Esmeraldas Electrical Rehabilitation - RFP For Site Survey Engineering Feb 2014 v1 Draft

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SITE SURVEY & ENGINEERING RFP

March, 2014.
MMR GROUP - ESMERALDAS ELECTRICAL REHABILITATION PROJECT
SITE SURVEY AND ENGINEERING - REQUEST FOR PROPOSALS
1. PURPOSE

2. INTRODUCTION

3. BACKGROUND
3.1. Esmeraldas Refinery Overall Rehabilitation Project
3.2. Esmeraldas Electrical Rehabilitation Project

4. ELECTRICAL REHABILITATION PROJECT SUBPROJECTS
4.1. MMR Subprojects Preliminary Scopes
4.2. Overall Plan and Preliminary Schedule

5. SITE SURVEY AND ENGINEERING: SCOPES AND DELIVERABLES
5.1. Site Survey
5.2. FEED/ Procurement Assistance
5.3. Detail Engineering
5.4. Codes and Standards
5.5. Language and Units of Measurement

6. PROJECT PLANS & ORGANIZATION
6.1. Overall Execution Plan/ Mobilization
6.2. MMR Organization Chart
6.3. Subcontractors Organization

7. BID REQUIREMENTS:
7.1. Selection Criteria
7.2. Proposal Deliverables Templates
7.3. Questions and Clarifications

8. CONTRACTUAL CONSIDERATIONS - CONTRACT DRAFT

9. OTHER CONDITIONS RELATED TO THE PROPOSALS

10. NEXT STEPS

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APPENDICES:
1) Subprojects Preliminary Scopes
a) SNI Power Supply (#1)
b) 69 kV Switchyard and Transformers (#5)
c) HV Cable Replacement (#10)
d) Ground Grid Repairs (#11)
e) Lighting Survey and Retrofit (#12)
f) Lightning Survey and Retrofit (#13)
g) Cathodic Protection (#14)
h) LV Instrument Cable Replacement (#15)
i) Instruments Replacement (#16)
j) Alarms System (#20)

2) Current Overall Rehabilitation Project Schedule

3) Technical Codes and Standards

4) Preliminary Schedule for Subprojects & Engineering

5) MMR Organization Chart & Personnel

6) Bid Deliverables Templates
a) Relevant Experience in Similar Projects
b) Personnel Qualifications & Availability
c) Estimated Deliverables (documents) by Subproject/ Phase Tables
d) Average Productivity Tables by Document type
e) Hourly Rates by Personnel Classification

7) Contract Draft

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1. PURPOSE

The purpose of this Request for Proposal (RFP) is to invite pre-selected engineering firms to participate
in the bidding process for the Site Survey and Engineering services for the Electrical Rehabilitation
Project which MMR will be executing for EP PetroEcuador at its Esmeraldas Refinery facility in Ecuador.

This document provides the required information for producing a technical and commercial proposal for
the aforementioned activities, which will be further detailed in this RFP and its Appendixes.

2. INTRODUCTION

EP PetroEcuador (EPP) is in the process of modernizing and expanding its Esmeraldas Refinery, both in
the process and the utilities areas. WorleyParsons (WP) is assisting EPP in this project as EPCM. Among
the overall plan activities, EPP/WP has initiated some expansions and improvements in the Electrical &
Instrumentation (E&I) of the units. Some subprojects are already in progress but others are about to
start. WP and EPP have engaged MMR Group (MMR) to conduct the due diligence and jointly define the
scope of work, estimated cost and the schedule for those electrical subprojects.

3. BACKGROUND

3.1. Esmeraldas Refinery - Overall Rehabilitation Project
The Esmeraldas Refinery is expanding its conversion and treating process units capacity in order to
increase its capabilities to produce more and better fuels for Ecuadors internal market. It is revamping
and/or updating its distillation units (Atmospheric & Vacuum), Visbreaking, FCC and Hydrotreating
process units, among others, as part of a long-term planned effort.
3.2. Esmeraldas Electrical Rehabilitation Project
Additionally, EPP/ WP have determined the need for updating the electrical power supply and
distribution, the plant instrumentation and some of its ancillary systems. Power for the Refinery is
provided from two sources: a steam turbine generators system (internal) and the SNI (Sistema Nacional
Integrado) Esmeraldas grid (external). The electric supply from the SNI Esmeraldas grid (incoming)
connects to an existing 69KV substation which is located adjacent to the Refinery. The power supply
from the SNI Esmeraldas grid is limited by the 69KV transformers in the switchyard, which are rated at 2
x 6.4 MVA.
The 69KV electrical substation and all existing components was constructed in 1976 and then modified
in 1987. The reliability of the whole system has degraded due to age, service, and environmental
conditions. The substation protection circuits are based on older technology which utilizes electrical/
mechanical relays that do not respond to electrical faults as fast as current technology relays. This
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situation increases the risk of electrical power interruptions if a fault from the SNI grid is not isolated
from the internal power generation and distribution system of the refinery, among other problems.
Additionally, recent peak electrical demands of the existing Refinery have reached 21 MW. It is
anticipated that after the revamp and expansion of the Refinery process units, the electrical system
demands will increase approximately 30% and could surpass 30 MW.

By the same token, most of Esmeraldas Refinerys instrumentation is aging and technologically
outdated with an increasing potential of failing and causing unnecessary and costly plant outages and
emergency situations. Other ancillary systems also need repairs and updating for providing the required
reliability to the facility. Power supply and distribution reliability is a key issue for Esmeraldas Refinery
(as in any other) since even very brief power flickers trigger huge impacts in terms of Process, Utilities
units emergency shutdowns, which entail some of the biggest risks for these facilities.

EP PetroEcuador is taking action in order to turn Esmeraldas into a world-class Refinery reliability-wise.
The effort on this subject needs to be optimized by strategies to maximize reliability KPIs (on-stream
factor or OSF; Mean Time between Failures or MTBF; among others) while minimizing the associated
costs to implement the initiatives and projects. EPP (Owner) and WP have identified a number of
electrical and instrumentation subprojects aimed to improve Esmeraldas reliability. Some of them have
been awarded and are already under procurement and construction. Some others have been grouped
and identified as Electrical Rehabilitation Project, which will be executed by MMR.

4. ELECTRICAL REHABILITATION PROJECT SUBPROJECTS

The subprojects encompassed in the Electrical Rehabilitation Project have been identified and are
mainly related to the High Voltage level supply/ transmission, to the Grounding Grid and to some other
systems in the Refinery, as per the list in 4.1, which need to be updated and refurbished because they
also can cause (and have caused already) significant problems.

4.1. MMR Subprojects Preliminary Scopes

Their current scope is shown in preliminary execution plans, which are documented in Appendix 1 as
noted (using subproject current identification numbering by the Owner)

4.1.1 SNI Power Supply (#1): Appendix 1) a)

4.1.2 69 kV Switchyard and Transformers (#5): Appendix 1) b)

4.1.3 HV Cable Replacement (#10): Appendix 1) c)

4.1.4 Ground Grid Repairs (#11): Appendix 1) d)
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4.1.5 Lighting Survey and Retrofit (#12): Appendix 1) e)

4.1.6 Lightning Survey and Retrofit (#13): Appendix 1) f)

4.1.7 Cathodic Protection (#14): Appendix 1) g)

4.1.8 LV Instrument Cable Replacement (#15): Appendix 1) h)

4.1.9 Instruments Replacement (#16): Appendix 1) i)

4.1.10 Alarms System (#20): Appendix 1) j)

4.2. Overall Plan and Preliminary Schedule

The Refinery Rehabilitation Project has an overall schedule with planned & staggered shutdowns for key
process units, such as the 2 Distillation/ Visbreaking Units (Train 1 & Train 2) and the FCC Unit. It also
includes a complete shutdown of the whole facility for 40 days, currently scheduled for 09/01/2014.
More details about the schedule are shown in Appendix 2.

The Electrical Rehabilitation Project, composed of the aforementioned 10 subprojects, needs to be
executed getting them on sync with the planned shutdowns in order to avoid or minimize any additional
downtime to complete the subprojects activities.

5. SITE SURVEY & ENGINEERING SCOPES AND DELIVERABLES

5.1. Site Survey

As part of the Engineering Contractor scope, a Site Survey will be necessary to gather as much technical
information as possible and to get any and all additional field information (measurements, photos, field
drawings, etc.) required for conducting the following stages. As a reference, the as built drawings,
data sheets, detail drawings can prove scarce and a significant effort shall be estimated for field work.

The Site Survey will require the mobilization of the critical engineering workforce to have all the
resources required for an effective and efficient effort based on the number and nature of the
subprojects involved. Every proposal must include the recommended engineering crew for the Site
Survey tasks to be completed in 2 to 4 weeks. A staggered optimized mobilization for different
subprojects or subprojects packages can be proposed as an alternate option.

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DELIVERABLES: All technical and field information packages required for the FEED and the Detail
engineering.

5.2. FEED/ Procurement Assistance

A Front-End-Loading level 3 (FEL-3) or FEED will be required.

In addition, the scope includes also assistance in the procurement phase by producing the purchase
orders (major/ long-lead time equipment, materials as per Bill of materials, new instruments as they are
specified during the re-instrumentation assessment, selection and re-ordering process, key and also
minor equipment for other subprojects, etc.) to be placed by MMR Group out of its Baton Rouge
Headquarters in Louisiana.

DELIVERABLES, including but not limited to the following:

Preliminary equipment design,
Preliminary layouts,
One-line diagrams,
Wiring diagrams,
Purchase-ready major equipment specifications/ data sheets,
At least a Class III cost estimate (-10% to -20% on the low side; 10% to 30% on the high side)
though Class II is preferable (including BOE or basis of estimate),
Project execution plan,
Preliminary 3-D model,
Electrical and Instrumentation list and line list.
Specifications & data sheets as Ready for Procurement
Drawings as Ready for Procurement (issued for internal review/ comments from client,
approved for procurement)

5.3. Detail Engineering

A complete detailed engineering package shall be issued as part of the scope, including all the products
and deliverables in the form of documents necessary to successfully and timely execute the
procurement and construction of the subprojects, including but not limited to:

DELIVERABLES:

FOR ALL THE SUB-PROJECTS, as necessary:

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Electrical & Instrumentation Design Criteria
Field engineering survey
Load List
Cable List
Equipment Lists
Instruments List & Signals List
Data sheets (all disciplines)
Materials & equipment specifications
Final bills of materials/ Materials Lists
Detail of line items & materials' estimations
Procurement and Construction specifications
Drawings for Construction (issued for internal review, for comments from client, approved
for construction, approved updates for construction as needed)
Calculations memoir or report
Cause & Effects Matrix DCS & Field Check-up/ Verification
Final 3-D models
Mechanical catalogs
Detailed Class I cost estimates with accuracies of -3% to -10% on the low side and +3% to
+15 % on the high side (including BOE or basis of estimate)
Recommended spare parts lists (as per vendors)

FOR SPECIFIC SUB-PROJECTS:

Power Cable Audit (Subproject #10)
Power cable capacity study (Subproject # 10)
Cable routing drawings (Subproject # 10)
Ground grid assessment (Subproject # 11)
Ground Grid general specifications & design (Subproject # 11)
Illumination Drawings (Subproject #12)
Lightning System design (Subproject # 13)
Lightning System drawings (Subproject # 13)
Instrument Cable Specifications (Subproject # 15)
Cable & Conduit List (Subproject # 15)

5.4. Codes and Standards

The applicable Codes & Standards are summarized in Appendix 3.

5.5. Language and Units of Measurement

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All the documents will be generated in Spanish language and the unit system shall be the Metric System,
except the documents required for procurement which will be prepared in Spanish and English, for
MMRs Procurement Team out of Baton Rouge, LA.

6. MMRS PLAN & ORGANIZATION

6.1. Overall Execution Plan/ Mobilization

As mentioned before, the current overall execution schedule by EPP/WP is included in Appendix 2. It
shows a staggered plan for scheduled shutdowns of the different process units as well as a total refinery
shutdown, currently programmed for September 1
st
, 2014 for 40 days.

Besides the Overall Rehabilitation Project, the Electrical Rehabilitation has a referential schedule which,
even though showing a delay, is a good reference for the sequence and timing among the subprojects in
the package: See Appendix 4. (Subprojects # 17 Studies & Reviews & # 18 Specialty Vendors have been
merged into the others). In addition, the key subprojects most critical for the Refinery operations and
with additional execution complexity (#1 SNI Power Supply, #5 69kV Switchyard & Transformers and #10
HV Cable Replacement) as well as others with somewhat less priority (#11 Grounding Grid Repairs and
Improvement; #12 Lighting Survey & Retrofit; #12 Lightning Evaluation and Installation) already have
estimated schedules for their engineering phases as per the EPP/WP preliminary plans.

Nevertheless, depending on the final strategy by the Owner, the engineering for the different
subprojects might be staggered and spanned between 10 and 16 months, which will be better defined
during the Site Survey phase of the work. For the sake of an estimation basis, a preliminary schedule for
the subproject engineering efforts will be used as per Appendix 4.

As of the Mobilization for the Site Survey activities, the current preliminary estimate is May 21
st
2014,
assuming the EPP-MMR EPC contract signature on April 30
th
and 15 additional calendar days for the
effective transfer of advance money funds to MMR before initiating the Site Survey work.

6.2. MMR Organization Chart

MMR has defined a preliminary organization to manage the Site Survey and the early Engineering work
(in-office), which will later become the organization necessary for the Procurement and Construction
phases. The current org chart is included in Appendix 5. This will be used as a guiding reference for the
Site Survey engineering crew but an optimized crew can be proposed by the Bidders as an alternate.

6.3. Subcontractors Organizations

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The Bidders shall propose their own execution organizations tailored to their best understanding and
interpretation of the project and subprojects needs during the different phases, both individually as
well as a whole. To the extent possible, such organization will mimic the one proposed by MMR but well
supported recommendations will be considered in order to optimize the engineering execution process,
as well as the interactions with the Procurement and Construction teams as appropriate. Such
organization could eventually be considered one of the parameters or selection criteria for the bid
awardee.

7. BID REQUIREMENTS:

7.1. Selection Criteria
A number of different aspects will be taken into account by MMR for selecting the engineering firm for
this project. The relevant information must be included in the bid proposals, including but not limited to:
1. Experience in Similar Projects;
2. Scopes Analysis;
3. Proposed Personnel Qualifications and Availability, including personnel resumes;
4. Proposed Execution Plan;
5. Proposed Schedule in Primavera;
6. Organization Chart and Personnel Histogram;
7. QA/QC Plan and Certifications;
8. Cost estimates and breakdown, including:
8.1. Average Productivity Tables by Document type (M-H per doc),
8.2. Hourly Rates by Personnel Classification,
8.3. Productivity Factors,
8.4. Subprojects Direct Cost Estimates,
8.5. Indirect Costs (with breakdown for Services, Equipment & Software, Main Office
Overhead, Miscellaneous for any other cost)
8.6. Total Costs per subproject
8.7. Total cost for all the contract
9. Financial strength

7.2 Proposal Deliverables and Templates

The Bidders need to provide some of the information (for line items 1, 3 and 8 in Section 7.1) in pre-
established templates in order to standardize them under the same scheme and facilitate the
comparative analysis. See Appendix 6a) to 6d).

Some of those templates gather general information from the bidding company while other pre-
established templates capture, for each specific subproject, the estimated number of each type of
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documents relevant to the nature and scope of the Site Survey and the Engineering phases (FEED &
Detailed) of the subproject. Besides the estimated number of each type of deliverable documents, the
other key elements in these templates are the estimated productivity factors, the M-H estimates for
each type of deliverable/ document, the optimal crew for each subproject (including management,
supervision and any other relevant support necessary), among others.

The corresponding deliverables for the other relevant information (line items 2, 4, 5, 6, 7 and 9) for the
bid can be provided without a pre-established format:
For line item 2: A scope analysis will be prepared for each subproject with a summarized but
thoughtful discussion of the overall strategy to execute the work, main assumptions serving as
base for the proposal and the key challenges to overcome any foreseen difficulties/ risks.
For line item 4: Bidders will provide a Level 3 (minimum) execution plan as per the subprojects
scope and their own experience with similar work. This proposed execution plan will be binding
and a key parameter for the final engineering contract, so its basis and careful consideration will
be critical to the contract award and further execution.
For line item 5: The Primavera schedule needs to include a complete description of assumptions
in the plan.
For line item 6: The proposed organization charts for the different phases will mimic MMRs as
much as possible.
For line item 7: Bidders will provide the information related to certifications from rating agencies
s for ISO-9001, ISO-14000, ISO-18000 and any other relevant to the scopes of work.
For line item 9: Bidders will provide their Balance Sheets and Income Statements for the last 3
years (2011/12/13).

7.3. Questions and Clarifications

Any questions about this RFP document or any requests of additional information will be addressed in
writing to Mauricio Acuna (MMR International Technical Manager for this Project) for clarification,
correction or provision of additional information. Both the question and the corresponding answer or
additional information will be then addressed to the bidder submitting the question/request and to the
rest of the potential Bidders as well.

MMR might decide to hold a clarification meeting (or meetings) for the additional discussion of the
terms and conditions of the bid, either with all the potential Bidders at once or one on one. MMR will

8. CONTRACTUAL CONSIDERATIONS/ CONTRACT DRAFT:
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MMR has prepared a contract draft to reflect the terms and conditions it foresees as the framework for
the engineering execution. The contract draft is included as Appendix 7. Bidders shall kindly review the
proposed language in the contract draft and make any questions or suggestions as they see fit. The
contract draft might be modified to some extent during the bidding process as per recommendations
which would be included and communicated to all Bidders on a timely fashion. The offers presented will
be based on the final language agreed upon as legal framework for the project execution and the
contract administration.

9. OTHER CONDITIONS RELATED TO THE PROPOSALS

The general plan for the bidding process is as follows:

i) MMR will send out the Request for Proposals (RFP) package to the engineering firms already
pre-screened based on their size, geographical location, work experience, reputation and
demonstrated interest on the bid.

ii) The Bidders will have 1 full week to review the RFP package and make as many questions as
deemed necessary to better understand the project needs and preliminary information
available. Then, the Bidders will have 2 more weeks to prepare their proposals.

iii) The exact date for turning a proposal or excusing from the process is clearly established in
the RFP cover letter. Proposals will be delivered before or by he established deadline in a
single envelope, original and a copy at:

MMR ProCom
19500 State Highway #249, Suite 365
Houston, TX 77070
Att. Ray Proctor/ Mauricio A. Acuna

iv) MMR will not pay any money amount for the voluntary techno-economic proposals from
the Bidders and reserves the right to cancel the bidding process at any time without any
explanation or compensation whatsoever, as convenient to its own interests.

v) MMR might change as much information as required or issue clarifications as per any
updates from the Owner or any other source. MMR will communicate any and all such
changes to all the Bidders at once and on a timely fashion, as information is made available.

vi) Bidders might propose alternative proposal schemes provided they table those alternate
approaches within the 7 days window for clarifications. MMR will analyze the proposed
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scheme and open the present the original scheme and the new scheme or change the
scheme altogether based on its own interests and the Owners.

vii) The contract administration, including invoicing and payment, and any other monetary
matters will be dealt with in US $.

viii) The proposals language will be English. On the other hand, the work deliverables will be
produced in Spanish except for all deliverables required for procurement, which will be
produced also in English.

ix) The proposals/ offers will be valid for at least 3 months from the date of submittal.

x) Bidders must provide sample certificate of insurance from the country where the actual
engineering work will be performed.

xi) EHS: MMR is fully committed to an accident-free work environment and holds its own
employees and any of its contractors to the highest EHS standards and requirements, as per
the international codes by OSHA, NFPA, among others. The Bidders for the Engineering work
shall provide a copy of their EHS Manual and EHS Plan, including their policies for the
jobsite, drug & alcohol abuse and any others which regulate their activity and strive to
prevent unsafe acts and unsafe conditions, especially in industrials facilities.

xii) QA/QC Plan: The Bidders shall include in their proposals their plans for the implementation
and population of a comprehensive Quality Assurance and Quality Control system, ISO-9000
compliant, including a documentation protocol for all the pieces of information as produced
in the Site Survey & Engineering phases. Such protocol will include the systematic workflow
for generating, reviewing and approving documents for the different stages of the project,
by means of approval and sign-off checksheets.

10. NEXT STEPS

i) MMR will evaluate the proposals based on the selection criteria as per 7.1 and make a
decision no later than 10 calendar days after the submittal deadline. MMR will check for
form and mathematical errors and request due conformation or withdrawal from the
process from any bidder at fault.

ii) Once the proposals have been duly submitted and analyzed, MMR will give notice of which
engineering firm is selected. MMR reserves the right to negotiate some of the conditions in
the offer and propose alternatives aiming to get to a mutual agreement on the proposals
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components and the contractual terms and conditions. Nonetheless, MMR might decide to
move to the second best offer if no final agreement is timely reached.

iii) Once a final agreement has been reached, the bid will be awarded and the engineering
contract undersigned by MMR and the awardee. The mobilization and early stages of the
work execution will be set in motion right afterwards.

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APPENDICES:

1) Electrical Rehabilitation Subprojects Preliminary Scopes
For all the subprojects in the Electrical Rehabilitation, a common set of deliverables will be
required as indicated below. Some of the subprojects will have some other specific
requirements as of deliverables necessary to complete the rest of the Engineering phases and
Procurement/ Construction as per best practices. Those will be specifically mentioned for
each of such projects.

Common set of Engineering Deliverables for the subprojects (more details in section 5):
Electrical & Instrumentation Design Criteria
Field engineering survey
Load List
Cable List
Equipment Lists
Instruments List & Signals List
Data sheets (all disciplines)
Materials & equipment specifications
Final bills of materials/ Materials Lists
Detail of line items & materials' estimations
Procurement and Construction specifications & drawings
Calculations memoir or report
Cause & Effects Matrix DCS & Field Check-up/ Verification
Final 3-D models
Mechanical catalogs
Detailed Class I cost estimates with accuracies of -3% to -10% on the low side and +3% to +15 %
on the high side (including BOE or basis of estimate)
Recommended spare parts lists (as by vendors)

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a) SNI Power Supply (#1)
Preliminary Execution Plan

Introduction

The Esmeraldas Refinery requires its electrical supply and distribution systems reliability to be 99.99+%.
The electrical power supply for the Refinery is provided from two sources: a 4 steam turbine generators
(STGs) system within the Refinery and the balance from the SNI Esmeraldas grid. The electric supply
from the SNI Esmeraldas grid (incoming) connects to an existing 69KV substation, which is located
adjacent to the Refinery. The supply of power from the SNI Esmeraldas grid is limited by the two
69KV/13.2 KV transformers in the switchyard, which are rated at 6.4 MVA.

The existing 69KV electrical substation and all existing components were built in 1976 and then modified
in 1987. The reliability of the system has degraded due to age, service and environmental conditions.
The protection circuits of the substation are based on older technology which utilizes electrical/
situation increases the risk of electrical power interruptions when a fault from the SNI grid is not
isolated from the Refinerys internal power generation and distribution system.

The current power consumption of the plant on average is 17MVA. Around 15MW are produced with
own generation, and the 2MVA balance is imported through the 69kV Line. Additionally, recent peak
electrical demands in the existing Refinery have reached 21 MW.

The nominal capacity of the existing power generation in the Refinery is approximately 28MW, assuming
all the STGs are operational and producing close to design. When all of these units are in operation,
which is not often due to major scheduled maintenance needs, they can single source the electric power
to the Refinery (provided sufficient steam for generation is available).

The current supply of electrical power from the SNI is a single line attached to a grid that services also
Esmeraldas and Santo Domingo regions. Interruptions of the SNI Esmeraldas grid (even by disruptions
external to Ecuador) can cause the supply of electric power from outside the Refinery to be lost. When
this occurs, the steam turbine generators within the plant will continue to operate if the fault is isolated
outside the Refinery, but available power might be insufficient to sustain all ongoing operations.

Additionally, it is anticipated that after the Refinerys revamp and expansion, the demands of the
electrical system will increase approximately 30% and could surpass 30MW. Therefore, after the
Refinerys revamp and expansion the existing generating units will not be able to provide sufficient
power without increasing the demand of power from the SNI grid.
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One of the necessary solutions to improve the electrical reliability, to overcome the foreseeable
shortage of electric power available to the Refinery and to reduce the risk of an interruption from the
SNI grid is to supply larger incoming power capacity by installing a dedicated 69 KV line from
TermoEsmeraldas to the 69KV switch yard. Based on the above, a dedicated 1.5 Km 69KV line (and
associated protection system) from TermoEsmeraldas to the 69 kV substation adjacent to the Refinery
seems as a feasible solution.

Background

In a meeting held on July 9
th
, 2013 among TermoEsmeraldas, Transelectric, EPP, and WP managers,
TermoEsmeraldas confirmed to have sufficient capacity to supply the incoming substation with capacity
in excess of the Refinery full needs and requested a conceptual design that identifies cable routing,
connection details, and timeline for completion of the project.

Per that discussion, a project to design and construct a new and dedicated 69KV overhead distribution
line from TermoEsmeraldas to the REE Switchyard is in its conceptual phase. The line covers a 1.5 km
distance through EP PetroEcuador land along the access route to the Refinery. On one end, the line will
be connected to the Transmission Substation in TermoEsmeraldas Power Plant, property of Transelectric
(Ecuadorian Utility Company), which will habilitate a 69kV feeder including all the switching devices, for
the new dedicated feeder for the Refinery. In the other end, the line will be connected to the new 69 kV
switchyard next to the REE 69kV Substation.

Per the initial concept, the dedicated 69KV line would originate in TermoEsmeraldas 69KV switchyard
and terminate at the new 3 x 25MVA transformers at REE switchyard. This dedicated line would have
capacity to transmit up to 75 MVA. The initial concept is the new line will be installed by MMR on behalf
of EPP and will be maintained by TermoEsmeraldas/ EPP.
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The electrical power would be provided by Transelectric TermoEsmeraldas. As per current
information, their transformers are designed to have 50% redundant capacity to allow for
maintenance activities and for the case of a fault or failure.

Preliminary Scope:

The project scope for the new SNI Power Supply will include the following aspects, among
others:
- Engineering

- Procurement
Material and equipment to be utilized for the new cable and installation, including
protection systems.

- Construction
Installation and termination of cable, supports, and conduit (as designed) for
approximately 1.5 km from SNI to REE substation, protection and SCADA systems.

- Commissioning / Testing
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Integrity and phase sequence of cables, calibration and testing of relays and
protection system, integration with existing control and monitoring systems
(SCADA).

- Other
Project Management and Oversight to be performed by WorleyParsons.

SPECIFIC ENGINEERING SCOPE:

Electrical
Short circuit, stability, coordination, and power flow studies for the new line.

Mechanical / Civil route of cable, supports and foundations as required.

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b) 69 kV Switchyard and Transformers (#5)

Introduction
The Esmeraldas Refinery requires the reliability of its electrical supply and distribution systems to be
99.99+%. The electrical power supply for the Refinery is provided from two sources: a 4 steam turbine
generators (STGs) system within the Refinery and the balance from the SNI Esmeraldas grid. The electric
supply from the SNI Esmeraldas grid (incoming) connects to the existing REE 69KV substation, which is
located adjacent to the Refinery. The supply of power from the SNI Esmeraldas grid is limited by the two
69KV/13.2 KV transformers in the REE switchyard, which are rated at 6.4 MVA.
The REE 69KV electrical substation and all existing components were constructed in 1976 and then
modified in 1987. The reliability of this system has degraded due to age, service, and environmental
conditions. The protection circuits of the substation are based on older technology that utilize electrical/
situation increases the risk of electrical power interruptions when a fault from the SNI grid is not
isolated from the Refinerys internal power generation and distribution system.
The current power consumption of the plant on average is 17MVA. Around 15MW are produced with
own generation, and the 2MVA balance is imported through the 69kV Line. Additionally, recent peak
electrical demands in the existing Refinery have reached 21 MW.
The nominal power generation capacity in the Refinery is approximately 28MW. When all of these units
are available, which is not often due to major scheduled maintenance needs, they can single source the
electric power to the existing Refinery (provided sufficient steam for generation is available).
Nevertheless, available capacity is rarely over 20 MW (2x5 MW smaller STGs and 1x10 MW actual
capacities).
Additionally, it is anticipated that after the Refinerys revamp and expansion, the demands of the
electrical system will increase approximately 30% and could surpass 30MW. Therefore, after the
Refinerys revamp and expansion, the demand for power from the SNI grid will increase significantly,
most probably beyond the current power incoming system capacity.
One of the necessary solutions to improve the electrical reliability, to overcome the foreseeable
shortage of electric power available to the Refinery and to increase the actual capacity from the SNI grid
to supply larger incoming power capacity is refurbishing and upgrading the existing REE 69KV switch
yard or building a new one. Based on the foreseeable needs and on the premise of full power external
supply for the expanded Refinery electricity needs, this updated or new switchyard would need to
handle demand peaks of over 30 MW.
20

Design Basis:
As an initial concept, a new 69KV switchyard would need to include 3 new 25MVA transformers at REE
switchyard in order to comply with the n-1 back-up criteria. This new 69 kV switchyard and its
Substation/ Power House need to be connected to the new SNI 69 KV Power line required also for
fulfilling the aforementioned goals.
Preliminary Scope:
The following components are part of the Project (see scheme below):
A 69kV Switchyard for incoming overhead line and three power transformers.
Adequate 13.2 KV Switchgear.
AC/DC Auxiliary Services.
Electrical Ducts.
Steel Structures Galvanized and structural.
SCADA System.
Electrical Power House.
Civil Works (land preparation and leveling/concrete structures).
And any additional component needed to guarantee the proper functioning of the new installation.

69/13,2 KV
25 MVA
69/13,2 KV
25 MVA
69/13,2 KV
25 MVA
Stand-by
21

The scope of work for the new 69 KV Switchyard and Transformers will include the following aspects,
among others:
- Engineering
- Procurement
Material and equipment to be utilized for the new switchyard, transformers and
substation and their installation, including protection systems.
- Construction
Installation and termination of switchyard, transformers, Power House, switchgear,
ancillary equipment, as well as protection and SCADA systems.
- Commissioning / Testing
Integrity and phase sequence of cables; switchyard equipment, switchgear and
transformers testing, calibration and testing of relays, ancillary equipment and
protection system, integration with existing control and monitoring systems
(SCADA).
- Other

SPECIFIC ENGINEERING SCOPE:

Electrical
Short circuit, stability, coordination, protections and power flow studies for
the new switchyard, substation and Power House.
Mechanical / Civil
New area preparation, concrete work and foundations as required.

22

c) HV Cable Replacement (#10)

Introduction
The EPP Esmeraldas Refinery power distribution system is comprised of 13.2 KV, 4,160 V, and 480 V
distribution levels. EPP require this system to provide power 99.99+% reliable to the Refinery. The
existing power distribution systems equipment and infrastructure are degraded, undersized, and
antiquated and do not provide sufficient levels of capacity, protection or reliability.
The power distribution system is in the process of being redesigned and upgraded based on the
following features and requirements to improve the reliability to an acceptable level.
- Increased bus size to support additional generation and ongoing expansion.
- New load management systems.
- Current technology protective relays.
Background
Due to the replacement of many electrical equipment and inclusion of modern electronic controlling
devices throughout the Refinery for the Rehabilitation and Expansion project, the substitution of 13,2 kV
and 4,16 kV feeders will become necessary in order to hold the new loads connected to the substations.
Detailed Scope of Project
As a general concept, MMRs scope of work includes replacing all the cables requiring substitution on
the 13.2 kV Feeders going from Substation E to each distribution Substation in the process areas. Also
included in the scope are all the 4.16 kV feeders to MV loads.
On the other hand, the 13,2 kV feeders coming from REE Substation 69kV into Substation E and the
cable connections between switchgears in Substation E, are not part of the scope, as they are already
being installed.
To maximum extent, cable installation will be done using cable trays along the pipe rack (pre-existing or
just-recently-installed), as much as available space allows and caring for not over-bending the cable. In
case there is no pipe rack in the cable routing, the construction/installation of pipe rack extensions for
cable tray installation or finding another raceway option during the engineering will be necessary. All
cable will be aerial, not underground.
The scope of work for the HV Cable Replacement Project will include the following aspects:

23

Engineering

The definitive scope of work for the HV Cable Replacement needs a detailed engineering study to be
fully defined.

Procurement
Material and equipment to be utilized for the HV Cable, including any protection systems.
Construction
Replacement and termination improvements to the HV cabling system. All the supporting efforts to
access pipe racks (scaffolding, other) will be scheduled as per construction needs and timely supplied by
EPP/ others.
The HV Cable Replacement effort will be reviewed, scheduled and overseen by WP, with progress and
quality details reported to EPP. WP will also provide periodic meetings to discuss project status,
outstanding issues, and actions required.
Commissioning / Testing
Integrity and continuity conditions in substations, MCCs, major equipment, ancillary equipment and
protection systems will be re-verified around the Refinery.
Other

24

d) Ground Grid Inspection and Repair (#11)

Introduction
The EPP Esmeraldas Refinery power distribution system is comprised of 13.2 KV, 4160 V, and 480 V
distribution levels. EPP require this system to provide power 99.99+% reliable to the Refinery. The
existing power distribution systems equipment and infrastructure are degraded, undersized, and
antiquated and do not provide sufficient levels of capacity, protection or reliability.
The power distribution system is in the process of being redesigned and upgraded based on the
following features and requirements to improve the reliability to an acceptable level.
- Increased bus size to support additional generation and ongoing expansion.
- New load management systems.
- Current technology protective relays.
One of the key aspects in a comprehensive plan to establish a reliable distribution system is a sound
Grounding Grid.
A properly designed, installed, and maintained ground system is the basis for a reliable electrical
distribution system. The grounding grid provides a voltage reference point and a system to safely
discharge voltage in the case of an electric fault. The new digital control and protection systems being
implemented in the Refinery are very intolerant of GPR (ground potential rise) than the current electro-
mechanic relays. A good grounding system will greatly minimize GPR.
Background
A general survey of the grounding system of the Refinery was performed by TecnAzul as part of the
HAZOP / ACR analysis. The survey test results and evaluation is concluded that the current condition of
the grounding system is underrated and insufficient to provide reliable operation and protection of the
distribution system. The grounding tests were performed according to IEEE Std. 80 and provided the
following results.
Grounding resistance for 56.5% of the points tested measured less than or equal to
1 ohm. This is the standard requirement for oil refineries worldwide.

Grounding resistance for 26.0% of the points tested measured more than 1 ohm but
less than 5 ohms. This is the standard for small distribution networks and
substations.

25

Grounding resistance for 17.4% of the points measured more than 5 ohms. These
values do not comply with section 14.1 of IEEE Standard 80.

Grounding Resistances were measured and found to be outside of specification are recorded in the table
below.
TAG # TYPE LOCATION
GROUND
RESISTANCE
()
COMMENTS
PR 10 TRIAD N/W SIDE OF
SUBSTATION E
7,089 MEDIUM OUT OF LIMIT (Rg 1 )
PR 11 TRIAD S/W SIDE OF
SUBSTATION E
55,049 SIGNIFICANTLY OUT OF LIMIT (Rg
1 )
PR 13 TRIAD N/E SIDE OF 6
TH
STREET 3,757 SLIGHTLY OUT OF LIMIT (Rg 1 )
PR 15 TRIAD SOUTH SIDE OF #2
HOUSE
3,836 SLIGHTLY OUT OF LIMIT (Rg 1 )
PR 16A TRIAD WEST SIDE OF 4
TH
STREET 3,216 SLIGHTLY OUT OF LIMIT (Rg 1 )
PR 16B TRIAD ADJACENT TO THE TRIAD
#17
8,379 MEDIUM OUT OF LIMIT (Rg 1 )
PR 19 TRIAD S/W SIDE OF 4
TH
STREET 6,771 MEDIUM OUT OF LIMIT (Rg 1 )
PR 22 TRIAD WEST SIDE OF
SUBSTATION H
4,396 SLIGHTLY OUT OF LIMIT (Rg 1 )

Boundary Voltage Tests were performed. Below are test points whose calculated boundary voltages
have magnitudes dangerous for personnel.
TAG
#
TYPE LOCATION S/E GPR (V) Etouch
(V)
Estep
(V)
COMMENTS
PR 1 TRIAD WEST SIDE OF
SUBSTATION INCOMING
INCOM 868,8 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 6 TRIAD SOUTH SIDE OF D
SUBSTATION
D 1.533,7 232,7 264,7 SLIGHTLY OUT OF
LIMIT
PR 9 TRIAD EAST SIDE OF E
SUBSTATION
E 2.458,3 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 10 TRIAD N/W SIDE OF E
SUBSTATION
E 16.934,8 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 11 TRIAD S/W SIDE OF E
SUBSTATION
E 131.512,1 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 12 TRIAD N/W SIDE OF 4
TH
STREET E 2.006,0 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 13 TRIAD N/E SIDE OF 6
TH
STREET E 8.975,5 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 14 TRIAD ADJACENT TO A
SUBSTATION
A 8.598,2 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 15 TRIAD SOUTH SIDE OF #2
HOUSE
E 9.164,2 232,7 264,7 MEDIUM OUT OF
LIMIT
26

PR
16A
TRIAD WEST SIDE OF 4
TH

STREET
E 7.683,8 232,7 264,7 MEDIUM OUT OF
LIMIT
PR
16B
TRIAD ADJACENT TO THE TRIAD
#17
W 19.833,6 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 17 TRIAD ADJACENT TO #8 STREET
c/c #9
M 1.575,2 232,7 264,7 MEDIUM OUT OF
LIMIT
TH
STREET M 1.162,9 232,7 264,7 MEDIUM OUT OF
LIMIT
TH
STREET D 16.068,4 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 20 TRIAD P1, P2 &P3 UNITS M 1.094,3 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 21 TRIAD WEST SIDE OF K
SUBSTATION
K 414,2 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 22 TRIAD EAST SIDE OF H
SUBSTATION
H 9.732,0 232,7 264,7 MEDIUM OUT OF
LIMIT
PR 23 TRIAD SOUTH SIDE OF R
SUBSTATION
R 648,1 232,7 264,7 MEDIUM OUT OF
LIMIT

The report provides some recommendations to correct and improve the Grounding Grid system. The
report also notes that any upgrades or additions to the power generation, power distribution, or
protection systems need to be considered before implementing improvements to the Grounding Grid
system. This also includes lightning protection which needs to be added to the facility.
The scope of work for the Grounding Grid project will include the following aspects:

Engineering

The definitive scope of work for the Grounding Grid system needs a detailed engineering study to be
fully defined. The detailed engineering study may include:

a) Verification of existing grounding system and evaluate to grounding system models for the
newly designed power generation and distribution system.
b) Verification that electrical equipment is properly grounded according to electrical standards.
c) Inspect and test grounding inside enclosures.
d) Evaluate grounding system for lightning protection.
e) Inspection of grounding connections to equipment (switchgear, MCCs, distribution panels,
starters, and large electric consumers.

MMR will coordinate tests and inspections with EPP & WP to ensure there are no interruptions of the
electrical system. The inspections and analyses performed during the evaluation will be reviewed/
confirmed by WP, which will provide weekly reports and periodic meetings to inform status to EPP.
Results and recommendations of the engineering study will be reviewed and a detailed repair/ upgrade
will be implemented. As noted in the TecnAzul Study, the repair/ upgrade to the system will include:
27

1) Strengthen and / or repair the Grounding grid.
2) Adding grounding to fences for personnel protection.
3) Maintaining/ improving equipment grounding (transformers, switchgear, MCCs, distribution
panels, and large electrical consumers).
4) Additional gravel in switchyards / high voltage areas.

Procurement
Material and equipment to be utilized for the upgraded Grounding Grid, including any protection
systems.
Construction
Installation and termination improvements to the existing Grounding Grid as well any additional
grounding systems around the Refinery for additional power usage levels.
The repairs and improvements performed on the Grounding Grid system will be reviewed, scheduled
and overseen by WP, with progress and quality details reported to EPP. WP will also provide periodic
meetings to discuss project status, outstanding issues, and actions required.
Integrity and safety conditions verification in substations, MCCs, major equipment, ancillary equipment
and protection systems, around the Refinery.
Other

The Grounding Grid Project will commence during the 3
rd
quarter. The repairs/ upgrades are expected to
be completed by the end of 2014.

28

e) Lighting Survey and Retrofit (#12)


Introduction
Within the overall scope of the Esmeraldas Refinery Electrical Rehabilitation Project, one of the
areas requiring overdue attention is the Lighting System. The existing lighting system of the
Refinery is the same as the original installation back in 1976. Hence the technology of lighting
and switching devices is obsolete and very low efficiency. This affects the illumination of the
process, utilities and offsites areas in general, as well as those areas with specific and more
demanding requirements, where field key control panels are located and where specific level
and other field instrumentation require adequate lighting.
Background
Most of the current lighting fixtures on the Refinery are not operational at the moment (some of
the systems components and spare parts are not even available in the market). Similarly,
switching devices and Panelboards are very old and deteriorated, requiring immediate
substitution in order to be operational again. This represents a risk situation for the personnel
operating and maintaining the facility.
An update of the system needs to be considered in order to mitigate this serious operational risk
condition in the facility. This improvement includes replacing lighting in process areas which is
currently fluorescent type with explosion-proof fixtures where required and replace lighting in
industrial warehouses where the lighting is Sodium Vapor type.
Inside the buildings the lighting is fluorescent type, and is currently working without issues.

As a general concept, the scope of MMRs work on this project would encompass the
substitution of all the lighting fixtures for newer and more efficient technology. Electrical
conduit and tubing will be revised during the engineering to verify in which cases complete
substitution will be required.
The lighting distribution system elements must be evaluated during the engineering for their
update and substitution, which includes the following:
Electrical Conduits and Tubing.
Lighting distribution Panels 480V.
Dry-Type Transformers 480/208-120V.
Circuits Wiring.
Switches.
Lamps and fixtures.
29

Instruments, level glasses, others.

The scope of work for the Lighting Survey and Retrofit Project will include the following aspects:

Engineering

The definitive scope of work for the Lighting Survey Retrofit needs a detailed engineering study
to be fully defined.

Procurement
Material and equipment to be utilized for the Lighting Retrofit.
Construction
Replacement and improvements to the Lighting system. All the supporting efforts to access
elevation areas (scaffolding, other) will be scheduled as per construction needs and timely
supplied by EPP/ others.
The Lighting Survey & Retrofit effort will be reviewed, scheduled and overseen by WP, with
progress and quality details reported to EPP.
Lighting systems in various areas (substations, MCCs, major equipment, instrumentation
equipment and protection systems, etc.) will be verified around the Refinery.
Other

30

f) Lightning Survey and Retrofit (#13)

Lightning Survey & Retrofit Preliminary Execution Plan
Introduction
Within the overall scope of the Esmeraldas Refinery Electrical Rehabilitation Project, one of the
areas requiring overdue attention is the Lightning System. There is no Lightning System in the
Refinery, so the facility is mainly relying on the existing and yet very outdated and diminished
Grounding Grid to mitigate the likelihood of a potential event due to lightning striking in the
industrial area and causing a fire or another major impact, such as damages to computer-based
systems (DCS/ PLC/ data servers/ others), among others.
Background
A thorough engineering review of the Refinery is required in order define the systems needed to
mitigate this serious safety risk condition. This engineering would include defining the most risky
areas and equipment, the technology most suitable for the Esmeraldas area and the Refinery, as
well as any other design considerations.
As a general concept, the scope of MMRs work on this project would encompass the risk
analysis, a mitigation plan, all the design criteria and a technical solution system to get the
Refinery to a World-class normal standard on this subject.
The scope of work for the Lightning Survey and Retrofit Project will include the following
aspects:
Engineering
The definitive scope of work for the Lightning Survey Retrofit will be fully defined based on the
detailed engineering study.
Procurement
Material and equipment to be utilized for the Lightning Retrofit.
Construction
Installation of the Lightning system. Any supporting efforts to access elevation areas (scaffolding,
other) will be scheduled as per construction needs and timely supplied by EPP/ others.
The Lightning Survey & Retrofit effort will be reviewed, scheduled and overseen by WP, with
31

Other

32

g) Cathodic Protection Survey & Retrofit (#14)

Introduction
The Esmeraldas Refinery Electrical Rehabilitation Project is aimed to both increase its utilization factor
and on-stream factor, as well as increasing the gasoline production capacity. It involves also maximizing
the availability of all the supporting plants and equipment and tightly controlling the aging and
degradation of the facility. A key factor to that effect is minimizing the corrosion of the Process, Offsites
and Utilities plants. One aspect specifically requiring overdue attention is the Cathodic Protection
System, in order to protect the structures, major equipment and the offsites/ tankage area, which are
exposed to an aggressive soil and tough climatic conditions. The existing Cathodic Protection system of
the Refinery is aging and the installation of new tanks will only add to the need for a comprehensive
survey and an integral solution to maximize the lifespan of those key assets.
Background
An update of the system needs to be considered in order to mitigate a potential operational risk
condition (spills, soil contamination and environmental impacts, among others) as well as the operability
and on-stream factor weakness in different areas of the facility.
As a general concept, the scope of MMRs work on this project would encompass the detailed review of
the existing systems, failure mode analysis, reliability data, root cause determination and
recommendations to be implemented. Those recommendations would range from improvement in RAM
(Reliability/ Accessibility/ Maintenability) practices to substitution of all the existing systems/
components for newer and more efficient technology. Electrical connections, testing stations, rectifiers,
grounding and other components will be revised during the engineering to verify in which cases
complete substitution will be required.
The scope of work for the Cathodic Protection Survey and Retrofit Project will include the following
aspects:

Engineering

The definitive scope of work for the Cathodic Protection Survey and Retrofit needs a detailed
engineering study to be fully defined.

Procurement
Material and equipment to be installed for the Retrofit.
Construction
33

Replacement and improvements for the Cathodic Protection system.
The Cathodic Protection Survey & Retrofit effort will be reviewed, scheduled and overseen by WP, with
Cathodic Protection systems in various areas (large structures, buildings, process heaters, substations,
MCCs, major equipment, tank farm, etc.) will be verified around the Refinery.
Other

34

h) LV Instrument Cable Replacement (#15)

Introduction
The EPP Esmeraldas Refinery power distribution system is comprised of 13.2 KV, 4,160 V, and 480 V
distribution levels. EPP require this system to provide power 99.99+% reliable to the Refinery and its key
systems and equipment. The existing power distribution systems equipment and infrastructure are
degraded, undersized, and antiquated and do not provide sufficient levels of capacity, protection or
reliability.
The power distribution system is in the process of being upgraded at the high voltage level. A similar
effort is required to get the Low Voltage systems to a reliable performance. Some cables are over 40
years old and some are in bad shape. Their failure can easily trigger equipment and systems shutdown,
leading in the end to losses and potential plant downtime, impacting the Refinerys bottom line.
Background
Due to the replacement of many electrical equipment and inclusion of modern electronic controlling
devices throughout the Refinery for the Rehabilitation and Expansion project, as well as the aging of
most of the LV cable in the facility, the selective substitution of 480 V (3-phase) feeders and cable will
become necessary to hold the new loads connected to the substations and to replace worn out and
inefficient LV cable.
As a general concept, MMRs scope of work includes selectively replacing the aging cables requiring
substitution from each distribution Substation or MCC, namely 480 V (3-phase) Feeders to the key
equipment in the process, offsites and utilities areas.
To maximum extent, cable installation will be done using cable trays along the pipe rack (pre-existing or
recently installed), as much as available space allows and without over-bending the cable. In exceptional
cases when there is no pipe rack in the cable routing, the construction/installation of pipe rack
extensions for cable tray installation or finding another raceway option during the engineering will be
necessary. All cable will be above ground, not underground cable will be installed.
Some of the key activities for executing the project are:

o Survey Raceway
o Survey Cable
o Survey Glands
35

o Existing Reliability data/ Bad actors/ Faulty equipment
o Prioritize scope based on survey

The scope of work for the LV Cable Replacement Project will include the following aspects:
Engineering

The definitive scope of work for the LV Cable Replacement needs a detailed engineering study to be fully
defined.

Procurement
Material and equipment to be utilized for the LV Cable, including any protection systems.
Construction
Replacement and terminations improvements to the LV cabling system. All the supporting efforts to
access pipe racks (scaffolding, other) will be scheduled as per construction needs and timely supplied by
EPP/ others.
The LV Cable Replacement effort will be reviewed, scheduled and overseen by WP, with progress and
quality details reported to EPP. WP will also provide periodic meetings to discuss project status,
outstanding issues, and actions required.
Integrity and continuity conditions in substations, MCCs, major equipment, ancillary equipment and
protection systems will be re-verified around the Refinery.
Other

36

i) Instruments Replacement (#16)

Introduction
The Esmeraldas Refinery Electrical Rehabilitation Project is aimed to both increase its utilization factor
and on-stream factor, while keeping reliable and stable operations in order to supply the domestic
market and maximize its profits. A key factor to that effect is having adequate Instrumentation and
Control systems in all the Process, Offsites and Utilities plants. The Refinery faces increasing challenges
for having to operate with aging and outdated instrumentation equipment, which is particularly critical
in the area of controlling the key parameters to keep products on-spec, feed rates and variable
parameters on-check and total throughput at its maximum value, while running the units safely and in
an environmentally sound fashion.
Moreover, a number of operational problems in the Refinery are caused by the aging instrumentation,
despite the efforts by Operations and Maintenance personnel. This is very critical when instruments are
in ESDs (Emergency Shutdown Systems). Many of these instruments have been discontinued or their
spare parts are no longer available. This problem will be further aggravated by the higher feed rates
resulting from the ongoing Expansion Project and the installation of additional systems equipment (Tank
Farm, Utilities, etc., which will have current technology), which will only add to the need for a
comprehensive survey and an integral solution to this situation. These problems need urgent resolution
in order to improve the safe Operability and Maintenability of the Plants.
Based on the above, a global review and assessment of the Instrumentation, both basic and more
advanced (APC, Advance Process Control strategies, including inline quality control analyzers; advanced
environmental equipment for emissions control and abatement; among others) are vital to achieve
these goals. Esmeraldas Refinery will only be able to perform in the first quartile among world-class
refineries when it has updated and modernized its instrumentation and control infrastructure.
Background
An update of the system needs to be considered in order to mitigate these operational risk conditions
(plants upsets; off-spec products; risk of fire, spills, soil contamination and environmental impacts;
among others) as well as to improve the utilization and on-stream factor in different areas of the facility.
As a general concept, the scope of MMRs work on this project would encompass the detailed review of
the existing systems, failure mode analysis, reliability data, and recommendations to be implemented.
Those recommendations would range from improvement in RAM (Reliability/ Accessibility/
Maintenability) practices to substitution of all the existing instruments and control systems for newer,
safer and more efficient equipment. Instruments, control and ancillary (air/electrical/back-up &
37

redundant) systems, marshaling panels, junction boxes and other components will be revised during the
engineering to verify in which cases complete substitution will be required.
The scope of work for the Instruments Replacement and Retrofit Project will include the following
aspects:
Engineering
The definitive scope of work for the Instrument Replacement and Retrofit needs field work; research
reliability stats; data sheets review and update; obsolescence verification; basic engineering; design
update and detailed engineering (including new data sheets) study to be fully defined.
Procurement
Materials and equipment to be installed for the Replacement and Retrofit.
Construction
Replacement and improvements for the Instrumentation and Control systems.
The Instrument Replacement and Retrofit & Retrofit effort will be reviewed, scheduled and overseen by
WP, with progress and quality details reported to EPP.
Instrument Replacement and Retrofit systems in various areas around the Refinery, with special
emphasis on APC, updated Cause and Effects and ESD (Emergency Shutdown Systems), as required.
Other

38

j) Alarms System (#20)

Introduction
Besides the Power reliability as a key issue in the overall scope of the Esmeraldas Refinery Rehabilitation
Project, another area requiring attention is the safety and wellbeing of the personnel and the adjacent
communities; and the facilitys integrity. Beyond the need for improved performance and plant stability
during both start-up and normal operations, once an operational upset or emergency actually occurs in
the Refinery, it is critically important that timely warnings and alarms occur so the appropriate actions
are taken immediately to control and mitigate the potential effects of the emergency. In addition to
most of the Refinerys aging and technologically outdated instrumentation, the Fire Alarm and Gas
Detection System needs urgent action also. Otherwise, the Refinery will stay in its potential high-risk
condition during fires and/or toxic/dangerous gases releases to the surrounding environment.
In that regard, EP PetroEcuador is now taking action in order to turn Esmeraldas into a world-class
Refinery in all aspect of safety.
Background
Most of the Fire & Gas Detection System components in the Refinery were installed in the early 90s.
Nonetheless, even the few newer components are installed under the same conceptual scheme as the
oldest ones. They are installed around the industrial area in general and in a number of electrical
substations in Process, Utilities and Offsites (office/off-site) areas.
At this point, many of the gas detectors are not working or are in disrepair due to lack of spare parts or
obsolescence. The control instrumentation is missing in some areas or was put out of service in order to
eliminate nuisance/ false alarms. In some other areas, the alarm system wiring is damaged or non-
existent.
MMR has been asked to propose a project to solve this situation by re-furbishing and upgrading the
existing system or by installing a new one, whichever is the most cost-effective option.
As a general concept, the scope of MMRs work on this project would include a technical study and
assessment to determine current status for the aforementioned systems and propose initiatives and
improvements to achieve the desired objectives.
The scope of work for the Fire & Gas Detection System Project will include the following aspects:
Initial Survey
39

Site visit to the facility to determine the condition and original design parameters used for the
installation of the existing equipment in order to utilize any of the existing installation if possible.
Engineering
Conceptual engineering, field work, specific scopes definition, strategic approach, Basic engineering or
FEED based on findings and Clients guidelines.
Procurement
Best manufacturers selection, as required.
Construction
Installation as per best practices
Detectors SATs, Cause & effects verifications, develop preventative maintenance routines for EPP to
implement to guarantee systems long term operability other activities to define during engineering.
Other

40

2) Current Overall Rehabilitation Project Schedule

AO
MES
SEMANAS 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
83,6% 62,50%
PROMEDIO DE DERIVADOS
PRODUCCIDOS BBL/Dia
49,247
84.22%
Porcentaje de produccin de
Derivados comparado con
promedio producido 2012
49,8% 0.00% 23,1%
PROMEDIO ADICIONAL DE
DERIVADOS A IMPORTAR PARA
COMPLETAR LAS NECESIDADES
DEL MERCADO LOCAL BBL /Dia
24,957
PROMEDIO DE CRUDO
PROCESADOS BBL/Dia
PROMEDIO BARRILES DE
CRUDO EXPORTADOS BBL/Dia
49,070.0
52,405.0
REFINACION DE CRUDO Y % PRODUCCION DURANTE PLAN DE PARADAS DE PLANTAS
11,000
55,000 BBL/DIA
46,475 BBL/Dia
68,972
32,503 55,000 BBL/Dia
46,475 BBL/Dia
101,475 69,328
0.0 32,147 90,475 Procesamiento de Crudo
Ventas de Crudo Disponible
2014
JUN
2015
PARADA MODIFICACION
FCC
395 Dias
PARO
GENERAL 40
DIAS
SEPT ENE
PARADA CD1,CV1,VIS1 187 Dias 6-Oct
MAYO JUN
30-May
MARZ
PARADA CD2,CV2,VIS2 205 Dias
ABRIL MAYO OCT NOV DIC FEB JUL AGOST
41

3) Technical Codes & Standards

ELECTRICAL:
Electrical installation design will comply with:

IEEE Institute of Electrical and Electronics Engineers
IEEE C2 National Electrical Safety Code
NFPA National Fire Protection Association/ NFPA 70
NEC 2008 National Electric Code
OSHA Occupational Safety and Health Administration
29 CFR 1910 General Industry OSHA Safety and Health Standards

Standards

All electrical equipment, materials and devices will comply with the following standards organizations:

AEIC Association of Edison Illuminating Companies
ANSI American National Standards Institute
API American Petroleum Institute
ICEA Insulated Cable Engineers Association
NETA National Electrical Testing Association
NETA ATS Acceptance Testing Specifications for Electrical Power Distribution Equipment & Systems
UL Underwriters Laboratories
National Electrical Manufacturers Association (NEMA)
NEMA ICS 6 Industrial Control and Systems: Enclosures
NEMA 250 Enclosures for Electrical Equipment (1000V Maximum)
NEMA VE 2 Cable Tray Installation Guidelines

International Electro-technical Commission (IEC)
IEC 60068 Environmental testing (if subject not covered in IEC 61131-2)
IEC 60227 Polyvinyl Chloride insulated cables of rated voltages up to and including 450/750V
IEC 60228 Conductor of insulated cables
IEC 60287 Calculation of the continuous current rating of cables (100% load factor)
IEC 60331 Fire Resisting Characteristics of Electrical Cables
IEC 60332 Tests on electrical cables under fire conditions
IEC 60529 Degrees of Protection Provided by Enclosures (IP Code)
42

IEC 60654 Industrial - process measurement and control equipment Operating conditions 1 to 4
IEC 60811 Common test methods for insulating and sheathing materials of electric cables
IEC 61000 Electromagnetic Compatibility for Industrial Process Measurement and Control
Equipment
IEC 61131 Programmable Logic Controllers Parts 2 and 3
IEC 61158 Digital data communications for measurement and control, fieldbus for use in industrial
control system
IEC 61508 Functional Safety of Electrical/Electronic/Programmable Electronic Safety-Related
Systems Parts 0-7

INSTRUMENTATION:
Instrument Society of America (ISA)
ISA 5.1 Instrumentation Symbols and Identification
ISA 5.2 Binary Logic Diagrams for Process Operation
ISA 5.3 Graphic Symbols for Distributed Control/Shared Display Instrumentation, Logic, and
Computer Systems
ISA 5.4 Instrument Loop Diagrams
ISA 5.5 Graphic Symbols for Process Displays
ISA 18.1 Annunciator Sequences and Specifications
ISA 18.2 Management of Alarms Systems for the Process Industries
ISA 71.01 Environmental Conditions for Process Measurement and Control Systems: Temperature
and Humidity
ISA 71.04 Environmental Conditions for Process Measurement and Control Systems: Airborne
Contaminants
ISA 84.00.01 Parts 1, 2, and 3 (IEC 61511-1, 2, 3 Mod) Functional Safety: Safety Instrumented Systems
for the Process Industry Sector
ISA 91.00.01 Identification of ESD and Controls that are Critical to Maintaining Safety in Process
Industries
ISA RP 55.1 Hardware testing of digital process computer

GENERAL

International Organization for Standardization (ISO)
ISO 9612 Guidelines for the measurement and assessment of exposure to noise in a working
environment
ISO 9001 Quality management systems-requirements.
ISO 9000 Quality management systems - Fundamentals and vocabulary.
43

ISO 10006 Quality management systems - Guidelines for quality management in projects.
American National Standards Institute (ANSI)

ANSI Z97.1 Safety Glazing Materials Used in Buildings Safety Performance Specifications
and Methods of Test

ENVIRONMENTAL, HYGIENE & SAFETY:
National Fire Protection Association (NFPA)
NFPA 70 National Electric Code
NFPA 79 Electrical Standards for Industrial Machinery
NFPA 72 National Fire Alarms and Signaling Code
NFPA 86 Standard for Ovens and Furnaces
NFPA 2001 Standard on Clean Agent Fire Extinguishing Systems

44

4) Preliminary Schedule for Subprojects and Engineering

The current preliminary schedule of durations from the Owner for the electrical subprojects, as well as
the durations for the engineering of the critical ones, is in the following link:
ELECTRICAL REHABILITATION SCHEDULE, as of Nov. 2013, for reference.pptx

The durations for the engineering associated with the rest of the subprojects will be estimated by the
Bidders.

45

5) MMR Organization Chart &Personnel

The preliminary organization chart for the Site Survey phase of the Rehabilitation Project is shown in
the link below. EPP and WP have defined subproject #1 SNI Power Supply as the urgent project at this
point. MMR has determined that subprojects #5: 69kV Switchyard and Transformers as well as #10 HV
Cable Replacement are also critical from the schedule and impact standpoints.

APPENDICES FOR RFP DOCUMENT\Esmeraldas Refinery Org Chart - Engineering Phase, v2,
Feb. 2014.docx

6) Bid Deliverables Templates:
a) Relevant Experience in Similar Projects
Bidders shall provide updated information about their experience, relevant projects and clients as per
the linked Table.
APPENDICES FOR RFP DOCUMENT\Latin America Experience.xlsx
b) Personnel Qualifications & Availability
Bidders will complete the information requested in the linked table below for the available and
proposed personnel based upon the current project timeline.
APPENDICES FOR RFP DOCUMENT\ESMERALDAS PROJECT - ENGINEERING FIRMS PERSONNEL
ANALYSIS , March 2014.xlsx
c) Deliverables / Average Productivity and Efficiency Factor by Document type and by Subproject/
Phase
Bidders will complete the estimated # of deliverables and productivity for each project/ phase/ type
of document according to the scope description. Projects #17 Studies & Reviews and #18 Specialty
Vendors will not be addressed since their funds will be distributed among the other projects.
For High-Priority projects:
APPENDICES FOR RFP DOCUMENT\ESMERALDAS E&I HIGH-PRIORITY PROJECTS - ENGINEERING SCOPE
OF WORK, PRELIMINARY, March 2014.xlsx
For Normal-Priority projects:
APPENDICES FOR RFP DOCUMENT\ESMERALDAS E&I NORMAL-PRIORITY PROJECTS - ENGINEERING
SCOPE OF WORK, March 2014.xlsx
46

These 2 spreadsheet books are mostly related to the direct labor for the engineering activities with no
indirect cost items included.
d) Engineering Cost Estimate
Bidders will use also spreadsheet book:
APPENDICES FOR RFP DOCUMENT\ESMERALDAS ELECTRICAL REHAB., ENGINEERING PRELIM.
ESTIMATE template, rev 03-09-2014.xlsx
These spreadsheets are linked to the ones on Appendix 6c, so the # documents in the latter are linked
to the tables for the High- Priority and Normal-Priority Subprojects. These ones have a capability to
include an averaged Contingency factor if the Bidder so decides. They are also linked to the Manning
and Histogram sheet, where the Bidders can allocate progress percent to the subprojects engineering
in order to estimate the total headcount at any particular point.
Bidders will then include their estimated Indirect Costs including proposed project management for
the overall project, travel and accommodations for all personnel, Home office services and costs, and
any additional provision in order to complete their cost estimates.
Bidders will be able to complete the cost estimates by using a composite crew approach for the
different projects and phases by using the corresponding tab. They may choose to present a more
detailed breakdown for the estimates. In any case, it will be important to have the cost estimates by
subproject and phase.

7) Contract Draft
The Contract draft is in the following link:
APPENDICES FOR RFP DOCUMENT\2014-03-03 ENGINEERING CONTRACT MODEL v3-JC, RR, MW,
MA.doc

Esmeraldas Electrical Rehabilitation - RFP For Site Survey Engineering Feb 2014 v1 Draft

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