Oil and gas project management and success: a critical evaluation of oil and gas project management success in Australia

2019 ◽  
Vol 59 (1) ◽  
pp. 82
Author(s):  
Cornelius Ikediashi ◽  
Bassam Bjeirmi
Keyword(s):  
Project Management ◽  
Oil And Gas ◽  
Critical Evaluation ◽  
Oil And Gas Industry ◽  
Pole Position ◽  
Project Delivery ◽  
Sources Of Information ◽  
Contributing Factors ◽  
Secondary Sources ◽  
Skills Shortages

Australia remains in pole position to become the world’s leading exporter of liquefied natural gas (LNG) and the number one exporter in the future. Maintaining this trajectory will require the oil and gas industry in Australia to remain competitive in project delivery to continue to attract investments. Yet, the Australian project delivery environment poses a big threat to this trajectory. Several research studies, organisations and institutions have come up with a long list of generic factors contributing to project management success and failure. The aim of this study is to examine oil and gas projects in Australia with a view to ascertain their success or otherwise and the specific contributing factors. This study has used a qualitative method of research by examining secondary sources of information on four recent Western Australia LNG projects (Gorgon, Wheatstone, Prelude and Ichthys) and presenting them as case studies. Specifically, the research has used mostly online sources that are either independent reports or information sourced from company websites. The key findings suggest that major oil and gas projects in Australia fail, and that failure or success is determined by the ability of the project management team to deliver the project on budget and on schedule. This is exemplified by the projects examined in this study, which have all shown cost and schedule overruns. Six critical factors are observed as contributing to cost and schedule overrun: project location, high cost of executing projects in Australia versus overseas, skills shortages, overseas manufacturing, project complexity and cultural and environment issues. Innovation, collaboration and standardisation, as adopted from other regions, are the initial practices suggested for the Australian industry to overcome all six factors and encourage further investment.

scholarly journals The Impact of Project Management Methodologies on Project Success: A Case Study of the Oil and Gas Industry

2019 ◽  
Vol 9 (2) ◽  
pp. 115-125 ◽  
Author(s):  
Hazem Abdulla ◽  
Mukhtar Al-Hashimi
Keyword(s):  
Project Management ◽  
Oil And Gas ◽  
Project Success ◽  
Oil And Gas Industry ◽  
Project Delivery ◽  
Success Rates ◽  
Structured Interviews ◽  
Gas Industry ◽  
Oil And Gas Firms ◽  
The Impact

Abstract Oil and gas industry is complex and competitive and its projects are characterized by their importance and complexity. To achieve sustainability, oil and gas firms have to initiate and complete projects to scope, schedule, cost and quality. Hence, efficient Project Management Methodologies (PMMs) play a crucial role in successful project delivery. A conceptual model, adopted from the literature, was used to assess the influence of PMMs on project success. Based on a questionnaire data from 95 project management practitioners within the oil and gas industry in the Kingdom of Bahrain, correlational and regression analyses were used to test the research hypotheses. The quantitative study was backed with 17 semi-structured interviews to obtain in-depth understanding about the organizational PMMs. The major finding of the study revealed that applied PMMs have higher influence on project success in comparison with comprehensive PMMs. The companies in the oil and gas industry in Bahrain need to pay sharper attention to their methodologies and get them evolved with time to achieve higher success rates.

scholarly journals Innovative activity of the leading companies in the oil and gas industry

2020 ◽  
Vol 12 (6) ◽  
Author(s):  
Evgenij Koptjaev
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Financial Statements ◽  
Innovative Activity ◽  
The European Union ◽  
Sources Of Information ◽  
Extensive Experience ◽  
Gas Industry ◽  
Secondary Sources ◽  
Utility Models

Modern oil and gas companies are complex businesses based on competition and the use of advanced experience, including technical. The collected data show the level of innovative activity of the leading companies in this area, and as a source the database of the European Union Patent Office is used, which allows you to get a complete picture of the type, number and distribution of patents for inventions by year in relation to the companies that have applied for them. Such data are as reliable as possible and are not subject to distortion, unlike secondary sources of information, as well as annual financial statements – on the basis of which a comparative assessment of the effectiveness of innovative activities of leading companies is made. The personal experience of the author of the article consists in filing more than 90 applications for inventions and utility models in Russia, which made it possible to estimate the basic costs of preparing and filing patent applications for various companies in the oil and gas industry. The analysis of the data obtained by the author of the article showed a wide spread in the volumes of annually obtained patents for inventions among the leading companies in the oil and gas industry. The activities of Occidental Petroleum stand out in particular, which receives up to 17,000 patents annually – significantly exceeding the achievements of all other companies combined. However, one should account for the exponential growth of patenting for the said company; it can be assumed that it has employees with extensive experience and a special policy of the management of this company. Comparison of these annual financial statements shows that there is no direct relationship between the volume of intangible assets and investments in their creation, thus the creation of a large pool of patents does not lead to a significant increase in capitalization or clear competitive advantages.

A conceptual model for project management of exploration and production in the oil and gas industry: The case of a Brazilian company

2013 ◽  
Vol 31 (4) ◽  
pp. 589-601 ◽  
Author(s):  
Jesus Leodaly Salazar-Aramayo ◽  
Roseane Rodrigues-da-Silveira ◽  
Mariana Rodrigues-de-Almeida ◽  
Tereza Neuma de Castro-Dantas
Keyword(s):  
Project Management ◽  
Conceptual Model ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Exploration And Production

Assessment of Conflict Management in Niger Delta and Implications for Sustainable Development of Oil and Gas in Nigeria

2021 ◽  
Author(s):  
Humphrey Otombosoba Oruwari
Keyword(s):  
Conflict Management ◽  
Niger Delta ◽  
Oil And Gas ◽  
Ecological Factors ◽  
Oil And Gas Industry ◽  
Negative Effects ◽  
Gas Industry ◽  
Secondary Sources ◽  
Positive Elements ◽  
Oil And Gas Companies

Abstract Nigerian oil and gas industry have over the years witnessed incessant conflicts between the stakeholders, particularly the host communities in Niger Delta region and the oil and gas companies in partnership with the Federal Government. Conflict which is here defined as manifestation of disagreement between individual and groups arising from differing and mutually incompatible interests has both positive and negative effects depending on how it was managed. Managing conflicts is all about limiting the negative aspects. The study examined conflicts management in Nigeria oil and gas industry and how best the positive elements of conflicts can be maximally exploited for the mutual benefit of both oil and gas company and the host communities in Niger Delta. The study adopted the multidisciplinary approach, literature review, case study and relied on secondary sources using analytical method of data analysis. The study findings revealed that the major factors that precipitate conflicts between the oil and gas industry and host communities in Niger Delta include economic, social, political, and ecological factors. There are available strategies that can be used in conflict management. These include avoiding, accommodating, or smoothing, competing, or forcing, compromising, and collaborating. Any of these strategies can be used to manage conflict depending on the situation, the environment factor, and the nature of the conflict. The problem is that the oil and gas companies in partnership with the Nigerian government often adopted the wrong approach in dealing with the conflict with host communities, using avoiding or forcing strategies. The study recommends collaboration strategy which ensues long term-term solution to mutual benefits.

The Impact of Project Management Methodologies on Project Success

2019 ◽  
pp. 418-437
Author(s):  
Hazem Abdulla ◽  
Mukhtar Alhashimi ◽  
Allam Mohammed Hamdan
Keyword(s):  
Project Management ◽  
Oil And Gas ◽  
Project Success ◽  
Qualitative Interviews ◽  
Oil And Gas Industry ◽  
Success Rates ◽  
Gas Industry ◽  
Survey Responses ◽  
The Impact ◽  
Over Time

This study assessed the impact of project management methodologies (PMMs) on project success in the oil and gas industry in the Kingdom of Bahrain. It also explored the different project methodologies used along with their strengths and weaknesses. Quantitative approach with the support of qualitative interviews was used to achieve the objectives of this research. A total of 95 survey responses were received and 17 interviews were conducted. Projects in the oil and gas industry are more about safety than speed, and hence, the use of comprehensive methodologies and applying the relevant methodology elements are important for oil and gas projects. Furthermore, the companies in the oil and gas industry in Bahrain have to pay more attention to their project management methodologies and get it evolved and improved over time to achieve higher project success rates.

The role of project management office in developing knowledge management infrastructure

2020 ◽  
Vol 27 (10) ◽  
pp. 3261-3287 ◽  
Author(s):  
Hani Arbabi ◽  
Mohammad-Javad Salehi-Taleshi ◽  
Kian Ghods
Keyword(s):  
Knowledge Management ◽  
Project Management ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Technical Support ◽  
Practice Management ◽  
Second Phase ◽  
Gas Industry ◽  
Content Type ◽  
The Relationship

PurposeKnowledge management (KM) is regarded as an essential factor in project-based organizations (PBOs), leading to organizational learning across projects. Over recent years, most PBOs have inserted project management offices (PMOs) into their hierarchical charts to manage their projects much more coherently. These offices can correspondingly provide KM facilities in PBOs. Thus, this study aimed to analyze the relationship between PMO functions and KM infrastructure, as KM enablers in organizations, in Iranian oil and gas upstream PBOs.Design/methodology/approachA two-phase quantitative survey strategy was exercised in this research. The first phase was to investigate the relationship between PMOs and KM infrastructure and to prioritize PMO functions and KM infrastructure based on their existing implementation/establishment status in Iranian oil and gas upstream PBOs. The research participants, identified through the website of the National Iran Oil Company (NIOC), were comprised of 46 oil and gas upstream PBOs which applied for exploration and production (E&P) certificate in Iran in 2016 and 2017. Accordingly, a total number of 46 questionnaires were submitted to the aforementioned companies with a return rate of 41 cases. The second phase was fulfilled questioning 19 Iranian oil and gas industry experts to determine the one-to-one effect of PMO functions on KM infrastructure and to verify the first-phase results.FindingsThe results indicated a strong relationship between PMO functions and KM infrastructure. This relationship was significant with regard to “practice management” and “technical support”, having the most considerable connections with KM infrastructure. According to the first-phase results, the main functions of PMOs in Iranian oil and gas industry were “practice management” and “technical support”. Considering KM infrastructure, “structure” showed the lowest mean value while “culture”, “human resources” and “processes and procedures” obtained the highest scores. The results also demonstrated that PMO functions could lead to more improvements in “processes and procedures”, as a sub-component of KM infrastructure, compared with other sub-components. Furthermore, the oil and gas industry experts believed that “organizational culture” in KM could be shaped by most of PMO functions.Originality/valueThis study fulfilled the need for exploring the relationship between PMO functions and KM since academic literature lacked a thorough investigation, to the best of authors' knowledge, pertaining to the effects of PMO functions on KM development in oil and gas PBOs.

EPCM contracting: clearing the minefield

2014 ◽  
Vol 54 (1) ◽  
pp. 231
Author(s):  
Julie Whitehead ◽  
Karen Walters
Keyword(s):  
Construction Management ◽  
Oil And Gas ◽  
Standard Form ◽  
Oil And Gas Industry ◽  
Project Delivery ◽  
Risk Allocation ◽  
Infrastructure Projects ◽  
Gas Industry ◽  
Optimum Performance ◽  
The Past

The past year has seen a downturn in the number of new mining and infrastructure projects in Australia. Despite that, the authors are noticing a continuation of the trend towards a greater use of engineering, procurement and construction management (EPCM) style contracting. The increased use of EPCM contracts is in part due to projects becoming larger and more complex. As these projects can only be delivered by multiple contractors who all seek to limit their liability, the EPCM contract offers a useful framework for coordinating and managing those contractors, and maximising the owner’s recourse to them. This is particularly so in the oil and gas industry, with many projects using this form of project delivery. As there is no standard-form EPCM contract, however, and given the complex technical nature of these types of projects, negotiating an EPCM contract can be fraught with danger, especially for owners who may not have used this style of contract before. This paper discusses the unique characteristics of the EPCM contract (particularly in contrast to the engineering, procurement and construction style contract), the typical risk allocation, and the creative use of compensation and incentive regimes to drive optimum performance. The EPCM model is not suited to all projects, but if it is appropriately negotiated and drafted, and is well managed by an appropriately skilled and resourced owner’s team, it can provide a platform for excellence in project delivery.

scholarly journals Economic Impact and Risk Assessment of Sand and Dust Storms (SDS) on the Oil and Gas Industry in Kuwait

2019 ◽  
Vol 11 (1) ◽  
pp. 200 ◽  
Author(s):  
Ali Al-Hemoud ◽  
Ali Al-Dousari ◽  
Raafat Misak ◽  
Mane Al-Sudairawi ◽  
Adil Naseeb ◽  
...  
Keyword(s):  
Risk Assessment ◽  
Project Management ◽  
Economic Impact ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Dust Storms ◽  
Economic Losses ◽  
Gas Industry ◽  
Sand Encroachment ◽  
Damaging Effects

There is a lack of published research on the economic effect and the risk associated with sand and dust storms (SDS) worldwide. The objectives of this study are to estimate the economic impact of SDS on the oil and gas industry in Kuwait, to estimate a risk index for each loss, and to recommend a sustainable system for the mitigation of the damaging effects and economic losses of infrastructures. Hot spots of wind erosion, wind corridors, and dust frequency and severity formed the basis to locate the most susceptible oil and gas fields and operations. Ten sectors with potential loss vulnerabilities were evaluated: exploration, drilling, production, gas, marine, soil remediation, project management, water handling, maintenance, and research and development. Sand encroachment, although not a sector per se, was also considered. The results indicate that sand, and to lesser extent dust, are damaging and costly to the oil and gas infrastructure of Kuwait, with an economic cost estimation of US$9.36 million, a total of 5159 nonproductive lost hours, and 347,310 m3 of annual sand removal. A risk assessment identified three sectors with the highest risk indices (RI): drilling (RI = 25), project management (RI = 20), and maintenance (RI = 16). Sand encroachment also constituted a high risk (RI = 25). Mitigation of sand storms using a hybrid biological–mechanical system was shown to be cost-effective with an equivalent saving of 4.6 years of sand encroachment. The hazard implications of sand storm events continue to be a major concern for policy-makers given their detrimental economic impacts, and require that government officials wisely allocate investment budgets to effectively control and mitigate their damaging effects.

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