SAUDI ARABIAN OIL COMPANY (Saudi Aramco) G. I.

Number Approved

GENERAL INSTRUCTION MANUAL 6.032

ISSUE DATE REPLACES
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APPROVAL PAGE NO.
SUBJECT PROCESS HAZARD ANALYSIS IAK 1 OF 11

CONTENTS

1.0 PURPOSE
2.0 SCOPE
3.0 REFERENCES
4.0 DEFINITIONS
5.0 RESPONSIBILITIES
6.0 REQUIREMENTS

SUPPLEMENTS

6.032-1, TYPICAL FLOWCHART FOR PROCESS, PROJECT AND FACILITY PHA

6.032-2, TYPICAL LIFECYCLE STAGES AND COMMON PHA TECHNIQUES
6.032-3, TYPICAL TIME REQUIREMENTS FOR DIFFERENT PHA TECHNIQUES

1.0 PURPOSE

The purpose of this General Instruction (GI) is to describe acceptable approaches for performing Process Hazard
Analysis (PHA) at Saudi Aramco projects, processes or facilities, and to establish minimum requirements for
conducting and revalidating PHAs.

2.0 SCOPE

The requirements of this GI apply in the entire lifecycle of all Saudi Aramco process facilities including both new
and existing ones. The lifecycle of process facilities starts from concept design stage all the way to the
decommissioning stage.

3.0 REFERENCES

Safety Management Guide (SMG) 02-001-2009, Risk Assessment and Management Guide for Managers
Safety Management Guide (SMG) 02-002-2010, Qualitative Risk Assessment
SAEP 12 Project Execution Plan
SAEP 14 Project Proposal
SAEP 81 Project Process Design Development
SAEP 1350 Design Basis Scoping Paper (DBSP) Preparation and Revision Procedure
SAER 5437 Guidelines for Conducting HAZOP Studies

4.0 DEFINITIONS

4.1 Failure Modes and Effects Analysis (FMEA): A systematic tabular method for evaluating and documenting
the effects of known types of component failures. FMEA is a detailed exercise in reviewing the precise
types of process equipment component failures and corresponding effects that may be involved in a given
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incident. A ranking may also be added to identify which failure events may cause the most severe
consequences. FMEA is generally used on equipment-oriented systems (e.g., mechanical, instrumentation /
control, or electrical).

4.2 Fault Tree Analysis: A method used normally for evaluating detailed component failure. This involves
using a logic diagram or tree to establish the various sequences of events that are required to reach some
ultimate event. With individual component failure rate data this technique can be used to quantify the
probability of a given event.

4.3 Hazard: A physical or chemical condition that has the potential for causing harm to people, property or the
environment.

4.4 Hazard and Operability (HAZOP) analysis: A structured and systematic examination, by a
multidisciplinary team, of complex processes through a series of guidewords to identify potential
deviations from the design intent, identify their possible causes and assess their consequences that may
represent risks to personnel or equipment. The adequacy of existing safeguards are also investigated.

4.5 Human Factors: A discipline concerned with designing machines, operations, and work environments to
match human capabilities, limitations and needs.

4.6 Human Reliability Analysis (HRA): A method used to evaluate whether necessary human actions, tasks, or
jobs will be completed successfully within a required time period. The method is also used to determine the
probability that no extraneous human actions detrimental to the system will be performed.

4.7 Inherently Safer Design (ISD): The general ISD philosophy is a hierarchical approach to the selection of
hazard control measures in the following manner:
a.) Eliminate/avoid the hazards or remove the exposure to accident hazards by design;
b.) Minimize/reduce the hazardous inventories or the frequency or duration of exposure;
c.) Substitute/replace hazardous materials with safer materials
d.) Moderate/use less hazardous conditions, or facilities that minimize the impact of a release of
hazardous material or energy;
e.) Simplify complexity and make operating errors less likely.

4.8 Layer of Protection Analysis (LOPA): A method that analyses one incident scenario (cause-consequence
pair) at a time, using predefined values for the initiating cause frequency, independent protection layer
failure probabilities, and consequence severity, in order to compare an order-of-magnitude scenario risk
estimate to tolerable risk goals for determining whether additional risk reduction or more detailed analysis
is required. The effectiveness of Independent Protection Layers (IPL) in reducing the likelihood of an
undesired event is also considered. Scenarios are identified elsewhere, typically using a scenario-based
evaluation procedure such as a HAZOP study.

4.9 Lifecycle of the Facility: The entire series of stages through which the facility/process passes during its
lifetime, starting from the concept design, to detailed design, construction and commissioning, operating,
and decommissioning stages. Based on this, both new and existing facilities/processes are included in this
definition.

4.10 PHA Coordinator: A competent person or for some complex projects, a Unit responsible for
overseeing PHA activities for an organization.
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4.11 PHA Resources: The different resources needed to ensure that PHAs are conducted on time by competent
teams using adequate tools, and that the recommendations resulting from the PHA are implemented within
the suggested time frame. This includes planning and budgeting for training, software, and availing experts
for effective participation in the assessments during the entire PHA period.

4.12 PHA Triggers: Conditions or circumstances that mandates the initiation of a PHA assessment as shown in
Section 6.2.1.

4.13 Preliminary Hazard Analysis (PrHA): An initial and high level screening exercise that can be used to
identify, describe, and rank major hazards during conceptual stage of a process or facility design. This
technique can also be used to identify possible consequences and likelihood of occurrence and provide
recommendations for hazard mitigation. As per the Capital Management System (CMS), for new and
existing processes or projects in the early stages of their life cycle, Preliminary Hazard Analysis is
completed during the Front End Loading pre-Gate 2 Design Basis Scoping Paper (FEL2 DBSP) phase
(SAEP-14).

4.14 Process: Production, distribution, storage or pilot plant facilities used in the manufacturing of
petrochemical, gas and petroleum products. This include process equipment, storage tanks, active
warehouses, ancillary support areas (e.g. boiler houses and waste water treatment plants), and distribution
pipelines under the control of the company.

4.15 Process Hazard Analysis (PHA): Any systematic approach for identifying, evaluating, and controlling
hazards or risks of processes/projects involving hazardous materials throughout the entire lifecycle of the
process or facility. Some PHA methodologies include:
 What-if / Checklist,
 Preliminary Hazard Analysis (PrHA),
 Hazard and Operability study (HAZOP),
 Failure Mode Effect and Analysis (FMEA),
 Fault Tree Analysis (FTA)

4.16 Process Safety Information (PSI): a list of information and documents related to the materials, processes
and equipment of process operations. It is considered a detailed register of assets/operations/processes
which is necessary for PHA activities. It is used to document the configuration of a process, its
characteristics, its limitations and consist of the following as an example:
 Physical/Chemical/Toxicological data of materials
 Process design specifications (process flow diagrams, piping and instrumentation diagrams, standard
operating conditions, deviation consequences, maximum intended inventory)
 Equipment design specifications (PSM-critical components, documenting codes and standards for
equipment and systems, etc.)

4.17 Quantitative Risk Assessment (QRA): The systematic development of numerical estimates of the expected
frequency and severity of potential incidents associated with a facility or operation based on engineering
evaluation and mathematical techniques.

4.18 Risk: A measure of human injury, environmental damage or economic loss in terms of both the incident
likelihood and the magnitude of the loss or injury. A simplified version of this relationship expresses the
risk as the product of the likelihood and consequences.
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4.19 Risk Acceptance Criteria or Risk Tolerance Criteria: Terms of Reference against which the level of risk is
evaluated or accepted. Risk criteria are based on organizational objectives and both external / internal
context. Risk Criteria can be derived from standards, legal frameworks and/or policies.

4.20 Risk Matrix or Risk Assessment Matrix: A tabulated representation of risk which is defined by considering
the category of likelihood against the category of consequence severity. This is a simple mechanism to
increase visibility of risks and assist management in decision making.

4.21 Safety Integrity Level (SIL): A discrete level (1, 2, 3, or 4) specifying the average probability of a
Safety Instrumented System (SIS) to satisfactorily perform the required safety instrumented function
under all stated conditions within a stated period of time. SILs are defined in terms of overall system
safety availability or probability of failure on demand-average.

5.0 RESPONSIBILITIES

5.1 Department Manager

5.1.1 Responsible for overall compliance with this GI requirements including:

 Ensuring there is a department process in place to initiate PHAs throughout the lifecycle of
the facilities/processes under his control.
 Availing adequate PHA resources as stated in Section 4.11.

5.1.2 Monitors the effective implementation of PHA process through the appropriate KPIs established
per Section 6.3.5.

5.2 Division Head

5.2.1 Ensures PHA studies are conducted as needed per the PHA requirement stated in Section 6.2.1.

5.2.2 Appointment of PHA Coordinators and ensures adequate team is selected to conduct the PHA
activities.

5.2.3 Prepares and oversees budgets and plans for the required PHA Resources per Section 4.11, and gets
it approved by the Department Manager.

5.2.4 Responsible for developing PHA leaders, implementing the training plans and acquiring the
necessary tools needed to conduct the PHA including the software licenses. Also ensure
redundancy of resources for continuity purposes.

5.2.5 Responsible for implementation/resolution of recommendations within the required time frame, and
prepares findings for communication to stakeholders by the Department Manager.

5.2.6 Manages KPIs for monitoring the effectiveness of PHA implementation process and performance
including the resolution of PHA recommendations/action items in timely manner.

5.2.7 Responsible for creating PHA database that includes all PHA related activities and
recommendations for the facilities under his control.
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5.3 Department PHA Coordinator

5.3.1 Identifies the need and initiates the process to conduct PHA studies as required per Section 6.2.1.

5.3.2 Selects PHA leaders and assembles qualified team to conduct the study.

5.3.3 Prepares the required Process Safety Information (PSI) and documents needed for the PHA study
and ensure all information is up-to-date and available prior to starting the study.

5.3.4 Identifies tools, software (as required) and training requirements and get them approved by
department management.

5.3.5 Manages the PHA records and recommendations, and ensure availability of the records throughout
the facility/process lifecycle.

5.3.6 Creates and maintains the PHA database for all related activities, studies, information and
recommendations.

5.3.7 Prepares findings for communication to all stakeholders, and follow-up to close all PHA
recommendations within the timeframe identified by the team during the PHA study.

5.3.8 Maintains and manages database for all recommendations and action items resulting from the PHA
studies to ensure timely resolution of PHA recommendations.

5.3.9 Develops and updates PHA performance-related KPIs including recommendations resolution and
prepare them for management review per the determined review cycle.

5.4 PHA Leader

5.4.1 Plans and conducts PHA study for the process assigned to them by the PHA Coordinator following
the appropriate PHA methodology per requirements in Supplement 6.032-1.

5.4.2 Confirms that PHA team has personnel with appropriate range of disciplines, backgrounds and
experience to have effective support for the PHA study.

5.4.3 Leads the PHA study following the applicable practices and prepare concise report summarizing
the PHA findings and recommendations.

5.4.4 Ensures that feasible Inherently Safer Design (ISD) strategy and Human Factors are considered in
PHA studies.

5.4.5 Prioritizes PHA recommendations per risk levels.

5.5 Loss Prevention Department

5.5.1 LPD/TSU is responsible for developing, updating and maintaining all Corporate PHA-related
guidelines and best practices.

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5.5.2 LPD/Project Support Groups provide support in conducting PHAs.

5.5.3 LPD/CFPE maintains a database of approved external PHA leaders that can be used to lead PHAs
for the Company should internal resources not be available.

6.0 GENERAL REQUIREMENTS

6.1 Capabilities

6.1.1 The PHA team shall possess sufficient knowledge and experience to perform the study with
adequate representation from relevant disciplines/organizations for the scope of study:
 As a minimum, the team shall have experienced representatives from operation,
maintenance, and engineering background, as well as LPD representatives.
 The PHA Coordinator and leader shall ensure that the level of experience for PHA
participants is sufficient and covers all disciplines to start the study.

6.1.2 Selected PHA leaders shall be qualified to perform this work. The leader shall be trained, certified
and have sufficient experience for the scope of the study to be carried out. LPD shall be consulted
for the selection of external PHA leaders.

6.1.3 A pool of trained and certified PHA leaders shall be maintained to ensure continuous/appropriate
support for all PHA studies and revalidation. Should company internal training not be available,
external training provider can be used to provide necessary training and certification for PHA
leaders.

6.2 Implementation

6.2.1 PHA shall be performed for all new projects and existing facilities throughout the lifecycle of the
facility/process (per Section 4.15) and in line with Supplement 6.032-1. The following conditions
are considered PHA Triggers and mandates initiating a PHA:
 Starting new projects
 Making changes to operating conditions or design parameters of the process or facility
 Incident investigation activities/recommendations
 SIL assessment, LOPA or QRA studies
 PHA revalidation procedures mandating revalidation of PHA at least once every 5 years
 Other initiators based on specific need or requests such as studies included in the
organization’s PHA schedule/plan, insurance reviews and others

6.2.2 PHA shall be performed as needed per PHA Triggers defined in Section 6.2.1. Also:
 Where applicable, PHA schedule/plan shall be established by the department/organization
and monitored to ensure it is implemented effectively.
 PHA schedule plan shall be updated regularly to reflect events that were not anticipated such
as unplanned changes that warrant conducting PHA.

6.2.3 PHA shall be conducted using the appropriate methodology based on the lifecycle stage and
assessment purpose. A typical sequence of PHA processes is provided in Supplement 6.032-2.
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6.2.4 LPD shall be consulted for appropriate type of assessment that can be implemented if the approach
proposed in Supplement 6.032-2 is not applicable for certain cases.

6.2.5 PHA shall be performed for both normal and non-routine modes of operation (such as startups and
shutdowns) for process and facilities.

6.2.6 Process Safety Information (PSI) and documents shall be made available, being up to date and
easily accessed to the team in preparation for the PHA.

6.2.7 PHA adopted technique shall ensure consistent basis for evaluating the level of risk and ensure
consistent understanding of the organization acceptable level of risk.

6.2.8 HAZOP studies shall be performed prior to LOPA/SIL assessment, preferably using the same team
and in the same setup to ensure consistency and adequacy of assessments.

6.3 Governance and Monitoring

6.3.1 PHA recommendations and follow-up actions should be prioritized based on the risk level and
resolved within acceptable time frame proposed by the assessment team during the study.

6.3.2 PHA recommendations and action items shall be communicated to LPD Area Division on a
quarterly basis to verify adequate closure of the recommendations and action items.

6.3.3 Appropriate amount of time shall be allocated for conducting the PHA adequately. General
guideline for the required time is given in Supplement 6.032-3. PHA Coordinator and leader shall
ensure sufficient time is planned for the PHA study accordingly.

6.3.4 A PHA recommendations and action items database shall be established and maintained to monitor
effectiveness of the PHA implementation, as well as recommendations resolution in timely manner.

6.3.5 Appropriate KPIs shall be established and monitored to ensure effective implementation of PHA in
the organization. At minimum the following KPIs shall be established:
 KPI to monitor the number of studies not being done on time per Section 6.2.1 requirements
 KPI to monitor the overdue PHA recommendations that were not closed on time.
 KPIs to measure the organization’s capabilities in terms of personnel competency,
training/certification and availability of PHA leaders and scribes.

6.3.6 A database shall be established to collect information needed for the PHA related KPIs, and to
cascade it through to be monitored at appropriate administrative levels, per applicable governance
models in the Company.

6.3.7 KPIs shall be reported to relevant organizations in the company including LPD on a regular basis.

6.3.8 LPD shall review and approve tools and software used in PHA studies.

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APPROVED: _________________________ DATE: _____________

MANAGER
Loss Prevention Department

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SUPPLEMENT 6.032-1, TYPICAL FLOWCHART FOR PROCESS, PROJECT AND FACILITY PHA

PHA
required

– New Process or Facility

– Management of Change
– Incident Recommendations
– PHA 5-year Revalidation
– LOPA/SIL Assessments
– Facility Decommissioning
Selection of PHA – Insurance or Risk Assessments
technique Recommendations
– Other studies included in the
organization PHA schedule/plan
– Other Non-routine Triggers.

Perform PHA

Assign PHA
actions

Implement PHA
actions and update
PSI

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SUPPLEMENT 6.032-2, TYPICAL LIFECYCLE STAGES AND COMMON PHA TECHNIQUES

Concept Design What-if/ PrHA

Front End HAZOP/ What-if/ PrHA

Engineering Design

Detailed HAZOP/ FMEA/ FTA

Engineering Design

Commissioning & What-if/ HAZOP

Start up

Operations & What-if/ HAZOP/

Maintenance FMEA/ FTA/ PrHA

Decommissioning What-if

Note: this may not be comprehensive list. Other types of studies might be required for specific purposes.

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SUPPLEMENT 6.032-3, TYPICAL TIME REQUIREMENTS FOR DIFFERENT PHA TECHNIQUES

Complexity of What-if/
System Various Steps Checklist What-if Checklist HAZOP FMEA FTA
Simple/ Small Number of Staff 1-2 2-3 2-3 3-4 1-2 2-3
Process Preparation 2-4 h 4-8 h 6-12 h 8-12 h 2-6 h 1-3 d
Modeling 3-6 d
Evaluation 4-8 h 1-3 d 6-12 h 1-3 d 1-3 d 2-4 d
Documentation 4-8 h 1-2 d 4-8 h 2-6 d 1-3 d 3-5 d

Large/ Number of Staff 1-2 3-5 3-5 5-7 2-4 2-5

Complex Preparation 1-3 d 1-3 d 1-3 d 2-4 d 1-3 d 4-6 d
Process Modeling 2-3 w
Evaluation 3-5 d 4-7 d 4-7 d 1-3 w 1-3 w 1-4 w
Documentation 2-4 d 4-7 d 1-3 w 2-6 w 2-4 w 3-5 w

Note: the following is applicable for the table:

 h is hour
 d is days (8 hours)
 w is week (40 hours)

The values provided in the table are used as a guideline for planning purposes (based on AIChE recommended figures).
Actual time might differ.

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