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16 Project Management in The Oil and Gas Industry

This document discusses project management in the oil and gas industry. It emphasizes the importance of coordination between engineering disciplines during projects. Good relationships and regular meetings between managers from different departments, like civil and mechanical engineering, can lead to better work outcomes. Quality assurance systems can help organize work by defining everyone's roles and responsibilities, as well as the project's goals. Any changes to drawings should go through an agreed review process to control project timelines and avoid errors.

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101 views2 pages

16 Project Management in The Oil and Gas Industry

This document discusses project management in the oil and gas industry. It emphasizes the importance of coordination between engineering disciplines during projects. Good relationships and regular meetings between managers from different departments, like civil and mechanical engineering, can lead to better work outcomes. Quality assurance systems can help organize work by defining everyone's roles and responsibilities, as well as the project's goals. Any changes to drawings should go through an agreed review process to control project timelines and avoid errors.

Uploaded by

hapinefe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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16 Project Management in the Oil and Gas Industry

In this phase, there will be a large number of engineering hours, so it


is necessary to have good coordination between the different disciplines.
Changes might occur in the cooperation between departments and,
therefore, vary depending on the performance of the work of managers.
The system of quality assurance is a benefit as it provides us with the basic
functioning of all departments, despite any change in personnel. These
problems often occur at the stage of the study that requires the coopera-
tion of extensive, vital, and influential team members among the various
departments of engineering such as civil, architectural, mechanical, and
electrical departments.
For example, when the managers of the Department of Civil and
Mechanical Engineering have a strong relationship and there are regular
meetings, good work will come from it and the meetings and correspon-
dence will be fruitful.
You can easily determine whether your business might benefit from
the quality assurance systems or not by taking a closer look at past expe-
riences (and this method has been described in the book by Richard
German).
When you discuss with the team and you find that the goals and expec-
tations are not clear between colleagues, then you should ask yourself if
the majority of problems can be avoided if individuals committed to work
through pre-agreed measures. All colleagues should fully and clearly know
their role.
The system of quality assurance in this stage is important as it organizes
the work, everyone knows the target of the project, and everyone’s respon-
sibility in the project is clear. The concept of quality is defined with a sup-
ported document.
The documents are regarded as the executive arm of the process of the
application of quality. Therefore, any amendment or correction in the
drawings should go through the procedure and agreed system.
The drawings should be sent in a specified time to the client for review
and discussion through an official transmittal letter to control the process
time. Any comments or inquiries should be discussed and made through
agreement between the two technical parties, then the modification will
be made by the engineering firm and resent to the client through the same
communication procedure.
Through the development of a particular system, to avoid other cop-
ies of the drawings, so as not to confuse with them and to avoid human
error, through control, the documents register and should have the date of
the drawings, engineering review dates, and continued monitoring in the
document cycle until it reaches the final stage of the project. Finally, the
80 Project Management in the Oil and Gas Industry

s2
RAV m (2.42)
2B
where m equals the mean NPV, s2 =equals the standard deviation of distri-
bution, and B equals total monies budgeted for risky investments.
RAV, under this format, can be based on information typically gener-
ated in the evaluation. RAV also depends on the estimated value relative
to the dispersion of the NPV outcome. More importantly, high dispersion
projects may be ranked above projects with lower standard deviation if the
dispersion relative to the budget is low. RAV depends on two basic rela-
tionships: m relative to s2 and s2 relative to B.
If the mean value of NPV that was calculated from the Monte-Carlo
simulation is equal to ten million dollars, then a standard deviation illus-
trates the dominance of the dispersion term, since $10 – (15)2 will be a very
negative value. Now, suppose that the investor is a large oil company with
a budget of $1,000 million. The RAV of the project is
225
RAV 10 $9.9million.
2 1000
For a smaller investor with a budget of only $200 million, RAV becomes
225
RAV 10 $9.4million.
2 200
The breakeven RAV value for B is found by solving
s2 225
RAV (breakeven) 11.25.
2 m 2 10
We are not aware of anyone presently ranking on RAV, although more
people are discussing it. Like other ideas portrayed in this book, we believe
it should be included as part of the evaluation for a period of time. If RAV
aids in decision-making, then include it permanently.

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