections:
i. Health, Safety, Security & Environment & Social Performance (days at zero,
LTIs, TRCF, number of behavioral based safety assessments);
ii. Executive Summary (Including any CONTRACTORS or SUBCONTRACTOR
issues and concerns)
iii. Planned and forecasted key milestones;
iv. Cost Summary;
v. Physical Progress, Schedule Performance Index;
vi. Risk Management;
vii. Logistics, number of transportations to and from site (miles driven).
viii. Management of Change (total number of approved changes and potential
deviations);
ix. Progress Photos, as applicable;
x. Significant achievements during the reported period.
7.3.3. Daily Reporting
During performance of WORK at any construction site, in a fabrication yard, or in the
field, CONTRACTOR shall submit to SHELL daily reports for each such WORKSITE no
later than the close of business of the working day following the day covered by the
report. Daily reports shall contain, but not limited to the following:
i. Construction permit requirements for the following day;
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ii. Any subcontractors present on WORKSITE in connection with the WORK;

iii. Issues and concerns, their consequences and corrective action proposed or
taken.
The scope of activities reported in Daily report will be in line with the Work Breakdown
Structure (WBS).
7.3.4. Project Monthly Cost Report
CONTRACTOR shall submit to SHELL Monthly Cost Report in accordance with the agreed
Project Calendar. The report shall be submitted no later than five (5) working days after
the end of the Gregorian calendar Month. CONTRACTOR shall manage the closure of all
electronic and data systems (including financial accruals) to meet the due date and ensure
accuracy of data.
CONTRACTORs Monthly Cost Report shall contain such information and details as
CONTRACTOR and SHELL shall agree from time to time. As a minimum the Monthly Cost
Report shall include the following main subjects and accompanying details:
i. Provide a narrative of the cost highlights, concerns and mitigations, reasons
for variances and changes to the anticipated final cost
ii. Include CONTRACT PRICE (original and current)
iii. Complete Change Order Log (includes potential, pending and approved)
iv. Provide monthly expenditure of the physical progress achieved against
defined milestone activities or against an agreed contract activity breakdown
based on the baseline, and the forecast (to-go) expenditure of those and all
activities as described in Section 8.4.
v. Include invoice summary with the following fields listed: Invoice Number,
Date, Amount, Date Payment Expected, Date Payment Received, Amount
Received, Amount Outstanding, and a Cumulative Total at the bottom
vi. For provisional, reimbursable items a complete cost and commitment report
shall be provided
vii. Include a procurement summary, covering all materials, equipment and
services procured by CONTRACTOR with sufficient granularity as agreed
with COMPANY.
7.4. Project Management of Change
CONTRACTOR shall establish its Management of Change Procedure which shall
implement and be consistent with the provisions of the CONTRACT on management of
changes.
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CONTRACTORs Management of Change Procedure shall address all changes from the
agreed baseline EXECUTION PLAN and PROGRAMME the WORK in relation to scope,
cost and schedule and as a minimum shall
i. Establish the baseline for Management of Change in relation to scope, cost
and schedule
ii. Recognize and communicate potential changes to the baseline in an effective
and timely manner to provide early warning of potential changes
iii. Where possible develop and present mitigation options to minimize impact
to quality, cost and schedule
iv. Assess the impacts of the change to quality, cost and schedule, ensuring all
impacted areas of the project are considered
v. Seek approval or instruction from SHELL as required
CONTRACTOR shall submit to SHELL for review, its detailed Management of Change
Procedure for implementing the provisions of the CONTRACT and specifically this clause.
CONTRACTORs detailed management of change procedure shall describe
CONTRACTORs methodology and systems for implementing the provisions of the
CONTRACT.
7.5. Project Calendar
SHELL will establish a Project Calendar for the WORK with CONTRACTOR.
CONTRACTOR shall develop and submit its Project Calendar for review by SHELL.
CONTRACTORs Project Calendar shall provide details and clarity on key dates, cutoff dates, meetings, submissions and any other required detail, documentation and
events that will occur on a regular basis.
CONTRACTOR shall maintain the Project Calendar so as to align with any agreed
changes agreed with SHELL and the updated Project Calendar shall be re-submitted
as changes occur. In any event, CONTRACTOR shall review and re-issue the Project
Calendar every (3) three months.
CONTRACTOR shall submit to SHELL for review, its detailed Project Calendar
procedure for implementing the provisions of the CONTRACT and specifically this
clause. CONTRACTORs detailed Project Calendar procedure shall describe
CONTRACT.
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7.6. Integrated Project Planning

7.6.1. General
CONTRACTOR shall be responsible for all detailed planning, scheduling and

integration of the activities necessary to ensure the performance and completion of the
WORK in accordance with the PROGRAMME, SCHEDULE OF KEY DATES,
MILESTONES.
CONTRACTORs planning and scheduling shall encompass all phases of the WORK,
including those performed by its SUBCONTRACTORS. CONTRACTOR shall structure
the schedules in such a way that status and progress can be aggregated in a precise
and transparent way from a lower level schedule to a higher level schedule.
CONTRACTOR is required to develop all schedules to a point that it is acceptable to

SHELL
Level III integrated baseline Schedule, once approved by COMPANY, shall be saved
as a Target or Primary Baseline schedule, and unless a formal re-baseline or a
formal change request is approved by COMPANY, updated Level III integrated
baseline can only be used after full substantiation of CONTRACTOR to COMPANY
and approval by COMPANY.
7.6.2. Structure and levels of schedules

CONTRACTOR shall establish and maintain as a minimum, schedules on the following
Levels:
i. Level I - CONTRACT Master Schedule: One Page Project overview of the
WORK, reflecting the actual status as per the project calendar by showing
milestones, bars that are clearly labeled and provide a comparison with the
Baseline Plan. The actual status is based on the aggregation from Level III to
Level I Schedule taken in consideration progress from other sources like
Physical Progress, Productivity, Earned Value, etc This Level I Schedule can
be reported in different software packages like Visio, Milestones Professional
or any software package as agreed with COMPANY.
ii. Level II CONTRACT Management Schedule: Schedule reflecting the
essential logic, key interface, contractual milestones and activities which
represent the status as per project calendar derived from the Level III
Integrated Plan and enables a comparison with the baseline. The number of
activities needed in this schedule can vary, but should be enough to provide
sufficient granularity and agreed with SHELL to enable and support project
management of the WORK.
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iii. Level III Integrated Baseline Schedule / Integrated Plan: Integrated Baseline
Schedule will be developed and is consistent with CONTRACT Management
Schedule and maintained as the Integrated Plan in alignment with the timely
aggregation and the project status, as per project calendar from more
detailed schedules as necessary and based on a robust precedence network
principle; sufficient detailed logic linked activities, resource loaded and
effective segregation between the different WORK by inclusion of interface
milestones. This schedule supports critical path analysis and comparison with
the baseline.
iv. Level IV / V Detailed schedules / Databases / Worklist / Workpacks for
Engineering, Procurement, Fabrication, Construction and Handover PreCommissioning / Commissioning and Start-up for the WORK. These
schedules will be completely managed by CONTRACTOR and form the basis
of the day to day management of the WORK and will be utilized to update
the progress and status of the Baseline plan (Level III).
7.6.3. Schedule Requirements
CONTRACTOR shall as a minimum adhere to the following requirements while

developing and maintaining schedules at their subsequent level and enable
aggregation of Level III to Level I while maintaining the integrity of the schedules:
i. COMPANY Work Breakdown Structure (WBS); each activity in the schedule
shall be assigned the relevant WBS code.
ii. CONTRACTOR shall work with COMPANY to develop consistent structures
within the planning software.
iii. Schedules for Level II, III shall be utilizing PRIMAVERA Project Management
Release 6.1. (Or most current version) or any other planning package as
agreed with COMPANY.
iv. Level III Integrated Baseline Schedule / Integrated Plan shall be resourced
loaded at the activity level and will reflect the essential resources needed in
sufficient granularity to prove robustness of the schedule e.g. Engineering
discipline hours, construction discipline hours.
To enable and facilitate schedule evaluation, periodic updating, aggregation to higher

level schedules and to meet the various progress reporting requirements each activity
in the Levels II / III will be consistently assigned with the following information:
i. Activity ID Coding
ii. Activity coding as per PROJECT WBS and Project Coding (e.g Area / Phase
/ System / Discipline / Responsibility, etc).
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iii. Activity descriptions for different types of work will be unique, explicit and
provide sufficient granularity to be self-explanatory.
iv. Activity Duration, Remaining Activity Duration, Early Start, Early Finish, (e.g.
Actual Start / Actual Finish), Total Float, Physical Progress %
Level III integrated schedule / Integrated Plan shall be Construction and

Commissioning driven and shall include all linkages between these two distinct work
phases to support overall integrated schedule with sufficient granularity to support
critical path analysis.
Requirement of shutdowns if any, along with duration of each shutdown for

completion of various modifications, tie-ins etc. shall also be reflected in the schedules.
Mandatory and Expected Finish constraints are not allowed in the schedule.
Open ends in the logic network, out of sequence, redundant logic and extensive lags
are not allowed and need to be resolved before submission.
The use of extensive activity durations must be limited e.g. engineering activities not
longer than 30 days, construction activities not longer than 60 days and
commissioning activities not longer 30 days.
Scheduling settings will be agreed upfront with COMPANY but otherwise should be
based on retained Logic and delinked Physical and Schedule progress.
Each month the updated Level III Integrated Plan shall be submitted to SHELL
electronically in native file format. Any problems with the schedule will be discussed
between SHELL and CONTRACTOR before amendment of the schedule by
CONTRACTOR.
Changes such as new, deleted or changed logic links, new or deleted activities,
modified descriptions, changed activity durations and assigned resource changes will
be documented and transmitted to SHELL along with the updated Baseline Schedule.
7.6.4. Weekly Update Cycle:

In line with the Project Calendar and as a minimum every week CONTRACTOR shall
report on the status, showing progress of the Level III Integrated Plan to the new status
date and is able to facilitate comparison of actual progress with the Baseline Schedule on
an activity-by-activity basis, by indicating the % Physical Progress details on the activity
bars, actual start and finish, and estimate a start date for the activities that are not in
progress and an estimate of the remaining duration (or expected finish date) for activities
in progress.
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7.6.5. Interface Milestone Plan

CONTRACTOR shall develop and maintain an Interface Milestone Plan detailing essential
interfaces supporting the logical network of the schedule related to the WORK (e.g. other
contractors, design, procurement, fabrication and construction) reflect the timing of
interfaces and allow resolution of any potential discrepancies. CONTRACTOR shall
update the Interface Milestone Plan on monthly basis and issue the update to SHELL along
with the PROGRAMME.
7.6.6. Punchlisting, Systems completions, Handover and System Dossiers.
CONTRACTOR shall establish and implement a systems completion system and

process that will provide actual status and control over the technical and
administrative completion of the PERMANENT WORK in sufficient granularity.
CONTRACTOR will provide reports showing the status of the discipline walkthrough,
punchlisting, handover of facilities, systems and subsystems and all documentation
needed to support the completion of the PERMANENT WORK.
7.6.7. Changes, Revision of Planning and Scheduling Documents.
CONTRACTOR shall after the approval of SHELL of the proposed changes and
amendments, reflect and describe the impact of all changes and amendments in the
planning and scheduling documents.
In case of any event or change having impact on the overall project completion
schedule, CONTRACTOR shall submit along with each change, a detailed evaluation
of the schedule impact if any, due to change in scope/sequence of work etc.
Justification for schedule impact should be accompanied by a logic network, clearly
highlighting the impact of such changes on the completion of intermediate milestones
as well as on the overall project completion.
CONTRACTOR shall note that the submission of Revised Schedules/ Recovery

Schedules by CONTRACTOR and subsequent approval of the same by COMPANY
during the period of project implementation shall not relieve CONTRACTOR from its
obligations under the CONTRACT. All such revisions shall only be treated as a part
of the control mechanism for effective monitoring, so as to arrest/minimize progress
slippages during the period of implementation.
7.6.8. Typical Schedules

Typical schedules for the WORK to be provided by CONTRACTOR in accordance with
the timing as agreed with COMPANY include but not limited to:
i. Level I/II/III
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ii. 30 / 60 / 90 Days look ahead

7.7. Progress Management
7.7.1. General
CONTRACTOR shall provide accurate and timely reports on the progress of the WORK,
associated cost information and the status of deliverables on the following basis:
i. The method of calculating progress shall reflect the amount of effort (typically
Man Hours) required to complete the WORK.
ii. All deliverables from the WORK will be monitored and CONTRACTOR will
propose the system to be used to achieve this, however, the weightings for
aggregating the progress and interim progress achievement milestones shall
be based on Man hours and approved by SHELL. Proposed weightings are
to be submitted by CONTRACTOR within 45 (forty-five) days from the PO
PLACEMENT. Approved changes will be evaluated against the established
progress measurement system, method and weighting and on agreement
with COMPANY reported separately or included in the progress
measurement system as part of a re-baseline.
iii. All reports shall show, in an appropriate format, the approved changes,
deviations and variances and their effect on the WORK and/or the
SCHEDULE OF KEY DATES and/or the CONTRACT PRICE. The layout of the
reports shall reflect the WBS used by SHELL. CONTRACTOR accepts that as
the WORK progresses, SHELL may require reports different from and in
addition to those detailed in this Section.
iv. The WORK shall be completely and comprehensively phased in alignment
with the EXECUTION PLAN and the PROGRAMME, SHELL approved
changes and amendments and a continuous and consistent progress control
shall be carried out throughout all phases of the WORK. CONTRACTOR will
ensure a consistent process is used over the whole of the WORK to ensure
the aggregated progress reported represents the true progress achieved.
v. CONTRACTOR shall develop processes to capture, calculate and report
progress and baseline phased expenditure by activities under Engineering,
Procurement (including fabrication), Construction and Commissioning per
the example below:
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Figure 3. Example Phased Expenditure
vi. CONTRACTOR shall submit to SHELL for review, its progress management
procedure for implementing the provisions of the CONTRACT and
specifically this clause. CONTRACTORs detailed progress management
procedure shall describe CONTRACTORs methodology and systems for
implementing the provisions of the CONTRACT.
7.7.2. Progress Monitoring and Measurement
Throughout the duration of the CONTRACT, CONTRACTOR shall monitor progress of the
WORK against the agreed progress measurement Baseline:
i. The progress shall be aggregated up to the Level 2 Contract Management
Schedules and the Level 1 Contract Master Schedule for reporting the total
progress of the WORK. Progress shall be assigned on the basis of physical
completion of detailed activity deliverables. CONTRACTOR shall promptly
notify SHELL of any matter concerning the WORK which if not resolved, is
likely to affect the achievement of the dates in the SCHEDULE OF KEY
DATES.
ii. Progress shall be measured based on earned man-hours for Engineering
and Construction (including Fabrication). For procurement progress shall be
measured based on appropriate milestones and weightings.
iii. All forecast dates are to be supported by observed rates of progress. If the
progress data does not support forecast dates then CONTRACTOR is to
either:
(a)
revise the forecast dates in line with measured progress, or
(b)
provide explanation to SHELL in the schedule report of how the

shortfall in measured progress will be remedied during the forecast
timescale.
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7.8. Cost Control
CONTRACTOR shall execute cost control of the WORK during the term of the
CONTRACT in accordance with requirements of this Section. CONTRACTOR shall
establish a tiered level of cost control in accordance with COMPANY agreed coding
system and shall be fully consistent with agreed Work Breakdown Structure. The
coding system shall reflect the SCHEDULE OF KEY DATES. All labor and other costs
shall be effectively monitored and controlled by CONTRACTOR for any reimbursable
elements.
CONTRACTOR shall maintain and report the following cost information for
reimbursable elements of the WORK, if any.
i. Summary job-hour report by Discipline/Activity
ii. Summary Cost and Commitment Report
iii. Procurement Summary
CONTRACTOR shall provide an estimated monetary (Incurred Cost) value for the full
calendar month by the 25th of the month or the Friday before if the 25th is on the
weekend.
CONTRACTOR will make use of CONTRACTORs standard cost management tool

and systems, which shall be submitted (and demonstrated as considered necessary) to
SHELL for approval, including examples of reports and documentation to be used,
within thirty (30) days of the PO PLACEMENT.
CONTRACTOR will supply electronic cost management data to SHELL in an agreed

format to minimize manual upload into SHELL systems.
7.8.1. Budget Management

CONTRACTOR will use the CONTRACT PRICE as the budget for the WORK and the basis
for control and reporting. The budget will be maintained by CONTRACTOR in line with
all requirements of the CONTRACT:
i. Work Breakdown Structure
ii. Cost Breakdown Structure
iii. Management of Change
CONTRACTOR shall submit to SHELL for review, its detailed procedure for budget
management in accordance with the provisions of the CONTRACT and specifically this
clause. CONTRACTORs detailed procedure shall describe CONTRACTORs methodology
and systems for implementing the provisions of the CONTRACT
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7.8.2. Work Breakdown Structure
A Work Breakdown Structure (WBS) is a hierarchical subdivision of the work scope to

be controlled. The purpose of the WBS is to sub-divide a project into components
where the work and associated budget can be effectively managed and controlled.
CONTRACTOR will strictly conform to the WBS structure as provided by SHELL for the
PROJECT. Should CONTRACTOR have the need to expand the WBS to lower levels,
this is acceptable, providing this structure rolls up to SHELL specified WBS.
SHELL will submit SHELL WBS to CONTRACTOR within seven (7) days of the PO
PLACEMENT.
CONTRACTOR shall submit within thirty (30) days of the PO PLACEMENT any
comments of the WBS for consideration by SHELL.
The WBS will be applied by CONTRACTOR to all reporting, planning, cost control,
forecasts, estimates and other relevant project processes.
7.8.3. Cost and Forecasting Expenditures
CONTRACTOR shall provide a Contract baseline phased expenditure of weeklyplanned and defined milestone activities or against an agreed Contract activities
breakdown for carrying out the WORK. CONTRACTOR shall also provide a monthly
updated forecast phased expenditure including approved change orders, if any, that
will accurately represent the Estimate at Completion (EAC) of the WORK
CONTRACTOR shall submit to SHELL for review, its detailed procedure for Cost and
Forecasting Expenditures in accordance with the provisions of the CONTRACT and
specifically this clause. CONTRACTORs detailed procedure shall describe
CONTRACT, this clause, and SHELL standard procedures.
7.8.4. Cost Breakdown Structure (CBS)
A Cost Breakdown Structure (CBS) is a hierarchical classification of project costs by

the type of cost. The purpose of the CBS, particularly in combination with the Work
Breakdown Structure (WBS), is to provide a uniform cost classification basis for
estimating, cost reporting and collection of historical project cost data.
This clause should be read in conjunction with the clause on Work Breakdown
Structure (WBS).
Where CONTRACTOR utilizes a CBS different to SHELL standard, the data provided
to COMPANY should then be mapped across to COMPANY standard. All reporting
and deliverables to SHELL from CONTRACTOR shall be provided with the conversion
of coding already completed. CONTRACTORs methodology for mapping and
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conversion of CONTRACTORs coding to COMPANY standard, shall be submitted for

review and approval by SHELL, within 3 (three) months from the PO PLACEMENT.
8.
INFORMATION MANAGEMENT & DOCUMENT NUMBERING
Upon successful award of Contract, all documents shall be transmitted to SHELL via
Document Control utilizing LiveLink with a transmittal sent to SEPCO-Argentina-ProjectIM@SHELL.com for subsequent distribution internal to SHELL. CONTRACTOR will be
provided a designated LiveLink space to submit documents along with instructions and
any requisite training to utilize the site.
Documents shall be numbered in accordance with Shells Design Document Numbering
Procedure (SAU-COM-MFPM-JA-6017-0001) which will be provided prior to award of
Contract. A representative of SHELL will coordinate with CONTRACTOR to ensure proper
numbering and submittal.
During project development, documents shall be sent to SHELL in PDF format. At the
completion of the Project, all documents shall be sent to SHELL updated to As-Built Status
in PDF (as part of the Final Handover Package) and native format All documents shall be
formatted to fit on A3 or A4 size paper.
To support SHELLs internal assurance tracking, CONTRACTOR shall reference applicable
Control ID numbers on transmittals and documents. When two Control IDs are provided,
both are to be used.
9.
INTERFACE MANAGEMENT
9.1. General
Amongst the Project Team, Microsoft Office Outlook will be the primary means for written
communication for typical day to day activities including minor clarifications, questions,
and general information sharing that does not impact scope, schedule, or budget. Issues
impacting scope, schedule, or budget shall be documented using the Project Change
Management Process.
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Email shall not be relied upon as the only means of trying to work an issue and should
only be used to the point in which an issue is identified at which point real-time
interpersonal communication shall be utilized in the following order of preference:
Face to Face Meeting
Telephone Call
Documenting what was discussed, outcomes, and next steps via email is acceptable and
encouraged. Do not assume that people will action something in an email simply
because it was sent. These action items are to be documented in the most relevant
recurring meeting action item log to document and track action items.
9.2. Communication between SHELL and CONTRACTORs
All direction to CONTRACTOR that may potentially lead to a Change Order or Project
Change Notice must be channeled through the Project Delivery Focal.
CONTRACTOR processes and forms for Requests for Information, Technical Queries,
Change Orders, etc will be submitted to SHELL for approval and used to the greatest
extent possible. In the event none exist, templates will be provided by SHELL for use.
SHELL Document Control will be the conduit for communication between SHELL and
CONTRACTOR for:
Technical Document (drawings, calculations, studies, etc) review, comment,

approval
Technical Queries
Requests for Information
The Project Delivery Focal will be the primary conduit for communication between SHELL
and CONTRACTOR for:
Cost Updates
Schedule Updates
Project Change Notices
9.3. Communication between CONTRACTORs

The assigned Project Delivery Focal(s) will be responsible to facilitate communications
between CONTRACTORs of separate scopes, if needed. Any communication that may
potentially lead to a Change Order must be channeled through the Project Delivery Focal.
All formal documentation to be transmitted between CONTRACTORs of different scopes
will be distributed by SHELL. It is not to be assumed by the Project Team that the
individual CONTRACTORs communicate with each other or that the communications that
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they do share is accurate.

To ensure communication exchange between
CONTRACTORs is occurring, timely, and accurate SHELL will be the central repository of
information. Formal document transmittals between CONTRACTORs will be sent through
SHELL Document Control whereas the Project Delivery Focal(s) will be responsible to
provide and receive all other information. Graphically,
9.4.
Meetings
9.4.1. General
Recurring, one off and ad hoc meetings are essential to align the SHELL Team and
CONTRACTOR Team. All formal CONTRACTOR and SHELL meetings will begin with a
safety topic and discussion. Teleconference, desk top sharing, and video conference
(when available) will be made available via LiveMeeting to facilitate participation from
remote participants. CONTRACTORs are expected to have their own internal meetings
without SHELL presence as they deem required to align themselves internally.
In meetings everyone is expected to speak their mind when they have something to add
relevant to the topic at hand, but not everyone needs to speak for the sake of saying
something within the meeting.
Common rules of courtesy will be abided by:
Respect each other and refrain from making personal attacks
Acknowledge that it is OK to disagree
Listen to others, dont interrupt
Everyone participates; no one dominates, value the diversity of team members
Honor time limits: Meetings will end on time
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Recognize that all ideas are potentially good ideas, dont rush to evaluate
suggestions; keep an open mind
Turn cell phones to vibrate
9.4.2. Action Item Logs

Issues are not to be worked in meetings, but actions are to be taken to work the issue
outside of the meeting. Each of the recurring meetings will have an Action Item Log to
record actions that need to be taken, by whom and by when. Action items can only be
assigned to people who participate in the meeting.
9.4.3. Recurring Meetings
A recurring meeting will be required to align CONTRACTOR and SHELL Team at a
working level. Frequency, duration, and attendees will be agreed by CONTRACTOR and
SHELL. It is always incumbent upon the individual to identify when their participation in a
given meeting is not warranted. Value of each meeting will be validated for effectiveness
via the meeting Owner to routinely asking the attendees if value is being demonstrated. It
is for the team to collectively decide how to best communicate and remain informed.
During field execution, SHELL will conduct a monthly safety meeting lasting approximately
2 hours in which all of CONTRACTORs employees actively working for SHELL are
expected to attend.
A monthly leadership meeting between SHELL and CONTRACTOR will be required to
align SHELLs Asset Project Manager with CONTRACTORs Executive Sponsor. Agenda,
duration, and location shall be jointly agreed between SHELL and CONTRACTOR.
9.4.4. One-off and Ad Hoc Meetings
One-off and ad hoc meetings will be held when issues requiring focused attention need to
be worked. The attendees of these meetings will vary pending topic to be discussed and
should be held to only those that will directly contribute. Actions resulting from these
meetings shall be captured in one of the recurring meeting action item logs for tracking to
closure.
9.5.
Review & Comment and Approval
The standard time period for SHELL Review and Comment or Approval will be 10 working
days as measured from the time the document has been issued from the issuing
organizations Document Control. Cycle times less than 10 working days require mutual
agreement between issuer and reviewers prior to being implemented.
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In the event no comments are submitted and no extension has been requested, it will be
treated as No Comment or Approved.
Use of clear and concise instructions and comments are required. Comments in the form
of questions are to be avoided. If a decision cannot be taken during review, clear
direction on how to proceed to conclusion shall be provided. Telephone conversations
with issuer may be required to establish a plan. Do not throw bombshells over the
fence. Inform the issuer in advance if there are major comments and/or concerns.
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Appendix I. Supplementary Documents

Contractor Deliverable Definitions:
Argentina EPF
Contractor Deliverabl
Scope of Work
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Upstream Americas

Sierra Blanca/Cruz de Lorena Early Production Facility

Sierra Blanca/Cruz de Lorena Early Production Facility

Approved for Use

Revision History shown on next page

Issued for Review

Signatures for this revision

Pablo Deblassi/ Mike Hanson

David Chapman/Duane Jubert/ Rajesh

Stephen Brooks/Jonathan Trieu

Contracts and Procurement

Jeremy Turpin/Daniel Caranti

Daniel Fagan/Melissa Velasquez

Ron Windon/Melissa Morris/Emilie Cook

Roger Balke/Kevin Capone

Gustavo Rosales/Richard Lewis

Project Delivery Arg

Javier Suarez/Claudia Zapiola

Project Delivery Hou

Rob Timmerman/Marc Villareal/Eddie

SB/CdL Early Production Facility

PROJECT BACKGROUND .................................................................................. 7

CONTRACTOR SCOPE OF WORK ..................................................................... 8

SPECIFICATION GAP ASSESSMENT PROCESS ................................................. 26

PROVIDED BY SHELL ....................................................................................... 27

ADDITIONAL REQUIREMENTS ......................................................................... 27

INTEGRATED PROJECT CONTROLS ................................................................. 28

INFORMATION MANAGEMENT & DOCUMENT NUMBERING .......................... 41

INTERFACE MANAGEMENT ............................................................................ 41

SB/CdL Early Production Facility

All surface production and measurement equipment (separators, chemical

Compressors with foundations (per geotechnical recommendations)

Oil and Water Storage Tanks including foundations

LACT (Lease Automatic Custody Transfer) Unit

Gas export meter

Interconnecting pipe work including pipe supports and anchors

Interconnecting cabling and wire including supports and grounding

Water Treating, filtration, and pumping equipment

Fencing around Water Disposal Well Pad

Solar Power at Water Disposal Well Pad

Local power generation including load calculations

Storm Water Management

Roadways within site

Control Room and Accommodation Buildings

Site perimeter fencing

Surface instrumentation on water disposal well head

SB/CdL Early Production Facility

Installation in accordance with applicable codes and standards

Commissioning and Start-Up Procedures/Manual including first fill calculations

Equipment systemization for startup (start up sequence with accommodations for

Commissioning and startup spares

Operating spares for 2 years

Black Start procedures

Commissioning and Start-Up Support

Permit application support

Excluded from the scope of the EPF:

Disposal Well and Well Head

Chemicals and diesel first fills for facility equipment

National, Provincial, and Municipal Permit applications

SB/CdL Early Production Facility

Figure 1. SHELL Interests in Argentina

Aquila Mora - 42,000 acres

SB/CdL Early Production Facility