12 Phases of Oil and Gas Project Implementation (With PDF) | What is Piping (2024)

What is a Project?

A project is a series of tasks that need completion to get a specific outcome. Every project is unique in that it is not a routine operation. A specific set of inputs & outputs are designed for a singular goal in the form of a project or service.

Projects can range from simple to complex. Depending upon the complexity of the project, one or more people can manage a project. Projects are often described by a manager or executive of the client. It is required to finish the work within a time frame because every project has its deadlines.

What is Project Management?

Project management is the art of planning, controlling, and executing a project to ensure a successful outcome. The primary challenge of project management is to achieve all the project goals within the deadlines.

The aim of project management is to produce a complete project meeting the client’s objectives. Often the goal of project management is to shape or reform the client’s objectives. The client’s objectives influence all decisions of project managers, designers, contractors, and sub-contractors.

Project Life Cycle

A project life cycle specifies the sequences of stages that a project involves through from its initiation to its closure. Refer to Fig. 1 which clearly explains the Project Life Cycle for any project.

12 Phases of Oil and Gas Project Implementation (With PDF) | What is Piping (1)

Project Phases / Stages

There are 12 major stages involved in oil & gas projects. Refer to Fig. 2 which specifies all these stages.

12 Phases of Oil and Gas Project Implementation (With PDF) | What is Piping (2)

What is Feasibility Study of a Project?

A Feasibility Study/analysis is a process to determine the validation of an idea. Feasibility Study ensures that a project is legally, technically, and economically justifiable. It tells the owner/client whether a project is worth the investment.

In some cases, a project may not be beneficial. Various Parameters like requiring too many resources, low market demand, and unavailability of the nearby resources, etc. can contribute for such assessment. Such projects are not profitable.

Types of Feasibility

Four types of feasibility assessment is done before proceeding for a project. These are:

  • Economic Feasibility.
  • Legal Feasibility.
  • Operational Feasibility.
  • Scheduling Feasibility.

Concept Development / Conceptual Design

Concept development is the first step of the multiphase process involved in creating a new product. For any project or product design process, Conceptual design is the very first stage. The drawings or models are used to describe the proposed product. A set of integrated ideas and concepts are decided in this stage.

Conceptual design is a set of disciplines that contributes to identifying the optimal design at nominal operating conditions of industrial processes/products in the field of engineering.

It evaluates the best design variables and operating conditions to maximize the profit of the organization.

Deliverables of Conceptual Design

  • PFD (Process Flow Diagram).
  • Functional requirement.
  • Process Design.
  • HMB (Heat and Material Balance).

Note that the Feasibility Study and Conceptual Design is performed by the Company or Owner

Pre-FEED (Preliminary Front End Engineering Design)

Pre-FEED develops the project design basis and places boundaries to constrain and define the concept. This process can be simplified by the following activities:

  • A design basis is developed that outlines the operating characteristics of the project.
  • The technical and economic feasibility of the design basis will be determined during this exercise.
  • The allocation of additional funds is evaluated for proceeding with engineering and design.
  • Project boundaries are developed to deal with rules and regulations,National and local laws, governance, and content issues.

Deliverables of Pre-FEED Stage

  • Material selection and specification.
  • Plant capacity requirements.
  • Product specifications.
  • Critical plant operating parameters.
  • Available utility specifications.
  • Process regulatory requirements.
  • All other operating goals and constraints desired by the plant owners/operators/engineers.
  • Definition and sizing of main equipment resulting in in-process specifications.
  • Preliminary plot plan.

FEED (Front End Engineering Design)

FEED or Front End Engineering Design is the most basic engineering conducted after completion of the conceptual design and feasibility study. At this stage, various studies take place to figure out technical issues and estimate rough investment costs.

This work is normally contracted to the EPC (Engineering, Procurement, and Construction) contractors. The final product of this stage is FEED Package. FEED package amounts up to dozens of files and will be the basis of bidding for the EPC Contract. It is important to reflect the client’s intentions and project-specific requirements into the FEED Package. It avoids significant changes during the EPC Phase. It is essential to maintain close communication with the client. Sometimes, the client stations at the Contractor’s office during the work execution.

Deliverables of FEED

  • Final Plot Plan.
  • P&ID (Piping and Instrumentation Diagram)
  • MDS (Mechanical Data Sheet)
  • Line List
  • Instrument and Valve data-sheets.
  • General Arrangements Drawings for main equipment and main pipework.
  • Cost estimating.
  • HAZOP Report.
  • Project Execution Plan, HSE Plan
  • Operational philosophies

Detailed Engineering

Detailed engineering is a study, which creates every aspect of project development. Detailed Engineering includes all the studies before the project construction starts. Detail engineering includes

  • the extraction of all the essential information from the basic engineering drawings/FEED
  • calculations to provide the exact drawings in detail for the production, fabrication & erection items
  • the details of the entire project along with the precise bill of quantities and specifications for each of the equipment.
  • It also involves 3D-Modelling.

Deliverables of Detailed Engineering

  • Equipment List.
  • Process data-sheet.
  • Management/review of vendor drawings.
  • Thermal rating and vibration analysis of heat exchangers.
  • Review of P& ID – Jointly with Client.
  • Valve List
  • Control valve data-sheet.
  • Relief valve data-sheet.
  • Detailed piping drawings, including isometrics and stress calculations.
  • Bill of Quantity (BOQ).
  • MTO (Material Take-off)
  • Start-up procedures, Operating and Commissioning manuals.

Procurement Phase

Procurement involves a series of activities and processes by purchase or procurement team. It is necessary to acquire the necessary products or services from the best suppliers/vendors at the best price and quality. Such products include raw materials, equipment, machinery, instrument, etc.

An effective procurement strategy involves:

  • a financial plan to manage the budget.
  • a good plan to manage the workflow and production deadlines.
  • keeping everything aligned with the client’s objectives.
  • ensuring a smooth supply of required items for construction.

In the oil and gas industry, procurement plays an important role in ensuring the supply of products, items, and services within budget allocation, ensuring on-time delivery on-site and cost savings without compromising quality and safety.

Procurement Cycle

In Procurement, the Procurement cycle lists the key steps in a cyclical order. This makes an understanding of each procurement step easier. Refer to Fig. 3 for a typical Procurement Cycle with important procurement steps.

12 Phases of Oil and Gas Project Implementation (With PDF) | What is Piping (3)

Note that Pre-FEED, FEED, Detailed Engineering, and Procurement are performed/executed by the EPC Contractor

Onsite and Offsite Fabrication

Offsite Fabrication is a process of fabrication and assembly of parts or systems at a location away from the project like a workshop. Offsite fabrication provides a cost-benefit, allowing the assembly of units that would not be able to be fabricated on-site due to cost, tooling, availability of resources, or space restrictions. Nowadays it is at a peak in the industry.

Onsite Fabrication is the fabrication held at the project site. After the offsite fabrication, it is still required to do fabrication work at the site for connecting the different pieces of equipment, pipes, and other systems for the installation purpose.

Note: Fabrication is executed by the Contractor/vendors.

Construction Phase

Construction is the activity of putting different elements, objects together. It should follow a detailed design plan, and the installation drawing to create a structure, equipment, building, etc. While constructing large structures/buildings, A clear action plan is a must.

One should know the dimensional coordinates of the specific location. It involves clearing, excavating, and leveling of the land. It also involves other activities associated with the structure, building, and other properties of the plant.

Erection and Installation Phase

Erection is the process of cleaning and preparing the place of the installation of a new machine or equipment. It involves arranging equipment/elements or the tools for the installation purpose. This is the part of the mechanical completion.

Installation is the process of assembling the different parts of the system by welding or mechanical joint. The process involves connecting the electrical connections for the creation of a single system.

Mechanical completion: The activities involved in the installation of the equipment and piping system is knows as mechanical completion. It is done to make sure everything is installed as per the drawing and after the clearance of this stage commissioning and testing occurs.

Note: Construction, Erection, and Installation are executed by the Contractor.

Pre-commissioning Phase

Pre-Commissioning activities start after the system achieved mechanical completion. Pre-Commissioning activities include cleaning, flushing, drying, leak test, hydro-testing of the equipment, piping system, and other operating systems. Sometimes pre-commissioning activities are included in mechanical completion but this depends again on the contract conditions or the requirement of the project.

Note: Pre-commissioning & commissioning is executed by the Contractor and the operator of the plant.

Commissioning Stage

Commissioning is a verification process used to confirm that a facility or the process has been designed, procured, fabricated, installed, tested, and prepared for operation or production by the blueprint, design drawings, and specifications provided by the client. It is the second last stage of the project.

Note: After the completion of the commissioning, if no error found in the system then the referred drawing became an “as-built drawing”.

As-built drawing: This is the final drawing sheet of the plant and used for future modification, maintenance, and review purposes.

Start-up Phase

After successful completion of the testing of the processing system or the plant. Its the time for the green signal to start production.

References and Further Studies

12 Phases of Oil and Gas Project Implementation (With PDF) | What is Piping (2024)


Why project management is important in oil and gas industry? ›

Completing projects on time is of utmost importance for O&G companies as it is directly linked to their ability to achieve the primary strategic objectives of sustaining or increasing production to meet the ever-growing global market demand (El-Reedy, 2016 ).

What is a conceptual study in an oil and gas project? ›

Definition. Conceptual Study stands in the oil and gas and petrochemical industry at the very early stage of a greenfield project to identify all the possibilities and conditions to develop this project.

What are the project phases? ›

This project management process generally includes four phases: initiating, planning, executing, and closing. Some may also include a fifth “monitoring and controlling” phase between the executing and closing stages. By following each step, a project team increases the chance of achieving its goals.

What are the phases of an engineering project? ›

Engineering projects come in many shapes and sizes, but they can generally be broken down into the following phases.
  • Planning / Preliminary Engineering. This is the stage at which the options are considered and the pros and cons evaluated. ...
  • Detailed Design. ...
  • Tendering. ...
  • Construction / Implementation. ...
  • Post-Construction.
Nov 28, 2012

How the oil and gas industry can improve capital project performance? ›

O&G companies can use management practices and digital technologies deployed by other industries to boost capital-project productivity. Project Production Management (PPM), digitizing processes, advanced analytics, and agile ways of working can all yield significant improvements.

What are capital projects in oil and gas? ›

A capital project is a project in which the cost of the product is capitalized or depreciated. The most common examples of capital projects are infrastructure projects such as railways, roads, and dams. In addition, these projects include assets such as subways, pipelines, refineries, power plants, land, and buildings.

What is feed in oil and gas industry? ›

Front-End Engineering (FEE), or Front-End Engineering Design (FEED), is an engineering design approach used to control project expenses and thoroughly plan a project before a fix bid quote is submitted.

What is feed and pre feed? ›

The FEED (Front End Engineering and Design, Front End Engineering (FEE), or Front End Loading (FEL)) is a type of the design and engineering documents that is developed based on a conceptual engineering or pre-FEED results. A FEED is used for the basis of the detailed design and engineering; FID…

What is the meaning of conceptual design? ›

Conceptual design is an early phase of the design process, in which the broad outlines of function and form of something are articulated. It includes the design of interactions, experiences, processes, and strategies.

What is a project cycle PDF? ›

The Project Cycle. The cycle represents a continuous process in which each stage provides the foundation for the. next. For example, the information generated during project identification (Stage I) provides. the basis for detailed project design (Stage II).

How do you manage a project successfully PDF? ›

The eight steps are:
  1. Define your project. ...
  2. Clarify project roles and have a clear project management structure. ...
  3. Identify and reduce risks. ...
  4. Don't forget the people. ...
  5. Develop a robust project plan. ...
  6. Deliver what you say you will deliver. ...
  7. Dealing with project changes. ...
  8. Stop 'project dribble'
Jul 5, 2022

What are the 5 phases of a project PDF? ›

There are 5 phases to the project life cycle (also called the 5 process groups)—initiating, planning, executing, monitoring/controlling, and closing.

What is the most important phase in the design process? ›

Research. Research is the most important part of any Design process. The facts and insights you acquire during the Research phase inform every subsequent part of the design process. More importantly, it is during research that you can easily kill ideas.

What is a 30% design? ›


This phase aims to lay out the major design elements of your project and establish a cost and timeline. Along with the drawings, the project's scope, schedule, and budget will be fine-tuned in this stage.

How do you design a process? ›

Business process design consists of the following 4 steps:
  1. Identifying and defining the problem.
  2. Identifying inputs, outputs, parties, and procedures.
  3. Mapping out the process.
  4. Testing the process.

What is project management meaning? ›

Project management is the application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters. Project management has final deliverables that are constrained to a finite timescale and budget.

What makes a capital project successful? ›

Capital project management (CPM) success requires astute planning, structured controls, and effective delivery. Software tools and best practice strategies increase the likelihood of positive outcomes.

What is called project? ›

A project is defined as a sequence of tasks that must be completed to attain a certain outcome. According to the Project Management Institute (PMI), the term Project refers to ” to any temporary endeavor with a definite beginning and end”. Depending on its complexity, it can be managed by a single person or hundreds.

What is capital project analysis? ›

Overview: Capital Project Financial Analysis and Planning provides financial analysis and strategic support for capital projects, including debt management, tax compliance, and business officer responsibilities within Facilities Planning and Management.

What is difference between FEED and EPC? ›

Front End Engineering Design is an up-front basic engineering phase. Detailed Engineering is the design phase when all design work in done in detail to put into construction and operation. FEED is done mainly to assess the cost and produce preliminary basis documents.

What means feed phase? ›

FEED (Front End Engineering Design) means Basic Engineering which is conducted after completion of Conceptual Design or Feasibility Study. At this stage, before start of EPC (Engineering, Procurement and Construction), various studies take place to figure out technical issues and estimate rough investment cost.

What is process design package? ›

“Process Design Package” means the activities in order to provide drawings and documentation relating to the design and construction on behalf of Licensor. Typical deliverable list for PDP are: Basic design data. Process Flow Diagram (PFD) Process piping and instrumentation diagram (P&ID)

What is FEED contract? ›

FEED Contract or “FEED Contractor” shall mean the front end engineering design contract and contractor which shall provide the engineering for constructing and installing the ELC Liquefaction Facilities.

What does FEL 1 stand for in engineering? ›

In a recent study for IPA clients,1 we asked people how frequently these statements about the opportunity assessment phase of the capital project development process, referred to as front-end loading (FEL) 1 by most companies, were accurate: The projects in FEL 1 address a true business need.

What are the basic principles of layout? ›

The design must have balance, rhythm, emphasis, unity, simplicity, preparation, harmony, line, shape and movement. Good layouts never just happen, they have to be deliberately and carefully planned and worked out.

Why is conceptual phase important? ›

Conceptual designs help to create a clear user interface which is easy to understand and interpret. It helps to describe the roles of different users and their requirements in detail so that the project is better understood from the offset.

How do you draw conceptual design? ›

How to draw like a Concept artist | INSPIRED BY BIKE TECH - YouTube

What are the stages of project cycle PDF? ›

The project management life cycle is usually broken down into four phases: initiation, planning, execution, and closure-these make up the path that takes your project from the beginning to the end. Some methodologies also include a fifth phase, controlling or monitoring.

What are the stages of project management PDF? ›

The 5 basic phases in the project management process are:

Project Initiation. Project Planning. Project Execution. Project Monitoring and Controlling.

What is project management PDF? ›

Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. The planning and organization of an organization's resources in order to move a specific task, event or duty toward completion.

How do you know if a project is successful? ›

Successful projects are those that 1) meet business requirements, 2) are delivered and maintained on schedule, 3) are delivered and maintained within budget, and 4) deliver the expected business value and return on investment.

How do you implement a project? ›

How to implement a project
  1. Assess the project plan. In the first phase of the project cycle, it's beneficial to establish a plan that meets the expectations of management, clients and key stakeholders. ...
  2. Execute the plan. ...
  3. Make changes as needed. ...
  4. Analyze project data. ...
  5. Gather feedback. ...
  6. Provide final reports.
May 25, 2021

How do you complete a project? ›

6 Steps To Ensure Successful Project Completion
  1. Step 1: Study the project thoroughly. ...
  2. Step 2: Prepare a concrete project plan. ...
  3. Step 3: Daily monitoring of work assigned after project begins. ...
  4. Step 4: Keep the client informed on a predetermined basis. ...
  5. Step 5: Perform testing at regular intervals. ...
  6. Step 6: Final project delivery.

What are the 5 main phases of a project? ›

Developed by the Project Management Institute (PMI), the five phases of project management include conception and initiation, project planning, project execution, performance/monitoring, and project close.

How do you plan a project from start to finish? ›

Project Planning: From Start To Finish
  1. Start. Many of us receive a project and we immediately go for the planning part. ...
  2. Set Those Goals. ...
  3. Define And Assign Tasks. ...
  4. Time To Select The Perfect Team. ...
  5. Edit And Revisit. ...
  6. Estimate Time And Develop The Timeline. ...
  7. Keep Everything On Track. ...
  8. Rewards And Recognitions.
Jan 10, 2018

What are the 5 phases of a project? ›

Developed by the Project Management Institute (PMI), the five phases of project management include conception and initiation, project planning, project execution, performance/monitoring, and project close.

What are the 4 phases of a project? ›

Planning, build-up, implementation, and closeout.

What are the 3 main phases of a project? ›

Every project has a beginning, a middle period during which activities move the project toward completion, and an ending (either successful or unsuccessful).

What are the steps in project implementation? ›

Here is a list of steps for implementing a project effectively:
  1. Assess the project plan. ...
  2. Execute the plan. ...
  3. Make changes as needed. ...
  4. Analyze project data. ...
  5. Gather feedback. ...
  6. Provide final reports.
May 25, 2021

How do you write a project plan sample? ›

It should be no longer than a page, offering a brief overview of:
  1. The project objectives and goals.
  2. Your chosen project methodology/framework.
  3. The final deliverables and acceptance criteria.
  4. Key scope risks and countermeasures.
  5. Summary of milestones.
  6. An overview of the project timeline and schedule-based risks.
Jul 17, 2022

What is the implementation phase? ›

The implementation phase involves putting the project plan into action. It's here that the project manager will coordinate and direct project resources to meet the objectives of the project plan. As the project unfolds, it's the project manager's job to direct and manage each activity, every step of the way.

What is preparation for project implementation? ›

Project preparation is the process of analysing and developing a project idea into a final project ready for implementation. The product of this process is presented in the form of a Project Document.

What is the most important phase of project management? ›

Project execution and monitoring phase. This is the main and most important stage of your entire project management life cycle. It is the actual start of the project.

How many types of phases are there? ›

The three fundamental phases of matter are solid, liquid, and gas (vapour), but others are considered to exist, including crystalline, colloid, glassy, amorphous, and plasma phases. When a phase in one form is altered to another form, a phase change is said to have occurred.

How can you identify a phase in a project? ›

The Project Management Institute (PMI) identifies four major phases of a project as characteristics of the project life cycle. These four life-cycle phases are initiation, planning, execution, and project closeout. The knowledge, skills, and experience needed on the project can vary in each phase.

What is a project closure checklist? ›

A project closure checklist (or project closeout checklist) is used by project managers to evaluate the business outcomes when formally closing a project. It helps assess project activities such as actual performance versus baseline objectives, unaddressed issues, and lessons learned within a project life cycle.

What is the beginning phase of a project? ›

Initiation phase. The initiation phase is the beginning of the project. In this phase, the idea for the project is explored and elaborated. The goal of this phase is to examine the feasibility of the project.

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