Uncertainty and Risk Management Plans are Critical for Team Alignment and Better Decision Quality

Abstract

Abstract The Uncertainty Management Plan (UMP) and Risk Management Plan (RMP) processes are an integral component of Reservoir Management and Project Management at Chevron. The UMP and RMP are key to safely deliver and improve the movement of Resources to Reserves to Production (R2R2P) and the maturation of Organic Resource Opportunities (ORO) in a timely and economical manner. The UMP helps project teams identify key uncertainties and develop robust work plans to resolve these uncertainties in order to improve decision quality and maximize value to the company. The RMP helps project teams identify key technical, mechanical and commercial risks, and develop appropriate mitigation and contingency plans for these risks. The RMP will also help the team identify and address process safety risks related to subsurface integrity issues. The UMP and RMP drive development plans, technology plans, surveillance plans, operating plans and resource loaded work plans. This is even more critical at the current low oil prices where many projects become economically challenged; we need to focus our efforts and resources to be decision driven and value driven. We will compare and contrast the concepts of uncertainty and risk and present case studies of how the UMP and RMP were successfully used on a variety of assets. We will also discuss some of the pitfalls, lessons learned and best practices.