Energy and Mining 1 –OIL & GAS SECTOR

Second West-East Gas Pipeline

Project
Project Management BMGT2003L

Dr Ali Nazarpour

Assignment 2 : Group 35
Introduction to Assigned Sector
 World’s major commercial energy source for many decades
 Oil and natural gas combined provide over half of the world’s energy
 In the future, oil and gas is expected to continue to provide a leading
component of the world’s energy mix.
 Project details

Project Name –Second West-East Gas

Pipeline Project

Start date - 22 February 2008

Finishing date -December 2012.

Second West-East Gas Pipeline is mainly

supplied by gas from Central Asia. The
8,819km-long pipeline

This pipeline is capable of delivering 30

billion cubic meters annually for over 30
years. It passes through 14 provinces
 Selected Project (cond..)
Cost - 142 billion yuan (($21.56 billion)

project developed by - China National Oil

and Gas Exploration and Development
Corp. (CNODC)

Objectives

 Ensure the reliability of the electricity

supply in Hong kong (black point power
station)

 Supply energy resources to 7.1 million

residents

 Sustain clear power generation in Hong

kong
 What is risk management
Uncertain or chance events that planning cannot overcome or control
 Why is it important
 What can go wrong (risk event)
 How to minimize the risk event’s impact (consequences)
 What can be done before an event occurs (anticipation)
 What to do when an event occurs (contingency plans)

 Benefits
 A proactive rather than reactive approach
 Reduces surprises and negative consequences
 Prepares the project manager to take advantage of appropriate risks
 Provides better control over the future
 Improves chances of reaching project performance objectives within budget and
on time
Risk Management in theory
1st step

Risk Identification

2nd step

Risk Assessment

3rd step

Risk Response Development

4th step

Risk Response Control

Risk Identification
Regulatory risk Safety Risks

Communication risks Quality Risks

Environmental risks Geological disasters

Pipeline corrosion Third-party damage

PETROCHINA COMPANY LIMITED 2015 SUSTAINABILITY REPORT

 Risk Response Development
PMBOK® (Project Management Body of Knowledge)
Created by the PMI, the Project Management Body of Knowledge
(PMBOK® Guide) is a collection of processes and knowledge areas
widely accepted as best practice within the project management
discipline.

Identify Risks Create a Risk Plan

Perform Qualitative Risk Analysis Create a Risk Plan
Perform Quantitative Risk Create a Risk Plan
Analysis
Plan Risk Responses Create a Risk Plan
Further environmental risk control

West-East Gas Pipeline Project (2002-2013)

Operational risks management

West-East Gas Pipeline Project (2002-2013)

Joint prevention, treatment and control
Together with governments at all levels along the pipelines, increased
public awareness of such hazards, and jointly prevented and controlled
pipeline risks.
 Risk Response Control

Accepted quality
Whole process quality
supervision from the
control
government

Life long project quality All staff safe production

responsibility system responsibility system

This has effectively ensured our project quality and ecological protection.
Risk Controlling techniques

Rigorous change management process Mitigate risks

Right person-Right task Avoiding risks

Multiple languages used Share risks

Daily site visits Avoiding risks

Scheduled and non scheduled management Avoiding risks

walkthroughs

Third party inspection Transferring risks

Good practices and methodologies from the Mitigating risks

PMBOK® Guide
 Project output
 Result was a project that finished on time, with minimal environmental impact and zero
reportable incidents or fatalities
 with timely completion and a minimal impact on heavy marine traffic in the area, especially
on container ships that are vital to the economy
 were no environmental incidents reported
 three million hours of pipeline construction went off without a single recorded incident
 These happen due to ; Proactive risk and safety management
 For that supporting factors of Project management are
 Effective planning
 Effective scope management
 Proactive quality monitoring
 People management
 Effective communication
 Effective decision making
 Effective stakeholder management
 Conclusion

 Introduction to sector and project

 Risk management and its application
 Project output
THANK YOU !
Group members
A Sabeeha Murad
M.Z.Erandi Peiris
T A C Rashminie Perera
K.C Nandika Perera
K W Okshika Prabhani