Management of Major Offshore Projects An Industry Challenge

Abstract

Summary Faced with the urgency to create new energy supplies and the increasing complexity and size of offshore projects, our industry's objective and challenge must projects, our industry's objective and challenge must be the timely development and efficient use of manpower, equipment, and other resources required to bring new production onstream. This paper reviews project execution planning and organization and project management policies and practices. Competitive bidding, preference for fixed-price contracts, ethical conduct, and fairness doctrine are cited. Suggested steps during project execution are early formation of a project team involving operations and maintenance personnel, inclusive work planning and scheduling for optimal use of resources, clear definition of company vs. contracted work, sound contracting and procurement strategies, careful selection of contractors, adequate project and control procedures, and quality assurance and safety programs for all project phases. Industry trends in programs for all project phases. Industry trends in single-responsibility vs. multiple contracts, project services contracts, and risk-sharing also are highlighted. Introduction This paper examines principal project management issues and actions involved in the project execution planning and project execution for the design and planning and project execution for the design and construction phase of a major offshore development. This study considers how our tremendous but finite manpower may be used more efficiently. While written primarily from the standpoint of an owner- operator, the concerns of consultants, vendors, and contractors also are recognized. Policies and practices which tend to motivate all personnel practices which tend to motivate all personnel associated with a project provide the best opportunity for individual and total project success. Given the diversity of concepts and vocabulary used to discuss project management, it is helpful to define the principal terms used in this paper. Fig. 1 shows the basic sequence of events from discovery to start of production: evaluation, definition, design, construction, and operations. During the evaluation phase, screening and feasibility studies determine whether the project is viable; a decision is made to proceed. During the definition phase, an optimum-development scheme is selected from alternatives, and conceptual or preliminary designs are carried out. The result of preliminary designs are carried out. The result of these technical efforts is a development plan or design basis. Budget approval usually occurs sometime late in the definition phase. Publication of the design basis marks transition to the design-and-construction or project phase. Project execution planning begins during earlier phases and culminates in the publication of a project execution plan. Spudding of the first well and production plan. Spudding of the first well and production startup marks the transition from the project to the operations phase. Throughout the paper "owner" refers to the operating organization charged with management responsibility for the project. Project Execution Planning Project Execution Planning Studies in the mid- and late 1970's of many major oil and gas development projects showed that inadequate planning during the formative stages of projects was a common cause of cost and schedule projects was a common cause of cost and schedule overruns and waste of manpower and equipment resources. JPT P. 585