By :

Bilal Shari

INTERNATIONAL PETROLEUM INVESTMENT

COMPANY United Arab Emirates

Energy in the UAE, Abu Dhabi

• UAE is the world’s third largest exporter of crude oil

• Abu Dhabi is the capital and the second largest city of the UAE

• Abu Dhabi alone generated 56.7% of the GDP of the country.

IPIC in Brief• The company known by ADNOC Abu

Dhabi National Oil Company.

• formed and headquartered by the government of Abu Dhabi in 1984.

• IPIC seeks to maximize long-term shareholder value

• Creating economic development opportunities for the benefit of the people off Abu Dhabi.

3Potential Projects

Dolphin Project - Seabed Gas Pipeline

• The project aim to imports LNG

• Distance of 410 kilometres pipeline from Qatar to the UAE

• It’s a major cross-border energy deal between Gulf countries.

• It will free up Abu Dhabi’s gas for crude oil recovery and export.

Pipeline between Habshan – Fujairah

• The project began in Habshan in Abu Dhabi, which is a gathering point oil produced.

• The pipeline aim to deliver about 1.5 million barrels per day

• A distance of 360 kilometres from Habshan to Fujairah oil Hub to export.

Distribution IT unit between Abu Dhabi – Fujairah Motorway

• Providing the Motorway customers with cheap and unleaded fuel.

• Build 4 giant tanks with the latest IT features to keep the retailers up to date

• treading system in

corporation with cisco.

Habshan – Fujairah Pipeline , WHY?

• Carrying 1.5 million barrels, 1.7 times more of the U.A.E‘s daily exports.

• At present time 14 oil tankers carry 35% of the world’s oil through the Strait of Hormuz .

• The pipe line will help reduce congestion at Strait of Hormuz.

Habshan – Fujairah Pipeline , WHY?• Reduce the traffic as the path is

very narrow 25km sea border.

• Positive impact on the environment and sea pollution. • Reducing the tankers and

transportation cost .

• Reducing the security risks from any IRANI attack.

KSA

IRAN

UAEOMAN

THE GULF

Strait of

Hormuz

QATAR

Habshan

Fujairah

HabshanMasafi

Stage 1: 30km Habshan to Swihan

Oil Field

Abu Dhabi

Swihean

wadi SijiFujairah

12

3

4

The project stages, costs and distance

Stage Description Distance km Cost $bn

Stage 1

Semi-Desert ( Habshan-Swiehan ) 30 0.5

Stage 2

Desert ( Swihan - Masafi) 230 1.3

Stage 3

Mountains (Masafi- wadi Siji) 55 0.9

Stage 4

Coastal Plain ( Wadi Siji - Fujairah) 45 0.3

Total cost $3bn

Stage 1

30km

Habshan Oil field

Swihan pumping station Start Aug

2013 Ends Dec 2015

458 Days

Estimated Constrains

External and internal Constrains

Project risks

Currency fluctuation Suppliers and materials delivery

Workers absence.

The weather as a major impact Construction Errors

Financial figures

Year Inflow Outflow Net flow

A B C D = (B-C)2013 0 0.5 -0.52014 0 1.3 -1.32015 0 0.9 -0.92016 1.95   1.952017 1.95 0.15 1.82018 2.45   2.452019 2.45 0.15 2.3

       TOTAL

 9

3 5.8

M&D

M&D

$$$

Financial figures

Average Annual Profit = Total Gain - Total

Cost / Years = 0.4

ROI = Average Annual Profit / Initial Investment = 0.13

Recourse / Budget Plan

43%

35%

20%

2%

CNPCVan OordMafraq ZoneM&D

Category

Supplier Budget

Construction CNPC China $215m

Materials Van Oord $175mLabours Mafraq Zone $91m

Transportation Mafraq Zone $ 8m

M&D IPIC $11m

Scope Management

Phase 1 - Plan the route Phase 2 - Preparing the land Phase 3 - Site Performance Phase 4 - Install the Pipes Phase 5 - Injection station

The project Gantts chart

Objectives & Goals

Our team can deliver the project earlier by shifting the Task 14 (Install pumps and compressors) to the back and to start after Task 13 (connecting the pipes) in two weeks , which is 50 day to the back so that’s give the following :

Early Finish

50 / 458 x 100% = 10.9 % earlier

Loss of 2 Key workers

Objectives & Goals

•Outsourcing •Replace the payment from the three contractors :1. CNPC2. Van Oord 3. Mafraq Industrial

Zone

THANK YOU