The Oil and Gas Pipeline Project Development Workshop covers the essentials of oil and gas pipeline projects. Participants will learn the background fundamentals of oil and gas pipelines and how to design, develop and build integrated pipeline projects from their technical design, route selection, regulatory permitting, financing, and legal agreements, project economics, tariffs, construction, operations and maintenance. Working in teams, participants will develop a major crude oil pipeline opportunity and later they will review similar projects for natural gas and petroleum products pipelines. A unique aspect of this program is achieved through team participation in a challenging pipeline learning simulation game in which they plan, develop and manage a crude oil pipeline in the fictitious country of Kenbasa, East Africa.
This program is designed for a broad range of oil and gas industry personnel including managers, supervisors, and key employees from broad functional areas, such as technology, operations, finance, regulatory, and project management who wish to enhance their knowledge of the international oil and gas pipeline industry from fundamentals to pipeline project development and operation.
This intensive program is composed of lectures and a learning simulation game. Lectures are taught by an experienced industry specialist and the pipeline business game is facilitated by a project simulation specialist. Participants, working in teams, learn pipeline project essentials by making the real-life technical and commercial decisions as they design, build, and manage a challenging crude oil pipeline project in a realistic setting. This careful balance of lectures and workshop creates an ideal learning environment for the participants.
Oil and gas measurements and units; Summary of the global pipeline business for oil, natural gas, and products; listing of operational pipelines; recent construction and planned projects; global networks and business models
Pipeline fundamentals: Oil and gas pipeline uses; rights-of-way, class of location, pipes, coatings, standards, mills; operating pressures; river crossings; pigging, block valves; prime movers, pumps and compressors; measurement and control; SCADA systems; regulation and tariffs; onshore and offshore pipeline construction.
Fundamental project economics concepts: economic yardsticks; project cash flow before and after tax; tax expenses and benefits; net cash flow stream and payout; time value of money; discounted cash flow analysis and internal rate of return; risk assessment and sensitivity analysis.
Application of the Stage Gate process to pipeline projects; description of the process through its five stages; project-related issues including project scope definition, purchase and sales agreements, financing agreements, Joint Venture setup, term sheets, related issues including, project planning, basis of design, alternative technologies, project execution considerations.
Introduction to crude oil & natural gas pipeline design and hydraulics; general flow equations; line sizing criteria; Basis of design; pipe size and thickness; MAOP and operating capacity concepts; material selection criteria, calculation and simulation tools. Buildings and related systems: fire, security, vapor recovery, dehydration, injection, water treatment, catholic protection and blending systems; custody transfer equipment and devices; process measurement equipment and flow measurement equipment; pipeline control, communications, SCADA and PLCs. Route selection.
The nature of regulations in the pipeline sector; history and current state of the industry regulation/deregulation process at the wholesale and retail markets: U.S., Europe, and elsewhere; effect of deregulation on the structure of the industry. Typical set of steps and deliverables in pipeline permit application.
Estimation of capital and operating costs for pipeline projects at different stages; risk assessment and contingencies; proforma projections of income, balance sheets and cash flow; Project financing: sources and cost of equity; Regulatory chart of Accounts; Methods used to develop rates, cost of service, rate base, and capitalization (for natural gas pipelines), including rate of return, tax allowances, regulatory adjustments, and rate design methods. Laws and regulations related to revenue requirements, rates, and new services for pipelines.
Functions of transportation contracts, trends in contracting practices, samples of pipeline contracts, capacity release and capacity runback concepts.
Typical responsibilities of the EPC contractors. Major EPC terms and conditions; selection of the EPC contractor and sub-contractors; Management of an EPC contractor.
Pipeline operations and maintenance issues: damage prevention, line markers, inspection, maintenance, and integrity management. External and internal corrosion monitoring and inspection, pigging. Emergency response plans. The role of HSE best practices in the pipeline industry; how to assess risk and how to implement risk management systems; value of HSE management systems; emergency response planning, implementation; Developing a healthy, safe, and environmental culture in an organization; HSE management programs.
This learning simulation is designed to reinforce and internalize the content of this course through team participation in an interactive pipeline business game. Participants, working as a team of specialists, are offered an investment opportunity to design, develop, and manage a pipeline system to deliver crude oil from a recent discovery in the Rift Basin to a port facility on the coast and to manage the national oil companys crude exports. Your team will evaluate project fundamentals and then plan, build and manage the pipeline system in a joint venture with the national pipeline company. You will select the optimum route for the project and then design the pipeline, estimate costs, secure financing and regulatory permits, and negotiate transportation and EPC agreements. Using technical and financial models, teams will be asked to model tariff-based revenue, capital and operating costs, financing costs, and tax projections for the life of the project. Teams will also negotiate agreements, including the EPC contracts and manage events during the construction phase and performance during its start-up and operation. The participants will also have the opportunity to discuss pipeline project design for natural gas and petroleum products pipelines in Kenbasa.
The sessions include: