Management of International Petroleum Projects: From Concept to Startup, LNG Case Study

This five-day program provides a comprehensive overview of the challenges involved in developing and executing international petroleum projects. The program covers all aspects of the project development and execution process from concept to startup with particular focus on a systematic Stage Gate project management process to make timely decisions during the various phases of the project. Best practices for the project cycle are covered to ensure successful outcomes. An LNG project is considered as an example.

Additional information

Program Type

Key Benefits

  • Provides an understanding of a systematic structured approach to evaluate, develop, and execute major capital petroleum industry projects.
  • Participants will learn how to assess the economics of the proposed investment and ensure their resiliency when faced with uncertainties in markets, available technologies, and other project parameters.
  • Addresses project organization and governance requirements to ensure quality decisions and special considerations with Joint Ventures.
  • Engages the planning process associated with EPC (Engineering, Procurement, and Construction) of major capital projects and steps to ensure successful execution.
  • Highlights the risk management process to continuously evaluate risks and proactively address mitigating steps through the project cycle. Monitoring and stewardship system to ensure full compliance with all legal and regulatory requirements.
  • Provides framework to capture learnings and best practices from project development and execution for future projects.

Instructional Format

This intensive program has a lecture and workshop format. Lectures are taught by experienced industry specialists and the workshop is facilitated by a simulation model specialist.

Who Should Attend

This program is ideal for those individuals who seek an integrated understanding of the development and execution of international petroleum projects. This may include executives, project managers, project engineers, procurement specialists, contractors, planners, government personnel, technologists, project specialists, construction personnel, finance personnel, and other specialists or stakeholders who interface and work in areas related to the oil and gas industry wishing to learn about the management of international petroleum projects.

Program Location and Schedule

Daily sessions will start at 8:00 AM and run until 5:00 PM. Participants will receive further information on location and schedule upon registration.

Program Content

Overview of the Petroleum Industry, Oil and Gas Value Chain

Oil and gas value chain; market structures; exploration and production; gas processing; gas liquids; unconventional sources; refining and petrochemical industry fundamentals; worldwide oil and gas economics; major players; evolution of the integrated oil and gas business; strategic objectives of an enterprise; need for large capital investments.

Energy Project Economics and Measures of Performance, Capital Projects Financing

Financial models; approach to evaluate investment alternatives; project cash flow analysis; discounted cash flow and internal rate of returns; cost of capital and impact of debt financing; other measures of project performance and sensitivities to changes in key variables; project financing considerations.

Staged Approach to Capital Project Management Fundamentals and Processes

Application of the Stage Gate process to petroleum projects; introduction to case study used to illustrate the process through its five stages, as illustrated in the figure below.

Gas Supply and Market Opportunities, Pricing, Investment Alternative

Fundamentals of gas supply and markets, technology, economics, risk analysis and business fundamentals; gas production, gas fired power plants, ammonia / urea plants, small GTL plants, pipelines, gas processing plants; investment alternatives and tradeoffs, Joint Venture considerations.

Capital Project Fundamentals Commercial and Legal Aspects

LNG value chain, import and exports, gas reserves, developmental plans, project-related issues including commercial agreements, Sales and Purchase agreements, financing agreements, Joint Venture setup, term sheets.

Capital Project Fundamentals Technical and Execution Aspects

Project-related issues including project scope definition, facility planning, plant design basis, alternative technologies, licensor selection, project execution considerations including contractor selection.

Selection of Lead Investments Options, Joint Venture Considerations

Evaluation of alternatives based on strategic fit, criteria for comparison of options, investments, economics, uncertainties, risk mitigation steps. Special considerations for Joint Ventures.

FEL (Front End Loading), FEED, and Project Execution Strategies

Front end loading, basis of design, project execution plan, contracting strategies, FEED to EPC transition, EPC management options, cost and schedule development, safety assessment, project risk assessment, value improving practices, FID (Final Investment Decision) elements.

FID (Final Investment Decision) Development and Critical Requirements

Key elements of FID package, reconfirmation of business case, JV partner alignment, key commercial and legal agreements; financing agreements, technology selection, contracting strategy finalization, safety management, cost, schedule finalization, economic evaluation, sensitivity analysis, risk management.

Detailed Engineering and Procurement Strategies

Key activities during detailed engineering, procurement, coordination of offices and procurement centers, quality assurance and quality control, key success factors, stewardship of cost and schedule.

Safety Leadership and Management Systems to Achieve Flawless Construction

Critical role of safety leadership and a safety culture; safety management systems, safety pyramid, leading and lagging indicators in safety stewardship and incident prevention, incident evaluation, root cause analysis, proactive assessment of safety in the workplace, cultural diversity, and related challenges.

Construction Management during Execution

Execution issues during construction, safety during construction, contractor qualifications, subcontracting options, construction stewardship, organizational interfaces during construction, quality assurance and quality control, revamp vs. grassroots construction, best practices to manage diverse workforces and maximize productivity, precommissioning activities.

Safe and Flawless Startup and Commissioning

Key elements of startup, organizational design, safety during commissioning, pre-startup audits, training requirements, coordination with upstream, downstream facilities and customers, role of contractors and owners, development of punch-list items, handover to operations.

Project Closeout and Capture of Learnings, Project Reappraisal Post-Startup

Systematic approach to capture learnings from integrated project teams regarding facility design, safety, cost, schedule, quality assurance, EPC, as well as startup and commissioning aspects; project closeout documentation needs, reappraisal of investment post startup and comparison with FID basis.

Workshop

Managing International Petroleum Projects Business Game: Republic of Cosmos

The workshop setting is the island Republic of Cosmos, located off the coast of East Africa. Your company has undertaken a successful exploration program in nearby blocks and has identified sizeable gas and condensate resources. Your exploration team has determined that these resources are commercial, and your company is now planning to invest substantial capital to develop them in conjunction with the national oil company. Your project team has been asked to analyze, plan, and develop the market opportunities. These include a local power plant, a GTL plant, and an ammonia/urea plant. In addition, the option of constructing an LNG plant seems to have tremendous potential given the worldwide increase in demand for LNG. Management is keen on investing in construction of the LNG plant initially, with plans for other investments later. Your assignment is to analyze, plan, and evaluate these market opportunities using a stage gate process, select the optimum investment, execute the project through the EPC phases, and commission the plant safely.

The sessions include:

  • Introduction to workshop
  • Evaluation of gas development opportunity: LNG and other markets
  • LNG Investment: Commercial implications
  • LNG Investment: Project, technology, and EPC implications
  • Preparing FEED and FID for approval
  • Start of EPC with focus on detailed engineering and procurement
  • Construction Safety leadership and risk management
  • Management of construction activities
  • Startup and commissioning of facilities,
  • Project closeout, review of actual performance, and capture of learnings