Lar Gas Flare Down Evaluation & Selection Studies - ...

EVALUATION AND SELECTION STUDIES
SCOPE OF WORK
FOR
NAOC LAND AREA GAS FLAREDOWN PROJECTS
Issued for Ajua, D /

EV-FS 00 06/06/2019 Agiaye E. Udemba U.
CS-FS Review Iliromah, S.E
Validation Prepared Checked Approved Contractor Company
Rev. Date Description
Status by by by Approval Approval
Company logo and business name Project name Company identification
LAR Gas
Flaredown Projects 3202.01.BGRS.10010
Contractor logo and business name
Vendor logo and business name Vendor Identification
Facility Name Location Scale Sheet of Sheets
NAOC LAND AREA STATIONS

LAND AREA n.a. 1 / 20
Document Title Supersedes N.
Superseded by N.
EVALUATION AND SELECTION STUDIES – SCOPE OF WORK Plant Area Plant Unit
ENGINEERING DIVISION, PROJECTS DEVELOPMENT

This document is CONFIDENTIAL and the sole property of the Company. It shall neither be shown to third parties nor used for other purposes than those for
which it has been issued/sent. Any unauthorized attempt to reproduce it, in any form, is strictly prohibited.
Company Identification Contractor Rev. index. Sheet of
Identification Sheets
3202.01.BGRS.10010 Validity Rev.
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REVISION RECORD
00 06-June-2019 Issued for Review

Rev. Date Reason for Revision Short Description of Changes
File Name : 3202.01.BGRS 10010_00_LAR GAS FLARE DOWN EVALUATION & SELECTION STUDIES_SOW
This document is property of NAOC Ltd. Who lawfully reserves all rights. Any unauthorised attempt to reproduce it, in any form, is strictly prohibited. NAOC will
safeguard its rights according to the civil and penal provisions of the law
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INDEX
1.0 GENERAL .................................................................................................................... 4
1.1 Project Background ........................................................................................... 4
1.2 Project Scope .................................................................................................... 4
1.3 Project Objectives ............................................................................................. 7
1.4 Definitions and Abbreviations ........................................................................... 7
1.5 Environmental Data........................................................................................... 8
1.6 International / Company Codes and Standards ................................................ 9
2.0 SUMMARY OF THE SCOPE OF WORK .................................................................... 9
2.1 General.............................................................................................................. 9
2.2 Summary of Scope.......................................................................................... 10
2.2.1 Concept Evaluation......................................................................... 10
2.2.2 Concept selection ........................................................................... 13
3.0 contractor responsibilities .......................................................................................... 17
4.0 parties involved in the project .................................................................................... 19
4.1 Parties involved in the work ............................................................................ 19
4.2 Parties interfacing with the Work .................................................................... 19
5.0 company supplied items ............................................................................................ 20
This document is property of NAOC Ltd. Who lawfully reserves all rights. Any unauthorised attempt to reproduce it, in any form, is strictly prohibited. NAOC will
safeguard its rights according to the civil and penal provisions of the law
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1.0 GENERAL
1.1 Project Background

In line with Nigerian Agip Oil Company (NAOC) philosophy of contributing in a
sustainable manner to society’s energy needs that is vital to run our economies
and maintenance of our wellbeing, the COMPANY has been in the forefront of
valorization, utilization and conservation of the gas resources associated with our
production. In the effort to continue with improvements in implementation of the
framework of the comprehensive gas master plan (GMP) and a zero gas flaring
policy, the COMPANY, under its head office directive, embarked upon a
campaign, with the primary purpose of establishing the viability of eliminating the
gas currently being flared in the Land Area (LAR) operations. The above
objectives are geared towards pursuing carbon neutrality to ensuring zero carbon
footprints in the organization.
The studies involving evaluation and concept selection which is tied into the flare-
down initiative is being initiated to evaluate the concept and possible options to
achieve total flare-down in LAR.
The current document thereby represents the framework of an overall Concept

and Plan for the Gas Flare down initiative in Land Area (LAR) operations. Going
by the differences in the current situations among the various locations, the
evaluation and selection studies shall identify and consider the peculiarities
associated with each location in the final analysis and choice of concepts and
options to flare down the gas. These shall take into consideration all possible
factors. Further detailed studies shall be prepared to support appropriate
investment proposals for the options in each location.
1.2 Project Scope

The objective of the present document is to identify the main scope for the
This document is property of NAOC Ltd. Who lawfully reserves all rights. Any unauthorised attempt to reproduce it, in any form, is strictly prohibited. NAOC
will safeguard its rights according to the civil and penal provisions of the law
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evaluation and selection phase of the project development to support the final
decision for the implementation of a ”gas flare down” within the frame of NAOC
LAR stations.
The Project is based on the strategy to valorize/utilize the gas resources
associated with the COMPANY’s production that is being flared.
 Recovery of flare sources including but not limited to ATM, LLP, LP flared
gases
 Check/verify existing facility capacities and capacity availability for new mop-
ups
The overall flare-down strategy foresee the following stations in LAR:

 Akri flowstation
 Ebocha Oil Center (EOC)
 Idu flowstation
 Irri Flowstation
 Kwale gas plant
 OB/OB gas plant
 Oshie flowstation
 Samabiri/Biseni Cluster
The above shall be analyzed and evaluated in more detail, complete with
appropriate cost-benefit analyses to guide selection decisions.
This document refers to the first two phases of the Project development – Concept
Evaluation and Concept Selection phases which will be carried out in compliance
with the Opportunity and Project Development (OPD) of Eni System as shown in
the figure below:
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ST
A
G
E
3
Project Current Status
Assurance reviews shall be carried out as per ENI procedures to verify the
completeness of the work and that all opportunities have been analyzed to
guarantee value to the flare-down projects.
The COMPANY intends to engage a CONTRACTOR to undertake the concept

evaluation and selection phase studies of development of the proposed Gas Flare-
Down Projects at NAOC LAR.
In case of any conflict, inconsistency or matter of interpretation between this

Scope of Work and/or any of the technical drawings and documents and/or any
applicable or relevant codes and standards and Nigerian regulations, the
CONTRACTOR shall bring the matter to the COMPANY’S attention for resolution
in writing. In all cases the most stringent requirements shall apply according to the
sole opinion and decision of COMPANY. Compliance by the CONTRACTOR with
the provisions of this Scope of Work and/or of the technical drawings and
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documents and/or any applicable or relevant codes and standards and Nigerian
regulations do not relieve the CONTRACTOR of his responsibility to properly
execute this process of evaluation and selection study to meet the specified
service conditions and Nigerian governing codes.
1.3 Project Objectives

The main objectives of the studies involving the evaluation and concept selection
phases are:
 to execute a robust technical and economic assessment of various gas
flaredown and recovery design options
 to recommend and select the optimal development concept, being ready for
entering the Concept Definition (FEED)
1.4 Definitions and Abbreviations
COMPANY Throughout this document, the term ‘COMPANY’ means

Nigerian Agip Oil Company (NAOC).
CONTRACTOR Is the party responsible for the concept evaluation/concept

selection phase development works for the Gas Flare-
down projects.
WORK All activities specified in this document and elsewhere in

the tender package required to be carried out by the
CONTRACTOR in execution of the evaluation and
selection phase of development.
Project Evaluation and selection Phase Studies (Concept

evaluation and Concept Selection)
OB/OB Obiafu/Obrikom Gas Plant
CIF Cost, Insurance & Freight
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FEED Front End Engineering Design
IOC International Oil Company
GHG Green House Gases
CO2 Carbon Dioxide
HSEQ Health Safety Environment and Quality
CAPEX Capital Expenditure
OPEX Operating Expenditure
MoU Memorandum of Understanding
CDI Community Development Initiative
PFD Process Flow Diagram
O&M Operation and Maintenance
HAZID Hazard Identification
MTTF Mean time to failure
PPP Public Private Partnership
1.5 Environmental Data

The meteorological and environmental conditions of Niger Delta giving average
weather conditions at site are reported below:
Climate:
The climate is tropical with a marine-salty environment (Niger River delta area)
Air:
Absolute minimum temperature 16° C
Absolute maximum temperature 36° C
Design temperature (for indoor and outdoor):
Dry bulb temperature 34° C
Wet bulb temperature 28° C
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Design temp. for engines/turbines/air coolers 36° C

Relative humidity 90 to 95%
Maximum humidity 99%
Fine sand is present in the atmosphere during a 2-months “Harmattan” (Saharian
wind) period.
Rainfall:
for 60 minutes: 92 mm/h
heavy rain: storm presence
Daylight:
10-12 hours/day of daylight over 12 months (maximum is in June).
Solar radiation (for flare design) 790 W/m2.
Wind:
The highest mean wind velocity at 10 m above ground level is 75 km/h
Lightning:
High concentration of direct lightning phenomena during seasonal storms
Altitude:
Sea level
Earthquake:
None
1.6 International / Company Codes and Standards

The evaluation and selection phase report shall be developed according to (but
not limited to) the industry best practices in line with the latest editions of the
International Codes and Standards available at the time of Contract Award.
2.0 SUMMARY OF THE SCOPE OF WORK
2.1 General
This section summarises the Scope of Work relevant to the evaluation and
selection phase of the project. The purpose of this section is to provide a quick
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overview for the CONTRACTOR on the methodology to adopt in executing the

evaluation and selection phase of the project.
2.2 Summary of Scope

The overall project activities and deliverables required to execute the evaluation
and selection phase of the project shall be divided into two main phases viz:
 An evaluation phase in which the various scenarios shall be analyzed and
reviewed, the key features and basic data will be set up, and in which possible
development alternatives will be analyzed.
 A concept selection phase in which a reduced number of alternatives and

scenario shall be studied more in details and all the relevant set up will be
carried out in order to proceed to the FEED (Concept definition) Phase.
The project shall then be developed with the following main activities and
deliverables, as a minimum:
2.2.1 Concept Evaluation
o General
 Introduction and Project background
 General overview
 Project objectives and opportunities
 Project scope
 Plant site location description
o Data Review and Design Basis
 Review of the available technical data relevant to the project
 Finalization of the Design basis
o Concept Identification review – flare recovery and compression technologies
o General Overview of oil and gas processing facility
 Existing facilities description
 Survey of current available gas recovery and compression facilities
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 Operability of the gas recovery and compression equipment in project

location
 Preliminary location/layout for new facilities
o General development opportunities and criticalities
 Gas recovery and compression technology survey
 Gas recovery and compression key design features
 The gas flaredown project criticalities
 Gas flaredown plant with various development options
 Gas Recovery and Compression Equipment Selection Criteria
 Unit size for proper network integration, reliability & redundancy
 Proven Technology
 Site weather and environmental conditions
 Equipment operating efficiency
 Lead time for delivery and Installation
 Potential for the Employment of local skills for maintenance and
operations of the Plant
 Evaluation criteria and performance indicators (to be defined)
 Evaluation of each gas flaredown recovery and compression scenario –
on the basis of the identified performance indicators
 Battery limits – such as, but not limited to, inlet and outlet gas piping tie-
ins to the gas network, instrumentation tie-ins, etc.
 Evaluation of main technical issues – issues such as, but not limited to
 suitable tie-ins or evacuation to existing gas infrastructures
 Minimization of CO2 and GHG emissions
 Infrastructure sustainability and HSEQ integrated approach
 Operability and maintainability
 Evaluation Of Main Environmental Issues – issues such as, but not
limited to:
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 Environmental assessment activities to ensure that sensitive

ecological issues can be assessed in proper time and appropriate
actions are put in place to minimize environmental inputs.
 Evaluation of the main socio-economic issues, paying particular attention
to issues such as, but not limited to
 Site location
 Water and effluent management
 Waste management
 Construction activities and accommodation
o Finalization of the concept evaluation report
o Facilities Pre-Feasibility Study
 Definition of the preliminary flaredown plant configuration and location
 Preparation of the preliminary block diagrams
 Preparation of the preliminary equipment list
 Summarize the findings of the pre-feasibility study
o Preliminary Cost Estimate and Project Schedule
 Evaluation of the project costs (CAPEX and OPEX) with phasing as per
the proposed schedule (relevant project data shall be used, integrated
with in-house data and cost records relevant to other comparable
projects. The level of accuracy of the cost estimate shall correspond to
the ‘evaluation’ phase (±40%). Accordingly a project contingency shall be
defined)
 Definition of a time schedule for project development
o Preliminary economics evaluation
 Preliminary Economics evaluation shall be developed as required to
support the decision process for the ‘Evaluation’ Phase in selecting
appropriate concept to be investigated further.
o Preliminary project risk and opportunity evaluation
 A list of possible risks with their impact and (preliminary) mitigation
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measures as well as a list and opportunities and their possible impact on

project key features shall be prepared.
2.2.2 Concept selection
Facilities Feasibility Study which shall include as a minimum, the following sub-
activities:
o Process
 Outline design of the Facilities, to define the required gas
treatment/processing needed to feed the gas flaredown
recovery/compression plant.
 Preparation of Block Flow Diagrams and Process Flow Diagrams.
 Preparation of the Equipment List, which shall be integrated with input
from mechanical discipline, through preliminary sizing of process and
utilities equipment.
 Evaluation of required sparing capacity.
 Preparation of Process Report
 Preparation of Operating & Control Philosophy
 Preparation of ESD Philosophy
o Mechanical and machinery equipment – such as but not limited to
 Preliminary identification of market available compression equipment and
auxiliaries required in the station.
 Definition of the design capacity, as well as design conditions and size of
the main equipment.
o Instrumentation, Control and Telecommunication
 Development of the Instrumentation and Control System Block Diagram.
 Instrumentation and Telecom Philosophy.
 Preparation of the Instrument Report
o Electrical
 Development of preliminary Electric Configuration and tie-ins to the power
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network.
 Development of preliminary single Line Diagram
 Preparation of the Electrical Design Criteria.
o Piping/Layout
 Study of the equipment and facilities arrangement,
 Development of Plan and View of the equipment and facilities
o Pipeline
 Verify Existing transport Pipeline capacities to accommodate flaredown
volumes, where necessary.
o Civil and structural
 Optimization of engineering solutions and civil design choices (evaluation
of possible need of soil treatments/improvement and/or supporting works,
choice of foundation type, etc.).
 Pre-sizing of main steel and reinforced concrete structures will be
performed to allow preliminary material quantities evaluation and cost
estimate.
 Development of Civil Plan drawings and support to Piping and Layout
discipline for drafting of Plot Plans.
 Preliminary evaluation of civil works quantities
o Operation and Maintenance
 Development of preliminary operability and maintainability philosophy.
(This Preliminary Operability and Maintainability philosophy is the
document that, according to the framework specified by Eni Management
System, defines the principles and guidelines to be followed to set up the
Operating System in terms of strategies, plans and procedures and to
reach the Operation & Maintenance objectives.)
 Development of Preliminary Availability Analysis is performed in order to
evaluate the availability in terms of Average Production Availability for the
overall System. Moreover provide information about the most promising
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System Configuration to be selected from an availability production point

of view.
 The activity is executed taking into account the Plant Data Model
Definition, failure modes affecting production. Reliability data (failure
modes and relevant MTTF) comes from Commercial Reliability Data
Collection. The analysis is performed by an advanced RBD approach
using Monte Carlo simulation.
 In this phase the RAM analyses are performed at high level according to
the design level of detail (PFDs, equipment list, layouts etc.).
 Contribution to the Project team for the O&M aspects
o HSE
 Preliminary HSE Plan
 Preliminary HSE Philosophy
 Preliminary qualitative risk analysis (HAZID)
 Preliminary Environmental Assessment
 Preliminary Hazard Assessment
(These Preliminary documents, according to the framework outlined by
Eni Management System, shall define the principles and guidelines to be
followed to set up the HSE design in terms of requirements, plans and
responsibilities to reach the HSE project objectives. Also preliminary
qualitative and coarse quantitative risk analysis shall provide information
to aid decision-making process on the need to introduce risk reduction
measures)
o Preliminary equipment/facilities location definition
 Desktop Identification, evaluation and analysis of possible equipment
locations within the various plants
 Preliminary site visit
 Recommendation of the optimized equipment/facilities location
o Cost Estimate and Project Schedule
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 Evaluation of the project costs (CAPEX and OPEX), with phasing as per
proposed schedule.
 Relevant project data shall be used, integrated with in-house data and
cost records relevant to other comparable projects. The level of
accuracy of the cost estimate shall correspond to the ‘concept
selection’ phase (±25%).
 Accordingly a project contingency shall be defined.
 Definition of a preliminary time schedule for project development
o Economics evaluation
 Preliminary Economics evaluation shall be developed as required to
support the decision process for the Concept Selection Phase in selecting
appropriate concept to be progressed in the Concept Definition (FEED)
and Execution Phase.
o Project risk and opportunity evaluation
 A list of possible risks with their impact and (preliminary) mitigation
measures as well as a list and opportunities and their possible impact on
project key features shall be prepared
o Preliminary project execution plan
 A preliminary execution plan shall be developed. The report shall include,
as a reference the following topics:
 Scope
 Execution Strategy
 Contracts and Procurement
 Execution Plan and Schedule
 Constructability
 Value Assurance Reviews
 Organization
 Quality
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 HSE
 Permitting
 Handover to operation
o Permits and Consent Requirements for the Project
 Federal Government Requirements
 State Government Requirements
 Local Government Requirements
 International Community Requirements (NGOs, Civil Society
Organizations etc)
o Final recommendation and screening
o The evaluation and selection study report should end with the overall
outcome of the project analysis.
 Summarize the findings of the concept selection phase
 Recommend and select the optimal development concept, being ready
for entering a FEED (concept definition) and execution phase
o Discussion with Authority

 Discussions and conclusions with COMPANY
o Preparation for the FEED (Concept Definition) Phase

 Preparation of the required documentation to enter FEED.
3.0 CONTRACTOR RESPONSIBILITIES

The CONTRACTOR shall be responsible for all aspects of the work, starting from
the documents provided for in these specifications, the development of all the
concept evaluation and concept selection activities required to complete the
works.
This document therefore defines the minimum basic requirements for the
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realisation of the evaluation and selection phase of the proposed power plant.
Where this specification conflicts with its associated specifications and/or the
codes, standards and associated drawings listed in any part of this document, the
CONTRACTOR shall bring the matter to COMPANY’S attention for resolution and
approval in writing. In all cases, the most stringent requirements shall apply.
The WORKS shall be carried out and realised without interrupting services and
operations of company existing facilities.
The description of the WORK included in the scope of work is not an exhaustive
detailed statement of all CONTRACTOR obligations under this contract. The
scope of work shall be read in conjunction with the industry best practice regarding
evaluation and selection phases of project development and other general,
discipline specifications, drawings and other documents included in the contract.
CONTRACTOR shall manage and perform the WORKS and report to COMPANY
as per the evaluation and selection report to be developed in accordance with the
requirements of the Contract.
CONTRACTOR shall prepare and submit all documentation to COMPANY in

accordance with the Contract requirements.
CONTRACTOR shall carry out all WORK and services and furnish all equipment
materials and tools required to successfully carry out the WORK.
CONTRACTOR shall manage coordinate and supervise the Work assigned to Sub
CONTRACTOR(s) to ensure the Work is performed within the required schedule,
and the quality requirements of the Contract.
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The CONTRACTOR shall perform all the Project Management services necessary
for the execution of the project
The CONTRACTOR shall appoint a capable and experienced Project Manager

who will have authority to act on behalf of the CONTRACTOR and be responsible
for the overall direction, co-ordination, control and performance of the Project
activities.
The CONTRACTOR shall perform all activities necessary for implementation of

the works including the following:
 Project supervision and control
 Quality Assurance & Quality control
 Planning & Scheduling
 Project reporting
 Issue and distribution of documents and correspondence to the COMPANY as
per contractual requirements in the English language
4.0 PARTIES INVOLVED IN THE PROJECT
4.1 Parties involved in the work

The parties outline here below, shall be involved in the implementation of the
project
1) COMPANY
2) CONTRACTOR
3) Sub-Contractor(s) including their own sub-contractor(s)
4.2 Parties interfacing with the Work

Responsibility for liaison with third parties for the purpose of obtaining necessary
permits and/or otherwise during course of execution of WORKS shall lie with
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CONTRACTOR.
COMPANY shall use its best endeavours to help where possible.
Authority Feature
1 NAOC Project Team Total Project Supervision
2 NAOC LAR Management Permits and Passages
3 PAF Division Community Liaison and Relations
5.0 COMPANY SUPPLIED ITEMS

The company has supplied the following items:
1) Plot Plans of LAR stations (Irri, Akri, Oshie, OBOB, Idu, EOC, Kwale,
Samabiri/Biseni)

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What is the purpose and scope of the project?

What is the purpose and scope of the project?

What are the contractor's responsibilities?

What are the contractor's responsibilities?

EVALUATION AND SELECTION STUDIES

Issued for Ajua, D /

Contractor logo and business name

Vendor logo and business name Vendor Identification

Facility Name Location Scale Sheet of Sheets

NAOC LAND AREA STATIONS

ENGINEERING DIVISION, PROJECTS DEVELOPMENT

00 06-June-2019 Issued for Review

1.1 Project Background

The current document thereby represents the framework of an overall Concept

1.2 Project Scope

The overall flare-down strategy foresee the following stations in LAR:

The COMPANY intends to engage a CONTRACTOR to undertake the concept

In case of any conflict, inconsistency or matter of interpretation between this

1.3 Project Objectives

1.4 Definitions and Abbreviations

COMPANY Throughout this document, the term ‘COMPANY’ means

CONTRACTOR Is the party responsible for the concept evaluation/concept

WORK All activities specified in this document and elsewhere in

Project Evaluation and selection Phase Studies (Concept

OB/OB Obiafu/Obrikom Gas Plant

CIF Cost, Insurance & Freight

FEED Front End Engineering Design

IOC International Oil Company

GHG Green House Gases

CO2 Carbon Dioxide

HSEQ Health Safety Environment and Quality

CAPEX Capital Expenditure

OPEX Operating Expenditure

MoU Memorandum of Understanding

CDI Community Development Initiative

PFD Process Flow Diagram

O&M Operation and Maintenance

HAZID Hazard Identification

MTTF Mean time to failure

PPP Public Private Partnership

1.5 Environmental Data

Design temp. for engines/turbines/air coolers 36° C

1.6 International / Company Codes and Standards

2.0 SUMMARY OF THE SCOPE OF WORK

overview for the CONTRACTOR on the methodology to adopt in executing the

2.2 Summary of Scope

 A concept selection phase in which a reduced number of alternatives and

2.2.1 Concept Evaluation

 Operability of the gas recovery and compression equipment in project

 Environmental assessment activities to ensure that sensitive

measures as well as a list and opportunities and their possible impact on

2.2.2 Concept selection

System Configuration to be selected from an availability production point

o Discussion with Authority

o Preparation for the FEED (Concept Definition) Phase

3.0 CONTRACTOR RESPONSIBILITIES

CONTRACTOR shall prepare and submit all documentation to COMPANY in

The CONTRACTOR shall appoint a capable and experienced Project Manager