MPM7007: Reflective Report on Trans-Saharan Pipeline Project

This reflective report examines the Trans-Saharan Mega Pipeline project, focusing on the application of complex project management principles. It analyzes the project's background, including its initiation in 2002 and anticipated completion in 2021. The report evaluates the project based on project and program management principles, organizational and commercial environments, stakeholder priorities, and the impact of optimum bias and strategic risks. It explores complexities in phase-by-phase management, supply chain management, governance, and change management. The report also highlights lessons learned and gaps, along with the benefits and value management of the project, and sustainability aspects. The report provides insights into the project's challenges and successes, offering a comprehensive overview of the project's lifecycle and management strategies. The report is a case study applying mega and complex project management principles and domains.

Running head: MANAGEMENT OF MEGA AND COMPLEX PROJECT
Management of Mega and Complex Project
Name of Student
Name of University
Author Note

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Executive Summary
The reflective report aims in discussing the implementation of Tran Saharan Mega pipeline
project. The idea of the pipeline project initiated in the year 2012 and is yet to be finished. The
completion of this Mega project is anticipated in the year 2021. A reflective report is prepared,
which analyses the chosen case on the basis of certain pre-set criteria. The case is evaluated on
the basis of the principles of management of project and programme principles linked with the
management of a project. The report discusses the optimum bias and the strategic risks linked
with the project. At the end of the report, the lesson learnt from the project is identified along
with the benefits of the project. The reflective report provides the readers with a detailed idea of
the chosen project.

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Table of Contents
Introduction..........................................................................................................................3
1. Project Management and Programme Management........................................................4
2. Complex Business, Organisational and Commercial Environment................................5
3. Multiple Stakeholders priorities and complexities..........................................................6
4. Optimum Bias..................................................................................................................7
5. Strategic Misrepresentation of the inherent benefit and value of this Mega Project.......8
6. Complexities in Phase by Phase Management – Whole Life Cycle Approach...............9
7. Supply Chain Management (Strategic Procurement and Strategic Purchasing)...........11
8. Strategic Risk Management...........................................................................................11
9. Governance....................................................................................................................12
10. Cost/Time Control Practices........................................................................................13
11. Change Management...................................................................................................13
12. Lessons Learnt and Lessons yet to be learnt...............................................................13
13. Gaps Analysis..............................................................................................................14
14. Benefits and Value Management.................................................................................14
15. Sustainability...............................................................................................................14
Conclusion.........................................................................................................................14
References..........................................................................................................................17

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Reflective Report
Introduction
The reflective report is based on discussing the chosen scenario related to Trans-Saharan
Mega Project. The reflective report is based on the application of complex project management
principles in the evaluation of the undertaken project. The Tans-Saharan pipeline project aims in
the integration of the economies of the region (Conan, 2011). The project is focused on Nigeria,
Niger and Algeria. The pipeline will be set from Warri, Nigeria to Hassi R’Mel, Algeria. The
pipeline will be initiated from the Warri region in Nigeria and will propagate north along Niger
to Algeria. The idea of this particular project started in the 1970s, while in January 2002, the
memorandum linked with the project was signed between the NNPC and Algerian National Oil
and Gas Company. The agreement for the draft memorandum was signed in the year 2009.
This natural gas project will provide an capacity to 30 billion cubic metrics of natural gas,
annually (Smith, 2013). Each pipeline would have a diameter of 48 to 56 inches. The pipeline
was expected to be completed in the year 2015. NNPC and Sonatrach is in charge of building
and operation of this huge pipeline. The project is subsequently important as for the country as
Nigeria is considered to be the largest oil producer in Africa. Although the country produces a
large volume of oil, the oil production of Nigeria is largely hampered by the instability and the
supply disruption it faces, which implements this project justified.
The report will be evaluated on the basis of the project management and program
management principles related to such complex projects (Darbouche, 2012). The reflective
report further identifies and interprets the complex organizational and commercial business
environment linked with the execution of this pipeline project. The report further discusses the

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priorities of the multiple stakeholders and the complexities that they might face while making a
deal with the government and the private entities (Conan, 2011). The report further evaluates the
optimum bias linked with the execution of the pipeline project. The schedule of the pipeline
project was unrealistic, and the project was thought to be completed within 2015. The report will
further be discussing the strategic risk management linked with the project, along with the
governance framework (Schritt and Behrends, 2018). The reflective report further reflects on the
Gap analysis of the benefits that the project could have gained with effective value management.
1. Project Management and Programme Management
In the management of the mega project such as that of the Trans-Saharan project, which
is complex as well, it is necessary to understand the project management and programme
management framework. Implementation of an effective programme management approach can
enable better management of the projects. An effective project management framework generally
involves the management of all the individual operations on which the project is based (Bilgin,
2011). A project manager and the program manager is linked with effective management and the
execution of the project. As per the project and programme management approach, a formal
project plan was developed at the beginning of the project. For this $12 billion pipeline project,
Nigeria signed a treaty with Niger and Algeria in 2009 (Meibodi and Ali, 2010). After signing
the treaty, as a part of program management, a budget of $400 million was approved for the
commencement of the project. Prior to signing the treaty of the project, the feasibility study of
the project was performed in the year 2006 (Conan, 2011). Therefore, it can be said that the
project was planned effectively and a lot of time was dedicated to planning and designing the
structure of the project (Odumugbo, 2010.). The project planning and the feasibility study could
identify several concerns linked with the project, one of which is safety concerns. The safety

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concerns in the project have heightened mainly as an impact of the recent Amenas hostage crisis,
linked with the project. The analysts predicted that the cost that has been estimated for the
project could increase as a result of the Amenas hostage crisis. However, it is also identified that
there are certain active terrorist movements that can destabilize the movement.
Therefore, it is commented that Trans-Saharan desert project has followed an effective
project planning and documentation. The project management team include the Republic of
Niger. However, as one of the major aspects of the program management framework that helped
in planning the approach of project implementation is that it helped in settling the opposition to
the pipeline (Meibodi and Ali, 2010). The program management approach further includes
finding and acknowledging notable funding sources that contributed to the project success.
However, the project is needed to handle the huge corruption linked with the energy sector of
Nigeria to complete the project within the set budget (Conan, 2011). As an initiation of the
project, a memorandum of Understanding or MOU was signed in the year 2002 for a gas pipeline
of 4,000 km.
2. Complex Business, Organisational and Commercial Environment
A project plan is made for this project considering the complex business, organizational
and commercial environment. The complex nature of this project has significantly increased due
to the geographical location and the length of the tunnel (Meibodi and Ali, 2010). The tunnel
aims in connecting Nigeria and Algeria. The tunneling system that is being developed includes
30 billion cubic meters of the natural gas. It is necessary to understand the complexity of the
business to access the issues lined with organizational and commercial environment. The Trans
Saharan gas project is largest in Europe and the Middle East.

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The complexity of the Trans Saharan dessert is linked with the schedule of the project.
The project was set to complete in the year 2015. The project has several commercial benefits as
well. The Trans Saharan desert project was proposed to make a natural gas transfer process
smoother (Economides and Wood, 2009). This project has significant commercial benefits,
particularly because Africa is considered to be a hub of production of liquefied petroleum gas,
crude oil and other petroleum products (Kandiyoti, 2012). The commercial benefits lie in the fact
that several international companies are showing an active interest in investing in the oil and gas
projects of Africa (Meibodi and Ali, 2010). The list of investors who are showing growing
interest in this particular project includes BP, Italy Eni, France, Baker Huges and others.
Therefore, it is quite feasible to implement this project as the project has several financial
benefits (Conan, 2011). However, the project is complex and therefore, should be subjected to
detailed planning linked with project implementation.
3. Multiple Stakeholders priorities and complexities
From the Tran-Saharan case study report, it has been observed that the project has faced
several complexities linked with the prioritization of the major stakeholders of the project. Since
this is a complex and a large project, several stakeholders were involved from the initiation to the
start of project execution. Therefore, several operational issues were inevitable in the
implementation of the project (Kandiyoti, 2012). Several complexities were faced in the
execution of the Tran-Saharan project, particularly in management of the priorities and the
complexities (Bilgin, 2011). The project team faced several challenges in management of the
government and the private entities. The Government of Nigeria is one of the most important
stakeholder of the project and this particular stakeholder has committed to USD 400 million
during the commencement of the project. The management of this stakeholder is prioritized,

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particularly as the government provided the needed help with the funding of the Tran-Saharan
project resources. An additional USD450 million was collected through the EURO bonds in the
year 2014 (Meibodi and Ali, 2010). Therefore, the government of Nigeria is considered to be one
of the most prioritized stakeholder of this project. Along with that, the other major stakeholders
linked with the project include the partners Sonatrach and NNPC government. Keeping all the
stakeholders linked with the project is a major challenge (Reymond, 2007). It is necessary to
understand the importance of the major stakeholders linked with the project so that the
management of those stakeholders in the project can be prioritized. Apart from that, the project
showcased certain major African backers as well (Conan, 2011). It is necessary to identify the
major stakeholders linked with the project to prioritize them. Another significant stakeholder
linked with the project includes President Goodluck Jonathan.
Difficulties were faced in the management of all these stakeholders of the project.
However, with appropriate enforcement of the various project management skills, it is possible
to manage all the stakeholders linked with the project (Kandiyoti, 2012). Stakeholders
management is one of the key issues linked with project management, and therefore, effective
planning is needed to address the same.
4. Optimum Bias
One of the most significant challenges associated with the execution and management of
any project is the creation of the achievable and baseline schedule so that a particular project can
achieve success. Similar to other expectations can be set in a project, which might be achievable
or might not be achievable (Kandiyoti, 2012). Optimum bias in a project is generally associated
with setting up unrealistic expectations. There is certain optimum bias linked with this pipeline

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project as well. However, one of the most significant optimum bias in this project is project
scheduling. The entire project was set to be completed in the year 2015, which is achievable.
Project optimism can significantly help in achieving the success in a project (Tubb, 2010.).
However, setting up unrealistic expectations in the project can result in project failure. Similar is
the case for the Trans-Saharan pipeline project. The project was scheduled to complete in the
year 2015. However, this project could not be completed in the year 2015, and therefore, the
unrealistic schedule associated with the project is considered to be the optimum bias of the
project.
A realistic schedule for the project was needed to be set that could have helped in saving
a significant amount of project resources (Kandiyoti, 2012. However, it was quite difficult for
the project manager to estimate this project accurately, considering the complexities and the size
of the project. The project is not rescheduled to be delivered within the year 2021. There has
been a significant delay in the execution of this pipeline project, considering the initial estimate
that has been considered for the project (Darbouche, 2012). Therefore, the optimum bias that is
linked with the project of implementation of the Trans-Saharan pipeline is the schedule of the
project.
5. Strategic Misrepresentation of the inherent benefit and value of this Mega Project
It is necessary to reflect on the strategic misinterpretation of the inherent advantages and
benefits that is linked with the project (Conan, 2011). It is necessary for a project team to
understand the strategic misinterpretation and the inherent benefit linked with the execution of
this mega project. One of the most basic misinterpretation that is linked with this mega project is
that an unrealistic schedule has been set for the project (Meibodi and Ali, 2010). The project was

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proposed to be completed in 2015 with the delivery of an operational pipeline by this year
(Offenberg, 2016). However, this estimation was unrealistic, and it was completely impossible to
deliver a functional pipeline within 2015. The project was later rescheduled, and it is set to be
delivered in the year 2021.
Although there was certain misinterpretation linked with the schedule estimate of the
project, there was no such strategic misinterpretation regarding the benefit of the project. The
issues linked with the transfer of oil from Nigeria could be subsequently reduced by
implementing the project (Kandiyoti, 2012). The pipeline starts from the Warri region in Nigeria
and is set to connect the Trans-Mediterranean, Maghreb–Europe, Medgaz and Galsi pipelines.
With the completion of the Tran-Saharan project, the pipeline will have an annual capacity of
almost 30 billion cubic meters of natural gas and will have a diameter of 48 to 56 inches. Since
the with partnership of NNPC and Sonatrach, the projetc is management, the Republic of Niger
is involved with the project. As per the value of the project, total 90% of the shares is dedicated
to Sonatrach, while that of the 90% of the share is given to Niger. This project has a large
financial benefit, particularly because Nigeria is one the largest exporter of oil in Africa. With
the implementation of this project, it is possible to transfer gas natural gas to different parts of
the country (Meibodi and Ali, 2010). The project is of high economic value as Nigeria proves to
have a natural gas reserve which is second largest in the world (Bosse, 2011). The mega project
has a large value and importance and therefore, this project is considered to be a high priority
project. The Nigerian government is committed to the fulfilment of the project mainly because of
the economic benefits it shares. However, it is necessary to understand the strategic
misinterpretation linked with the project to understand the implementation process linked with
the execution of the project.

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6. Complexities in Phase by Phase Management
The large project is often seemed to be managed in an approach that is managed phase by
phase. However, there are certain complexities associated with the phase by phase management
of the project. The Trans Saharan project is an important project and is a complex project as
well. Managing this project in a phase by phase approach, increases the complexities (Meibodi
and Ali, 2010). Therefore, it is necessary to understand the project implementation approach that
can significantly help in reducing the risk and issues linked with the project. The complexities
faced in the management of this project in a phase by phase approach, are needed to be addressed
to ascertain that the project is finished in a successful manner.
This particular project has faced a number of operational issues, one of which was the
scheduling issues. It has been a challenge to execute a project in an effective manner, mainly
because certain budget issues are also faced (Fujishima, 2009). The project was quite complex,
and therefore, it is necessary to secure the funding and the budget of the project. Although the
project had some African backers, a number of difficulties were faced in securing the funding for
the project (Kandiyoti, 2012). Nigeria mobilized $700 million budget for the project. The
Nigerian government could arrange a budget of $450 million in Eurobonds and has additional
direct equity. The project lifecycle is associated with the planning and executing the project in a
planned manner. The entire project is divided into a number of phases which can help in project
execution in a successful manner (Meibodi and Ali, 2010). The gas pipeline Trans-Saharan
project is a project of high complexity and therefore, effective segregation of a number of
phases. This project is divided into a number of phases. At first, the feasibility of the project is
conducted, and after that, the project plan is developed.

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Following an effective life cycle approach helps in the execution of a project in a
structured manner. A lifecycle approach in a project can help in better management of the
project choices. However, more detailed planning of this project was required in order to
ascertain that the schedule delays in the project could be managed.
7. Supply Chain Management
The current pipeline Trans-Saharan project is associated with deploying a pipeline to
transfer the natural gas from Nigeria to Algeria (Kandiyoti, 2012). This is one of the crucial
projects in Africa as Africa is known to be the largest natural gas producer of the world. Right
after signing a memorandum of understanding, which was betwwenNigeria and Algeria, the
procurement and the strategic purchasing process were followed in a planned manner (Meibodi
and Ali, 2010). There was considerations, related to supply chain management as the project is
mainly based on the implementation of pipeline. This project is considered to be the world’s
largest, and the most expensive energy export project and therefore, effective management of
this project was necessary. However, the project had the support of the Nigerian government.
8. Strategic Risk Management
Every project is associated with a certain level of uncertainties. Therefore, effective
management of the major risks related to the project is necessary to asceryain that the project is
implemented in an effective manner. The Trans Saharan mega project is a complex project that is
linked with a certain amount of risks. The project report suggests that the schedule risk linked
with the project was not managed in an effective manner, which led to a significant project.
Another significant risk on which the project is exposed to include the terrorism risk. The
terrorism risk has significantly impacted the Trans Saharan gas pipeline project. This project is