Project Management in the Oil and Gas Industry


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2.Project management in the oil and gas industry 2016

1
5
Comm.& start up
2
Mob.
Table 5.2 Resources allocated to the activities.
No.
Activity
D
Earliest
Latest
Float
Resources 
per day
Total 
resources
ES EF LS LF TF FF
100
Mobilization
3
0
3
0
3
0
0
4
12
200
Excavation
8
3
11
3
11
0
0
7
56
300
Pouring 
concrete 
foundation 
and piping 
support
10
11
21
11
21
0
0
4
40
400
Install piping
4
3
7
14
18
11
11
5
20
500
Install the 
mechanical 
package
1
21
22
21
22
0
0
4
4
600
Put the grouting 
1
22
23
22
23
0
0
4
4
700
Connect the 
piping
5
7
12
18
23
11
11
5
25
800
Commissioning 
and start up
2
23
25
23
25
0
0
6
12
Total projects man days
173


160 
Project Management in the Oil and Gas Industry
Figure 5.6 shows the distribution of the time duration of this project 
which is 25 days. When summing the total number of working days, as 
shown in Table 5.2, it will be 173 working days.
Figure 5.7 presents the time schedule and the number of employees. If 
the plan is presented by the early start, it means all activity will start in its 
first time to start. In the bottom of the schedule, the other option is to do all 
the activity in the latest start time, which means all the activity which is not 
on the critical path will be starting at its latest time. In our example here, 
the two activities are 400 and 700 for installing the piping and connecting 
the piping, respectively.
In the first case, the maximum number of persons on site will be 
twelve, whereas in the second option, for the latest start, the maxi-
mum will be nine persons. Therefore, a decision needs to be made on 
whether to use the total float or free float to achieve the project target. 
In normal cases, if the number of laborers will be less, the impact will be 
good, but if there is an increase in the laborers, the probability of incidents 
and injury will increase. We can look at it from another view as in remote 
areas, which are normal in the case of oil and gas projects, the accom-
modation will be difficult and expensive. So, if you maintain a minimum 
number of employees, it will have a good impact on the cost and, in some 
cases, it will be a constraint if the client provides accommodation for only 
ten persons per day.
In the case of the engineering design office, it is important to distrib-
ute the work load, as it will be very good to not hire engineers to work 
for part time for only six month, rather than hire the full time engineers. 
Distributing the work load by this philosophy is very beneficial

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