Trans-Saharan Pipeline Project: Executive Summary and Analysis Report

This project management report provides an executive summary and analysis of the Trans-Saharan pipeline project, focusing on its complexities and gaps. It examines the project's effectiveness, identifies challenges in areas such as cost estimation, stakeholder engagement, and security, and proposes solutions for long-term sustainability. The report delves into the business environment, organizational, structural, relationship, and legal complexities. It also explores project management methodologies, stakeholder priorities, risk management strategies, supply chain management, and governance issues. The analysis highlights the importance of strategic benefits, risk allocation, and quality control for project success. The report also emphasizes the need for effective coordination, communication, and the integration of ICT technologies. Recommendations are provided to address the identified gaps and improve project outcomes, focusing on enhanced stakeholder engagement, risk mitigation, and efficient resource management.

Project Management

Executive Summary
The purpose of this project is to analyse the project effectiveness and the gaps for
establishing the long term sustainable pipelining project. The analysis of the project helps in
finding the complexities associated with the development and implementation process of the
pipelining in the different areas of the Trans-Saharan mega project. The trans-saharan mega
project is not properly organized to achieve the long term sustainability of the project. The
estimated cost of the project is not properly judged for the approval by the participating
government. The consideration should be given on selection of the team members and the
division of role and responsibilities among the international business partner. The project
completion activities should be systematically organized for the project success. The strategic
approach should be developed for managing the conflict in the communication process model
deployed by the Trans-Saharan project for establishing competencies between various
stakeholders of the projects. The focus should be given on systematic analysis of the routes to
develop the supply management plan for the gas pipelining. The privilege should be given to
the risks identification procedures so that the better control on the quality, political control,
and legal authorities of the project. The systematic distribution of resources and
responsibilities helps in improving the coordination among the working parties of the project.
It can be concluded that the value gain of the project depends upon the risks allocation and
transfer process used in improving the quality of the end product and completing the project
within mentioned time and cost.

Contents
Executive Summary...............................................................................................................................1
1. Project Management program in complex project.........................................................................3
Introduction.......................................................................................................................................3
Project Overview...............................................................................................................................3
Complexities......................................................................................................................................3
Analysis of the Gaps..........................................................................................................................4
Project Management Opportunities...................................................................................................4
Program management opportunities..................................................................................................4
2. Complex Business Environment....................................................................................................5
Business environment........................................................................................................................5
Organizational Complexities.............................................................................................................5
Structural Complexities.....................................................................................................................6
Relationship complexities..................................................................................................................6
Legal Complexities............................................................................................................................6
Project Management methodology for resolving Complexities.........................................................6
3. Multiple Stakeholders priorities and complexities.........................................................................7
Stakeholder Management Issues and Complexities...........................................................................7
4. Optimum Bias................................................................................................................................9
5. Strategic Benefit and Value of the Mega Complex project..........................................................10
Risks and Value...............................................................................................................................10
6. Complexities in project Management Phase................................................................................11
7. Supply Chain Management System.............................................................................................11
Upstream Stakeholder......................................................................................................................11
Mid-stream Stakeholder...................................................................................................................12
Downstream Stakeholder.................................................................................................................12
Supply Chain stakeholder Matrix....................................................................................................12
8. Strategic risks Management.........................................................................................................14

Security............................................................................................................................................14
Environmental Effect.......................................................................................................................15
Cost and time overrunning estimation.............................................................................................15
Long Term Stability.........................................................................................................................16
Coordination between the NNPC and Sonatrach:............................................................................16
9. Quality Concern...........................................................................................................................16
10. Governance..............................................................................................................................17
11. Conclusion...............................................................................................................................17
12. Recommendation.....................................................................................................................17
13. References...............................................................................................................................18

1. Project Management program in complex project
Introduction
Trans-Saharan gas pipeline project is going to build the gas pipeline between the Nigeria and
Algeria for the diversification of supply of the gas. The legal contract was signed in 2005
between the Sonatrach gas agency and NNPC gas agency for analysing the feasibility of the
undertaken project development process. The initialization of the project management
program and body of Knowledge (PMBOK) helps in analysing the complexities of the mega
project in different knowledge areas for accomplishing the project successfully (Alawneh,
and Aouf, 2016). The analysis and evaluation of the uncertainties associated with the project
helps in identifying the gaps which exist in the legal agreement and the working policies
which is signed between the Nigeria and Algeria for the deployment of the gas pipeline. The
purpose of this project is to analyse the project effectiveness and the gaps for establishing the
long term sustainable pipelining project.
Project Overview
The joint venture is signed between the Nigeria national petroleum Corporation and Sonartch
Algerian national oil and gas Company. The feasibility study is conducted for analysing the
security issues which exist with the pipeline project because there the major risks are of
terrorist attacks. The pipelining project is going to provide the connectivity between the trans-
mediterrean region, Maghreb-Europe, and Galsi pipelines. The supply chain of gas pipelining
covers the area 4182 kilometre. US $ 10 billion amount is the estimated cost for the
development of the project. The Nigerian military force is putting opposition in the
development of the gas pipelining project. The complexities arise with the project due to the
linking of the different areas of Europe under the single project.
Complexities
The analysis of the project helps in finding the complexities associated with the development
and implementation process of the pipelining in the different areas of the Trans-Saharan
mega project. Some of the major complexities associated with the project are highlighted
below:
 Opposition from the Nigerian Military force
 Route selected for the implementation of the pipeline

 Terrorist activity in that area
 Agreement signed between the governments
 Poor estimation of project cost
 Cooperation and coordination between the team members
 Geographical change in condition
Analysis of the Gaps
The trans-saharan mega project is not properly organized to achieve the long term
sustainability of the project. The estimated cost of the project is not properly judged for the
approval by the participating government. The importing and exporting of the natural gas and
oil is comprised with some major issues in the transportation problem. The funding of the
project is not properly done. The price of the gas was dropped which results in the failure of
the project. There is no security parameter were organised to secure the Trans-Saharan mega
project from the attack of the terrorists. The major gap which exists with the project is the
dynamic change in the cost of the project completion process (Brown, 2016). The stakeholder
engagement program is not effectively laid down in the construction of the project.
Project Management Opportunities
The implementation of the Trans-Saharan Mega project helps in providing new opportunities
to the project development process for increasing the efficiency of knowledge areas of the
project management. The major consideration should be given on designing new policy
framework for the stakeholder engagement plan, communication management plan, risks
identification and management process, and organization of the procurement process. The
focus should be given on identifying the stakeholders from the public and private sectors for
approaching the project systematically. The communication should be effectively managed
between the working units of the international project (Passenheim, 2015). The ICT
technologies should be incorporated for the development of the communication between
them (Otieno, 2014). The active participation of the governmental bodies helps in improving
the project development plan. The growth of the project depends on the project management
methodologies which are chosen for the completion of the undertaken program of the
pipelining construction.
Program management opportunities
The new program should be designed for managing the project activity schedule. The
consideration should be given to the high potential value for the stakeholder engagement

program. The systematic approach should be followed for constructing the project activity
schedule, allocation of cost, resources, and responsibilities so that the complexities and chaos
can be effectively minimized. The focus should be given on developing the new foreign
investment policies for increasing the efficiency of the pipelining project (Apanaviciene, and
Juodis, 2016). The economic advancement of the pipelining project helps in managing the
change management policies for upgrading the project development process. The strategic
approach should be designed for resolving the complexities in the designing of the pipelining
project plan, managing communication, and others.
2. Complex Business Environment
Business environment
The Trans-Saharan project is the mega project which is going to be spread in the area of 4182
Kilometres requires attention to the complexities and risks associated with the project. The
implementation of the Inter-continental pipelining project is equipped with various risks such
as poor coordination and cooperation among the various units of the project, inefficiency of
the communication management plan, lack of efficient stakeholder engagement plan, terrorist
attacks on the development process of the project, identifying the limitation in the legal
agreement signed between the two countries, The robust approach should be developed
among the countries for the management of the gas supply (Patanakul, 2010). The
initialization of the project help in resolving the issues and challenges which exists with the
project development program. The central focus of the project helps in improving the GDP
of the project. The living standards of the people can be improved by increasing the GDP of
the nation (Monnappa, 2017).
Organizational Complexities
The organization complexities arise due to the management of the resources in the
development process of the project. The team management plan should be developed for
organizing the effective organization of the people, activities, and functional dependencies of
the project units. The organization hierarchy should be developed for managing the
coordination and cooperation among them at an international project. The complexities which
are majorly equipped with the organization policies are development of the organization
structure, difference in the organization culture, language difference, lack of ethical policies
and principles, and others (Lindh, 2012).

Structural Complexities
The structural complexities of the project are occurred due to the ineffective management of
supply and demand of the gas in different trans-saharan region. The excavation process can
affect the geographical condition of the region. The declining of the project occurs due to the
inactive participation of the international government (Mansfield Community, 2013). The
communication is not properly planned between the working processes of the mega project.
Relationship complexities
The public and private relationship is not effectively managed in the working architecture of
the Trans-Saharan mega project. The proper coordination is not managed in the division of
role and responsibilities among the project foreign investors to manage the funds required for
the project. The systematic approach is not designed for managing the division of work
among the Nigerian and Algerian working government employees. The focus is not given on
designing of terms and conditions for the management of the project activities. The criteria
should be developed for initializing the flow of information and data among the working
units of the enterprise located at geographically widespread location.
Legal Complexities
The legal agreement is not properly organized between the Nigerian and Algerian
government for the development of the Trans-Saharan project for managing the supply of gas
in the different areas of Europe. The focus is not given on designing of terms and conditions
for the management of the project activities. The terms and condition should be specifically
designed for promoting the areas of concern and improvement in the systematic manner. The
legal documents of the government should be collected of the Nigerian and Algerian
government to design the legal agreement for the construction program of the undertaken
project of the Pipelining. The geographical condition of the different areas of Europe should
be systematically studied for the construction of the pipelining project successfully. The legal
requirement of the undertaken construction routes should be systematically reviewed. The
pipelining project is going to provide the connectivity between the trans-mediterrean region,
Maghreb-Europe, and Galsi pipelines. The efficiency of the project increases by minimising
the legal complexities associated with the development plan of the project (Browning, 2014).
Project Management methodology for resolving Complexities
The focus should be given on selecting the right project management methodology for the
construction of the trans-Saharan project. The knowledge areas should be systematically

reviewed for minimizing the impact of complexities associated the PMBOK approach of the
project development process (Ennouri, 2013). The consideration should be given on selection
of the team members and the division of role and responsibilities among the international
business partner. The project completion activities should be systematically organized for the
project success. The study of the historical construction program should be studied for the
allocation of resources, cost, and duration. The political risks and uncertainties associated
with the project should be systematically identified for resolving the conflict effectively. The
following steps should be deployed for resolving the project complexities at an early stage of
the project:
 The experienced project manager should be appointed for analysing the risks
associated with the project
 Developing the effective team management plan and coordination among the various
stakeholders who are geographically widespread
 Managing political issues associated with the conflicts between the inter-
governmental management plan
 Resolving legal complexities associated with the project development plan
 Security system
 Developing ethical code of conduct among the working stakeholders (Halls, 2012)
3. Multiple Stakeholders priorities and complexities
Stakeholder Management Issues and Complexities
Stakeholde
r
Role Responsibilities Contribut
ion
Legitim
acy
Communica
tion
Involvem
ent
Nigerian
Governme
nt
Business
Partners
Signing
agreement for the
construction of
the gas pipelining
High High High High
Algerian
Governme
nt
Business
Partners
Signing
agreement for the
construction of
the gas pipelining
High High High High
Trans- Supply of Managing supply Low Medium High High

Mediterran
ean
Gas
Pipeline
of gas
Maghreb-
Europe
Supply of
Gas
Pipeline
Managing supply
of gas
Medium High Low Medium
Medgaz Supply of
Gas
Pipeline
Managing supply
of gas
Low Medium High Medium
Galsi
Pipelines
Supply of
Gas
Pipeline
Managing supply
of gas
High Low Medium High
Ek-Kala Gas
Transmiss
ion hub
Distribution of
the gas to the
different
countries
High Low Low Medium
Beni Saf Gas
Transmiss
ion hub
Distribution of
the gas to the
different
countries
Low Medium High High
Russian
Gas
Company
Business
Partner
Active
Participation in
the improvement
plan for the
undertaken
project
Medium High Low Medium
Indian
Company
GAIL
Business
Partner
Active
Participation in
the improvement
plan for the
undertaken
project
Low Medium High Medium
France
Total S.A.
Business
Partner
Active
Participation in
the improvement
High Low Medium High

plan for the
undertaken
project
Italy Business
Partner
Active
Participation in
the improvement
plan for the
undertaken
project
(Firmanzyah,Ver
onika, and
Trigunarsyah,
2016)
High Low Low Medium
Royal
Dutch
Shell
Business
Partner
Active
Participation in
the improvement
plan for the
undertaken
project
Medium High Low High
The challenges which come forth in the management of stakeholder strategic plan are defined
as managing level of security for overcoming the problem of terrorist attack on the pipelining
project. The communication cannot be effectively managed between the various stakeholders
due to the geographically dispersed nation. 90% of the contribution is of Nigeria and Algeria
in the development program of the pipelining project (Hyari and Kandil, 2009). The cultural
and language difference creates a scenario of conflict and chaotic environment in the working
model of the project.
4. Optimum Bias
The strategic approach should be developed for managing the conflict in the communication
process model deployed by the Trans-Saharan project for establishing competencies between
various stakeholders of the projects. The focus should be given on systematic analysis of the
routes to develop the supply management plan for the gas pipelining (Halil, Nasir, Hassan,

Shukur, 2016). The interconnectivity should be synchronised so that the supply of the gas can
be effectively carried out. The length of the underground pipelining system from Nigeria to
Algeria is about 4128 kilometres. The central focus should be given to the technical features
which are associated with the gas gathering hub at different centres (Kharaiweish, 2013). The
association of various companies from international countries helps in managing
synchronization for the flow of information between various countries. The total length of the
pipeline is 4128 km. The areas covered by the different routes are described below:
 Division 1 covers the area of 1037 km in Nigeria
 Division 2 covers the area of 841 km in Niger
 Division 3 covers the area of 2310 km in Algeria
The division of the area for pipelining helps in minimizing the chaotic environment in the
development of the pipelining project.
5. Strategic Benefit and Value of the Mega Complex project
Risks and Value
The study of the risks and uncertainties associated with the project can be evaluated by
recognising the cost benefit ratio and managing resources among the working model of the
project. The success of the project depends on the supply of gas over 4128 Km area coverage
without any accident. The transportation of the gas should be done with proper care. The
liquefied gas helps in minimizing the chance of accident. The consumption of the gas helps in
improving the GDP of the nation by improving the living standard of the residential people.
30 billion cubic meters is the annual capacity of the pipelining project to be transferred over
the different nation. The NNPC and Sonatrach is the pipelining which contributes about 90%
of share in the development of the project. The central focus should be given on the
communication risks associated with the project for managing the flow of gas in the different
region of the Trans-Saharan project. The proper coordination should be managed between the
Gail India, Italy, Niger, Russia, Nigeria, Algeria, and others. The proper participation of the
countries helps in resolving the legal and political risks associated with the construction
program of the pipelining project. The opposition placed by the military group of the Nigeria

on the working model of the Trans-Saharan project should be given consideration so that the
value of the project can be effectively improved. The priorities should be associated with the
risks so that the proactive planning of the risks can be done successfully. The instability in
the distribution process of the natural gas should be resolved by converting the natural gas
into liquefied natural gas for the easy transfer of the gas over the different areas and business
partners connected under the Trans-Saharan project. It helps in increasing the value and
profitability of the project and increasing the interest of the foreign investors for active
participation in the process of funding.
6. Complexities in project Management Phase
The development of the Trans-Saharan project does not able to meet the expectation of the
stakeholders from different nations. The top down approach should be followed for managing
the organization hierarchy for enabling the flow of information among the different working
units of the project. The consideration should be given to the risks identification and risks
assessment planning for the development of the pipelining project. The overrunning of the
cost is due to the unforeseen reason in the pipeline construction program. The systematic
analysis of the project management program helps in increasing the value realization of the
project model. The cross country analysis of the coordination and cooperation helps in
enhancing the management of requirement and expectation of the global business partners.
The efforts and contribution of the resources should be synchronised properly in the direction
of the project demand. The systematic scheduling of the human and physical resources helps
in reducing the wastage and increases the throughput in the project contribution.
7. Supply Chain Management System
The effectiveness of the project depends on management of supply chain of the physical and
human resources on the construction site of the Trans-Saharan project. The agreement should
be signed with the contractor for managing the resources throughout the project according to
the demand raised by the working project team.
Upstream Stakeholder
The upstream stakeholders focus on completing the production and the construction program
of the pipelining project which is going to cover the area of 4128 km. The consideration
should be given to the maintenance program for achieving the continuous improvement of the

Trans-Saharan project. The project closes with the proper scheduling of the handover of the
project for operation.
Mid-stream Stakeholder
The mid-stream stakeholders focus on the transportation program of the liquefied natural gas
across the global partners. The tankers are used for transporting of the liquefied natural gas
by minimizing the chance of risks and uncertainties associated with the project.
Downstream Stakeholder
The downstream stakeholders focus on developing the by-products of the natural gas such as
petroleum, diesel, kerosene, and etc for increasing the sale of the trans-Saharan project and
increase the profitability and GDP of the Nigerian and Algerian government.
Supply Chain stakeholder Matrix
Stakeholder Role Responsibilities Type of
Stakeholder
Description
Nigerian
Government
Business
Partners
Signing
agreement for
the construction
of the gas
pipelining
Upstream Managing
pipelining
construction
program
Algerian
Government
Business
Partners
Signing
agreement for
the construction
of the gas
pipelining
Upstream Managing
pipelining
construction
program
Trans-
Mediterranean
Supply of Gas
Pipeline
Managing
supply of gas
Midstream Managing
supply and
transportation of
natural gas
Maghreb-
Europe
Supply of Gas
Pipeline
Managing
supply of gas
Midstream Managing
supply and
transportation of

natural gas
Medgaz Supply of Gas
Pipeline
Managing
supply of gas
Midstream Managing
supply and
transportation of
natural gas
Galsi Pipelines Supply of Gas
Pipeline
Managing
supply of gas
Midstream Managing
supply and
transportation of
natural gas
Ek-Kala Gas
Transmission
hub
Distribution of
the gas to the
different
countries
Midstream Managing
supply and
transportation of
natural gas
Beni Saf Gas
Transmission
hub
Distribution of
the gas to the
different
countries
Midstream Managing
supply and
transportation of
natural gas
Russian Gas
Company
Business Partner Active
Participation in
the improvement
plan for the
undertaken
project
Downstream developing the
by-products of
the natural gas
Indian Company
GAIL
Business Partner Active
Participation in
the improvement
plan for the
undertaken
project
Downstream developing the
by-products of
the natural gas
France Total
S.A.
Business Partner Active
Participation in
the improvement
plan for the
undertaken
Downstream developing the
by-products of
the natural gas

project
Italy Business Partner Active
Participation in
the improvement
plan for the
undertaken
project
Downstream developing the
by-products of
the natural gas
Royal Dutch
Shell
Business Partner Active
Participation in
the improvement
plan for the
undertaken
project
Downstream developing the
by-products of
the natural gas
8. Strategic risks Management
Security
The critical analysis of the project development plan helps in identifying the risks and
uncertainties associated with the project so that it can be successfully completed without any
complexities. The systematic analysis of the project phases and methodologies helps in
identifying the risks associated with the project and analysing its impact on the undertaken
processes (Merits and Rickets, 2012). The risks which are identified with the Trans-Saharan
project are listed below:
 Long term sustainability of the project
 Occurrence of accident
 Quality of human and physical resources used in the development of the project
 Poor coordination between the public and private sector government
 Management of global crisis in the estimation of the project cost
 Opposition from the Nigerian Military force
 Route selected for the implementation of the pipeline
 Terrorist activity in that area
 Agreement signed between the governments

 Poor estimation of project cost
 Cooperation and coordination between the team members
 Geographical change in condition
 Environmental risks
 Political control risks
 Legal risks
 Social Risks
 Human Resource risks
Environmental Effect
The efforts and contribution of the stakeholders should be in the direction of the project
management working plan. The central focus should be given on the security procedures for
overcoming the problems of terrorist attacks, obligations by the opposition parties, change in
the climatic condition, analysis of the geographical condition, and others (LLveskoski, 2014).
The master plan should be developed for managing the environmental risks at top priority so
that the project can be completed effectively. The estimation of the routes for the excavation
process should be clearly done (Prasad, Reddy, Kumar, Reddy, 2012). The smallest route
should be chosen for the excavation process for setting down the gas pipeline between the
Nigeria and Algeria.
Cost and time overrunning estimation
The key performance indicators for measuring the efficiency and success and failure
parameters of the project are measuring the time and cost required for completing the project
activity schedule. The special criteria standard should be developed for mitigating the risks at
an early stage of the project. The project activities should be systematically visualized so that
the procedures can be laid down for allocation and transfer of risks between the different
stakeholders participating in the project development plan. The cost benefit ratio should be
calculated for analysing that the project is completing within the approved budget or not. The
overrunning of cost will requires the process of cost cutting and amending the cost program
systematically.
Long Term Stability
The Long term stability of the project can be achieved by managing the strong bonding
between the different countries which are participating in the setting down on pipelining
between the NNPC and Sonatrach. The agreement should be signed between the countries so

that the inflow and outflow of the cash should be systematically maintained for managing the
resources in the development program of the Trans-Saharan project. The coordination and
cooperation among the governmental bodies should be synchronised properly so that the
program of information flow can be effectively managed (Raz, Shenhar, and Dvir, 2011). The
political and legal affairs of the cross country program should be settled down by managing
meetings between the governmental authorities of the project development plan.
Coordination between the NNPC and Sonatrach:
The success of the project depends on the management of activities and resource flow so that
the pipelining project can be completed within the specified period of time and cost. The
privilege and focus should be given to the cross country issues and disputes among the
working parties. The legal agreement should be designed for minimizing the risks and
uncertainties associated with the working plan of the project (Upadhyay, Gupta, and Pandey,
2016). The delivery of oil and gas at the global level should be systematically planned by
identifying the smallest routes between the cross-countries. The potential risks associated
with the project should be reduced effectively by developing the proactive risks mitigation
plan for improving the working condition of the pipelining project.
9. Quality Concern
The dependency of the pipelining project is on the quality of physical and human resource
used in the project management program. The global market for managing the supply of oil
and gas should be studied so that the profitability of the project can be improved by
establishing good and healthy relationship with the cross-border countries (Vartianen, and
Pirhonen, 2014). The agreement should be signed with the contractor with the specification
of term and condition for providing good quality human and physical resources so that the
completion of the end product helps in meeting the criteria of the cross-country stakeholders.
The meetings should be organized for identifying and developing the quality standards
among the cross country governmental authorities.
10. Governance
The success measures and good governance of the project management program depends
upon the procedures used for minimizing the risks associated with the construction program.

The privilege should be given to the risks identification procedures so that the better control
on the quality, political control, and legal authorities of the project. The systematic
distribution of resources and responsibilities helps in improving the coordination among the
working parties of the project. The efficiency of the project depends on the risks allocation
and transfer process used in the development cycle of the Trans-Saharan project. The
monitoring of the supply chain management program and stakeholder engagement program
helps in increasing the successful completion of the project.
11. Conclusion
It can be concluded that the value gain of the project depends upon the risks allocation and
transfer process used in improving the quality of the end product and completing the project
within mentioned time and cost. The team management plan should be developed for
organizing the effective organization of the people, activities, and functional dependencies of
the project units. The consideration should be given on selection of the team members and the
division of role and responsibilities among the international business partner. The project
completion activities should be systematically organized for the project success. The study of
the historical construction program should be studied for the allocation of resources, cost, and
duration. The political risks and uncertainties associated with the project should be
systematically identified for resolving the conflict effectively. The focus should be given on
identifying the stakeholders from the public and private sectors for approaching the project
systematically. The communication should be effectively managed between the working units
of the international project.
12. Recommendation
It is recommended that the clear estimation of the following should be defined for the
successful completion of the Trans-Saharan project:
 Setting down of effective quality control and standards for the physical and human
resource used in the development of the project
 Managing stakeholder engagement program
 Communication between the cross-country
 Managing risks at an early stage of the project

 Involving governmental authorities for the distribution of responsibilities
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