Project Management in the Oil and Gas Industry


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2.Project management in the oil and gas industry 2016

1.3.5 Decision Support Package
This package of documents is usually put together by the project manager 
and the project team, then it’s presented to senior management to help 
them make decisions, as shown in Figure 1.1. A decision will be made at 
every project gate in order to enter another stage and it is very important 
after the feasibility study and feed engineering phase.
In order to define the exact DSP and how to implement it, the following 
questions should be answered:
What is the DSP? The Select Decision Support Package (DSP) is a 
compilation of key project information used to support decision-making 
at this gate. The decision to be made is generally whether or not to fund 
the Define stage of the project. Therefore, the DSP must accurately sup-
port the team’s recommendation with particular emphasis on potential 
rewards and risks. The CVP stipulates that a project should not progress 
through the gate to the next stage until the project team presents the 
Gatekeeper with the “key to the gate” -- the Decision Support Package 
(DSP). This document should include information taken from the Select 
stage activities that are necessary for the Gatekeeper to review and 
approve the project for the next stage. A plan for the next stage incorpo-
rates the following:
• A clear set of expectations
• Signed 
SOR
• PEP (including project specific WBS)
• Conceptual factored Class 3 estimate
• Holistic risk assessment
• Exit 
strategy
• Output from applicable VIP
• Defined list of capital and manpower resources for the next 
stage


18 
Project Management in the Oil and Gas Industry
This decision should be aligned with the business goal, strategy, and 
objectives and it must be determined based on the needs or deliverables of 
the appraised CVP stage.
The DSP includes three major components: the Executive Summary, the 
DSP Notification Document, and the DSP Reference Document.
The Executive Summary is a stand-alone document that provides an 
overview of the project. The Executive Summary may range from just 
one page to ten or more pages, depending on the size of the project. The 
Executive Summary includes:
• Project Overview (includes SOR)
• Business 
Case
• Decision & Risk Analysis
• Plan for Project and Next Steps
The DSP Notification Document provides a short formal written (or 
electronic) record summarizing the opportunities or options to move for-
ward into the next stage, together with documentation addressing those 
opportunities or options that are being dropped. It is intended to be shared 
with all stakeholders of the project.
The Reference Document for DSP contains all other reference materi-
als such as project schedule details, contract work scopes, etc. which have 
been succinctly presented in the Executive Summary. This documentation 
is retained as reference material, and it isn’t formally distributed outside of 
the project team.
Why is DSP important? The Select DSP allows the Gatekeeper to 
make an informed decision as to the next course of action in relation to 
any specific project, i.e., the key to the Define gate. It will provide infor-
mation on the best-identified project approaches and analyses concepts, 
and it will include prelim cost estimates to confirm project viability in 
line with the business strategy. In addition, one of the most important 
uses of the Decision Support Package is to ensure that the right peo-
ple are selected for the next stage of the project, even before you get to 
that stage.
Using information provided in the Select DSP, the Gatekeeper either:
• approves the project, giving the team the ability to pass 
through the gate to the next Select stage;
defers the project, based on portfolio management;
• “kills” the project; or
• recycles the project.


How to Manage Oil and Gas Projects 19
Keep in mind that “recycling” a project back through a stage should be 
a rare occurrence, and it is not really a desired option. A recycled project 
often indicates a failure in communication between the Gatekeeper and 
the project team.
The Select Decision Support Package (DSP) is a compilation of key 
project information used to support decision-making at this gate. This is a 
formal document that will be issued and presented to the Gatekeeper for 
review at the end of the Select Stage.
The project should not progress through the gate to the next stage until 
the project team presents it to the Gatekeeper, who is usually the senior 
manager with the “key to the gate,” which is the Decision Support Package 
(DSP). This applies at all gate stages within the project life cycle.
Single Point Accountability (SPA) for the project, who is usually the 
overall project team leader, should deliver the Select DSP in line with 
Gatekeeper’s expectations. They should be assisted where required by 
appropriate resources needed to provide overall project assurance as 
well as an increased involvement by the project teams. It is essential for 
the project’s success that the correct team is formed to deliver the select 
deliverables and DSP. The select stage of the project should not proceed 
unless there is a clear business commitment to these deliverables through 
resource allocation and support. The project lifecycle commences at the 
beginning of selection.

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