Preventing Failures

in Major energy

Projects

Moscow School of Management SKOLKOVO,

BP and MIT Sloan

Successful planning and

execution through

the full project life cycle

The 5th annual oil and g

as industry programme

Dates:Venue:

Language:

Group size:Recommended for:

Cost:

According to a survey conducted by Independent Project Analysis (IPA), less than 5% of major energy projects are carried out on budget and on time, and deliver the desired quality and value. An overwhelming majority of projects implemented today fail to meet one or more of these parameters.

This year’s edition of the annual executive programme for the energy sector focuses on preventing failures in major energy projects. This intensive five-day course offers an invaluable opportunity to get an inside look into the challenges faced by the teams executing some of the largest and most complex energy projects in the world.

Participants will have a chance to explore real situations and scenarios during workshops led by prominent experts with extensive background in supervising, executing and troubleshooting energy projects implemented by industry leaders and foreign governments. The academic component of the programme combines lectures, interactive discussions and presentations of innovative tools developed by the world-class faculty from the renowned Massachusetts Institute of Technology and Moscow School of Management SKOLKOVO.

The course is recommended for project team leaders and project team members who wish to increase their understanding of systems and project management flaws that contribute to project failures.

This is the fifth edition of the annual executive programme for the energy sector offered by the SKOLKOVO and the MIT Sloan School of Management, with the support of BP. Previous editions focused on different aspects of project management in the Oil&Gas sector.

October 14-18, 2013

SKOLKOVO Campus

English and Russian with simultaneous translation

30 participants

Oil & Gas project managers, project team leaders, functional managers with project management responsibilities, project portfolio and programme managers

EUR 5,000 + VAT, per participant

Sigurd Heiberg, Strategy Advisor for Oil&Gas companies

With over 45 years of experience in the Oil&Gas sector Heiberg has shared his time working for research institu-tions, governments and industry as a geologist, civil engineer and petroleum reservoir engineer, and in management capacities as NPD's deputy director of development, petroleum exploration advisor to a cabinet minister (Tan-zania), Statoil license negotiations manager for Europe and China, pro-ject manager of corporate E&P fore-casts and educator. His expertise in exploration, production management and forecasting led him to become a member of the corporate strategy team in STATOIL.

Featured cases: Ekofisk, Gulfaks, Statoil projects, government-led initiatives for Oil&Gas sector growth

ExpErt profilE

Fail-proof project execution depends on project team’s ability to select, plan, monitor progress and risks, recognize early signs of trouble and act to prevent major failures. This course aims to equip participants with practical tools, expand their knowledge of processes that may result in project failure and help them to prevent and address failure at each stage of project development.

This intensive learning experience will deliver long-term value, helping project leaders and teams to gain: ▶ New insights on how to identify and manage risk-prone

situations to ensure successful design and delivery of major projects;

▶ New approaches and tools that can be applied immediately to existing projects or used to improve skills required for working on major projects in the future;

▶ New perspectives on leadership and teamwork in project management to facilitate a successful delivery of complex projects.

Insider’s perspective The course focuses on real projects presented and explained by

leading industry experts who were directly involved in project execution. Featured projects include complex and challenging cases, such as Kazakhstan’s Kashagan and Iraq’s Rumaila oil field development. In ten years these cases will make it into industry textbooks. Participants of this course can access this knowledge now.

Academic excellence and cutting-edge research This programme is offered by SKOLKOVO together with MIT

Sloan School of Management - a school with stellar reputation for pioneering developments in technology and management practices. Among the innovative approaches to complex project management, participants will explore novel methods and tools developed by the MIT faculty to design complex engineering projects that account for future uncertainty.

Direct access to unparalleled expertise This course is designed to encourage participants to interact

with the speakers and avail of their expertise. This is a unique opportunity to discuss challenges that participants face in their project management work with both world-class professors and seasoned industry experts. Interactive games will also have the participants collaborate in a simulated project environment.

Cosimo Cannalire, VP Alliances at Technip Group

An expert in managing partner rela-tionships (top accounts include BP and Sasol), contracting and forg-ing strategic alliances. Cannalire will provide a unique perspective on contracting strategies, procurement, quality execution tactics.

Featured cases: Chinese Zhuhai 2 PTA plant project (largest PTA plant in the world deliv-ered ahead of schedule and gener-ating twice the capacity as the first plant).

David Clarkson, Ex -Director of Developments for BP Iraq

During his distinguished career of over 30 years with BP, David Clarkson held senior leadership roles with responsi-bility for managing and crisis response in upstream major projects. His expe-rience as EVP, Director of Develop-ments and Response Director gives him an unparalleled perspective on how to salvage and manage difficult projects in complicated and complex environments.

Featured cases: Tangguh LNG Project, Rumaila Field Development, Deep Water Horizon

programme objectives

programmme Highlights

ExpErt profilE

ExpErt profilE

project leaders

project leader Deputie

s /

functional Managers

project teams

Who Should Attend

The programme is designed for managers, project team leaders and functional managers with experience in executing major projects for 5 years or more.

It is particularly beneficial for:

▶ Managers and staff involved in planning, executing or overseeing project implementation

▶ Project managers, involved in selection, planning and execution of major projects

▶ Key project team members

In the past participants represented the following companies and organizations :

Transneft

RussNeft

TNK-BP

Rosneft

Kurmangazy Petroleum

Gazpromneft

Zarubezhneft

LUKOIL

SIBUR

Ministry of Energy of the Russian Federation

Ministry of Natural Resources of the Russian Federation

Ministry of Finance of the Russian Federation

“ This programme focuses on a lot of not just complex, but also very practical concepts that people can cut and take on, and then use in their own project management work”

Hugh Mcintosh, General Director, TNK VIETNAM B.V.

“ Access to insightful, relevant and up-to-date information can be a challenge in our industry. This programme allowed us to get an inside look into real cases and find out about different approaches to problem-solving. This really helped me in developing my out-of-the-box thinking.”

Elena Berezina, Deputy Head of Department, International Infrastructure Projects, Gazprom

Functional Managers responsible for vari-ous aspects of project implementation in a variety of areas:

▶ Capital construction ▶ Procurement and supplies ▶ Project planning and scheduling ▶ Technology management ▶ HR ▶ HSE ▶ Stakeholder management ▶ Project engineering and leadership ▶ Contracting and negotiating ▶ Risk assessment and management

The course focuses on exploring and understanding practical solutions to real-life challenges encountered by implementers of major Oil&Gas projects. Possible issues, problems and failures are discussed for each of the key phases in the project cycle: value proposition, project selection and planning, execution, risk management and evaluation. Participants will explore perspectives of the key industry, government and market stakeholders.

Each stage of the programme focuses on a specific phase of the project life cycle and starts with a study of a prominent major energy project. The cases explore relevant experience of managers of Kashagan, Qurna 2, Rumaila, Gulfaks and other high-profile Oil&Gas developments.

The academic lectures and interactive exercises in this class will extract the key lessons learned from the case studies and demonstrate the theory underlying project success and failure. Interactive exercises will include a project selection and portfolio exercise, negotiations and target setting for projects in the Russian Arctic and a state-of-the-art project simulation game. Relevant methods and tools will also be discussed, such as portfolio optimization, stochastic net present value (NPV) analysis, real options in projects as well as earned value management (EVM). Participants will be challenged to identify their own project management style and develop personal goals to boost their future performance as project leaders.

Course Design

programme themes

Each day is structured around one of the key phases in the project lifecycle.

Monday: Value Proposition for Energy Projects in and with Russia Overview of the current situation and trends in global Oil & Gas markets and projects from upstream to downstream.

Discussions regarding the beginning of a new era following the conclusion of the TNK-BP joint venture and acquisition by Rosneft. Methods and considerations for project selection and assembly of winning project portfolios.

Tuesday: Strategic Design and Project Planning Focuses on project preparation and planning, including setting project goals, choice of project architecture, technology

and partners. Tuesday’s case study on theKashagan field development highlights the implications related to target setting, governance, partner and consortium challenges at the project planning stage.

Wednesday: Project Execution and Monitoring Examines common execution stage challenges, including progress assessment, budgeting, benchmarking, change

management and contractor and partner management. Discussion on implementation of strategic plans and contractual agreements with the emphasis on value generation.

Thursday: Risk Management, Firefighting and Project Leadership One of the key challenges in complex projects is what to do when there are large deviations from the original plan.

How can risks in projects be identified and managed ahead of time? How can safety be assured? How can projects be rescued from failure? What are the key aspects related to firefighting in projects?

Friday: Learning from Past Projects and Continuous Improvement The focus of the last day is how to properly assess the degree of success and failure of past projects, how to innovate

and how to get better over time. The central goal of this process is to avoid repeating the same mistakes and to reach world class performance in project design and execution. The development of the North Sea shelf starting in early 1980s will serve as a key example for successfully building on prior projects.

Monday Tuesday Wednesday Thursday Friday

Theme Value Proposition for

Energy Projects in and with Russia

Strategic Design and Project Planning

Project Execution and Monitoring

Risk Management, Firefighting and Project

Leadership

Learning from Past Projects and Continuous

Improvement

Mor

ning

Global Energy Outlook Project Setup/

Preparation Case study: Kashagan

Project Execution.Case study:

West Qurna 2

Project Firefighting and Personal Project

Leadership. Case study: BP Cases

Technological Innovation and

Continuous Improvement. Case

study: Gullfaks

Russian Oil and Gas Market Perspectives

Joint Value Proposition and Governance

International Contracting Strategies

“Russian” Firefighting Style: Pros & Cons

Technology Innovation in Oil and Gas Projects

Aft

erno

on

Strategic Design and Project Portfolios

Negotiations and Establishing Rapport

Project Monitoring and Reporting.

Case study: Rumaila

Framework for Systematic Risk

Management

Are Project Leaders Born or Made?

Group discussion

Managing Project Portfolio

Negotiation Simulation

Project Dynamics and Change

Management

Project Crisis Management and

Turnaround. Case study

Programme summary and wrap-up

Role of Projects on Russia's Future

Critical Issues in Project Planning

Project Management Simulation

Transfer to downtown

Even

ing

Programme opening cocktail

Free time Jazz performanceGlobal Project Management Perspective

Group Work Evening eventIndustry ExpertiseFacultyCases

programme Schedule

Robert Fisher, Senior Advisor to Bain & Company

With over 30 years of experience Rob Fisher is one of few former ExxonMobil managers with extensive experience in both upstream and downstream projects. He managed operations at Europe’s largest refinery, negotiated long-term gas sales contracts, led XOM’s entry into the Saudi Arabia gas sector and XOM’s business in Malaysia and imple-mented other high-profile projects that yielded impressive fiscal returns.

Featured cases: Kashagan, Hebron.

ExpErt profilE

day 1

day 2

day 3

day 4

day 1

day 5

project preporation

project planning

project Monitoring

project learning

project Adaptation

Project Completion

PROJECT CONTROL (Inner Loop)

PROJECT LEARNING (Outer Loop)

Strategic choice which

project(s) to develop

Next Project

StArt

programme Structure

Don Lessard

Professor of International Management and Engineering Systems, MIT Sloan School of Management

▶ A member of the MIT faculty since 1973, Lessard currently teaches courses on organization and strategy in the energy sector. ▶ His research interests focus on project management and global strategic management, with an emphasis on managing in the face of uncertainty and risk. ▶ Professor Lessard has used the research results to develop an experience based theoretical framework that will allow managers to understand and respond to the complexity and uncertainty inherent in large engineering projects

Olivier de Weck

Professor of Aeronautics and Astronautics and Engineering Systems, MIT Sloan School of Management

▶ Professor de Weck is a leaderin systems engineering research. ▶ His main emphasis is on strategic properties that have the potential to maximize life cycle value.▶ Since 2001 his group has developed innovative solutions that explicitly consider manufacturability, flexibility, commonality, and sustainability among other characteristics.

Moty Cristal

Professor for Negotiation Dynamics, Moscow School of Management SKOLKOVO

▶ Moty Cristal had an illustrious career as one of Israel's leading negotiation experts serving in various official capacities in government's negotiation teams with Jordan and the Palestinians▶ Since 2001 he advises, consults and trains business leaders and senior officials in Europe, Russia and CIS, US and Asia▶ His experience extends to theenergy, construction, financial, aeronautical and other sectors, and varies from complex deal-making negotiations to project management solutions

Jean-Marc Soucy

Professor of Schlumberger-SKOLKOVO Project Management Chair

▶ Before joining the SKOLKOVO faculty Jean-Marc worked with BP, where he occupied different top positions in Eastern Europe, Belgium and France and was responsible for strategic planning, real estate, construction, technical services and conclusion of deals on retail assets purchase▶ Jean-Marc participated in strategic development and construction of a BP retail network of service stations in Moscow in the 1990s. At SKOLKOVO he oversees the research and methodology development programme

Gati Saadi Al-JebouriSenior Vice President, LUKOIL Overseas

Marat AtnashevVice President Major and Capital projects, EVRAZ

Cosimo CannalireVP Alliances at Technip Group

David ClarksonVice President, Projects Execution at BP Exploration

Rob FisherSenior Advisor to Bain & Company, formerly ExxonMobile senior leader

Dominique GardiEx-President Shell Exploration & Production Asia Pacific

Sigurd HeibergStrategy Advisor to Oil&Gas companies, formerly Statoil manager

Scott SloanBP Russia Regional President

Academic modules and group discussions are led by the world-class educators with extensive experience in industry-specific research.

Industry leaders are invited to share their perspectives on project execution challenges and present cases from their experience.

Experts and Speakersprogramme faculty

BP: BP is one of the world’s largest oil and gas companies, serving millions of customers every day in more than 80 countries across six continents. BP’s activities are exploration and production; refining and marketing; and alternative energy, its low-carbon energy business. BP is one of the largest foreign investors in Russia. The company has been operating in Russia since 1990 with activities in oil and gas exploration, refining, lubricants, marine products and trading operations. BP owns 19.75 per cent stake in Rosneft, the world’s largest (based on production volume) listed oil company.

The Moscow School of Management SKOLKOVO:

A joint project of the major Russian and international business leaders, SKOLKOVO is a dynamically devel-oping international business school with a vision built on a unique mix of three dimensions: entrepreneurial leadership, emerging markets expertise and experi-ential learning. SKOLKOVO is funded exclusively by private business. Russian Prime Minister Dmitry Med-vedev is the Chairman of the SKOLKOVO International Advisory Board and the school has been included into the list of the Russian Government’s National Prior-ity Projects.

The MIT Sloan School of Management:

The MIT Sloan School of Management, based in Cam-bridge, Massachusetts, is one of the world’s leading business schools – conducting cutting edge research and providing undergraduate, graduate and executive management education to top students from around the world. The mission of the MIT Sloan School of Management is to develop principled, innovative leaders who improve the world and to generate ideas that advance management practice. Within executive education, our vision is to be the school of choice for developing leadership talent in companies strategi-cally driven by innovation, emerging technologies, entrepreneurship, and global reach. As part of MIT, the world’s leading university in science and engineering, Sloan’s Executive Education is uniquely positioned for this programme whose content and participants cut across technical, managerial, and policy domains.

For more information and registration please contact:

Vyacheslav GrigorievManager of Executive Education Programmes, Moscow School of Management SKOLKOVO Vyacheslav_Grigoriev@skolkovo.ru +7 916 555 35 70

Olga BatomunkuevaExecutive consultantMoscow School of Management SKOLKOVO

Olga_Batomunkueva@skolkovo.ru+7 985 111 29 74

Anna DognalExecutive consultant Moscow School of Management SKOLKOVO

Anna_Dognal@skolkovo.ru+7 985 555 61 70

About Us

SKOLKOVO Corporate programmes - an unique educational solution for your business.Since 2007 Moscow school of management SKOLKOVO organized and delivered more than

250 programmes to more than 70 corporate clients. Among the graduates of corporate programmes over 6000 middle and senior level managers, executives, entrepreneurs and future leaders.

SKOLKOVO Corporate programmestеl./fax: +7 495 539 30 03, www.skolkovo.ru

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