Oil and Gas Pipeline Project Development Workshop -

NEW!

Dates to be announced

Program Overview
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.

Who Should Attend

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.

Instructional Format
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.

Overview of the Pipeline Industry

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 for Crude Oil, Natural Gas, and Products

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.

Pipeline Project Economics

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.

Pipeline Project Management

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
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issues including, project planning, basis of design, alternative technologies, project execution considerations.

Pipeline Design and Routing

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.

Industry Regulation and Permit Application Process

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.

Pipeline Costs, Financing and Tariff Design

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.

Pipeline Project Agreements

Functions of transportation contracts, trends in contracting practices, samples of pipeline contracts, capacity release and capacity
runback concepts.

Pipeline Construction and EPC Contracts

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, Maintenance, and Safety

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.

Pipeline Project Case Study

Business Simulations
Workshop
Kenbasa Oil and Gas Pipeline Simulation Game

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:

Introduction to the Pipeline Project Opportunity

Review of Economic Model and Market Demand Analysis
Project Design Options

For more information or to enroll please contact us today: [email protected]

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Review Project Financing Alternatives

Negotiation of Agreements and Tariff Design
Pipeline Regulation and Permit Application Process
Integrated Pipeline Project Development Decision
Workshop Results and Team Presentations

For more information or to enroll please contact us today: [email protected]

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Instructors
Dr. David A. T. Donohue
Program Director
Dr. David A. T. Donohue is the Founder and President of both IHRDC and Arlington Storage Corporation.
Dr. Donohue is a technical specialist, businessman, attorney, and lecturer who is highly regarded for the
teaching of management programs devoted to the business of oil and gas. He has successfully designed
and taught these "business game" programs to more than 10,000 members of the international oil and gas
industry on both in-house and public bases. He was the developer of an innovative video-based learning
system for the upstream petroleum industry, which has now been converted to IPIMS, a widely licensed e-
Learning system. Dr. Donohue is also the developer and owner of independent underground gas storage
facilities in New York State. In his early career he held various positions in engineering and research for
Exxon and, for four years, served on the faculty of Pennsylvania State University. Dr. Donohue holds a
Ph.D. in Petroleum and Natural Gas Engineering from Pennsylvania State University and a J.D. from Boston
College Law School. He is active in public affairs in his hometown, a Distinguished Member of the SPE, and
Alumni Fellow of Pennsylvania State University.

Dr. Y. Serdar Dogulu

Dr. Y. Serdar Dogulu is Vice President of Innovative Learning Solutions at IHRDC. He is involved in the
content and interface development of interactive Learning Simulators and other associated training products.
Dr. Dogulu has been very active in building and teaching company-specific technical and project
management programs for IHRDC clients and is the principal developer and instructor for IHRDC’s highly
regarded E&P Learning Simulators. For the Arlington Group, an IHRDC affiliate, he was also actively
involved in technical and financial modeling studies of underground gas storage projects. After earning his
Ph.D. in Petroleum and Natural Gas Engineering from Pennsylvania State University, Dr. Dogulu held a
postdoctoral researcher position with the Energy and Geo-Environmental Engineering Department at Penn
State. His areas of interest include numerical simulation and reservoir management. Dr. Dogulu spent a
summer as a Research Technologist at the Chevron Petroleum Technology Company developing reservoir
simulation and management tools, including stream-tube simulation techniques for modeling large oil
reservoirs.

For more information or to enroll please contact us today: [email protected]

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For more information or to enroll please contact us today: [email protected]

TO REGISTER FOR THIS COURSE PLEASE CONTACT

Anne Barton
Program Operations Coordinator/Registrar
Email: [email protected]

Enrollment Code: XXXX333

Please use the Enrollment Code above when enrolling.

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