1

number Stakeholder Type Stakeholder Name

local communities syberian people

ngo UNIESCO

buyer chinaseller russiaother companies competitors government organization government

2

3

4

Stakeholder Register-Altai Pipeline ProjectInterests Attitude

negative

negative

negativeestablish pipelines from russia through syberia positiveto provide china with more competitive prices for the gas negativeto protect the local people, the natural heritage neutral

preservation of natural heritage and protection of local community living

preservation of natural heritage and protection of local community living

getting gas at minimum prices and get the pipeline through the east cost

5

6

7

Sensitivity Power Strategy

high medium get them engaged, ask them for possible alternatives

medium medium collaborate and come up with a plan to protect the natural resources

medium high we should get china engaged. inform them about developments. high high inform others about future developments low low no actionmedium medium consultation with the government is very important and to get them engaged.

8

9

10

get them engaged, ask them for possible alternatives Stakeholder Type

collaborate and come up with a plan to protect the natural resources

we should get china engaged. inform them about developments.

consultation with the government is very important and to get them engaged.

Stakeholder Attitude

PositiveNegativeNeutral

Sensitivity and Power

LowMediumHigh

Strategy Options

Protect and DefendHigh Risk: Get them engagedIncludeCollaborateConsultMonitor and InformInformNo Action

11

12

13

Project Phase

Identify/acquire people and environment

Explore/Appraise people and environment

Alternative selection environment

Alternative Development people, environment and assets

Execute

Operate people, environment and assets

Decommission asset and reputation

People, Environment, Asset, Reputation?

People, environment, asset and reputation

14

15

Issue Description Opportunity/Threat

opportunity

threat

threat

opportunity

threat

possible explosions, leakage, negative press, demonstrat

threat

threat

The initial identification itself will show the potential threats to the environment and damage to the current heritage which is

frozen under layers of ice

the local community will be resistant to the changes in their local habitat

the pipeline can avoid the syberian region and take the east cost route to avoid destroying the natural resources

the pipeline can be connected to possible european countries’ already established network of pipelines to increase leverage

people will oppose the whole project and possible demonstration, possible environment destruction and asset buiilding as the pipelines are played down, the reputation

maybe damaged due to faulty planning

damage to reputation of the Russian government and loss of billions of dollars worth of assets

16

17

Execution Phase Schedule Risk Register

Risk Title Risk

1

gas leakage

threat

high high high high

2

earthquake

threat

medium medium medium medium

3

human intervention

threat

medium medium high high

4

natural calamities

threat

medium high high high

Tracking Number

Threat or Opportunity?

Risk Description (Impact on Project)

Risk Breakdown

Category

Likelihood

Consequence

damage of asset, loss of life and damage to reputation

the local population may damage the assets and destroy the pipeline in protest

natural disasters may damage the assets

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

Mitigation (Action) Due DateOwner Assigned

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

Categories for Risk Breakdown Structure (RBS)

RBS Categories RBS Descriptions

PROJECT OBJECTIVES

Objective Description Target 1 Target 2 Target 3 Target 4

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Risk Input Validation Checklist

1. Does everyone agree that this is a current or future risk (as opposed to expired or mitigated)?2. Does the risk have a crisp title and a snappy description?3. Does the risk description start with an impact and include a driver?4. Does the risk description isolate only one driver?5. From the description, can criticality be readily assessed?6. Can specific actions be assigned, and their subsequent risk reduction be determined?7. Is there an owner assigned to further assess as required and respond to this risk?8. Is there a time frame for the action to be taken by the risk owner?

Source Risk Information Sources

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Categories for Risk Breakdown Structure (RBS) PROJECT PHASE

PROJECT OBJECTIVES

Target 5 Target 6

Activity Group

Activity Descriptions

54

Risk Input Validation Checklist

55

PROJECT PHASE Consequence Risk Assessment Criteria Symbol

Identify/Acquire VHExplore/Appraise HAlternative Selection MAlternative Development LExecute VLOperate Decommission

Consequence Risk Assessment Criteria Symbol

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Consequence Risk Assessment Criteria Symbol

ExampleVH Cost Impact >50MM$, schedule delay of > 6 months VH Very HighH Cost Impact 25-50MM$, schedule delay of 3-6 months H HighM Cost Impact 10-25MM$, schedule delay of 1-3 months M MediumL Cost impact 5-10 MM$, schedule delay of 2-4 weeks L LowVL Cost Impact <5MM$, schedule delay of <2 weeks VL Very LowNot specified

R Risk Any event, which, if it happens could have a negative or positive impact on one or more of the project objectivesU Uncertainty An event without an identified impact or consequence T Threat An untreated risk with a negative impact on the objectives of the project or phase of the projectO Opportunity An untreated risk with a positive impact on the objectives of the project or phase of the projectM Mitigated An event that has been treated, but that some residual risk may remain

Consequence Risk Assessment Criteria

Likelihood Risk Assessment Criteria Symbol

Likelihood Risk Assessment Criteria

Uncertainty, Threat or Opportunity?

58

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Consequence Risk Assessment Criteria Symbol

Percentage Description>80% Occurs frequently on our assets50-80% Has happened in Central Asia, occurs frequently 20%-50% Has happened in CNPC, sometimes occurs5-20% Has happened in Pipeline industry, rarely occurs in projects0-5% Insignificant. Almost never occurs

Any event, which, if it happens could have a negative or positive impact on one or more of the project objectives

An untreated risk with a negative impact on the objectives of the project or phase of the projectAn untreated risk with a positive impact on the objectives of the project or phase of the projectAn event that has been treated, but that some residual risk may remain

60