In 2018, in partnership with BASF, the fifth edition of the conference will also feature a site-visit to the Ludwigshafen site, the world’s largest integrated chemical complex located in Germany.
Useful research papers, reports, expert interviews, presentations and best practices for managing downstream projects
The Downstream Project Management Awards are much more than just a trophy. Entering the awards could bring peer acknowledgement and marketing advantage to your company.
08:00 WORKING BREAKFAST FEED: DO IT NOW OR REGRET IT LATER.
‘The devil’s in the detail’ is a phrase of particular relevance for the pre-investment phase, including FEED and feasibility study. Seeking to save time or budget, project owners who may look to minimize or skip this stage run the risk of not only seeing a substantial cost increase but also of jeopardizing the project investment efficiency altogether. This disproportionate influence of the pre-investment phase thus makes it essential for the industry to implement initiatives aimed at efficiency improvements and cost reduction before FID.
How can project owners of today get things right before the basic design? What is the importance of the concept phase and why are the product basket optimization and market feasibility study so critical for the customer in the early stages? Why FEED is much more than an update of CAPEX and cost estimates.
The working breakfast starts before the Conference opens and the guests will enjoy continental breakfast a la Mediterranean while networking and discussing the agenda in an informal setting.
Author, “The Oil & Gas Engineering Guide” (Editions Technip)
09:00 OPENING OF THE CONFERENCE AND LIVE VOTE ON INDUSTRY DEVELOPMENT
09:10 KEYNOTE PRESENTATION. THE FUTURE OF PROJECT MANAGEMENT
• Market and mega trends in EPC business
• Cost burners and the hidden potential of “Industry 4.0”
• Learning from other industrial sectors
• Outlook to new business models for EPC
09:40 KEYNOTE. DIGITAL LIFECYCLE APPROACH ENABLING A NEW DOWNSTREAM CAPITAL PROJECT PARADIGM
• Weaknesses of current capital project approach
• Project business transformation is much more than simple digitization
• Digital Lifecycle continuity brings to new project management paradigm
• A platform to connect ET/IT/OT (Engineering Technology/Information Technology/Operational Technology)
Business Development and Consultant Director – Energy Process & Utilities
10:00 KEYNOTE. BASF
BASF technology provider partnership approach – step-change innovation through collaboration
Head of New Technologies & Licensing
11:30 PROJECT MANAGEMENT PRACTICES. WHAT HAVE WE LEARNT?
With major projects just recently launched, lots of companies have already faced significant delays and budget overruns, let alone region-specific difficulties stemming from the nature of projects and common challenges in the industry. Extensive upgrades and construction are under way, and businesses and production sites have still a long way to go. Moving along this path requires thorough preparations, including learning from those who already walked this way and faced the inherent risks and challenges.
How to ensure capital projects stay on time and on budget: Best practices that drive project competitiveness and predictability
Project Analyst Project
Independent Project Analysis (IPA)
Case study: Practical experience in implementing major oil refining projects in Russia
Head of the Engineering Department, Large Projects Directorate (BLPS)
Case study: Managing the EPC project for the construction of offsite facilities at Omsk Refinery
SPECIAL PRESENTATION: EPC project delays. The common root cause and what to do about it
• Large delays on EPC projects: case-studies
• Understand the Engineering Development prerequisites
• What to do to secure timely Engineering development
The Oil & Gas Engineering Guide (Editions Technip)
14:15 BOOSTING THE EFFICIENCY OF CAPITAL PROJECTS. FASTER. CHEAPER. BETTER
Today’s projects are larger, more specialized and are implemented much faster than before. Outdated project implementation strategies are transformed thanks to automation, digital technologies and cutting-edge engineering. And yet, despite the obvious benefits of the latest technology in capital projects implementation, lots of majors are frightened by global innovation, as it would mean altering their established processes. What technology and solutions will immediately enable customers to implement their capital projects faster and more efficiently?
Digitally enabled synergies: the new source of value for the ethylene business
EMEA Petrochemicals – Business Development
Contract Management System for capital intensive projects and organizations
Business Development Director
Best practices and challenges in managing large-scale capital projects
Head of Moscow Branch
Digital Lifecycle approach
Business Development and Consultant Director – Energy Process & Utilities
The future of project management: how to increase the value for your CAPEX project
Senior Manager – Configuration & Process Consultancy
16:30 ROUND-TABLE BRAINSTORMING: HOW TO INCREASE THE ODDS THAT YOUR CAPITAL PROJECT DELIVERS THE INTENDED OUTCOMES?
There is much room for improvement in CAPEX performance in the downstream industry both in Europe and the CIS region. In fact, the statistics show that on average one out of two projects is behind schedule, and two out of three are over budget. Those businesses that are willing to make an objective assessment of their strategy and internal practices stand a much higher chance of overcoming these difficulties. With the price of failure extremely high, what strategies can help project owners in Europe and the CIS to achieve the intended effect?
The format of the discussion involves all participants in a vibrant debate, exchange of ideas and brainstorming in an informal setting in order to identify the diversity of perspectives and come up with a shared view of the matter. After the discussion the speaker from each round table is expected to present their findings to the audience.
Chair: Vitaly Protasov, Director for Prospective Development, Baltic Gas Chemical Company
Valentina Kolodinskaya, Project Director, Uralchem
Rafael Safarov, Chief Engineer, Kazanorgsintez
Alexander Babynin, General Director, Orgneftehim Holding
Sergey Fedorenko, Commercial Director, Ukrgazvydobuvannya
Artem Gerasimenko, Deputy Head of Directorate for Technology and Development, Naftan
17:30 Summarizing the discussion and comparing the results of the two teams
18:00 END OF CONFERENCE DAY ONE
19:00 GALA-EVENING AND AWARDS CEREMONY
Downstream Project Management Awards Ceremony will take place during Gala Dinner at Frankfurt’s historic ‘Kameha Suite’. The Awards will honour project management excellence and earn professional recognition by nominating the best professionals, organisations, and projects in the refining & petrochemical sectors. Learn more
09:00 CONTRACT STRATEGY: RISKS VS COST
For implementation of an investment project it is essential to define in the early stages such a contract strategy that can help implement the project as fast as possible, with the lowest possible costs and most efficient risk management. One should bear in mind that there is no one-size-fits-all strategy of sourcing EPC contractors. In building a contract strategy the timeline, costs and risks must be assessed collectively for each particular project, taking into account, to name but a few, the customer’s implementation capability, sources of funding, and conditions in the contractual services market. How can the customer analyse and address these factors properly?
Case study: Upgrade programme of the refining facilities in NIS (Serbia). Delayed coker construction project
- What should be the role of the customer while contracting?
- What are the common mistakes of project participants and can they be avoided?
- What are the risks that materialize most often in capital projects implementation? What needs to be done to avert such risks?
- Can early prevention drastically reduce the number of disputes between the contractor and the customer?
- What is the stance of banks and other financial institutions on various contract structures? When is the multicontractual approach possible for projects that are implemented through project financing practices?
- Will the risk of cost increase be always borne by the EPC contractor?
SCENARIO-BASED PRACTICAL EXERCISE: Contract strategy development assignment with case studies and live vote
Chair: Oksana Koerner, Senior Associate, Herbert Smith Freehills CIS
Igor Panchenko, First Deputy Director for Gas Processing, Ukrgazvydobuvannya
Oleg Kostin, General Director, NIIK
Mikhail Smirnov, General Director, OMZ Engineering
Konstantin Budzovich, Executive Director – Banking Support Department, Gazprombank
Airat Shakirov, Deputy General Director for Capital Construction, Irkutsk Oil Company
10:45 LEADERSHIP, MENTALITY AND MOTIVATION
Most studies into the root causes of major capital projects failure are focussed on drawbacks in project management processes, standards, systems, tools, and technical expertise. Leadership, management, culture and motivation in project teams are considered far less often. And yet, the so-called ‘soft skills’ (mentality and culture) are becoming increasingly important for the competitive edge — both in companies, and large capital projects. A concerted effort is required to change the set of values and behaviours throughout the business. If one thing is certain, it is that the success of the project is driven by the motivation of the team and the flexibility of decision-making in the company.
Special study presentation: The art of project management: How to properly lead multibillion capital projects
McKinsey & Co
- What are the most common ‘mortal sins’ of project management in Europe and the CIS?
- How can an atmosphere of trust between the contractor and the customer be created? How can ‘we win or lose together’ thinking be instilled?
- How can project motivation schemes improve the overall planning quality?
- How can a competent project team with the right combination of leadership, cultural and local awareness of the project challenges be built?
Viktor Semeno, Head of Capital Investments, Gazprom Neft
Alexander Andreev, Head of Project Management, KAO AZOT
Sergey Pozdnyakov, Deputy Head of Directorate for Investment Projects, Naftan
Claus-Peter Haelsig, Vice President Process & Technology, FLUOR
13:00 TECHNICAL SITE VISIT TO LUDWIGSHAFEN, BASF HEADQUARTERS AND THE WORLD'S LARGEST CHEMICAL COMPLEX
Vice President, Head Russia & CIS
BASF Visitors Centre, which includes an exhibition area of more than 2000 m2
A tour to the key production facilities of the complex Steam Cracker Model (1:33) and Control Rooms for Steam Cracker I and Steam Cracker II
Waste Water Treatment Plant and Sewage Sludge Incineration Plant
The Intermodal Transport Terminal