Individual Report Final.docx

School of Engineering Engineering

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Due Dae

!or official u"e onl#

MATRIC No

0703621

SURNAME

McAndrew

!IRST NAME$S%

Greig

COURSE TITLE

MSc Oil & 'a" Engineering

MODULE NUMBER & TITLE

ENM()* Engineering +ro,ec Manage-en

ASSI'NMENT TITLE

The Tran".Saharan 'a" +i/eline

ENM230 Project Management For the Degree of  Msc i! " Gas Engineering

Project Management #rans$%aharan Gas Pi&e!ine

The Trans-Saharan Gas Pipeline Greig McAndrew M%c i! and Gas Engineering %choo! of Engineering 'G- -ni.ersit/ Garthdee ose  Aerdeen  A10 74

I 

 Astract

#his re&ort discsses the &roject management as&ect for the constrction of the #rans$%aharan #rans$%aharan Gas Pi&e!ine5 (nc!ded are detai!ed !ists of &roject ojecti.es a!ong with a &roject sco&e and &roject de!i.era!es5 de!i.era!es5 M!ti&!e sitations ha.e een considered with a fina! so!tion to com&!ete the &roject ot!ined inc!ding inc!ding ris

Contents I

Abstract......................................................................................i  

II

Declaration................ ........................ ................. ................. ................ ................ .................................i .........................i

Table of igures..............................................................................i$ Figures................. ......................... ................ ................ ................ ................. ................. .............................i$ .....................i$ Tables................. ......................... ................ ................ ................ ................ .......................................i$ ...............................i$

4.

Executi$ Executi$e e 'ummar*. 'ummar*..... ........ ........ ........ ........ ........ ........ ........ ....... ....... ........ ........ ....... ....... ........ ........ ......4 ..4

5.

+ntrod +ntroduct uction ion.. ..... ...... ...... ..... ..... ...... ..... ..... ...... ...... ..... ..... ...... ...... ..... ..... ...... ...... ...... ...... ...... ...... ...... ....... ....... ....5 .5

5.4.

Background ................ ........................ ................ ..............................................5 ......................................5

5.5.

Project Rationale ................ ......................... ...............................................5 ......................................5

6.

2ro7e 2ro7ect ct Defini Definitio tion.. n..... ...... ..... ..... ...... ...... ..... ..... ...... ...... ..... ..... ...... ...... ....... ....... ...... ...... ...... ...... ...... ...... .....8 ..8

6.4.

Purpose............................................................................8

6.5.

Project Scope....................................................................8

6.6.

Objectives................. ......................... ................ ................ .......................................8 ...............................8

6.8.

Project Deliverables ................ ......................... ...........................................9 ..................................9

6.9.

Key Performance ndicators !KP" ........................................9

6.:.

#onsiderations................ ........................ ................ ..........................................: ..................................:

:.4.

Risk $nalysis...................................................................5=

:.5.

Risk -anagement ............................................................55

;.

onclusion............................................................................58

;.4.

Recommendations...........................................................58

T Anal*sis................................................................45 igure 9 & ritical 2ath Anal*sis.......................................................48 igure : & 0antt hart....................................................................49 igure ; & >rganiCational Breakdown 'tructure..................................4: igure < & !onti arlo 'imulation :.................................................55

 Tables Table 4 & 'ontrach/s >b7ecti$es..........................................................8 Table 5 & 1e* 2ro7ect Deli$erables......................................................9 Table 6 & 1e* 2erformance +ndicators.................................................: Table 8 & Fearl* Expenditure............................................................4= Table 9 & Time Estimations..............................................................46 Table : & @oles and @esponsibilities..................................................4; Table ; & @esponsibilit* !atrix.........................................................4< Table < & !ain @isk onsiderations...................................................54

Greig McAndrew 0703621 M%c i! and Gas Engineering

1. Executive Summary This report shows 'ontrach/s e$aluation and anal*sis for the Algerian section of the Trans&'aharan 0as 2ipeline (T'02) pro7ect. The pro7ect has been halted recentl* due to issues with %igerian militant opposition groups and financing difficulties.

+nformation presented re$alidates the importance of the T'02 and pro$es its capabilit* to not onl* pro$ide profit but to also aid areas in dire need of de$elopment.

To show the T'02/s capabilit*, an anal*sis into the o$erall cost has been carried out, along with a risk anal*sis to show potential problems with the current pro7ect plan. The main risks are securit* and financial but all of them ha$e been presented with mitigation options. Through the use of

Greig McAndrew 0703621 M%c i! and Gas Engineering

2. Introduction 2.1. 

Background

+n 4?;=, an idea was proposed to build the Trans&'aharan 0as 2ipeline, which would stretch from arri, %igeria to Iassi @/!el in Algeria 4. This pipeline was to be used to transport natural gas from %igeria to Algeria to be sold to the EJ and is expected to reach a total length of approximatel* 8,45T anal*sis. eaknesses and threats should be taken into special consideration as the* list what ma* cause a pro7ect to fail.

Greig McAndrew 0703621 M%c i! and Gas Engineering

$..1.  +*le*entation To produce an accurate 0antt chart and ritical 2ath Anal*sis, an e$aluation to calculate expected times for each task must be carried out. The methodolog* to calculate these times can be seen below-

T e=

a + 4 m +b

T e= Expected Time

6

b = Most Pessimistic Time

a = Most Optimistic Time

m = Most Likely Time

or each task this e#uation must be applied. A sample calculation for Acti$it*  is shown along with a table of $alues for the remaining tasks-

T e=

(

12 + 4  x 13 6

) + 18

T e=13.66

T e=14.0 weeks

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Greig McAndrew 0703621 M%c i! and Gas Engineering

Figure 7 3 #ritical Pat' $nalysis

$..3. Gantt Cart >ne of a pro7ect manager/s most useful tools leading to success of a pro7ect is a detailed 0antt chart. E$er* task re#uired for completion is gi$en a start and end date. Tasks must be completed within these dates or the pro7ect will surel* o$errun. !ilestones are also inserted to note the end of a ke* section and the start of another. igure : shows the beginning and ending of 'ontrach/s schedule along with one of its most

Greig McAndrew 0703621 M%c i! and Gas Engineering

Greig McAndrew 0703621 M%c i! and Gas Engineering

$. Project %anagement and &rganisation &.1.

Project "rgani?ational !tructure

The Algerian 0o$ernment were responsible for the hiring of 'ontrach. This puts them at the top of the organiCational structure which can be seen in igure 4 belowAlgerian Go#ern*ent !ontrac Managing %irector Ad*inistratio n

Ad*in o:ce

!uort Grou

Project Manage*ent

PM ":ce

7!4

4ng. %esign = 45ecution

Project !onsor

!teering Grou

4ngineering %esign

 >unior %esig n 4ngineers

 Testing = 7ando#er

!ub Contractors

Project Managers

Re#iew Grou

 Testing 4ngineers

Greig McAndrew 0703621 M%c i! and Gas Engineering

&.2.

Roles and Resonsibilities

+ncluded in the >B' and 0antt chart is a list of people who are responsible for different tasks during each section of the pro7ect. The roles and responsibilities of the lead and additional team members can be seen belowRole" Managing Direcor

+ro,ec Manager

Re"/on"i8iliie" @esponsible for all areas of the pro7ect. !akes sure the correct person is hired for the correct position. >$ersees and controls the entire pro7ect from initiation to hando$er. The pro7ect manager will monitor each emplo*ee/s dail* acti$ities against the 0antt chart to make sure the* are not falling behind. Tasked b* the pro7ect manager to carr* out set tasks b*

+ro,ec Engineer

En=iron-enal

a set date. @eports directl* to the pro7ect manager if an* foreseeable problems arise. 'ur$e*ing and land ac#uisition are a large part of the  7ob. The entire Algerian section must be tested to

Greig McAndrew 0703621 M%c i! and Gas Engineering

&.3.

Resonsibilit( Matri5 +ro,ec Tea- Me-8er" WBS Ele-en Admin >ffices

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Greig McAndrew 0703621 M%c i! and Gas Engineering

The sample abo$e details the ma7or milestones and who is responsible. Tasks often re#uire additional support or appro$al before the* can be checked off. A full list of tasks and the team members responsible for each can be seen in Appendix 6.

&.$. 

Controls

A pro7ect manager uses a $ariet* of controls to ensure the pro7ects success. These range from simple scheduling to cost and risk management. The managing director should o$ersee these where possible.

&.&. 

Co**unication

ommunication is re#uired throughout the entire length of the pro7ect, amongst a wide range of parties both internall* and externall*. All members linked to the pro7ect are responsible for their indi$idual tasks but are also responsible for reporting back to their respected superior. +nternall*, the communication between the team rests with the 2ro7ect

Greig McAndrew 0703621 M%c i! and Gas Engineering

'. Potential (is)s and %anagement .1.

Risk Anal(sis

ith a pro7ect this large, a risk anal*sis is re#uired. The risks mentioned below can either cause serious damage to both the pipeline and en$ironment or will cause issues with the timeline, leading to dela*s and ine$itable pro7ect failureT#/e of Ri"1

De"cri/ion

Miigaion ontinual risk management and

En=iron-enal

Damage to the en$ironment will lead to bad media attention

sur$e*s completed b* the en$ironmental engineer/s team will be carried out. Budget plans are set at

Greig McAndrew 0703621 M%c i! and Gas Engineering

depending on the se$erit* of the disaster it ma* be una$oidable. @egular contact and Loss of 2artnership

updates are re#uired, along with the occasional conceding to other ideas. @egular meetings either

OrganiGaional 'eparate teams in each countr* not communicating enough

in person or through $ideo conferencing will keep all teams up to date. This is an uncertaint*

+oliical

2ossible strike action will dela* the pro7ect

and will onl* occur if there are problems within the workforce. 'afet* plans are in place to pre$ent accidents. A

Greig McAndrew 0703621 M%c i! and Gas Engineering

Greig McAndrew 0703621 M%c i! and Gas Engineering

Greig McAndrew 0703621 M%c i! and Gas Engineering

*. +onclusion This report focuses on the benefits and possibilities that are created b* the construction of the Trans&'aharan 0as 2ipeline, along with current setbacks and recommendations to ensure pro7ect sur$i$abilit*. The main conclusion from this report is that the increasing demand of gas re#uired from the EJ will produce a large profit margin for the three 0o$ernments in$ol$ed with the pro7ect.

Jnder de$eloped areas are also set to benefit from the installation as  “tap&in” points will be made a$ailable to distribute natural gas to neighbouring towns as well as countries such as !ali and Burkina aso.

ith man* emplo*ees currentl* out of work due to the on&going oil crisis, this pro7ect will help pro$ide local emplo*ment opportunities. +n order to

Greig McAndrew 0703621 M%c i! and Gas Engineering

more countries in case the EJ continues to purchase most of it/s gas from @ussia.

,. (eferences (4) & abi @. =igeria( $lgeria $gree to Build Sa'ara +as >ink? Iomepage on the +nternet. @eutersS 5==? updated 5==? Hul* 6rdS cited 5=4: !arch ?th. A$ailable fromhttp-OOuk.reuters.comOarticleOnigeria&algeria&pipeline& idJ1L689;:::5==?=;=6spUtrue

(5) & %igeria & Algeria 2ipeline easibilit*O%eeds Assessment

(6)  & Awhotu E. =igerian( $lgerian Officials Discuss Sa'aran +as Pipeline? Iomepage on the +nternet. 5==? updated 5==?

ebruar* 5=thS cited 5=4: !arch =?. A$ailable from-

Greig McAndrew 0703621 M%c i! and Gas Engineering

-. ##endices @.1.

Aendi5 1  Gantt Cart

Trans&'aharan 0as 2ipeline

5: 3 2 a g e

Greig McAndrew 0703621 M%c i! and Gas Engineering

Trans&'aharan 0as 2ipeline

5; 3 2 a g e

Greig McAndrew 0703621 M%c i! and Gas Engineering

Trans&'aharan 0as 2ipeline

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Greig McAndrew 0703621 M%c i! and Gas Engineering

@.2.

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Greig McAndrew 0703621 M%c i! and Gas Engineering

@.3.

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