What is Front End Engineering and Design (FEED) oil and gas | Projects | Management | Part - 1

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Will we finish on time?
Will we finish under the budget?
What risks will be there during construction, installation, and commissioning?
What risks will be there during procurement and detailed design?

A construction industry institute performed analysis of around 1000 small and medium projects, and they found that only 5% of projects met initial cost and schedule targets within an acceptable margin. If this is ground reality, then above concerns are valid.
Questions like these cannot be answered unless proper planning, time and money is spent in the early stages of product life cycle.

A typical Production Life cycle
Conceptual Studies or Pre-FEED
Front End Engineering and Design
Design & Engineering
Installation & Commissioning
Operation & Maintenance


In any production life cycle, FEED is one of the important steps. It plays a critical role in projects success. More than just simply estimating cost, FEED provides thorough project scope, project budgets, schedule, risk assessment and project viability.

Every Project and Every Organization is unique. However, as a general FEED may have following key deliverables:
Safety
Hazard and Operability (HAZOP)
Hazardous area classification
Safety Philosophy
Environment Impact Assessment

Process
Basis of Design (BOD)
Process Flow Diagram (PFD)
Process and Instrumentation Diagram (P&ID)
Heat & Material Balance (HMB)
Equipment List
Instrument Process datasheet
Cause & Effect Diagram
Flare Study

Mechanical
Equipment specifications
Equipment datasheets
Equipment mechanical design
Procurement Enquires for Long Lead Items
Technical evaluation for main equipment

Piping
Plot Plan
3D model (Equipment and main lines)
Piping Layout
Piping material specification
Piping classes identification
Material Take Off (MTO)
Piping Stress analysis basis
Piping stress calculations (simplified or critical lines only)
Paint specification

Instrumentation & Control
Control system specification
Instruments design datasheet
Systems I/O sizing
Instrument List
Hook-up drawings
Cable routing drawings (main routing only)

Civil & Structure
Soil investigation specification
Underground network drawing (general)
Design specification
Civil works specification (main only)
Drainage network calculation
Concrete/steel standard drawings

Electrical
One line diagram
Electrical consumer list (preliminary)
Equipment specification
Equipment datasheet
Standard design drawings
MTO (preliminary)
Cable schedule (preliminary)

These deliverable are used to generate:

Project Scope for EPC contractor
Overall project cost estimate
Procurement estimates
Project schedule

FEED reduces risks and can give success in detailed design, construction, and commission and plant maintenance.

Study says benefits up to 20-30% reduction in cost and shorter project execution can be achieved when proper FEED studies performed

A FEED conducted as part of a project is initially planning phase. Initial feasibility and conceptual studies will help make the business case for a project and generally provide a cost accuracy of around +/- 30% to 40%. A well-funded and well-executed FEED can deliver a cost accuracy of +/- 15 to 25%—although preferred cost accuracy will vary by industry and customer preference.


Common Outcomes/Concerns can come in FEED
Material or equipment
Availability of Finance
Social or political impacts
Return on Investment
Economic viability
Operational complexity

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