Engineering Procedure 05 August 2021

SAEP-360
Project Planning Guidelines
Document Responsibility: Facilities Planning Standards Committee

Previous Revision: 29 January 2020 Next Revision: 05 August 2026

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 Document Responsibility: Facilities Planning Standards Committee SAEP-360
Issue Date: 05 August 2021
Next Revision: 05 August 2026 Project Planning Guidelines
Contents
Summary of Changes .............................................................................................................. 3
Scope ................................................................................................................................ 4
INTRODUCTION ................................................................................................................. 4
OBJECTIVE ....................................................................................................................... 4
APPLICABILITY .................................................................................................................. 4
Conflicts And Deviations .................................................................................................... 4
References ........................................................................................................................ 4
SAUDI ARAMCO REFERENCES ............................................................................................ 4
Terminology....................................................................................................................... 5
ACRONYMS ........................................................................................................................ 5
DEFINITIONS ...................................................................................................................... 7
Project Processing ........................................................................................................... 12
PROJECT SUBMISSION..................................................................................................... 13
PROJECT SUBMISSION BUSINESS CASE ............................................................................ 13
PROJECT REVIEW ........................................................................................................... 14
PROJECT ENDORSEMENT ................................................................................................ 16
CHANGES TO PROJECT MILESTONES/CANCELLATION OF A CAPITAL PROJECT ................... 17
DESIGN BASIS FEED DEFINITION ...................................................................................... 17
Capital Management System ........................................................................................... 18
PROJECT SCOPING DEFINITION ........................................................................................ 19
MODULAR DESIGN ASSESSMENT...................................................................................... 19
CIRCULARITY ASSESSMENT ............................................................................................. 20
Joint Ventures, 3rd Party Projects, And Mergers & Acquisitions ....................................... 20
Accelerated Capital Projects ............................................................................................ 21
Expenditure Request Approval ........................................................................................ 21
LOCAL BUDGET ITEM ....................................................................................................... 22
MAJOR BUDGET ITEM ...................................................................................................... 22
EXPENDITURE REQUEST COMPLETION ............................................................................. 23
Post Project Appraisal And Business Case Revalidation .............................................. 23
Document History .................................................................................................................. 24
Appendix A - 3rd Party Projects Planning Guidelines .............................................................. 25

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 Document Responsibility: Facilities Planning Standards Committee SAEP-360
Issue Date: 05 August 2021
Next Revision: 05 August 2026 Project Planning Guidelines
Summary of Changes

Paragraph Number Change Type

(Addition, Modification, Technical Change(s)
Previous Revision Current Revision Deletion)
(29 January 2020) (05 August 2021)
References added for Technical & Functional
3.1 3.1 Modification Requirements (TFR) Development Guidelines and
Project Waiver Submittal Guidelines

Definitions added for Circular Economy, Off-taker

4.2 4.2 Modification
and Transaction Team

Project Submission procedure changed to

reference SABP-A-042, Project Waiver Submittal
5.1 5.1 Modification Guidelines and Finance and Logistics (PRC)
System transaction ZP0590 rather than Waiver
form on FPD Sharek Page.

Project Milestones/Cancellation of a capital project

procedure changed to reference Finance and
5.5 5.5 Modification
Logistics (PRC) System transaction ZP0590 rather
than DCR form located on FPD Sharek Page.

5.6 10.0 Modification Shifted Post Project Appraisal to separate section.

Requirement added for Circularity Assessment to

- 6.3 Addition
ensure incorporation of Circular Economy

56D extension request procedure for Major Budget

Items updated to provide further detail on
9.2 9.2 Modification
governance and to reference Finance and Logistics
(PRC) System transaction ZP0570.

References added for the Technical & Functional

Requirements (TFR) Development Guidelines.
Appendix A Appendix A Modification
Roles and responsibilities, including those of the
Off-taker, are further specified and clarified.

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 Document Responsibility: Facilities Planning Standards Committee SAEP-360
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Scope

Introduction

The planning period for a capital project, as defined in this document, starts
when an appropriation request for the project is submitted by the Business Line
and ends with the approval of the expenditure request for the project. These
guidelines focus on this project planning period and set out the key actions and
activities required to progress a capital project through the planning period.
They also set out important roles and responsibilities for these actions and
activities.

Objective

The objective of these guidelines is to set out the key actions, roles and
responsibilities required to progress a capital project through the planning
period. These guidelines ensure continuity and consistency and provide an
important link to other related documents including those listed in Section 3
below.

Applicability

These guidelines are applicable to the planning of all Saudi Aramco capital
projects that are defined as a Major Capital Budget Item (BI) as per the Saudi
Aramco Management Guide.

Conflicts and Deviations

Any conflicts between this document and other applicable Mandatory Saudi
Aramco Engineering Requirements (MSAERs) shall be addressed to the
EK&RD Coordinator.

Any deviation from the requirements herein shall follow internal company
procedure SAEP-302.

References

All referenced specifications, standards, codes, drawings, and similar material

are considered part of this Engineering Procedure to the extent specified,
applying the latest version, unless otherwise stated.

Saudi Aramco References

Saudi Aramco Engineering Procedures
SAEP-13 Project Environmental Impact Assessments
SAEP-14 Project Proposal

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SAEP-17 Capital Management System
SAEP-25 Estimate Preparation Guidelines
SAEP-38 Accelerated Capital Projects
SAEP-40 Value Assurance Process
SAEP-60 Master Plan Development Procedure
SAEP-87 Technical Services Mandate for Transaction Development
SAEP-302 Waiver of a Mandatory Saudi Aramco Engineering
Requirement
SAEP-367 Value Improving Practices Requirements
SAEP-1350 Preparation of the Design Basis Scoping Paper (DBSP)

Saudi Aramco Best Practices

SABP-A-041 Project Synergy Planning Guidelines

SABP-A-042 Business Case Development Guidelines
SABP-A-043 Master Plan Development Guidelines

Saudi Aramco General Instructions

GI-0020.150 Leases - Project Type Prefix 15

GI-0020.500 Expenditure Requests
GI-0030.001 Transaction Development Guidelines
GI-0202.451 Engineering Work Order Authorization for Preliminary
Engineering Preparation
GI-0288.040 Project Development Expenditures – Project Type Code 40

Saudi Aramco Guidelines

Technical & Functional Requirements (TFR) Development Guidelines

Project Justification Guidelines
Project Waiver Submittal Guidelines
Saudi Aramco Management Guide

Terminology
Acronyms

BI Budget Item

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 Document Responsibility: Facilities Planning Standards Committee SAEP-360
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BISI Budget Item Supporting Information

BP Business Plan

CCC Corporate Center Committee

CMS Capital Management System

CP Capital Program

CPED Capital Program Efficiency Division

CP&CC Capital Programs and Contract Compliance Department

DBSP Design basis Scoping Paper

EMV Expected Monetary value

ER Expenditure Request

ERA Expenditure Request Approval

ERC Expenditure Request Completion

FEL Front End Loading

FPD Facilities Planning Department

IPT Integrated Project Team

IP Investment Plan

IRR Internal Rate of Return

MC Management Committee

MCC Mechanical Completion Certificate

MP Master Plan

NPV Net Present Value

P&DS Portfolio and Decision Support Department

PMOD Project Management Office Department

PSD Project Scope Definition

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 Document Responsibility: Facilities Planning Standards Committee SAEP-360
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PS Project Sponsor

PXP Portfolio Execution Planning

RAPID Recommend, Agree, Perform, Input, Decide

SAPMT Saudi Aramco Project Management Team

SMA Strategy and Market Analysis Administration Area

VA Value Assurance

VIP Value Improving Practices

Definitions

Definitions of the key terms used throughout this document are presented
below.

Budget Item (BI): A discrete project that has been defined and evaluated to
the extent required for Management to include it in the Business Plan and
commit additional resources to further develop the information required by
Management. Based on the information developed, if deemed appropriate, the
Board of Directors will make reasonable business decisions regarding the
continued development of the project.

Budget Item Supporting Information (BISI): The information in the BISI

supplements the information in the brief. The BISI is not intended to duplicate
information in the ER Brief, except as required to put the supplemental
information into proper perspective.

Business Case: The information required to make reasonable business

decisions regarding a proposed capital project, including its scope, cost,
benefits, and risks throughout its development.

Business Line: Saudi Aramco's basic organization structure. A Business Line

forms part of the organizational matrix with a responsibility over a specific part
of the company business. The Business Line is represented by a Business
Line Coordinator for Project Planning Activities.

Business Objective: The purpose of the proposed project.

Business Plan (BP): The Business Plan is a three-year forecast that serves
as the Corporation’s principal long-range planning documents. Each year
Saudi Aramco Corporate Management sets objectives and each Business Line
identifies what it will need in manpower and facilities to meet these objectives.

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These plans make up the Three-Year Business Plan, which is the basis for the
Three-Year Capital Program and the First-Year Capital Budgets.

Capital Program (CP): The Three-Year Capital Program comprises the

proposed programs and projects that are required to meet the Business Plan
objectives and is developed to forecast capital requirements over the same
three-year period as the Business Plan. Planning Briefs are prepared for those
items included in The Three-Year Capital Program. The cost reflected in a
Planning Brief is based on a budget quality estimate (+50%). A Planning Brief
is required for a budget item to be included in the Capital Program.

Capital Budget: The First-Year Capital Budgets defines the detailed capital
requirements for the first year of the Three-Year Capital Program and is
approved by the Board of Directors in December. The First-Year Capital
Budgets include the Budget Briefs that define the scope, justification, and
budgetary estimate of each project. Budget Briefs are prepared for those items
having Expenditure Request Approval (ERA) dates occurring in the first year of
the Three-Year Capital Program. The cost reflected in a Budget Brief is based
is based on a DBSP quality estimate (+30%).

Capital Management System (CMS): CMS, as defined in SAEP-17, is the

general framework adopted by Saudi Aramco for managing project activities,
clarifying stakeholders’ roles and responsibilities, and enabling timely and
informed decision making for Capital Projects.

Capital Program Efficiency Division (CPED): Is the organization that

manages and governs the implementation of the Capital Management System
(CMS) “Efficiency Enablers” to maximize capital efficiency and improve the
predictability and successful implementation of capital projects by applying the
five enablers.

Circular Economy: Is a framework of strategies intended to improve the

sustainability of operations and projects, lower environmental impact, and
promote effective use of resources.

Construction Agency: The organization assigned to execute the project. This

could be the Saudi Aramco Project Management administrative area that is the
default Construction Agency for A-, B-, and C-type projects, or the proponent’s
Capital Program Management (CPM) team for C1-type projects.

Corporate Center Committee (CCC): Committee consisting the President and

CEO, Senior Vice President Finance Strategy and Development, Senior Vice
President & general Counsel – Law, and the Executive Head of SMA. The
Corporate Center Committee Reviews assists and advises the President &
CEO with corporate items which do not require the presence of the full

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Management Committee. Please refer to the Management Guide for further
detail.

Corporate Staff: Portfolio and Decision Support Department and Capital

Programs and Contract Compliance Department.

Corporate Staff Review: Expenditure request review, led by Facilities

Planning Department, and conducted in conjunction with Portfolio and Decision
Support Department, Capital Programs and Contract Compliance Department,
Project Management Office Department, Capital Program Efficiency Division,
Environmental Protection Department, Consulting Services Department, and
Project Management.

Cost Estimate: Is estimate of the capital investment value, prepared by the

Project Management Office Department (PMOD) as per SAEP-25, and is
deemed to have various accuracies depending on the phase of the project.

Decision Maker: Is represented by the Management Committee for A- and B-

type projects, by the Business Line Committee for Upstream and Downstream
C- and C1-type projects, and by the Executive Advisory Committee for all other
C- and C1-type projects.

Design Basis Scoping Paper (DBSP): A document prepared by the IPT

during the FEL 2 DBSP phase of the CMS (led by FPD) that details the
complete scope of a given capital project in order to economically achieve the
stated business objective(s) in an anticipated operating environment. Please
refer to SAEP-1350 for details of the DBSP guidelines.

Expenditure Request Approval (ERA): The date the expenditure request is

approved to allow the project to proceed to the execution phase. The ERA is
the date project funding becomes available upon approval by the Executive
Committee or the Board.

Expenditure Request (ER) Brief: Describes the scope, cost and business
case justification for a budget item. Approval of the ER Brief authorizes the
construction or purchasing process to begin.

Expenditure Request Completion (ERC): The On-stream Date when the

Mechanical Completion Certificate (MCC) has been approved, the system has
been energized, or product has been introduced into the facility, and it has been
successfully operated during the initial start-up period. Refer to GI-0020.520
and GI-0002.710 for further information concerning MCC and On-Stream Date
clarifications.

FEL 2 Study Cost Estimate: An estimate of the initial capital investment and
is deemed to have an accuracy as per SAEP-25.

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FEL 2 DBSP Cost Estimate: An estimate of the capital investment after major
elements of the project scope has been frozen and is deemed to have an
accuracy as per SAEP-25.

FEL 3 Expenditure Request (ER) Cost Estimate (56D): A definitive ±10%

estimate prepared in support of the funding request document as per SAEP-25.
PMOD is responsible to ensure that the FEL 3 ER Cost Estimate satisfies all
Company standards for format and quality. If the FEL 3 ER Cost Estimate is
prepared by the Construction Agency, it must be reviewed and endorsed by
PMOD.

Front End Loading (FEL): A ‘Stage and Gate’ process to facilitate project
planning definition and decision-making that defines:

• The activities to be performed during each Stage/Phase.

• The decisions to be made at each Gate.

For more details, refer to SAEP-17.

Integrated Project Team (IPT): A team composed of appointed members from

different organizations who work in an integrated manner and have clear roles
and accountabilities toward project planning and execution.

Investment Plan (IP): This is a compilation of all projects over a 10-year

period that serves to meet company corporate strategies and objectives and is
based on Facility and Business Master Plans. The IP serves as Gate 1 for all
capital projects and forms the basis for Capital Program Business Plan
development.

Management Committee (MC): Committee consisting of the President and

CEO, all members of Corporate Management and the Executive Head of SMA.
The Management Committee Reviews, endorses, and/or approves major
Company plans, programs and actions, and other items of major corporate
impact or importance. Please refer to the Management Guide for further detail.

Master Plan (MP): A document prepared to translate corporate objectives

and/or sustain facility performance requirements into an optimal portfolio of
investment projects along with associated studies necessary to implement

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these investments. Please refer to SAEP-60, Master Plan Development
Procedure for further detail.

Off-taker: The Saudi Aramco organization that purchases/utilizes 3rd Party

products.

PMOD: The Project Management Office Department.

Portfolio Execution Planning (PXP): PXP is one of the five Capital Efficiency
Enablers introduced by the Capital Management System (CMS). It is a multi-
organizational, forward-looking assessment of the company’s PXP portfolio to
maximize capital efficiency and the efficient execution of the planned projects
through the early identification and mitigation of execution risks and constraints
and the identification and capture of execution opportunities.

Project A-, B-, C-, & C1-Types: Characterization assigned to the projects by
FPD based on capital size and complexity.

Project Leader: A representative from FPD who leads the IPT during FEL 1
and FEL 2 stages, or a representative from the Construction Agency who leads
the IPT during FEL 3 stage and thereafter up to the project completion.

Project Proposal: A document prepared by the IPT during FEL 3 (led by the
Construction Agency) which defines the actual facilities to be built, in sufficient
detail to obtain an ER Cost Estimate from PMOD. Please refer to SAEP-14 for
details of the Project Proposal guidelines.

Project Scope Definition (PSD): A document that describes the key technical
requirements and features of a design project. The PSD serves as the high-
level technical design basis for the project to allow the potential GES+
contractors to bid on developing the FEL 2 DBSP.

Project Sponsor (PS): An Executive or a member of Management, appointed

by the proponent organization, who is accountable for meeting project
objectives and steering the IPT towards maximizing investment value.

Proponent: The Saudi Aramco organization that owns, operates, and

maintains the completed facility.

RAPID (Recommend, Agree, Perform, Input, Decide): A methodology that

clarifies roles and responsibilities in the work process related to the
development of a deliverable.

Saudi Aramco Project Management Team (SAPMT): The Construction

Agency team that is assigned to the project during project planning and
execution.

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Transaction Team (TT): A team composed of appointed members from
different organizations who work in an integrated manner and have clear roles
and accountabilities toward transaction planning and execution.

Value Assurance (VA) Process: The VA Process, one of the efficiency

enablers of the CMS, ensures the project to maintain or improve its overall
created value within its defined objectives through all stages of its development.
The VA Process is implemented through structured and rigorous analysis, the
Value Assurance (VA) Review, performed by an independent multidisciplinary
team before each Gate and/or Key Decision(s) to examine all aspects of a
project from a diverse, holistic and cross discipline perspective to: 1). Identify
gaps, risks and opportunities 2). Provide necessary recommendation to the IPT
and the Project Sponsor 3). Provide an independent assessment which
highlights risks, opportunities, gaps, etc. to support the Decision Maker for the
Gate decisions. For additional details, please see SAEP-40.

Value Improving Practices (VIPs): Are practices used to improve project

performance, and they are primarily used during the FEL of a project. Within
Saudi Aramco, the term VIP encompasses Value Engineering, a group of other
value management techniques called Best Practices, Project Risk
Management, and Interface Management. It should be noted that the CMS full
set of deliverables (see SAEP-17) includes VIPs that encompass other
practices. For additional details, please see SAEP-367.

Project Processing

Based on the outcomes of approved Master Plans*, new Capital Projects are
conceived, initiated, developed, and annually submitted by Business Line
Proponents for inclusion in the 10-Year Investment Plan (IP) and 3-Year Capital
Program (CP).

These new projects, along with existing projects already included in the IP and
CP, are annually:
a) Reviewed and concurred by the Facilities Planning Department (FPD)
and Corporate Staff (CS).
b) Reviewed by the Management Committee (MC).
c) Endorsed by the Saudi Aramco Board of Directors.
Upon Board endorsement of a capital project to be included in the CP the
project enters into the Capital Management System †.
Note: Refer to FPD Sharek Website for the Capital Program Processing Schedule.

* Developed by FPD and Proponent Organizations, as per the SAEP-60, Master Plan Development Procedure and
SABP-A-043 Master Plan Development Guidelines.
† Candidate 3rd Party projects may be indentified and endorsed by MC at this point and will not enter CMS. Refer to

Appendix A of this procedure for further detail.

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Project Submission

IP submittals by Business Lines shall follow SABP-A-042, Business Case

Development Guidelines and provide required documentation by submission
deadlines. The deadlines for project submission and late submission with an
approved waiver are as set out in the Capital Program Processing Schedule
located on the FPD Sharek Website. The project submittal will not be
considered for inclusion in the IP if the required documentation is not provided
in the Project Submittal System by either the submission deadline or by the late
submission deadline with an approved waiver.
Note: Any new Capital Project Submittals that meet the waiver rationale conditions, set out in
SABP-A-042 as well as the Project Waiver Submittal Guidelines, located on the FPD
Sharek Website, will require the approval of the waiver before they can be considered for
inclusion in the CP and IP. Waiver requests shall be submitted through Finance and
Logistics (PRC) System transaction ZP0590, approved by Proponent Admin Area Head
and received by FPD no later than 31 July. FPD will review the business case and make
recommendations to the Proponent Sr. VP, who will either endorse the submittal for
further processing or drop the submittal. The exception to the above requirements and
timeline is where Management Committee otherwise directs that the proposed capital
project be added to the CP/IP.

Upon selection of a capital project to be included in the IP synergy is created

when projects (or portion thereof) are combined in ways (scope and/or location)
that cause them to the increase the overall value that the project scope is
intended to deliver. Synergy is a Portfolio Execution Planning (PXP) lens as
described in SAEP-17 Capital Management System. Synergy opportunities
among projects are routinely explored by planners as part of the various
planning practices; however, the preliminary assessments continue to be held
until the CP is endorsed by the Executive Management and substantial cost
reductions are achieved.

FPD proposed synergy opportunities are subsequently submitted to Project

Management Office Department and the Project Management Teams in order
to determine feasibility and level of savings achieved from both scope and
execution synergies. Synergy opportunities are then reported to all key
stakeholders prior to implementation. For further details, please refer to
SABP-A-041, Project Synergy Planning Guidelines.

Project Submission Business Case

Assessment of the business case for new project submittals shall follow SABP-
A-042 Business Case Development Guidelines.

FPD evaluates and reviews the new submittals within the IP annually.
Additionally, FPD obtains cost estimates and schedules for supported

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appropriation request items from PMOD as per SAEP-25, Estimate Preparation
Guidelines based on the supported scope and milestone.

Business case evaluation is essential to support investment decisions based on

qualitative and quantitative assessments. The evaluation is completed by the
assigned FPD planners to cover technical, strategic, commercial, and economic
feasibility, as applicable. The business case evaluation also ensures
compliance to the approved master plans for all different businesses and
facilities.

The evaluation position, along with rationale and recommendations, are

published in Project Submission System as either supported, conditionally
supported, or not supported for inclusion in CP and IP. Finally, FPD publishes
their position on evaluated submittals to Strategy and Market Analysis (SMA)
for review by the Strategy Council.

Economic evaluation is required for projects that are justified based on

economics‡. The economic evaluation shall be based on FPD’s most recent
economic model with economic evaluation basis as confirmed by the Portfolio
Analysis & Decision Support Department. The evaluation should cover an
assessment of the expected costs (e.g., initial investment and life cycle costs)
to provide additional perspective regarding the reasonableness of the proposed
project. The economic evaluation aims to calculate the resulting value creation
in terms of Net Present Value (NPV), Internal Rate of Return (IRR), or Expected
Monetary Value (EMV). Additionally, the evaluation provides a common basis
for comparisons of the proposed project’s costs to potential alternatives.

Project Review

The review of Budget Items occurs in annual cycles as described below.

The review cycles for the IP and the CP are described separately in this
procedure.

Investment Plan Review

The stages of the annual review cycle for the IP are as follows:

a) FPD undertakes review of new project submittals as per SABP-A-042.

FPD’s position on evaluated submittals in the IP is provided to Portfolio
and Decision Support Department (P&DS).

b) P&DS finalizes the IP, organizes and hosts the Strategy Council meeting
to review the IP. The Strategy Council reviews the Investment Plan

‡ Refer to Project Justification Guidelines on FPD Sharek Page for guidance on project justification

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considering new submittals and existing Budget Items and the outcome
of the Strategy Council Review is provided for Board approval at their
Mid-year (Q2) meeting.

Capital Program Review

The stages of the annual review cycle for CP are as follows:

a) FPD coordinates annual Business Lines Alignment meetings with all

proponents to agree on FPD initial evaluation outcomes for each new
project submittal which are headed by the managers, or delegates, of
FPD and proponents’ departments. Submitted appropriations with
proposed starting date beyond the third year in Investment Profile are
reviewed on higher level to ensure correctness of business case even if
project attributes are not fully developed.

b) FPD drafts the Planning and Budget Briefs for the Capital Program
Budget Items in accordance with general instructions GI-00020.500
Expenditure Requests and as defined and stipulated in the FPD
Preparation Guidelines for Planning, Budget and Expenditure Request
Briefs.

c) FPD prepares and incorporates the Briefs for new Capital Budget Items
into the Corporate Staff Review Book which is provided for Corporate
Staff Review (CSR).

d) FPD organizes and hosts the Corporate Staff Review meeting for the
new Budget Items to the Capital Program. This ensures central
alignment across Saudi Aramco on the business case.

e) FPD updates the Briefs for the new Budget Items to incorporate CSR
comment on the new items to prepare for Management Committee
Review.

f) FPD establishes and archives key project milestones in Operating

System database to freeze and publish planning basis.

g) FPD presents to Management Committee in a preliminary Management

Committee Review meeting.

h) FPD prepares and incorporates updated Briefs for existing and new
items to be included in the Capital Budget for the upcoming calendar
year into the Corporate Staff Review Book which is provided for
Corporate Staff Review by Strategy & Market Analysis (S&MA) and
Capital programs and Contract Compliance (CP&CC) Departments.

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i) FPD organizes and hosts the Corporate Staff Review meeting for the
Capital Budget for the upcoming calendar year items.

j) FPD updates the Briefs to incorporate CSR comment to prepare for

Management Committee Review.

k) FPD establishes and archives key project milestones in Operating

System database to freeze and publish planning basis to all related
central planning departments.

l) FPD prepares and incorporates the Briefs for the Capital Program into
the Management Committee Review Book which is provided for
Management Committee Review.
Note: Budget Briefs are required for Budget Items in year 1 of the CP and Planning
Briefs are required for Budget Items in years 2 and 3 of the CP.

Project Endorsement

Newly Submitted Budget Items and Budget Items already in the Capital
Program are endorsed and approved for inclusion in the Investment Plan,
Capital Program and Capital Budget as applicable. The Budget Item
endorsement and approval occurs in annual cycles as described below. The
review cycles for the Investment Plan and the Capital Program are described
separately in this procedure.

Investment Plan Endorsement

The stages of the annual cycle for Investment Plan Endorsement and Approval
are as follows:

• The Investment Plan is presented to the Board of Directors for approval

during their mid-year (Q2) meeting.

Capital Program Endorsement

The stages of the annual cycle for Capital Program and Capital Budget
Endorsement and Approval are as follows:

a) FPD updates the Briefs to incorporate Management Committee comment

to prepare for Corporate Center Committee meeting.

b) FPD provides advance copy of Corporate Center Committee Meeting

Briefs to CEO.

c) FPD prepares and incorporates CEO comment in Briefs which are

provided for Corporate Center Committee Review.

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d) FPD presents Briefs to the Corporate Center Committee meeting.

e) FPD updates the Briefs to incorporate Corporate Center Committee

Review to prepare for Board Meeting.

f) FPD forwards the Final Briefs to Financial Accounting Department/

Capital Programs Division for the Board Meeting.

g) The Three-year Capital Program, including the next year Capital Budget,
are presented to the Board of Directors for approval during their end-of-
year meeting.

h) FPD updates Operating System database with all approved milestone of

new budget items. Notifications are sent to proponents’ departments
and FPD kicks-off CMS FEL plans accordingly.

Changes to Project Milestones/Cancellation of a Capital Project

Changes to project milestones, including ERA and ERC, shall be through a

Database Change Request via Finance and Logistics (PRC) System
transaction ZP0590.

In addition, the cancellation or deferral of a project from the approved Capital

Budget, shall be through submission of a Project Deferral Form (refer to the
FPD Sharek Website).

Design Basis Feed Definition

The Upstream Field Development Data Input Document, created in the Initiation
(FEL 0) phase, shall be approved in the following manner:

1. P&FDD route the Upstream Field Development Data Input Document for
approval by:

a) Vice-President of Petroleum Engineering & Development

b) Vice-President of Engineering Services

2. Approved Document is attached to the Process Design deliverable

Any subsequent changes made to the design basis feed definition in FEL 1 and
FEL 2 phases shall be reflected in a revised Upstream Field Development Data
Input Document. The revised document shall be approved in the same manner
as the original.

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Capital Management System

CMS, as defined in SAEP-17, is the general framework adopted by Saudi

Aramco for managing project activities, clarifying stakeholders’ roles and
responsibilities, and enabling timely and informed decision making for Capital
Projects. Further guidance on the Value Assurance (VA) process and Value
Improving Practices (VIP) for CMS projects can be found in SAEP-40 and
SAEP-367 respectively.

Major capital Budget Items within the approved CP follow Saudi Aramco’s CMS
with the exception of the following:

• Exploration projects (BI-33)

• Unconventional gas development projects (BI-34)

• Development drilling projects (BI-60)

• Non-engineered projects, including Master Appropriations

• Maintain Potential projects

• Joint Ventures, 3rd Party Projects, and Mergers & Acquisitions

• Projects that are Monetary Appropriations only, for example

Miscellaneous Projects & Purchases (BI-19)

FPD is a major stakeholder in the Capital Management System (CMS)

throughout the project planning phases. As the IPT leader in FEL 1 “Business
Case” and FEL 2 “Study” and FEL 2 “DBSP” phases, and a major stakeholder
in FEL 3 “Project Proposal” phase, FPD manages and controls project scope
development and optimizes capital expenditure, including cost and schedule.
Including, but not limited to, economic evaluation of alternatives, definition of
the frozen scope and minimization of scope creep, schedule changes, and cost
escalations.

As FEL 1 IPT Lead, FPD identifies required IPT members and invites the
identified stakeholder functional organizations to nominate representatives to
the IPT. Upon invitation the identified stakeholder functional organizations shall
provide a representative to undertake the role of IPT member throughout the
project planning period as set out in SAEP-17.
Note: All capital projects within a program will have an IPT leader and an IPT assigned to them
with all of the individual projects in the program subsequently under the jurisdiction of one
Project Sponsor. Coordination between capital projects is the responsibility of the
respective IPT leaders to ensure a fully efficient and optimized program.

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Funding of preliminary engineering activities for CMS projects is set out in GI-
0202.451.

FPD’s functional role throughout the various FEL phases includes:

• Review and validation of the business objectives that the project supports
(e.g. the project's purpose in terms of Saudi Aramco’s Corporate
Objectives).

• Confirmation of alignment between the proposed project and the Company’s

Investment Plans and Master Plans.

• Confirmation of potential synergies with other projects that can be

implemented, as per SABP-A-041.

• Development of the economic model for all projects whose primary

justification is Economics; including the net benefits, lifecycle costs, Net
Present Value evaluation, and sensitivities analysis, as required.

• Control of project scope changes (creep) that are not related to the original
business objective of the project and are not required scope development
items needed to ensure the business objectives are met.

Project Scoping Definition

At the end of the CMS FEL 2 Study phase, FPD develops a Project Scope Definition
(PSD). The PSD aims to provide a high-level definition of the technical design intent of
the project based on the outcomes of the FEL 2 Study Phase and is included with the
bid documentation to allow potential General Engineering Services (GES+) contractors
to bid to develop the Design basis Scoping Paper (DBSP). It shall be used for all
projects requiring GES+ Contractor to develop FEL 2 (DBSP). For more details, refer
to the FPD PSD Guidelines on the FPD Sharek Website.

Modular Design Assessment

An initial Modular Design Assessment (MDA) is developed for all projects at the end of
the CMS FEL-2 Study Phase. The initial MDA assessment includes a high-level
evaluation of the enablers of modularization in design including transportation and
logistics, access to fabrication yards and availability of skilled labor at site. This
assessment shall be used to ascertain a screening-level applicability, extent and
potential benefits of using modular design approach in project development.

Once the project is identified as high-potential for modularization, a full MDA is

conducted in CMS FEL-2 DBSP phase in order to validate the modular design option
versus traditional stick-built execution approach. Detailed logistics, lifting and access
plans and fabrication yard identification is conducted, initial module sizes and

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dimensions are identified, and budget cost and schedule are developed such that a
final modularization decision is made at CMS Gate G2.

For more details on MDA, refer to SAEP-1350, Design Basis Scoping Paper (DBSP)
Preparation and Revision Procedure.

Circularity Assessment

De-carbonization/Circular Economy is a Portfolio Execution Planning (PXP)

lens as described in SAEP-17 Capital Management System.

Circularity Assessments are to be used to determine the applicability, extent

and potential benefits of using circular design in project development including
the elimination of waste, energy efficiency, water conservation, environmental
performance and management of life-cycles of assets. The Assessments
conducted in applicable CMS deliverables will:

• Identify and capture opportunities for reducing, reusing, and recycling

materials in project design and execution.

• Identify, quantify and analyze potential inflow and outflow of

materials, waste streams, energy and water

• Identify potential opportunities to achieve effective circular design

• Be performed by the deliverable champion with the support of the

wider IPT

• Be presented as part of the CMS gates for approval when

recommended

The outcomes of applicable Circularity Assessments from each CMS

deliverable at FEL 2, including any potential circular design elements
recommended, is to be summarized as part of the CMS deliverable “Study Brief
and Presentation" and included in the DBSP CMS Deliverable as specified in
SAEP-1350, Design Basis Scoping Paper (DBSP).

Joint Ventures, 3rd Party Projects, and Mergers & Acquisitions

For Joint Venture projects and Mergers and Acquisitions refer to GI-0030.001
and to SAEP-87, Technical Services Mandate for Transaction Development for
roles and responsibilities.

For 3rd Party projects use GI-0020.150, GI-0030.001, and Appendix A of this
document for further details on 3rd Party project planning, scope definition and
ER preparation.

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Accelerated Capital Projects

Applicable capital projects, identified and designated as Accelerated Capital

Projects as per SAEP-38, Accelerated Capital Projects, shall follow the
procedure set out in SAEP-38, Accelerated Capital Projects.

Expenditure Request Approval

The Expenditure Request (ER) is a formal request for full funding approval of a
Budget Item. An approved ER provides authorization to make commitments
and incur expenditures for scope described in the ER. The approval process
for Budget Items differs based on the approval authority as follows:

Local Budget Item: Those projects requiring approval by Corporate

Management or President and CEO as per the Saudi Aramco Management
Guide. The schedule and Milestones for the Local Budget Item approval is as
provided on the FPD Sharek Website.

Major Budget Item: Those projects requiring approval by the Board of Directors
as per the Saudi Aramco Management Guide. The schedule and Milestones for
the Major Budget Item approval is as provided on the FPD Sharek Website.

Budget Items are reviewed and approved in expenditure request approval

cycles. The appropriate approval cycle being determined by the Expenditure
Request Approval (ERA) date of the Budget Item and the required approval
level for the Budget Item.
Note: Refer to the FPD Sharek Website for the expenditure request approval cycles.

Budget Items requiring review and approval that are additional to the approved
Capital Budget, including Prior Approval and Subsequent Action Expenditure
Requests, must adhere to the requirements set out in the FPD Preparation
Guidelines for Planning, Budget, and Expenditure Request Briefs to be
accepted for inclusion in the relevant approval cycle.
Note: Refer to FPD Sharek Website for Preparation Guidelines for Planning, Budget, and
Expenditure Request Briefs

Note: ERs shall include a statement on the potential environmental impact of the project. The
statement shall be as set out in the FPD Preparation Guidelines for Planning, Budget, and
Expenditure Request Briefs. In the event that an environment impact assessment has
been undertaken as required per SAEP-13, Project Environmental Impact Assessments
the ER environmental impact statement shall include project Carbon
Footprint/greenhouse emissions (positive/negative) based on this environment impact
assessment.

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Local Budget Item

The stages of an expenditure request approval cycle for Local Budget Items are
as follows:

a) FPD drafts ER package, including Brief, BISI, and 56D cost estimate, in
accordance with general instruction GI-0020.500 Expenditure Requests and
as defined and stipulated in the FPD Preparation Guidelines for Planning,
Budget and Expenditure Request Briefs;
Note: 56D cost estimates must be in accordance with the relevant General Instructions GI-
0020.500 and as defined in SAEP-25, Estimate Preparation Guidelines.

b) FPD sends ER packages and communicates with Corporate Staff (Strategy

& Market Analysis Portfolio and Decision Support Department and Capital
Programs and Contract Compliance Department) for their review.

c) Corporate Staff Reviews and provides comment on the ER packages.

d) FPD sends finalized ER packages for Corporate Management or President

& CEO approval or delegation as applicable.
Note: Applicable approval level is to be as per the Saudi Aramco Management Guide.

Major Budget Item

The stages of the expenditure request approval cycle for Major Budget Items
are as follows:

a) FPD requests PMOD ESD through a transmittal to verify their readiness to

provide 56D cost estimates for Budget Items planned for inclusion in the
upcoming Major Budget Items approval cycle.

b) PMOD ESD verifies their readiness to provide 56D cost estimates for
Budget Items planned for inclusion in the upcoming Major Budget Items
approval cycle.
Note: 56D cost estimates must be in accordance with the relevant General Instructions GI-
0020.500 and as defined in SAEP-25, Estimate Preparation Guidelines.

c) FPD drafts the Expenditure Request Package for the Budget Item, including
Brief, BISI, and 56D cost estimate (or approved ER extension request if
applicable), in accordance with general instructions GI-0020.500
Expenditure Requests and as defined and stipulated in the FPD Preparation
Guidelines for Planning, Budget and Expenditure Request Briefs;
Note: A 56D extension request is only required for those Expenditure Requests that are
scheduled for approval by the Saudi Aramco Board of Directors. The deadlines for an

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approved 56D issuance and 56D extension are as set out in the schedule for the
relevant approval cycle, available on the Planning Schedule tab on the FPD Sharek
Website. When required, a 56D extension request must be submitted to FPD, via
Finance and Logistics (PRC) System ZP0570 transaction. The 56D Extension
Request system will not allow the initiator to create extension requests after the
original due date of the 56D. The approved 56D with extension is to be received no
later than five business days prior to the Corporate Staff Review meeting of the
Expenditure Request, unless otherwise extended further by the appropriate approval
authority specified within the Finance and Logistics (PRC) System ZP0570
transaction workflow.

d) FPD coordinates ER package review with Corporate Staff.

e) FPD updates the ER packages including Brief, BISI, and 56D cost estimate
to address CSR comment and provides to S&MA for the Management
Committee Review.

f) FPD updates the ER packages to address Management Committee Review

comment and provides to S&MA for the Corporate Center Committee
meeting.

g) FPD updates the ER packages to incorporate Corporate Center Committee

Meeting Comment to prepare for the Board Meeting.

h) FPD forwards the Final ER Packages to Corporate Finance and Legal

Organizations for the Board Meeting.

Expenditure Request Completion

At the successful approval of the expenditure request by the Board, the project
then enters the Project Execution, Detailed Design, Procurement, Construction,
Operations, Commissioning, Startup, and Close-Out Phases.

Post Project Appraisal and Business Case Revalidation

Board Approved projects shall undergo a post project appraisal at Final MCC
stage, and a business case revalidation two years post completion. The
business case revalidation methodology shall follow SABP-A-042. The post
project appraisal consists of the following phases:

a) Data Collection

b) Analysis

c) Lessons Learned Collection

d) Findings

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The findings of the post project appraisal will be reported to MC on an annual
basis, and the findings of business case revalidation will be collected internally
to ensure capturing and implementing its generated lessons learned in future
projects.

Document History
05 August 2021 Major revision to incorporate Circular Economy through Circularity Assessment.
Update to 3rd Party Project Procedure to reference Technical and Functional
Requirements (TFR) Development Guidelines and specify and clarify the role of
Off-taker. Procedures for project submission, project milestone change and 56D
extension requests updated.
29 January 2020 Major revision to expand the scope to include project processing and expenditure
request approval; and to reference, rather than replicate, the content and
procedures in Capital Management System related MSAERs SAEP-17 and SAEP-
40. Planning activities for 3rd Party Projects have been updated.
8 December 2016 Minor revision required in order to associate the PSD as a standalone/mandatory
requirement for planning capital projects and describe the process to defer and/or
cancel a capital project. Also, the latest BOOT project process audit recommends
updating roles and responsibilities related to planning 3rd party projects and
establishing check and balance mechanisms to ensure that proper information is
reflected into third-party projects Expenditure Request packages.
4 January 2016 Minor revision was required to address project planning activities for Budget Items
having potential to be identified as 3rd Party Projects (TPP). The planning
execution for these types of projects requires some minor modifications to the
document to refer to applicable Appendix.
26 October 2015 Major revision to align with the new Capital Management System applicable to all
Capital Projects within the Business Plan.

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Appendix A - 3rd Party Projects Planning Guidelines

1 Introduction

1.1 Definition

3rd Party projects are capital projects to be developed, built, owned, and
operated by a 3rd Party.

Non-3rd -party projects are capital projects to be developed, built, owned, and
operated solely by Saudi Aramco or Joint Venture (JV).

1.2 Objective

The objective of this appendix is to stipulate Saudi Aramco organizations roles

and responsibilities during the planning process for third-party projects.
Stakeholders involved in the project planning deliverables shall adhere to the
guidelines described in this appendix and fulfill their respective responsibilities
across various process stages, as stipulated in Section 6 of this appendix.

1.3 Process Stages

The process covered in this appendix is structured across four stages: Business
Case, Study, TFR § and ER Package Development.

1.4 Gates/Checkpoints

The approval of the project to be pursued as a 3rd Party development can occur
at one of the following gates and will be considered Gate MC 1, Authority to
Engage as per GI-0030.001:

• Capital Program approval where potential 3rd Party projects are presented

• Gate Alternative Selection (GAS), if project/program is following the Capital

Management System (CMS). IPT shall update the Stakeholder Management
Plan Deliverable to reflect that the project is being pursued as 3rd Party.

§ For third-party projects, a DBSP equivalent document, Technical and Funcational Requirements (TFR) is
prepared. TFR is part of the Request for Proposal (RFP) package issued to the market.

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2 MC ENDORSEMENT PROCESS FOR THIRD-PARTY PROJECTS

During Capital Program development, the 3rd Party project identification process is
depicted in the following flow chart.

The deliverables for Gate 1 - Authority to Engage include:

• Initial business case and rationale

• Initial project scoping (Planning Brief)
• Initial project and corporate risk (including high level project structure)

FPD will lead the capital program 3rd Party project identification and present to the MC
seeking approval to proceed 3rd party transaction. Prior to presenting the potential 3rd
Party projects to MC, FPD will seek input from the Vice President of Project
Management to align on the PMT role in the TFR development and in required studies
for third party development.

Overall activity for the Capital Program 3rd Party projects is depicted in the following
Table.

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Table 1: Capital Program - 3 Third-Party Projects Plan
rd

Activity
1 FPD Planners to review each project for potential 3rd Party **
Review of potential 3rd Party projects with Division Heads
2
(DH)
3 Conduct workshop with stakeholders ††
4 3rd Party Projects Review (DHs and Manager)
5 FPD and BL Capital Program Alignment Meeting
Finalize Potential 3rd Party Projects list (based on feedback
6
from BL)
Alignment with PMT and NBD upper management on 3rd
7
Party projects
8 FPD Internal Review
9 Present to MC for Endorsement

After the approval of Gate 1, the project prefix should be changed from prefix 10 to prefix
15 as per GI-0020.510 - Budget Item, Expenditure Request and Job Ordering
Numbering System.

**Including consideration of rationale based on the 3rd Party criteria and buy vs lease economics vetted by S&MA,
as applicable.
†† As per RACI Matrices defined in this appendix.

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3 CAPITAL PROGRAM PROCESS FOR THIRD PARTY PROJECTS

Once the 3rd Party project has been approved by the MC, FPD will start preparing the
Project Scoping Definition (PSD) according to the PSD guidelines. The PSD will be
approved by FPD, Off-taker and Proponent only.

FPD will issue a mandate letter (attaching the PSD) to NBD advising them to retain
necessary required advisors and start preparation of the commercial documents that
include the Solicitation of Interest (SOI), Procurement Strategy, Deal Sheet, and Bid
Slate.

In parallel, FPD will work with PMT to establish the Scope of Work (SoW) document that
will become the basis for an engineering contractor to work on conducting the required
studies and preparation of the TFR Document ‡‡,§§. The TFR document is necessary to
provide the site-specific information and all required approvals as highlighted below to
the bidders and create consistent Request for Proposals (RFP) packages so that the
bids are complete and comparable.

The approvals/permits for any project will include but not be limited to the following, as
applicable:

• Land Use Permit

• Environment and Social Impact Assessment (ESIA) - in compliance with both The
General Authority of Meteorology and Environmental Protection (GAMEP) and
International Finance Corporation (IFC)

• Traffic Improvement Assessment

• Security Risk Assessment (SRA) – In compliance with High Commission for

Industrial Security (HCIS) – Security Directives for Industrial Facilities

For more details, refer to the TFR development guidelines.

In summary, the TFR Package is required to:

• Develop clear and comprehensive scope of work as a basis for a bid

‡‡ For 3rd Party ultilites projects (e.g. Co-generation and Desalination projects), introduced to support oil and gas
facilities, the TFR shall be initiated at the 30% stage of the oil/gas Facility’s DBSP and released at the 30% stage of
the oil/gas Facility’s Project Proposal with preliminary heat, power, water and intefaces details. A final TFR
addendum will be issued, if required, at the 100% stage of the oil/gas Facility’s Project Proposal when the Facility’s
heat, power, and water demands are finalized based on licensor’s data to avoid excess steam/water issue.
§§ For 3rd Party Cogeneration projects the TFR shall include electrical system studies to gauge impact of

co-generation on the Saudi Electrical Grid.

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• Define minimum Company requirements for the project scope and specifications
to avoid substandard design.

The TFR scope and frame work that includes the studies to be carried out during the
TFR development will be concurred with the NBD Project Champion.

FPD and Project Management Team (PMT) will be responsible for the preparation of
the TFR package, and required studies which shall be prepared utilizing funds as set
out in General Instruction GI-0020.150: Leases – Project Type Prefix 15 and GI-
0288.040: Project Development Expenditures – Project Type Code 40.

4 ROLES AND RESPONSIBILITIES

The Project Sponsor has overall responsibility and accountability. As the accountable
entity the Project sponsor should address and resolve any arising major issues that
hinders the project from meeting its objectives. If a 3rd Party project is part of a program,
then the program sponsor will also be the Sponsor of the third-party project, irrespective
of the proponent being from another admin area. A senior representative from the
Sponsor organization shall be part of the 3rd Party development. If a 3rd Party project is
a standalone BI, then the Sponsor appointment will be based on the project
characterization.

FPD leads the pre-transaction phase. During the Business Case and Study stages
within the pre-transaction phase, FPD identifies and assesses the project alternatives
(3rd party vs. non-3rd -party) from a technical, commercial, and economic perspective. If
the assessment is supportive to continue project development, FPD recommends to the
Decision Maker either to proceed with the development of a non-3rd party or a 3rd party
project.

Upon commitment as a 3rd Party project by the decision maker FPD leads the TFR stage
within the pre-transaction phase; and shall work with Proponent, Off-taker, New
Business Development (NBD) and other applicable organizations for detailing the scope
definition or project requirements and preparation of the Technical and Functional
Requirements (TFR) document that is part of the Request for Proposals (RFP) as
outlined in GI-0030.001, “Transaction Development Guidelines”.

In addition to the pre-transaction phase FPD also leads the ER package development
after Gate 4 Authority to Award.

For further details of applicable organizations and roles and responsibilities refer to the
RACI matrix in Section 6 of this appendix.

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5 THIRD-PARTY PROJECTS CRITERIA

5.1 Objective

The objective of this section is to stipulate Saudi Aramco organizations roles and
responsibilities to identify the criteria needed to categorize the Business Case as
a potential 3rd-party project based on below criteria parameters.

5.2 Criteria Development

As part of the Business Case Stage, FPD will coordinate with the organization(s)
accountable/responsible for identifying and developing 3rd Party criteria for each
parameter listed below to examine the Business Case against it. Upon FPD
confirmation that the Business Case meets the criteria parameters, the project
will be considered as a third-party potential project and will be presented to the
Management Committee as Gate-1 – Authority to Engage (Please refer to GI-
0030.001).

A detailed elaboration of all roles and responsibilities for the 3rd -party project
criteria parameters is included in the Section 6 of this appendix.

5.3 Criteria Parameters

5.3.1 Project Magnitude

The project magnitude may influence the interest of 3rd -party to develop and
execute based on capital needs, execution expertise or risk appetite. The project
magnitude shall be verified to be appropriate for the market potential third parties.

5.3.2 Commercial Viability and Regulatory Compliance

Third-party executer must have the technical, commercial, and financial strength
to undertake the proposed project. The project structure must meet domestic
and international lenders’ criteria and developers’ criteria. In addition, the project
structure should comply with Kingdom regulatory framework.

5.3.3 Project Criticality

Core oil and gas projects (e.g., refineries and petrochemical complexes) should
be typically executed as non-3rd Party projects due to reliability concerns and
strategic importance. However, certain supporting projects that are less critical
(e.g., Utility Plants and Infrastructure) could be considered as third-party projects.

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5.3.4 Risk Mitigation

A third-party solution may lower Saudi Aramco’s risk by adding non-performance

clauses in the contract, while, at the same time, a 3rd Party contractor might be
more efficient in managing certain risks by mitigating their probability and/or
transferring them to subcontractors at a lower cost. Schedule risk is normally
transferred to the third-party contractor; however, it often means that Saudi
Aramco related assets need to be ready to accept the services/products provided
by the 3rd Party with some intrinsic risk. All risks should be therefore be assessed
per Saudi Aramco’s Enterprise Risk Management’s requirements.

5.3.5 Technology Complexity

A specialized third party may lower execution risks when the technology utilized
in the project is complex and unfamiliar to Saudi Aramco.
The 3rd Party company shall demonstrate proficiency in the technology planned
to be used in the project.

5.3.6 Location

The physical location of a project as well as its feed and product supply
arrangements relative to Saudi Aramco facilities will impact the decision as to
whether a project is classified as 3rd party. Projects exclusively within the battery
limits of an existing Saudi Aramco asset are typically executed as Saudi Aramco
projects; however, the projects shall be reviewed on case by case basis.

5.3.7 Operational Excellence

The third-party company must demonstrate through their track record of

operational competencies at lower cost compared to Saudi Aramco in-house
solution. In addition, the third- party company must demonstrate a commitment
to quality that is consistent with Saudi Aramco Operational Excellence and
Capital Efficiency.

5.3.8 Corporate Strategy

Certain projects could be offered for third-party investment if it aligns to corporate

strategy, for example, sustainable development within the Kingdom. Localization
of services, equipment manufacturing, and job creation are considered when
determining the alignment between 3rd Party to corporate strategy.

5.3.9 Other Criteria

Any additional criteria can be considered based on merits and justification and
agreed to by FPD and NBD.

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6 ORGANIZATIONS ROLES AND RESPONSIBILITIES

The following RACI matrix sets out organizational roles and responsibilities indicating when the indicated organization is responsible,
accountable, consulted and/or informed. It covers third party project criteria, and Business Case, Study, TFR, and ER Package
Development Stages.

Other Admin Areas (as

Inspection Department
Protection Department
Originator) & Off-taker

Systems Department
Project Management

Project Management

Process and Control

Strategy and Market

Consulting Services
Proponent (Project

Office Department
Facilities Planning
R= Responsible
A= Accountable

Environmental
C = Consulted

New Business
Development
I = Informed

Department

Department

Controller's

applicable)
Treasury
Analysis
Third Party Project Criteria
Project Magnitude Limitations
C C RA
Identification
Commercial Viability &
RA C R C C
Structure Assessment
Project Criticality Evaluation C RA C C R
Risk Mitigation Assessment RA C R C C C C C C C
Technology Complexity
C R C RA R R C
Evaluation
Location Identification R RA C C C C
Operation Excellence
RA C A C C C
Evaluation
Corporate Strategy
C C C RA C C
Identification
Business Case Stage
Business Case Development RA C C C C C C C C C
Third Party Criteria
C RA C
Examination
Conceptual Scope
C RA C C C C C
Development
Business Case Cost Estimates
C C C RA C
Development
Preliminary Economic Analysis C RA C C C
Business Case Assessment C RA R C C C C C I
Study Stage
Study Cost Estimates
C C R RA C C ***
Development
Detailed Risk Assessment RA C R C C C C C C C
Updated Economic Analysis C RA C C C
Alternatives Revision /
C RA R C C C C C C
Assessment
TFR Package Development
Project Scoping Definition
C RA I C I C C
(PSD)
Engineering Contract
C C C RA C
Procurement
TFR Document C RA C R C C C C
Budget Estimate C RA I R C C
ER Package Development
Proposed Scope C R RA
Fair Value Estimate I I RA I C
Buy vs. Lease Assessment I R RA C R C
Risk Mitigation Assessment For risk management responsibilities refer to GI-30.001

Schedule & ERC R RA R I I

ER Brief and BISI Documents C RA R C C R

*** With regards to lease payments

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Next Revision: 05 August 2026 Project Planning Guidelines

7 3rd PARTY PROJECTS – DOCUMENT SEQUENCE

Aligned with the above process, presented below is step-by-step process with milestones, gates, letters, and deliverables.

© Saudi Arabian Oil Company, 2021 Page 33 of 36

Document Responsibility: Facilities Planning Standards Committee SAEP-360
Issue Date: 05 August 2021
Next Revision: 05 August 2026 Project Planning Guidelines

Step Lead Deliverables Remarks

M1 Investment List of Outsourceable
1 FPD
Profile Opportunities
• List of Potential 3rd Party
M2 Capital
2 FPD Projects
Program
• Risk Register

Obtain alignment from NBD

List of Approved 3rd Party
on the final list to be
Projects
presented to the MC.
Grant access to key
stakeholders and include
Link of Shared Folder • Third Party Rationale
• Business Case
MC1 Authority • Buy Vs Lease
3 FPD
to Engage
This is to give NBD outlook
of upcoming projects to
align resources (including
Letter to NBD (MC approval any outside consultants)
rd
of 3 Party Projects) The letter shall also include
timeline on the next
deliverables (PSD and
TFR)
Project Scoping Document Agreed and Signed by
FPD
(PSD) Proponent & Off-taker
Mandate Letter to NBD NBD to start preparation of
FPD
(Attach PSD) commercial documents
Form Technical and Agree on High Level
M3 Project FPD, NBD
Transaction Team Schedule
Scoping
4
Document PMT to secure funds via TC
(PSD) Scope of Works for an
FPD, PMT 40 for the engineering
Engineering Contractor
contractor
FPD, PMT, All Stake holders to agree
Proponent, Kickoff Meeting with GES on:
NBD, Off- Contract Scope, Standards, Studies,
taker and Schedule
M4 NBD to
To be reviewed and
prepare SOI • Deal Sheet
5 NBD approved by the
and • SOI
Stakeholders
procurement

© Saudi Arabian Oil Company, 2021 Page 34 of 36

Document Responsibility: Facilities Planning Standards Committee SAEP-360
Issue Date: 05 August 2021
Next Revision: 05 August 2026 Project Planning Guidelines

Step Lead Deliverables Remarks

Strategy
TFR to be approved by the
Managers of FPD,
Proponent, PMT, Off-taker
and NBD.

3rd Party Community

M5 Develop Services facilities (e.g.,
Technical and accommodation
TFR Package that includes
Functional camp/office/other real
6 FPD, PMT studies, permits and
Requirements estate) used by Saudi
preliminary engineering
(TFR) Aramco employees also
Document require approval of the
Managers of LPD, FrPD,
Industrial Security and
EPD.

(Project handed over to

NBD)
• Invitation to Bid
• Procurement plan
SRC1 SRC • Bid slate
7 Approval of Bid NBD • Update project and
Slate corporate risk
assessment
• Procurement Strategy

• TFR is part of the Bid

• Bid Package / Request Package
M6 Develop for proposal (RFP) • NBD, Contracting,
8 Bid Package NBD • Issue Bids to the Market CRCCD, and Law
(RFP) • Form Bid Review Team • For both Technical and
(BRT) Commercial evaluation
of the bids
SRC2
Seek SRC approval for
9 Authority to NBD Short List Bidders
negotiation
Negotiate
M7 Bid Review Team led by
10 NBD Negotiation Strategy
Negotiations NBD
Seek SRC approval for
SRC3
Award (Award not to
11 Authority to NBD
happen until the ERA has
Award
been Approved

© Saudi Arabian Oil Company, 2021 Page 35 of 36

Document Responsibility: Facilities Planning Standards Committee SAEP-360
Issue Date: 05 August 2021
Next Revision: 05 August 2026 Project Planning Guidelines

Step Lead Deliverables Remarks

• NBD responsible for
• 56 D by PMOD
initiation of 56D
M8 ER • Buy vs. Lease Model
12 FPD • PMOD to provide ER
Package • ER brief
Estimate based on BRT
• ER BISI
Recommendation.
MC2 ER
13 FPD Seek ER Approval
Approval
After SRC and ER
M9 Award
14 NBD Approvals have been
Contract
Completed
M10 Financial
15 NBD
Close
Proponent will oversee the
M11 Handover
16 NBD 3rd Party construction and
to Proponent
final handover

© Saudi Arabian Oil Company, 2021 Page 36 of 36