Performance based design is a recent evolutionary step in the process of designing fire protection systems. In essence, it is a logical design process resulting in a solution that achieves a specified performance. Sometimes the prescriptive solutions presented in various codes and standards are too expensive or inflexible. Often the solutions do not and enables optimization of a solution for cost and function. In this study, performance based design was carried out to determine the extent of passive fire protection for oil terminal facilities. The results of performance based design were compared with those of prescriptive code based design. Performance based design is not always more economic than prescriptive code based design but provides more reliable and effective design that is fit for the purpose.