COMMERCIAL PROPOSAL

PROPOSAL FOR A

VARISIM TM PIPELINE SIMULATOR

FOR

UNIVERSITY OF ENGINEERING &

TECHNOLOGY, LAHORE PAKISTAN
Project Ref:
S11003/ JT

Document Ref:
S11003QUO01

Revision: 0
January 2011
VARISIM PIPELINE SIMULATOR (GAS and LIQUID)

DOCUMENT REVISION HISTORY

Rev Date Sections Description

0 20th January 2011 All First Issue

Author Reviewer Approver

Fakher Raza Fakher Raza Andrew Keech

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TABLE OF CONTENT
DOCUMENT REVISION HISTORY ............................................................. 2
1 INTRODUCTION ............................................................................... 4
1.1 The Hydraulic Analysis Group ......................................................... 4
1.2 Quality of Service ........................................................................ 5
2 SCOPE OF SUPPLY ........................................................................... 6
2.1 Simulator Scope of Supply ............................................................. 6
2.2 The VariSim T M Product – Key Features .............................................. 6
2.3 Training Courses .......................................................................... 8
2.4 Support ...................................................................................... 9
3 COMMERCIAL ................................................................................ 10
3.1 Product Delivery..........................................................................10
3.2 Pricing Policy ..............................................................................10
3.3 University of Engineering & Technology Requirements .......................12
3.4 Terms, Conditions and Clarifications ...............................................12

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1 INTRODUCTION

This proposal describes a commercial offering by Simulation Software Ltd. (SSL) for its offline
Liquid and Gas Pipeline Simulator - VariSim TM . The proposal is based on SSL supplying the
software package and providing full training to the University of Engineering & Technology
Pakistan.

Should you have any immediate questions on the content of the proposal or require any
clarification, please contact the following: -

Fakher Raza
Simulation Software Limited.
Mill House
Hawksworth Road
Horsforth
Leeds
LS18 4JP

Email f .raza@sim-soft.co.uk
U

Tel 0113 2819038

1.1 The Hydraulic Analysis Group

The Hydraulic Analysis Group incorporates Simulation Software Limited and Hydraulic
Analysis Ltd. The group is dedicated to supporting and serving the oil, gas, power and water
industry with unrivalled consultancy services, high performance pipeline management software
and pressure testing services.

Simulation Software Limited is part of the Hydraulic Analysis Group

and supplies hydraulic modelling software for the real time and offline environment based on
principals developed and tested over the last 40 years. The company is predominantly an
engineering company with substantial industry experience, supported by a very strong
software programming capability. This ensures that SSL don’t just deliver software, the
company fully understands pipeline and open channel hydraulic behaviour. SSL employs

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technical specialists and industry specialists with a wealth of background experience in

designing, running, installing and developing advanced simulator applications and it promotes
a commitment to ensuring its applications provide maximum customer satisfaction.

Hydraulic Analysis Limited (HAL) is a specialist company staffed by

highly skilled engineers. Founded in 1969, the company has never changed ownership and has
continued to provide hydraulic studies for clients in the oil, gas, petrochemical, power and
water industries throughout the United Kingdom and worldwide. The company is the
acknowledged world leader in the field of unsteady flow and dynamic simulation. Employed by
all the major water, oil, gas and petrochemical organisations, it uses our unique mathematical
modelling and simulation techniques to identify and solve both transient hydraulic and steady
state process problems.

Services range from simple, low-cost surge analyses to onsite pressure testing services and
detailed studies of pipelines, pumped networks and open channel flows. Operational and
control problems are identified and proposed solutions verified.

1.2 Quality of Service

SSL and HAL employ some of the leading experts in the pipeline modelling industry over a
range of disciplines and with a wealth of expertise. As a commitment to ensuring successful
project implementation, the company confirms that the most relevant experts within the
company will be made available for this project and that CV’s of those individuals are available
on request.

The software development process employed by SSL is strictly modular and is programmed in
Microsoft Visual studio software suite, incorporating the .NET environment. SSL have
implemented standards for software development and project engineering and operate to ISO
9001:2000. These procedures cover the project process, software development, backup and
maintenance, documentation and problem reporting.

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2 SCOPE OF SUPPLY

2.1 Simulator Scope of Supply

The specified scope of supply is for a pipeline simulator that can conduct steady state and
transient studies for liquid and / or gas pipelines and networks. Simulation Software Limited
proposes to supply their fluid dynamics simulator – VariSim TM for this requirement.

2.2 The VariSim TM Product – Key Features

VariSim TM is a new suite of software applications developed by Simulation Software Limited

(SSL) with a pipeline simulator at its core. For more than 40 years, Hydraulic Analysis Ltd
(SSL’s parent company) has developed and customized the simulation program for the flow of
water, oils, petrochemicals and gases in pipelines and piping systems. It has been used on
both rapid events (burst disc etc.) and slow operations (start up, line-pack etc.) and recent
verifications have shown it to be accurate to within 1% and 2% on pressure variations. Today,
the principals developed over the last 40 years have been taken and re-written to provide one
of the most up to date and accurate simulators on the market.

VariSim TM facilitates the building and running of pipeline simulation models. The models
created with the software can be used for plant design, optimisation and operator training.
The simulator is one that precisely predicts pressure and flow profiles when the system is
operating steadily and when operating upsets occur by solving through numerical analysis the
equations of continuity, momentum and energy. This means that the model accounts for
steady and transient conditions and changes in flow regime. The simulator does not
accommodate choked flow and does not place a restriction on the velocity range that can be
calculated.

The simulator is configured with the following information such that it closely reflects the
behaviour of the pipeline, its equipment and control scheme.

• Site layout and equipment locations

• Pipeline profiles and characteristics
• All equipment characteristics
• Controller and logic characteristics
• Fluid Properties
• Operating Flows and Pressures

The simulator has the following capabilities

• It is capable of modelling any system operation that can affect the dynamic
reaction of the fluid within a pipeline (with the exception of two phase flow
development). ‘Quasi’ two phase flow is accommodated in liquids pipelines where
air is drawn into pipelines and where a gas volume (a vapour pocket) is
determined to have been drawn from liquids. The approach assumes a
perpendicular water / air interface and adjusts the wavespeed accordingly.
• It can fully simulate the complete interaction between the pipeline, the equipment,
the control logic, the telemetry and storage facilities.
• It can be used for steady state and complex ‘What If’ transient studies.
• It is capable of modelling any single fluid.

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• It is capable of modelling plant, pipelines and control logic including PID

controllers
• It has graphical configuration and intuitive graphical output with copy, paste, drag
and drop capability.
• It can continually provide trends and profiles of any data for any, easily definable
location or route.
• It can be used for equipment sizing and tuning of control parameters
• It can be operated interactively as the simulation progresses (open / close valves,
start / stop pumps / compressors, change set-points, change PID characteristics
etc) or it can be initiated through a scenario / script editor from which pre-defined
actions control the simulation.
• Time series can be used to define variations in boundary flows / pressures if
required.
• Point and ‘out of balance’ loads can be calculated at any location on the system.
• It can import configuration data from some other simulation packages – such as
EPANET. The import process first converts the ‘other’ simulator format into a
VariSim TM database format which can then be opened by VariSim TM
• VariSim TM uses a configuration database in which all of the configuration data is
held. Data can be viewed and exported as required during a simulation (e.g. profile
data or individual trends), or the simulation can be allowed to proceed to
completion at the end of which a results file will be generated. This results file can
be interrogated using a report generator which can also support export of data into
other formats such as excel. It is up to the user to manage the ‘housekeeping’ of
the files generated.
• As a future option, there is seamless connection to the online environment.

The output of the any analysis is a complete report of any aspect that the user wishes to
consider including flows, pressures, inventory, energy, equipment operating characteristics
etc. It also includes a complete alarm and events report and an envelope showing the
maximum / minimum pressures generated at all locations on the system.

The VariSim TM software is effectively unlimited i.e. there is no software constraint placed on
the number of items that can be simulated. To SSL’s knowledge, the maximum number of
items included to date has been approximately 2000. However, it should be recognised that
the more complex a simulation model, the longer it will take to compute and the more output
that is required from a simulation, the larger the results files will be. Results files are unlikely
to cause disc memory issues especially if compressed.

For a full product description please see the VariSim TM product description documentation.

Recommended Hardware / Software

The following hardware is recommended for VariSim TM .

Software
Windows 2000 or Windows XP or Windows 7 with the latest relevant service packs.
The .NET framework v 2.0 should also be installed.

Hardware
Duo core 3.0 GHz processor with a minimum 512 MB

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2.3 Training Courses

Standard training courses are provided on two levels. The first level covers the behaviour of
fluids in pipelines using experience gained within the Hydraulic Analysis group over the last 40
years. The second level covers the use of the VariSim TM product.

Level 1 – Pipeline Hydraulic Behaviour (1 day)

This course is aimed at engineers who will use the VariSim TM simulator and need to extend
their understanding of the behaviour of fluid pipelines. The course covers the principals of
fluid behaviour and fluid/pipeline reaction to equipment operation and control equipment. It
includes the use of the simulator to demonstrate the principals being taught and describes the
data required of the fluid / pipeline system for accurate simulation.

This course is ideal for graduates wishing to understand more about the principals of a
pipelines dynamic fluid behaviour and its simulation. It is expected that attendees will have a
basic understanding of pipeline operation and an understanding of mathematics.

Course content includes: -

Fluid Properties (liquids and / or gases)

Units and Definitions
Principals of pipeline flow
Governing equations
Equations of state and API correlations
Pipeline Sizing
Pipeline equipment and their operation
Pipeline Control Schemes
Simulator information requirements

Level 2 – The Simulator (2 days)

This course is aimed at the future users of VariSim TM . It assumes that trainees have a good
understanding of a pipelines dynamic fluid behaviour, pipeline equipment operation and
control schemes.

The course covers the complete use of the VariSim TM simulator from configuration to
operation, detailing the steady state and transient modelling processes and the understanding
of the simulator output.

Course content includes: -

The graphical configuration process

Features and tools of configuration
Fluid and Equipment specification
The simulation process
Simulation interaction and pre-defined simulation definition
Output analysis – trends and profiles
Report generation and accessing simulation results.
Modelling techniques
Advanced simulation features including connection to online.

Series of case studies (liquid and / or gas)

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It is expected that attendees will have an understanding of pipeline operation and an

understanding of IT and mathematics.

2.4 Support

Generic Support

Ownership of VariSim TM on a per client basis permits the client to access the support area of
the Simulation Software Limited website. These webpages provide access to the generic
support web-pages detailing modelling techniques, software support and frequently asked
questions.

Dedicated Client Support

In addition to Generic support, the client is provided with access to the support area of the
website dedicated to each client. Here, the client can contact the HAL Group directly, using
web-forms with questions specific to projects that the client is working on. Simulation models
can be attached via this section of the website allowing the user to freely pass models and
information between the HAL Group and the client. Email contact and telephone contact
numbers are also provided.

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3 COMMERCIAL

3.1 Product Delivery

Product delivery will be immediate on receipt of a completed master licence agreement. The
product will be supplied on packaged CD Media including the install and documentation in
electronic format.

3.2 Pricing Policy

VariSim TM is sold on a licence basis and is offered on a full purchase or yearly licence fee
basis. The initial base price is related to the fluid modelling level.

Base Price

Fluid Base Price (£)

Liquid with no temperature effects or
product tracking functionality. 17,280
Liquid or gas with temperature effects
and product tracking functionality (*) . 25,920
Liquid and gas with temperature and
effects tracking functionality (*) . 38,880
Base Licence Price

(*)‘Liquid or gas’ means that the client purchases a VariSim TM simulator that is limited to
liquid models or gas simulation models. ‘Liquid and gas’ means that the simulator has the
ability to create both liquid and gas simulation models.

Bulk Purchase Price Reduction

Bulk purchases attract a reduction in the overall cost based on the number of licences
purchased at any given time. The reduction is a calculation specific to the number of licences
required.

Number of Reduction in
licences overall cost (%)
1 0
2 15
5 31
10 41
20 50
Example variation in cost reduction to number of licences

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Leasing

VariSim TM can be leased on a yearly basis at 40% of the total cost price. There are no
additional annual costs (or other regular costs) with the leasing approach.

Training

Training courses in accordance with section 4.3 are available and can be undertaken at SSL’s
offices or at the client’s offices. If the training is to be held at the client’s offices, additional
costs will be charged for SSL’s travel, accommodation and subsistence.

Price per day £750 + £85 per attendee

Software Maintenance

For the first two years following full purchase, any new VariSim TM releases will be provided
free of charge. VariSim TM releases after the second year will be charged at 30% of the full
licence price and the 2 year period where VariSim TM releases are provided free of charge will be
repeated. If VariSim TM is leased rather than purchased, the user will be entitled to all future
releases that occur within the lease period.

Any update ‘patches’ (an intermediate correction to the software) will be made available to the
client free of charge at all times through notification on the SSL website. Please not that SSL
reserves the right not to provide update ‘patches’ for VariSim TM versions that are more that 3
releases prior to the current release.

Support

Client support is separate to software maintenance. Access to the generic support section of
the website is provided free of charge even if VariSim TM is purchased in full and no future
product releases are purchased. Dedicated Client Support is charged at a fixed hourly rate of
£80 / hour. Note that quick queries (within reason) relating to general VariSim TM usage or
any query that arises from software error are not charged for.

There are two approaches available for charging for client support.

1. HAL / SSL enter into a time based support contract with the client with an agreement to pay
the total of the hours expended on a monthly basis.

2. The client purchases a ‘block of hours’ (number to be agreed) that can be expended on a 6
monthly basis. At the end of the 6 month period, the balance of the hours used can be rolled
into the following 6 month period.

Hours expended in answering client issues will be notified immediately on completion to the
individual raising the support requirement.

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3.3 University of Engineering & Technology Requirements

It is understood that the University of Engineering & Technology Lahore Pakistan wish to
purchase VariSim TM with liquid and gas capability. The following table shows a breakdown of
the costs for this option.

No. of Original Academic Discount (75%) Training

Licences Cost
Web Based* Pakistan** UK**
1 £ 38,800 £ 9,700
2 £ 66,142 £ 16,535 Free £ 3,500 £ 2,500
3 £ 133,873 £ 33,468

* Web Based training is 2 hour session in total

** Based on 2 days training for 4 people

Please note that the licences purchased can be provided as multi-user network licences or
standalone licences and the price for the two options are the same.

Dedicated Support provided at an hourly rate and invoiced on a block of hours basis.

£80/hr

Simulation Software Limited are prepared to offer the University of Pakistan its academic
discount of 75% of the normal price if the software is fully purchased.

3.4 Terms, Conditions and Clarifications

1. For training at SSL’s offices in the UK, the client is responsible for costs associated
with travel, accommodation and subsistence. Lunch time meals and refreshments
will be provided by SSL.
2. For training carried out at client’s offices, any additional costs for SSL’s travel,
accommodation and subsistence is charged at cost.
3. It is confirmed that the VariSim TM software contains no ‘in built’ termination
functions that would cause VariSim TM to time out and / or require any product re-
set or update for continued use.
4. SSL regard the issuing of a network licence to be the same as the issuing of a
standalone licence and the costs for both options are the same.
5. All prices remain valid for 90 days from submission of this commercial proposal
6. All prices are quoted in pounds sterling and are exclusive of taxes whether UK or
International.
7. Payment terms are 45 days from the date of invoice.
8. All intellectual property rights (technology, calculations, and documentation) in
connection with the sale of this product shall, unless agreed otherwise be retained
by SSL.
9. Any agreement, terms and contractual specification arising from this commercial
proposal and associated technical proposal shall be construed to be in accordance
with the laws of England.

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