DEP SPECIFICATION

SPARE PARTS

DEP 70.10.90.11-Gen.

February 2012

DESIGN AND ENGINEERING PRACTICE

© 2012 Shell Group of companies

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, published or transmitted, in any form or by any means, without the prior
written permission of the copyright owner or Shell Global Solutions International BV.
 DEP 70.10.90.11-Gen.
February 2012
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PREFACE
DEP (Design and Engineering Practice) publications reflect the views, at the time of publication, of Shell Global Solutions
International B.V. (Shell GSI) and, in some cases, of other Shell Companies.
These views are based on the experience acquired during involvement with the design, construction, operation and
maintenance of processing units and facilities. Where deemed appropriate DEPs are based on, or reference international,
regional, national and industry standards.
The objective is to set the standard for good design and engineering practice to be applied by Shell companies in oil and
gas production, oil refining, gas handling, gasification, chemical processing, or any other such facility, and thereby to help
achieve maximum technical and economic benefit from standardization.
The information set forth in these publications is provided to Shell companies for their consideration and decision to
implement. This is of particular importance where DEPs may not cover every requirement or diversity of condition at each
locality. The system of DEPs is expected to be sufficiently flexible to allow individual Operating Units to adapt the
information set forth in DEPs to their own environment and requirements.
When Contractors or Manufacturers/Suppliers use DEPs, they shall be solely responsible for such use, including the
quality of their work and the attainment of the required design and engineering standards. In particular, for those
requirements not specifically covered, the Principal will typically expect them to follow those design and engineering
practices that will achieve at least the same level of integrity as reflected in the DEPs. If in doubt, the Contractor or
Manufacturer/Supplier shall, without detracting from his own responsibility, consult the Principal.
The right to obtain and to use DEPs is restricted, and is granted by Shell GSI (and in some cases by other Shell
Companies) under a Service Agreement or a License Agreement. This right is granted primarily to Shell companies and
other companies receiving technical advice and services from Shell GSI or another Shell Company. Consequently, three
categories of users of DEPs can be distinguished:
1) Operating Units having a Service Agreement with Shell GSI or another Shell Company. The use of DEPs by these
Operating Units is subject in all respects to the terms and conditions of the relevant Service Agreement.
2) Other parties who are authorised to use DEPs subject to appropriate contractual arrangements (whether as part of
a Service Agreement or otherwise).
3) Contractors/subcontractors and Manufacturers/Suppliers under a contract with users referred to under 1) or 2)
which requires that tenders for projects, materials supplied or - generally - work performed on behalf of the said
users comply with the relevant standards.
Subject to any particular terms and conditions as may be set forth in specific agreements with users, Shell GSI disclaims
any liability of whatsoever nature for any damage (including injury or death) suffered by any company or person
whomsoever as a result of or in connection with the use, application or implementation of any DEP, combination of DEPs
or any part thereof, even if it is wholly or partly caused by negligence on the part of Shell GSI or other Shell Company. The
benefit of this disclaimer shall inure in all respects to Shell GSI and/or any Shell Company, or companies affiliated to these
companies, that may issue DEPs or advise or require the use of DEPs.
Without prejudice to any specific terms in respect of confidentiality under relevant contractual arrangements, DEPs shall
not, without the prior written consent of Shell GSI, be disclosed by users to any company or person whomsoever and the
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GSI may at any time require information satisfactory to them in order to ascertain how users implement this requirement.
All administrative queries should be directed to the DEP Administrator in Shell GSI.
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TABLE OF CONTENTS
1. INTRODUCTION ........................................................................................................4
1.1 SCOPE........................................................................................................................4
1.2 DISTRIBUTION, INTENDED USE AND REGULATORY CONSIDERATIONS .........4
1.3 DEFINITIONS .............................................................................................................4
1.4 CROSS-REFERENCES .............................................................................................5
1.5 SUMMARY OF MAIN CHANGES...............................................................................6
1.6 COMMENTS ON THIS DEP .......................................................................................6
2. GENERAL...................................................................................................................7
2.1 OBJECTIVES..............................................................................................................7
2.2 SPARE PART CATEGORIES.....................................................................................7
2.3 GOVERNANCE ..........................................................................................................8
2.4 ROLES AND RESPONSIBILITIES .............................................................................8
2.5 KEY PRINCIPLES ......................................................................................................9
3. INSURANCE SPARES.............................................................................................15
3.1 DEFINITION..............................................................................................................15
3.2 PROCESS.................................................................................................................15
3.3 ROLES AND RESPONSIBILITIES ...........................................................................16
3.4 DELIVERABLES .......................................................................................................16
4. COMMISSIONING SPARES ....................................................................................17
4.1 DEFINITION..............................................................................................................17
4.2 PROCESS.................................................................................................................17
4.3 ROLES AND RESPONSIBILITIES ...........................................................................18
4.4 DELIVERABLES .......................................................................................................18
5. INITIAL OPERATING SPARES ...............................................................................19
5.1 DEFINITION..............................................................................................................19
5.2 PROCESS.................................................................................................................19
5.3 ROLES AND RESPONSIBILITIES ...........................................................................20
5.4 DELIVERABLES .......................................................................................................20
6. OPERATING SPARES.............................................................................................21
6.1 DEFINITION..............................................................................................................21
6.2 PROCESS.................................................................................................................21
6.3 ROLES AND RESPONSIBILITIES ...........................................................................21
6.4 DELIVERABLES .......................................................................................................22
7. OTHER SPARES......................................................................................................23
7.1 DEFINITION..............................................................................................................23
7.2 PROCESS.................................................................................................................23
7.3 ROLES AND RESPONSIBILITIES ...........................................................................24
7.4 DELIVERABLES .......................................................................................................24
8. REFERENCES .........................................................................................................25

APPENDICES
APPENDIX A TYPICAL WORKFLOW FOR A CAPITAL PROJECT ...................................26
APPENDIX B SPECIMEN CONTRACT CLAUSES FOR INCLUSION IN RFQs/ITTs .........27
APPENDIX C EXAMPLE PROJECT SURPLUS DECISION TREE......................................28
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1. INTRODUCTION

1.1 SCOPE
This DEP specifies requirements and gives recommendations for the identification,
selection, purchase and setting of stock levels for spare parts in new projects, modifications
and single equipment orders. This DEP defines the responsibilities of the
Manufacturer/Supplier, Contractor and the Principal.
This DEP defines the following categories for spare parts, and addresses requirements for
each category:
• Insurance Spares (3)
• Commissioning Spares (4)
• Initial Operating Spares (5)
• Operating Spares (6)
• Other Spares (7)
This is a revision of the DEP of the same number dated September 2002; see (1.5)
regarding the changes.

1.2 DISTRIBUTION, INTENDED USE AND REGULATORY CONSIDERATIONS

Unless otherwise authorised by Shell GSI, the distribution of this DEP is confined to Shell
companies and, where necessary, to Contractors and Manufacturers/Suppliers nominated
by them. Any authorised access to DEPs does not for that reason constitute an
authorisation to any documents, data or information to which the DEPs may refer.
This DEP is intended for use in facilities related to oil and gas production, gas handling, oil
refining, chemical processing, gasification, distribution and supply/marketing. This DEP
may also be applied in other similar facilities.
When DEPs are applied, a Management of Change (MOC) process shall be implemented;
this is of particular importance when existing facilities are to be modified.
If national and/or local regulations exist in which some of the requirements could be more
stringent than in this DEP, the Contractor shall determine by careful scrutiny which of the
requirements are the more stringent and which combination of requirements will be
acceptable with regards to the safety, environmental, economic and legal aspects. In all
cases, the Contractor shall inform the Principal of any deviation from the requirements of
this DEP which is considered to be necessary in order to comply with national and/or local
regulations. The Principal may then negotiate with the Authorities concerned, the objective
being to obtain agreement to follow this DEP as closely as possible.

1.3 DEFINITIONS
1.3.1 General definitions
The Contractor is the party that carries out all or part of the design, engineering,
procurement, construction, commissioning or management of a project or operation of a
facility. The Principal may undertake all or part of the duties of the Contractor.
The Manufacturer/Supplier is the party that manufactures or supplies equipment and
services to perform the duties specified by the Contractor.
The Principal is the party that initiates the project and ultimately pays for it. The Principal
may also include an agent or consultant authorised to act for, and on behalf of, the
Principal.
The word shall indicates a requirement.
The word should indicates a recommendation.
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1.3.2 Specific definitions and abbreviations

Term Definition
BoM Bill Of Materials – a complete, formally structured list of components
representing the spare parts listings for a piece of equipment.
EFA Enterprise Framework Agreement – an agreement between the Principal
and a Manufacturer/Supplier, outlining an agreed set of legal and
commercial terms which the Principal-contracting entities can then use to
call off goods or services. The only variations are to reflect local legal or
fiscal requirements, or a specific JV requirement.
Equipment A physical object designed to perform a specific function.
E-SPIR Electronic – Spare Parts and Interchangeability Record. An application to
support the Spare Parts identification process and workflow. For details,
see www.e-spir.com.
FA Framework Agreement – an agreement similar to an Enterprise Framework
Agreement but covering commodities that are specific in nature to one
business (e.g., Oil Country Tubular Goods).
Goods Materials or equipment, and any part or component thereof incorporated or
to be incorporated therein.
ITT Invitation To Tender
MESC Material and Equipment Standards and Codes. A materials and products
catalogue designed to describe commodities (primarily piping, fittings and
flanges) in a standardised fashion to allow the efficient specification and
procurement of these items.
Penalty Cost The total cost per day of not having the equipment running due to waiting
for spare parts.
PO Purchase Order
RAM Study Reliability and Availability Model Study
RFQ Request for Quotation
Spare part A piece of material, identical to the original, which can be used to replace a
part of equipment during its economic life-cycle, subject to degradation. For
definitions of different spare parts categories, see (2.2).
SPEP Shell Pre-Engineered Package
TAG Tags are created to decompose a "high level" Process Unit function into
more granular "sub-functions".
Tags are assigned a unique project identifier according to the Principal’s
Tagging Specification.
TAMAP Technically Approved Manufacturers and Products

1.4 CROSS-REFERENCES
Where cross-references to other parts of this DEP are made, the referenced section
number is shown in brackets. Other documents referenced by this DEP are listed in (8).
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1.5 SUMMARY OF MAIN CHANGES

This DEP is a revision of the DEP of the same number dated September 2002. This is a
major rewrite; the following are the main, non-editorial changes.

Old New Change

section section
3.1 2.4 Updated to reference Shell initiatives to improve standardization
(e.g., Framework Agreements, SPEPs and TAMAP).
4 N/A Detailed sections covering use of E-SPIR removed for inclusion in
E-SPIR manual.

1.6 COMMENTS ON THIS DEP

Comments on this DEP may be sent to the Administrator at standards@shell.com, using
the DEP Feedback Form. The DEP Feedback Form can be found on the main page of
“DEPs on the Web”, available through the Global Technical Standards web portal
http://sww.shell.com/standards and on the main page of the DEPs DVD-ROM.
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2. GENERAL

2.1 OBJECTIVES
The objective of spare parts management in projects is:
a) To ensure standardization of Goods chosen in such a manner that the variety of
types is restricted as far as possible.
b) To identify duplicate spare parts; enabling initial procurement to be reduced,
optimization of the stock holding, and the promotion of standardization.
c) To ensure availability of sufficient spare parts during the commissioning and the
operations phases to prevent project delays and loss of production.
d) To avoid surplus procurement of spare parts.
e) To optimise procurement timing to avoid the need for rush orders.
f) To ensure spare parts are suitably packaged and preserved to be fit-for-use in the
required commissioning and operating timescale.
g) To collect quality data about spare parts and the equipment they belong to and to
load it into the Operating Units Materials Management System prior to start-up,
enabling a smooth transition to operations.
To achieve these objectives this DEP describes:
• Definitions of different categories of spare parts and information to support their
identification.
• The spare parts identification process, deliverables and roles and responsibilities
per category of spare parts.
Application of this DEP will optimize the quantity of spare parts, and hence reduce capital
and operating expenditure, as well as delivering considerable savings in procurement and
logistics operations after completion of the project.

2.2 SPARE PART CATEGORIES

The following categories shall be used to distinguish between different types of Spare
Parts:
• Insurance Spares (3)
• Commissioning Spares (4)
• Initial Operating Spares (5)
• Operating Spares (6)
• Other Spares (7)
Subsequent sections of this DEP define these categories and the different processes
expected to be followed to identify, select and procure them.
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Project Phase Operate Phase

PO Award Commissioning 2 Years Asset life

Start-up

Insurance Commissioning Initial Operating Operating Spares and Others

Spares Spares Spares

Project Budget Operating Budget

Handover
Figure 1 Overview of Spare Part Categories

Note: All categories of spares are expected to be handed over on one spare parts review form.
Typically, Initial Operating Spares should be procured as part of the Project Budget. The dotted line is
shown on the diagram as in some circumstances Initial Operating Spares may be procured by the
Operating Unit (OU) as part of the Operating Budget.

2.3 GOVERNANCE
This DEP specifies the mandatory requirements for spare parts management and may be
supplemented with additional requirements by the Principal.
The Contractor shall be responsible for all or part of the requirements and processes
described in this DEP.
The Contractor shall demonstrate that it has an organization in place to deliver the
requirements of this DEP, including the appointment of a single Spare Parts Focal Point for
all matters concerning spare parts including ordering (2.4.2).
The Principal shall develop a Spare Parts Strategy for all projects with a Capital Value
above 100M USD.
The division of responsibilities between the Principal and the Contractors, for all or part of
the requirements and processes described in this DEP, shall be clearly defined for each
activity of the spare parts process including requisitioning, cost control, expediting, spare
parts review, selection, coding, purchasing, labelling, receipt, storage and handling of
surplus.

It shall be agreed in advance who is responsible for which category of spare parts
(Insurance, Commissioning and Initial). In particular, the policies and responsibilities for the
selection and final recommendation of ordered quantities of Insurance and Initial spare
parts should be carefully reviewed and agreed. Normally, final responsibility should rest
with the Principal. The basis on which the ordered quantities will be defined should be
checked against the commissioning and maintenance practices of the Principal. Contractor-
purchased spare parts should be checked against the inventories of the Principal (where
applicable).

2.4 ROLES AND RESPONSIBILITIES

2.4.1 General
This section describes a typical allocation of roles and responsibilities for a Large Capital
Project (over 100M USD) with an EPC Contractor.
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2.4.2 Contractor Spare Parts Focal Point

The Contractor shall:
a) ensure the appropriate spare parts clauses and specifications are included in the
Contracts and Purchase Orders issued by the Contractor (2.5.5).
b) technically verify that the spare parts recommendation matches the equipment
supplied (correct models, equipment is actually fitted, etc.) including QA
requirements and acceptance criteria.
c) make recommendations regarding design, repair intervals and vital components,
particularly for vital equipment (2.5.14) and Insurance spare parts (3).
d) coordinate the review of Commissioning Spares with Contractor Commissioning
Engineers and submit the recommendation to the Principal for approval (4.2.1).
e) ensure that the Manufacturer/Supplier’s spare parts recommendations and
documents, including E-SPIRs, comply with the specifications, are received on time,
and are distributed and actioned (2.5.13).
f) liaise with the equipment Manufacturers/Suppliers to assure a robust preservation
plan is in place, which includes required storage climate (indoor, outdoor, or humidity
control), packaging, and any required routine verification.
g) identify surplus materials and spare parts after commissioning, and ensure all
unused spare parts are offered to the Principal for stocking after acceptance and
review, or any surplus spare parts are disposed of .
2.4.3 Principal spare parts co-ordinator
The Principal’s Spare Parts Co-ordinator should:
a) establish and implement systems and procedures for the reviewing and progressing
of all spare parts schedules to ensure availability in time for commissioning.
b) review Goods chosen to identify opportunities for standardisation.
c) refine cost estimates and monitor costs for all project spare parts activities.
d) liaise closely with the Principal’s project, maintenance and procurement staff to
ensure that project related spare parts are purchased on time and within budget.
e) ensure that the Contractor’s spare parts recommendations and documents, including
E-SPIRs, comply with the specifications (in liaison with the Standardiser and
Maintenance Focal Point), and that they are received on time, distributed and
actioned.
f) ensure that proper action is taken on surplus materials and spare parts.
g) review the responsibilities of the Contractor in relation to all spare parts activities.
h) review spare parts schedules, co-ordinate technical responses, and follow up on the
specification and purchase of Commissioning and Insurance spare parts.
i) co-ordinate the review, selection and purchase of Commissioning and Initial spare
parts, ensuring their availability at the time of commissioning.
j) locate and check Commissioning spare parts in relation to main equipment.

2.5 KEY PRINCIPLES

2.5.1 General
The Contractor shall not subcontract the supply of spares without the prior written consent
of the Principal. Any such permitted assignment or subcontracting shall not relieve the
Contractor of its obligations under the Contract.
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2.5.2 Standardization
For reasons of standardization, the Contractor shall select Manufacturers/Suppliers for
Goods in such a manner that the variety of types is restricted as far as possible with the
aim of minimising capital investment of plant installed and the operating expenditure of the
plant (including the stocking of spare parts).
The Contractor shall select a single Manufacturer/Supplier for individual categories of
Goods, such as groups of pumps, electrical motors, instruments, valves, and the like.
Design selections shall also restrict the number of sizes of pumps, electric motors and other
equipment, and standardize these for the various applications.
2.5.2.1 Framework agreements and SPEPs
The Principal has established a number of Framework Agreements (FAs), Enterprise
Framework Agreements (EFAs) and Shell Pre-Engineered Packages (SPEPs) that drive
standardization and simplification.
The Principal shall provide Contractor with details of any (E)FAs and SPEPs to be used
during the project. (E)FAs and SPEPs are strictly confidential and shall only be issued to
the Contractor following entry into a secrecy agreement with the Principal.
The Contractor shall obtain written permission from the Principal to deviate from any
relevant (E)FAs and SPEPs when procuring spares.
2.5.2.2 Technically Accepted Manufacturers and Products (TAMAP)
The Principal has developed a Technically Accepted Manufacturers and Products (TAMAP)
list. The Principal shall advise the Contractor if TAMAP (or part of it) is to be used during
the project. Where applicable the Contractor should only procure spares based on the
TAMAP list to optimise standardisation on the project. In the case of a "packaged unit", the
Contractor shall ensure that all equipment and accessories supplied as part of the unit
(e.g., instrumentation, pumps, valves, etc.) are also on the TAMAP list.
TAMAP lists are strictly confidential and shall only be issued to the Contractor if required for
the project and following entry into a secrecy agreement approved by Shell Legal.
All spares purchased by the Contractor shall be in accordance with the relevant
specifications and the Principal’s Engineering Standards. The Contractor shall promptly
advise the Principal of any spares for which the Contractor knows that the
Manufacturer/Supplier plans to discontinue production.
2.5.3 Budget preparation
The Principal may provide or may request the Contractor to prepare an overall budget
estimate for the required spare parts prior to commencement of the procurement process.
This may require the Contractor to engage the market to obtain quotations for equipment
and spare parts.
The budget will be used as a key input to the evaluation of replies to RFQs or ITTs.
Following submission of any detailed spare parts quotations, the budgets shall be refined
and costs compared on an order-by-order basis.
2.5.4 Evaluation criteria
The Total Cost of Ownership of spare parts should be one of the factors considered in
evaluating responses to RFQs and ITTs.
The Contractor shall ensure spares are included in predefined evaluation criteria for all
relevant purchases.
2.5.5 Specification of spare parts requirements in RFQ/ITT and purchase documents
Spare parts requirements and After Market Services (providing maintenance services on
equipment and/or storage of spares) shall be specified as part of all RFQ/ITT and purchase
documents issued by the Contractor.
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(Appendix B) contains specimen clauses that the Contractor shall adopt. The Contractor
shall confirm the clauses comply with local legal and contract requirements and agree any
changes with the Principal. The Contractor shall demonstrate, with the aid of the purchase
register, that all RFQ/ITTs and purchase orders placed under the contract contain the
agreed spare parts clauses.
2.5.6 Review of equipment quotations
The Contractor shall ensure spare parts requirements are included in the review of the
equipment quotation before providing recommendations to the Principal.
The Contractor’s recommendations shall consider the Manufacturer’s recommendations,
the guidance in this DEP and Contractor’s evaluation of requirements to cost effectively
meet the project availability and reliability targets.
2.5.7 Coding and cataloguing
The coding and cataloguing of spares is an essential and cost-saving exercise. All coding
of spare parts shall be performed against the coding policy of the Principal.
Coding should be carried out before ordering any spare parts and shall be completed
before the end of the Contract.
All items which could reasonably be used over the operating lifetime of the equipment
should be coded. This includes non-stocked spares to facilitate identification and
procurement in Operations.
2.5.8 Documentation requirements
The Contractor shall be responsible for ensuring all engineering documents necessary to
support the spare parts process are specified in the Purchase Order and are delivered by
the Manufacturers/Suppliers, in accordance with the Principal’s Information Management
requirements.
The Contractor shall formally transmit the supporting documents to the Principal no later
than the specified spare parts review form. This requirement shall include hardcopy
originals documentation as required (e.g., test certificates, etc.).
2.5.9 Packing, marking and labelling of spare parts
For each Purchase Order for which the Contractor is responsible, the Contractor shall
ensure that each part delivered is boxed, preserved and identified with a robust,
weatherproof label, showing the:
• Principal’s coding reference as specified in the Purchase Order;
• Manufacturer/Supplier’s name, Original Equipment Manufacturer’s name, Original
Equipment Manufacturer's unique part number;
• Description of the part;
• Expiry dates for parts having a limited shelf life, or if required for stock maintenance;
• Small items with the same part numbers shall be labelled and packed together in a
plastic bag or box, with the label shown on the outside of the bag or box.
2.5.10 Compliance with customs, regulatory and local fiscal requirements
The Contractor shall be responsible for ensuring compliance with customs (import and
export), regulatory and local fiscal requirements as required.
2.5.11 Venture/cost recovery requirements
The Contractor shall be responsible for ensuring cost reports and other records as required
to ensure compliance with the Principal’s Venture or cost recovery requirements.
2.5.12 Data gathering
The Principal has developed a tool to enable the objectives described above to be
achieved, called E-SPIR. More information on E-SPIR is provided in the E-SPIR Advisor
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Guide and the Supplier Module that can be downloaded at www.e-spir.com. Unless
otherwise advised by the Principal, the use of E-SPIR is mandated. The requirements
defined in this DEP shall still apply, even if an alternative to E-SPIR is agreed.
The Manufacturers/Suppliers shall download the E-SPIR Supplier module from www.e-
spir.com.
E-SPIR data shall be submitted fully in accordance with the E-SPIR Supplier Instructions as
soon as possible after receipt of the Purchase Order and no later than six weeks prior to
equipment delivery. Contractual E-SPIR delivery dates, considering the complexity of the
equipment, shall be discussed and agreed with the Manufacturer/Supplier prior to the
award of the Purchase Order.
The Contractor shall utilise E-SPIR Advisor for gathering and handling spare parts
information from the Manufacturers/Suppliers.
The Principal shall obtain the license required for the Contractor to use the E-SPIR Advisor
program. If Contractors are working on behalf of the Principal, they may use the program
free of charge for the relevant project.
The Principal may offer the Contractor E-SPIR training (typically only one training session
will be provided). The Contractor shall confirm the availability of their Spare Parts Focal
Point and a backup for any training arranged. The Contractor’s Spare Parts Focal Point
shall be responsible for training others in the Contractor’s organisation as required.
The Contractor shall check and confirm that the Manufacturer/Supplier has completed all
mandatory data requirements in E-SPIR prior to forwarding this information to the Principal,
i.e.,
• Project Tag Numbers (where applicable) to enable the building of Bills Of Materials
(BoMs) in the Principal’s maintenance system,
• Original Equipment Manufacturer name and Part Number,
• Key Documents (e.g., maintenance manuals, test certificates, etc.).
If incomplete, the Contractor shall reject the E-SPIR and return it to the
Manufacturer/Supplier to be corrected and resubmitted within ten (10) working days.
The Contractor shall not approve the E-SPIR with the Manufacturer/Supplier, release
payment or close the purchase order until the Principal confirms that the E-SPIR is
acceptable.
2.5.13 Control and progress of spare part forms
The Contractor shall expedite E-SPIR information, complete with relevant documentation,
from the Manufacturer/Supplier, within an agreed time frame and review the E-SPIRs, as
per (2.5.12) to ensure all mandatory data has been submitted. It is critical that E-SPIRs are
received as early as possible to ensure there is sufficient time to review, select and procure
spare parts before they are required.
The Contractor shall issue a monthly progress report to the Principal detailing:
• all Purchase Orders and the Manufacturer/Supplier where E-SPIRs are expected;
• the planned and actual dates for receipt and approval of the E-SPIRs;
• a summary of the total number of E-SPIRs expected, not yet submitted, rejected, on
review and approved;
NOTE: This report can be generated directly from the E-SPIR Advisor Program.

• the location and condition of spares, outstanding actions with action party and target
date for resolution.
The Contractor shall arrange regular meetings with the Principal to report progress and
raise issues related to the receipt and review of E-SPIRs.
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2.5.14 Equipment criticality and penalty costs

The importance of the various equipment items and their impact on plant
operation/availability shall be defined by the Principal to help determine the purchase of
Insurance parts, back-up equipment and other spares. This can be done either by the
Equipment Criticality Classification or the Penalty Costs.
Table 1 provides a definition of the Equipment Criticality Classification codes that should be
used (i.e. vital, essential spared and non-spared, and non-essential equipment).
Table 1 Equipment Criticality Classification system
SAFETY OTHER EQUIPMENT
EQUIPMENT
SERVICE CATEGORY
VITAL ESSENTIAL NON-
ESSENTIAL
Non-spared Spared
Equipment Equipment
Definition A service in which A service in which failure A service in which failure All other
failure of equipment of equipment renders a of equipment renders a services.
causes an unsafe plant or process unit plant or process unit
condition of the plant inoperable or reduces inoperable or reduces
or installation resulting performance to a level performance to a level
in jeopardy to life unacceptable to the unacceptable to the
and/or major damage Principal. Principal.
(fire, explosion, etc.).
Selection Equipment shall be A decision not to install Installed spare Economic
Criteria adequately spared to spare equipment is equipment is normally evaluation
ensure 100% based upon economic selected where potential required to
availability of the considerations and losses due to equipment justify spared
service under all proven equipment outage greatly outweigh equipment.
circumstances. availability. Non-spared equipment CAPEX.
equipment availability Sparing philosophy shall
may be upgraded by be economically
means of additional evaluated and is typically
CAPEX to match 2x100 % or 3x50 %.
required plant
availability.
Examples • firewater pumps • Hydrocracking Unit • Boiler Feed Water • Standard
with diesel and feed pump pumps lighting
motor drives • Hydrocracking Unit • Fractionators bottom unit
• ESD systems recycle compressor pumps
• Emergency • Feed Draught and • Fresh gas
Instrument Air Induction Draught compressors(Hydrocra
compressor fans cking Unit)
• Export gas • Main oil line pump
compressor

The Penalty Cost is the total cost per day of not having the equipment running due to
waiting for spare parts. The Principal shall determine when Penalty Costs should be used
and shall advise the relevant cost basis prior to any spare parts review.
2.5.15 Purchase orders for spare parts
The Contractor shall not purchase any spare parts unless approved by the Principal.
2.5.16 Warehousing and preservation
The Contractor shall ensure that all spares held on behalf of the Principal are stored in a
suitable, secure location with appropriate climate control (e.g., air-cooled storage area) until
handover to the Principal.
 DEP 70.10.90.11-Gen.
February 2012
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The Contractor shall ensure proper preservation/stock maintenance instructions are in

place (e.g., the maintenance of nitrogen purged cocoons and the energization of heaters on
spare, stocked motors). All maintenance requirements shall be confirmed with the
equipment Manufacturer/Supplier.
Preservation recommendations for many types of equipment may be found in
DEP 70.10.70.11-Gen.
 DEP 70.10.90.11-Gen.
February 2012
Page 15

3. INSURANCE SPARES

3.1 DEFINITION
Insurance Spares are those spares that are held to mitigate against circumstances that are
not expected to arise routinely or frequently over the life of an item of equipment (and
normally are not related to a dominant failure mode of the equipment), but which would
have serious consequences (e.g., significant production losses) if those circumstances did
occur.
Insurance Spares ideally would not be called upon for use in normal operational
circumstances, they are an ‘insurance policy’, and therefore justification for their purchase
is one of risk reduction. Insurance Spares are generally characterised by having:
• High purchase cost
• Low likelihood of usage
• Unpredictable demand
• Long replacement lead-time
• High operational impact if not available
Insurance Spares may be components or complete units, such as complete pumps, large
valves, motors, transformers, turbo-machinery cartridges, rotors, and heat exchanger tube
bundles.

3.2 PROCESS
3.2.1 Selection and quantity
Candidates for Insurance Spares are typically derived from the Reliability and Availability
Model (RAM). The Insurance Spares identification process weighs the costs of lost
production against the cost of procurement, preservation and stocking.
The Contractor shall document the types of Insurance Spares considered, a credible
scenario for the spares being consumed, the costs associated and recommendations to
procure and issue them to the Principal for review and approval.
3.2.2 Procurement
The Principal shall be responsible for authorising any orders for Insurance Spares.
Insurance Spares should be procured simultaneously with the parent equipment, since this
will be more economical and enable complete Factory Acceptance Tests. Therefore their
requirement should be identified before long lead item procurement starts.
3.2.3 Collection
The Manufacturer/Supplier shall list all Insurance Spares in E-SPIR under Commissioning
Spares. This will facilitate monitoring and cataloguing, and prevent duplicate purchasing of
these expensive spares.
The Contractor shall confirm the inclusion of all Insurance Spares in E-SPIR prior to
forwarding to the Principal.
3.2.4 Handover
The handover process for Insurance Spare Parts shall be defined by the Principal.
The Contractor shall maintain the Insurance Spares as per preservation instructions and
ensure that all preservation documentation is handed over to the Principal. The Contractor
shall be accountable for losses / damage to the Insurance Spares up to the point of
handover to the Principal.
 DEP 70.10.90.11-Gen.
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3.3 ROLES AND RESPONSIBILITIES

Table 2 provides a summary of responsibilities for the situation in which the Contractor
organises the procurement of insurance spare parts.
Table 2 Responsibility Matrix for Insurance Spares when organised by the
Contractor

SPARE PARTS SPECIFY and AUTHORISE by: PURCHASE

CATEGORY SELECT by: and DELIVER
Technical Commercial by:

Insurance Contractor, as Contractor Principal Contractor

Spares approved by (with main
the Principal equipment),
to stock

3.4 DELIVERABLES
The Contractor shall deliver:
• Insurance Spares Recommendation to Principal,
• Completed E-SPIR, including all insurance spare parts,
• Supporting Documentation,
• Insurance Spare Parts, labelled according to the Principal’s coding requirements.
 DEP 70.10.90.11-Gen.
February 2012
Page 17

4. COMMISSIONING SPARES

4.1 DEFINITION
Commissioning Spares are those required to enable uninterrupted installation,
commissioning and start-up of the equipment. Commissioning Spares requirements are
driven by factors such as:
a) equipment standing idle for long periods may be subject to deterioration.
b) testing and functional checking, with frequent opening of equipment for inspection.
c) abnormal operating conditions during testing and initial start up may lead to
increased use and premature wear/failure.
d) damage may occur during transport to site.
e) exposure to weather, dirty environment (e.g., if building is not completed).
f) cleaning and de-preservation activities may damage equipment.
g) unknown equipment for which there is little or no operating experience.
Commissioning Spares typically consist of start up elements (e.g., special mesh filters),
filter elements, seals, joints, electrical and instrumentation components, calibration
equipment, special tools, etc.
Commissioning Spares also include spare parts for general use such as pipe, fittings, bolts,
gaskets, electrical fuses, bulbs, cable, instrument tubing/fittings, lubricants, oils, chemicals,
preservation fluids, recording paper, chemical drying agents, etc. They are generally
specified on a contingency basis, dictated by experience on previous projects.

4.2 PROCESS
4.2.1 Selection and quantity
The identification of types and quantities of Commissioning Spares should be based on:
• Manufacturer/Supplier recommendations
• Planned commissioning activities
• Experience gained by project staff from Manufacturer/Supplier tests in the factory
The Contractor shall review the need for Commissioning Spares with the aim of avoiding
surplus spares at the end of the Commissioning phase and submit a recommendation to
the Principal for approval prior to ordering.
4.2.2 Procurement
Commissioning Spares should be procured with the equipment and shall be available for
pre-commissioning in the fabrication yard and on site.
The Contractor shall list each commissioning spare in the Purchase Order to be procured,
referred to by the Principal’s coding. The Contractor shall not specify Commissioning
Spares by a single line on the PO entitled “Commissioning Spares”.
4.2.3 Collection
The Manufacturer/Supplier shall list Commissioning Spares in E-SPIR to facilitate
identification, monitoring and cataloguing.
4.2.4 Handover
Commissioning Spares are typically held in project stores. Prior to project close out, the
Contractor shall offer any unused Commissioning Spares to the Principal in accordance
with the Project Surplus Policy included in the Principal’s Spare Parts Strategy.
(Appendix C) provides an example of a Project Surplus Decision Tree.
 DEP 70.10.90.11-Gen.
February 2012
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The Principal shall only accept items that are in good condition, properly labelled with the
Principal's coding and Manufacturer’s/Supplier's part number, and complete with
documentation or certificates where appropriate.
The Contractor shall ensure that all surplus materials are handed over to the Principal or
disposed off prior to project close out.

4.3 ROLES AND RESPONSIBILITIES

Table 3 provides a summary of responsibilities for the situation in which the Contractor
organises the procurement of Commissioning Spares.
Table 3 Responsibility Matrix for Commissioning Spares when organised by
the Contractor

SPARE PARTS SPECIFY and AUTHORISE by: PURCHASE

CATEGORY SELECT by: and DELIVER
Technical Commercial by:

Commissioning Contractor Contractor Contractor Contractor,

Spares with main
equipment

4.4 DELIVERABLES
The Contractor shall deliver:
• Completed E-SPIR, including all Commissioning Spares,
• Supporting Documentation,
• Commissioning Spares, labelled according to the Principal’s coding requirements.
 DEP 70.10.90.11-Gen.
February 2012
Page 19

5. INITIAL OPERATING SPARES

5.1 DEFINITION
Initial Operating Spares are those spare parts that are required to safeguard the operation
of equipment during the first two years of operation.
The requirement for Initial Operating Spares is driven by specific factors which are
particular to initial operations. Examples of these are:
• Increased potential for trips and subsequent starts may lead to wear and tear
• Unknown/untested equipment
• Increased load on equipment (e.g., high throughput)
• Unexpected process conditions (e.g., sand production)
Initial Operating Spares overlap in some areas with Commissioning Spares and Operating
Spares. They consist typically of components such as bearings, mechanical seals, valves,
instrument gauges, timers, filter elements, seal repair kits, gaskets, belts, electrical relays,
electronic cards, fuel nozzles, etc.

5.2 PROCESS
5.2.1 Collection
The Manufacturer/Supplier shall recommend Initial Operating Spares in E-SPIR to facilitate
monitoring and cataloguing.
The Contractor shall review the Manufacturer/Supplier’s recommendations and adjust
where appropriate before issuing to the Principal.
5.2.2 Selection and quantity
The identification of types and quantities of initial spare parts should be based on:
• The Manufacturer/Supplier's recommendations as indicated in the spare parts
documentation.
• Preventative maintenance activities scheduled and corrective maintenance
anticipated during the first two years of operation, as identified by maintenance
analysis.
• Any anticipated variations in (start up) operating conditions at Start-Up identified in
commissioning, operating and maintenance procedures that may influence the
consumption rate.
Experience has shown that the spare parts quantities recommended by
Manufacturers/Suppliers are conservative and for that reason, their recommendations shall
be thoroughly scrutinized against the Principal's operating and maintenance practices to
identify credible cases when the spare part will be consumed based on equipment failure
modes.
Proposals for Initial Operating Spares should:
• Confirm, against the inventory of the Principal (where applicable), that any proposal
for initial operating spares does not create excess inventory.
• Consider Vendor Managed Inventory (VMI), and/or After Market Services including
spares holding.
The Principal should carry out the selection and coding of the Initial Operating Spares, once
a decision on which item(s) should be stocked has been made; the quantities and coding of
items shall be advised to the Contractor for procurement.
 DEP 70.10.90.11-Gen.
February 2012
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If the Contractor is to carry out the selection and coding of the Initial Operating Spares, the
following should be agreed in advance:
a) that the Contractor shall identify interchangeable items (e.g., bearings, gaskets,
couplings, etc.), for the total project (an E-SPIR facility).
b) that the coding of the spare parts and piping components (leftovers) is checked
against the coding policy and procedures of the Principal.
c) (For brownfield assets) that the part numbers of the spare parts are verified against
the Principal’s existing stocks via a part number check (an E-SPIR facility).
d) that the recommended quantities are in line with the stocking policies of the Principal.
e) that the selection of spare parts is fully in line with the maintenance practices of the
Principal.
5.2.3 Procurement
If the Contractor is to carry out the purchasing of the Initial Operating Spares, a new
purchase order shall be issued based on the Principal’s selection.
Each spare part shall be listed on a separate line in the PO and shall be coded according to
the Principal’s coding policy. This will facilitate the receipt of Initial Operating Spares by the
Principal.
5.2.4 Handover
If refurbished items, or items replaced under warranty have been purchased by the
Contractor, they should be sent to stock at project close-out, on the condition that the parts:
• have been inspected.
• do not cause excess stock.
The Principal shall only accept items in good condition, properly labelled with the Principal’s
coding, the Manufacturer/Supplier's part numbers, and complete with documentation or
certificates as appropriate.

5.3 ROLES AND RESPONSIBILITIES

Table 4 provides a summary of responsibilities for the situation in which the Contractor
organises the procurement of Initial Operating Spares.
Table 4 Responsibility Matrix for Initial Operating Spares when organised by
the Contractor

SPARE PARTS SPECIFY and AUTHORISE by: PURCHASE

CATEGORY SELECT by: and DELIVER
Technical Commercial by:

Initial Operating Principal Principal Principal Contractor or

Spares Principal, to
stock

5.4 DELIVERABLES
The Contractor shall deliver:
• Completed E-SPIR, including all Initial Operating Spares.
• Supporting Documentation.
• Initial Operating Spares, labelled according to the Principal’s coding requirements,
on site prior to start up.
 DEP 70.10.90.11-Gen.
February 2012
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6. OPERATING SPARES

6.1 DEFINITION
Operating Spares are those required for normal operation and day-to-day maintenance
during the lifetime of the equipment after the initial operating period. Operating Spares shall
be specified by the Maintenance Engineer in accordance with the standard maintenance
practice of the Principal. They can be categorised as:
6.1.1 Operating spares for corrective or condition based maintenance
Spares that may fail in use and whose replacement is part of a corrective maintenance
action or of an overhaul scheduled as a result of monitoring.
6.1.2 Operating spares for preventative maintenance
Spares that deteriorate gradually and are required for scheduled replacement.
6.1.3 Kits
For practical reasons, it may be effective to stock complete repair kits. Commercially they
are only justifiable if it is expected that the majority of the parts contained will be used in
one overhaul. The purpose of the kit should be well defined and known to the
Manufacturer/Supplier (e.g., Turbine Service or Valve Overhaul Kits).
6.1.4 Assemblies
Consideration should be given to ordering complete assemblies and instruments such as
controllers, recorders, amplifiers, transmitters, printed circuit boards, regulators, chart drive
units, pressure gauges, temperature gauges, pressure switches and common (control)
valves. Manufacturers/Suppliers are instructed in E-SPIR to quote bulk equipment units as
a spare part.

6.2 PROCESS
6.2.1 Collection
The Manufacturer/Supplier shall recommend Operating Spares in E-SPIR to facilitate
monitoring and cataloguing.
The Contractor shall review Manufacturer/Supplier recommendations and adjust where
appropriate before recommending to the Principal.
6.2.2 Selection and quantity
The Principal shall be responsible for selecting the Operating Spares and quantities to be
procured.
6.2.3 Procurement
The Principal shall be responsible for ordering these spare parts from E-SPIR reviews.

6.3 ROLES AND RESPONSIBILITIES

Table 5 provides a summary of responsibilities for the situation in which the Contractor
organises the procurement of operating spare parts.
Table 5 Responsibility Matrix for Operating Spares when organised by the
Contractor

SPARE PARTS SPECIFY and AUTHORISE by: PURCHASE

CATEGORY SELECT by: and DELIVER
Technical Commercial by:

Operating Principal Principal Principal Principal to

spares stock
 DEP 70.10.90.11-Gen.
February 2012
Page 22

6.4 DELIVERABLES
The Contractor shall deliver:
• Completed E-SPIR, including all Operating Spares.
• Supporting Documentation.
 DEP 70.10.90.11-Gen.
February 2012
Page 23

7. OTHER SPARES

7.1 DEFINITION
7.1.1 Consumable spares
Consumable Spares are those that will be required regularly (e.g., because of wear,
deterioration or routine need). Typical examples include valves (standard small bore),
cable, jointing kits, glands, ladder rack, junction boxes, components, transmitters, pressure
gauges, tubing, isolate/vent blocks, manifolds, compression fittings, bulbs, light fittings, and
piping components such as pipes, flanges, fittings, bolts, nuts, gaskets, etc.
Other types of consumables include small tools, Personal Protective Equipment (PPE),
grinding discs, welding rods, tapes, cable markers, fuses, batteries, rags, etc.
Piping, Flanges and Fittings may be MESC coded, which facilitates identifying
interchangeable spares.
7.1.2 Oils, greases, chemicals, gases and paints
Although not strictly spare parts, oils, greases, chemicals, gases and paints might have to
be ordered and stocked. These materials require special and safe storage in accordance
with the applicable HSE requirements. The Contractor shall identify materials requiring
additional storage and segregation and ensure that the storage facilities and controls are
appropriate.
7.1.3 Movables
Although not strictly spare parts, each plant will also have some typical movables such as
Vehicles, Breathing Apparatus Sets, Portable units and pumps, Test Equipment, Special
Tool Kits, Cradles and frames, Lifting equipment, hoists, ladders, etc.

7.2 PROCESS
7.2.1 Collection
The Manufacturer/Supplier shall recommend Other Spares in E-SPIR under Operating
Spares to facilitate monitoring and cataloguing.
The Contractor shall review the Manufacturer/Supplier’s recommendations and adjust
where appropriate before recommending to the Principal.
The Principal’s Spare Parts Strategy will define which types of spares, in addition to being
collected in E-SPIR, shall be listed on schedules, for example Lubricants should be detailed
in E-SPIR and on a Lubrication and Chemicals Register.
7.2.2 Selection and quantity
The Principal shall be responsible for selecting Other Spares and the quantities to be
procured.
7.2.3 Procurement
The Principal shall be responsible for ordering these spares.
 DEP 70.10.90.11-Gen.
February 2012
Page 24

7.3 ROLES AND RESPONSIBILITIES

Table 6 provides a summary of responsibilities for the procurement of Other Spares.
Table 6 Responsibility Matrix for Other Spares when organised by the
Contractor

SPARE PARTS SPECIFY and AUTHORISE by: PURCHASE

CATEGORY SELECT by: and DELIVER
Technical Commercial by:

Other Spares Principal Principal Principal Principal to

stock

7.4 DELIVERABLES
The Contractor shall deliver:
• Completed E-SPIR, including all Other Spares.
• Supporting Documentation.
• Schedules as required (e.g., Lubrication and Chemicals Register).
 DEP 70.10.90.11-Gen.
February 2012
Page 25

8. REFERENCES
In this DEP, reference is made to the following publications:
NOTES: 1. Unless specifically designated by date, the latest edition of each publication shall be used,
together with any amendments/supplements/revisions thereto.
2. The DEPs and most referenced external standards are available to Shell staff on the SWW (Shell
Wide Web) at http://sww.shell.com/standards/.

SHELL STANDARDS
Material and equipment standards and code MESC

Preservation of new and old equipment standing idle DEP 70.10.70.11-Gen.

INTERNATIONAL STANDARDS
Quality management systems - Requirements ISO 9001
 DEP 70.10.90.11-Gen.
February 2012
Page 26

APPENDIX A TYPICAL WORKFLOW FOR A CAPITAL PROJECT

Activities Responsibilities

EPC Contractor
Manufacturer /

Principal
Supplier
1. Prepare Spare Parts Strategy 1

2. Specify Standardisation Requirements in EPC Contract 2

3. Prepare Project Manufacturer/Supplier List 3

4. Approve Project Manufacturer/Supplier List 4

5. Identify Equipment Penalty Cost or Classification 5

6. Specify spare part requirement clauses in requistions 6

7. Submit recommended spare parts listing with quotation 7

8. Recommend Capital Insurance Spares 8

9. Prepare and Approve Capital Insurance Spares Report 9

10. Recommend Commissioning Spares 10

11. Review Commissioning Spares recommendation and Approve 11

12. Code Insurance and Commissioning Spares 12

13. Issue Purchase Order for Equipment, Insurance Spares and

13
Commissioning Spares

14. Submit E-SPIR with supporting documentation 14

15. Initial Quality Control of E-SPIR 15

16. Coordinate Review of E-SPIR 16

17. Interchangability Review, Coding and add to the Catalogue 17

18. Approve E-SPIR and raise Stock Proposal for Initial Operating
18
Spares

19. Approve Stock Proposal 19

20. Issue Purchase Order for Initial Operating Spares 20

21. Deliver Initial Operating Spares 21

22. Receipt, inspection and storage of Initial Operating Spares prior

22
to handover to Principal

23. Receipt and inspection of Initial Operating Spares into stock 23

24. Offer Surplus to Principal prior to Project Close 24

NOTE: Steps 20 and 22 may be performed directly by the Principal.

 DEP 70.10.90.11-Gen.
February 2012
Page 27

APPENDIX B SPECIMEN CONTRACT CLAUSES FOR INCLUSION IN RFQs/ITTs

The SELLER shall utilise the tag numbers of equipment and sub-equipment, as specified in
the requisitions or subsequently, in the E-SPIR and all documentation.
The SELLER shall include in any RFQ/ITT responses for major equipment an itemized and
separately priced recommended spare parts listing (in Microsoft® Excel® format). It should:
• state costs of supplying the various categories of spare parts.
• identify long lead items that should be supplied with main equipment.
• include details of After Market Services (e.g., providing maintenance services on
equipment and/or storage of spares).
Following PO Award, spare parts data and quotations shall be submitted by the SELLER in
the latest version of an E-SPIR. The program required to complete the E-SPIR is available
on the Internet at: www.e-spir.com free of charge.
The SELLER shall submit E-SPIR data fully in accordance with the E-SPIR Supplier
Instructions as soon as possible after receipt of the PURCHASE ORDER, and no later than
six weeks prior to equipment delivery. Contractual E-SPIR delivery dates, considering the
complexity of the equipment, shall be discussed and agreed with the SELLER prior to the
award of the Purchase Order.
The SELLER shall ensure that details of all items purchased from Sub-Suppliers are
captured in the E-SPIR.
The SELLER shall ensure all identical parts show identical part numbers in E-SPIR.
The supply of engineering documents as specified in the purchase order forms part of the
SELLER's obligations under the purchase order. Relevant documentation shall be
referenced in the E-SPIR files (using the Principal’s document numbering format) and
submitted formally no later than the E-SPIR. Depending on equipment complexity, this
should include maintenance manuals, cross-sectional drawings, process engineering flow
schemes (PEFSs), parts lists, skid layouts etc.
The SELLER shall also indicate in maintenance manuals whether parts are repairable, and
whether they are required for periodic maintenance (overhaul), or break down
maintenance, including the expected Mean Time Between Failures and Mean Time To
Repair.
Failure to comply with the above items shall result in the E-SPIR being rejected as
incomplete. If the E-SPIR is rejected the SELLER shall correct and resubmit the E-SPIR
within 10 working days.
The SELLER shall retain a copy of E-SPIR data for future reference.
The SELLER shall ensure all spare parts provided are boxed, preserved, marked and
labelled separately according to the Principal’s coding policy. Each part shall be identified
with a robust, weatherproof label, showing the:
• Article number as specified in the purchase order.
• Supplier’s name, Manufacturer’s name, Manufacturer's unique part number.
• Description of the part.
• Expiry dates for parts having a limited shelf life or if required for stock maintenance.
• Small items with the same part numbers shall be tagged and packed together in a
plastic bag or box, and the tag shall also be shown on the outside of the bag or box.
 DEP 70.10.90.11-Gen.
February 2012
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APPENDIX C EXAMPLE PROJECT SURPLUS DECISION TREE

Surplus Material

Is material in good Can it be

condition with No economically No Scrap
required certificates? reconditioned?

Yes Yes

Does Principal stock Would it’s inclusion Add to Principal’s

Yes No
the material? create excess? Operational Stock

No Yes

Does Principal have a

Reschedule for different Definate Probable Add to Principal’s
future use for the
project Yes Yes Operational Stock
material?

No

Is it marketable? No Scrap

Yes

Offer for Sale/Return to

Supplier