Project Management in the Oil and Gas Industry


Practical Risk Management for Oil and Gas Projects


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2.Project management in the oil and gas industry 2016

8 Practical Risk Management for Oil and Gas Projects 
287
8.1 Introduction 
287
8.1.1 The Risk Management Process 
288
8.2 Project Risks 
289
8.3 Risk Assessment 
293
8.4 Risk Identification 
294
8.4.1 Methods of Defining Risk 
296
8.4.1.1 Brainstorming 
296
8.4.1.2 Delphi 
Technique 
297
8.4.1.3 Nominal Group Technique 
298
8.4.1.4 Crawford 
Slip 
299
8.4.1.5 Expert 
Interviews 
299
8.4.1.6 Root Cause Identification 
300
8.4.1.7 Checklists 
300
8.4.1.8 Documentation 
Reviews 
300
8.4.2 Grouping the Risks 
301
8.5 Define Priorities 
302
8.5.1 Matrix Method 
302
8.5.2 Tabulated Method 
303
8.6 Risk Response Planning and Strategies
305
8.7 Risk Monitoring and Control 
306
8.8 Example 
307
8.9 Operations risk 
310
8.10 
Methods of Risk Avoidance 
312
Quiz 313
References 315



Preface
Oil and gas projects have special characteristics that need a different tech-
nique in project management. The development of any country depends 
on the development of the energy reserve through investing in oil and gas 
projects through onshore and offshore exploration, drilling, and increasing 
facility capacities. 
Therefore, these projects need a sort of management match with their 
characteristics. Project management is the main tool to achieving a suc-
cessful project. This book focuses on using practical tools and methods 
that are widely and successfully used in project management for oil and 
gas projects.
Most engineers study all subjects, but focus on project management 
in housing projects, administration projects, and commercial buildings 
or other similar projects. However, oil and gas projects have their own 
requirements and characteristics in management from the owners, engi-
neering offices, and contractors’ side.
This book is not only addressed to graduating engineers who wish to 
improve their skills in project management, but also to upper level man-
agement. This book covers all of the project management subjects from an 
industrial point of view specifically for petroleum projects.
The aim of this book is to be helpful to any engineering discipline or 
staff in sharing or applying the work of a petroleum project.
Why do the senior managers accept this project and refuse the others? 
Why does this company have huge investments in this country, but little 
investments on another countries, especially in oil and gas projects? These 
questions are always on our mind, so it is important to discuss them clearly.
Knowledge is power. When you understand well, you will do well. 
Therefore, in this book, we will illustrate exactly what the project manager 
is thinking when they are working on a project and what their objectives 
and goals are. On the other hand, we will discuss what team members 
may be thinking through the project stages and what their objectives and 
goals are.
xv


xvi 
Preface
The main tools in managing the project, which are time, resources, cost, 
and quality management, shall be illustrated by using practical examples 
from petroleum projects.
I have worked in a major rehabilitation project for offshore structures 
with the best in class international companies from the owner, engineering 
offices, contractors, and suppliers and everything has matched with the 
PMP guide. The project management staff and all the team members have 
ideal skills and competence as described in many textbooks, but unfortu-
nately the end users are not fully satisfied, which is a situation that usually 
faces us in industrial projects. The solution to this problem is proposed by 
using a whole building commissioning system that is used successfully in 
an administration building and this management system is clearly illus-
trated in this book. 
This book tries to be practical and, at the same time, match with the 
Project Management Professional (PMP) guide, so we selected one hun-
dred questions from the PMP exam to help you obtain the certificate. We 
chose questions that present actual cases we face in managing industrial 
projects.
Mohamed Abdallah El-Reedy, Ph.D
Email: elreedyma@gmail.com 
www.elreedyma.comli.com
Cairo, Egypt



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