Project Management in the Oil and Gas Industry

5.1 Introduction
The main tools you should manage are your resources. If you are a project 
manager on the owner side, the resources are usually the manpower. If 
you are a project manager on the contractor side, you have to manage the 
manpower and the equipment as well.
The manpower will operate the equipment, so in this chapter we will 
focus on managing human resources through strong organization and 
communication and the way to guarantee the quality of the output from 
the worker.
This chapter illustrates the most popular type of organization, as one is 
usually working in one of these types, so you should know the points of 
weakness and strength in the type of organization you working in.
On the other hand, if you are in a client role and working with an engi-
neering company or a contractor, you should also know the characteristics 
of their organization.
As an owner in small projects, the people who are working on the 
project are from the owner company organization and, in major projects, 
they can hire an expat from any country worldwide. On the other hand, 
5
Resource Hiring

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Project Management in the Oil and Gas Industry
for the engineering company and the contractor, most of the people are 
collected from other, different projects. All the parties of the project, the 
owner, engineering company, and contractor, should decide the shape of 
his or her organization and what will be the link with the head office.
5.2 Project 
Organization
First of all, we need to know and understand the three commonly used 
organizational forms and the possibility of using any of them to suit the 
circumstances of the organization in the head office. Therefore, we must 
point out the advantages and disadvantages of each of these organizational 
forms and discuss some important factors that one could use in choos-
ing which organizations are to be used in the project. Then, to consider 
the possibility of merging, we must look at some of the basic forms and 
examine, briefly, overlaps resulting from the use of organizational structure 
unincorporated. We will discuss some of the details of the organization of 
the project team and characterization of the role of different project team 
members, as well as some behavioral problems faced by the project team.
In most cases, the project manager does not have a significant impact on 
the organizational form of the project. Senior management usually chooses 
the organizational form. This organization form affects the project manager 
performance and causes it to work very hard to extend the organizational 
structure of the project to match the target. The project or construction 
manager on site must understand the organization structure interactions 
and relationships and experienced project managers often re-formulate the 
organizational structure of the project to fit with their perception of what is 
best for the development of the project.