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“FEED”

Definition: This acronym “FEED” stands for the “Front End Engineering and Design” of a project. The “FEED” may also be called “Basic Design” or even “Basic”. This phase follows the “Feasibility Study” to describe in more details the different technical and financial options considered during the feasibility study. The “FEED” will define the process, the plot plan, the long lead items, most of the key requirements, and the preliminary vendors list. For the large projects involving multiple production units, it will also prepare the break-down of the different packages to be posted for bid to the engineering companies and contractors at the execution phase.

Comment: The “FEED” is critical for all parties:

–          For the end users, it will condition the profitability of the project and how much flawless will be the future construction in the anticipating potential risks.

–          For the Engineering companies, it is crucial to impose their processes or licenses. In some cases, the engineering companies performing the “FEED” are not involved in the next phase of the execution, in some cases they are depending on the End User’s policy and on their own engineering companies’ strategy. Their respective decision must be made at the early days of the project announcement.

–          For the suppliers, the “FEED” is strategic to get qualified, to promote their solutions in the process and technical requirements and position themselves in the vendors’ lists.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

5 Comments to ““FEED””

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