Project Management in the Oil and Gas Industry

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Document Outline

• Cover
• Title Page
• Copyright Page
• Dedication
• Contents
• Preface
• About the Author
• 1 How to Manage Oil and Gas Projects
  • 1.1 The Principal of Project Management
  • 1.2 Project Characteristics
  • 1.3 Project Life Cycle
    • 1.3.1 Initiation of the Project
      • 1.3.1.1 Getting to the Scope Baseline
    • 1.3.2 Feasibility Study
    • 1.3.3 FEED (Preliminary) Engineering
    • 1.3.4 Detail Engineering
    • 1.3.5 Decision Support Package
    • 1.3.6 Design Management
    • 1.3.7 Execution Phase
    • 1.3.8 Commissioning and Startup
  • 1.4 Is this Project Successful?
    • 1.4.1 Project Management Goals
      • 1.4.1.1 Project Integration Management
      • 1.4.1.2 Project Scope Management
      • 1.4.1.3 Project Time Management
      • 1.4.1.4 Project Cost Management
      • 1.4.1.5 Project Quality Management
      • 1.4.1.6 Project Human Resource Management
      • 1.4.1.7 Project Communications Management
      • 1.4.1.8 Project Risk Management
      • 1.4.1.9 Project Procurement Management
  • 1.5 Project Management Tasks
    • 1.5.1 Define the Project Target
    • 1.5.2 Define the Scope of Work
    • 1.5.3 Define the Time Frame
    • 1.5.4 Define the Available Resources
    • 1.5.5 Define the Cost
    • 1.5.6 Evaluate the Master Plan
    • 1.5.7 Accept the Master Plan
    • 1.5.8 Schedule Follow Up
    • 1.5.9 Cost Follow Up
    • 1.5.10 Comparing Between Actual Work and Master Plan Cost
    • 1.5.11 Performance Evaluation
  • 1.6 Project Manager Skill
  • Quiz
• 2 Project Economic Analysis
  • 2.1 Introduction
  • 2.2 Project Cash Flow
    • 2.2.1 Depreciation Methods
      • 2.2.1.1 Straight-Line Method
      • 2.2.1.2 Declining-Balance Method
      • 2.2.1.3 Sum-of-the-Year-Digits
      • 2.2.1.4 Sinking-Fund Method
      • 2.2.1.5 Service-Out Method
    • 2.2.2 Method of Net Present Value (NPV)
      • 2.2.2.1 Inflation Rate
    • 2.2.3 Minimum Internal Rate of Return (MIRR)
    • 2.2.4 Payout Method
  • 2.3 Economic Risk Assessment
    • 2.3.1 Probability Theory
    • 2.3.2 Probability Distribution of Variables
      • 2.3.2.1 Normal Distribution
      • 2.3.2.2 Log Normal Distribution
      • 2.3.2.3 Binominal Distribution
      • 2.3.2.4 Poisson Distribution
      • 2.3.2.5 Exponential Distribution
      • 2.3.2.6 Weibull Distribution (Rayleigh Distribution)
      • 2.3.2.7 Gamma Distribution
      • 2.3.2.8 Logistic Distribution
      • 2.3.2.9 Extreme Value (Gumbel Distribution)
      • 2.3.2.10 Pareto Distribution
    • 2.3.3 Distribution for Uncertainty Parameters
      • 2.3.3.1 Triangular Distribution
      • 2.3.3.2 Uniform Distribution
    • 2.3.4 Choose the Appropriate Probability Distribution
      • 2.3.4.1 Chai Square Method
      • 2.3.4.2 Kolmograv-Smirnov (K-S)
  • 2.4 Decision Tree
  • 2.5 Monte-Carlo Simulation Technique
  • 2.6 Risk Adjusted Value (RAV)
• 3 Pitfalls in Time Schedule Planning
  • 3.1 Introduction
    • 3.1.1 Plan Single Point of Accountability (SPA)
    • 3.1.2 Starting the Plan
    • 3.1.3 Work Breakdown Structure (WBS)
  • 3.2 Responsibilities of the Team
  • 3.3 Expected Activity Time Period
  • 3.4 Calculate the Activity Time Period
  • 3.5 Time Schedule Preparation
    • 3.5.1 Gantt Chart
    • 3.5.2 Arrow Diagram Method (ADM)
    • 3.5.3 Precedence Diagram Method (PDM)
    • 3.5.4 Critical Path Method (CPM)
    • 3.5.5 Program Evaluation and Review Technique (PERT)
    • 3.5.6 Example
    • 3.5.7 Application of the PERT Method
      • 3.5.7.1 Statistics Calculation for Activity Time
      • 3.5.7.2 Example
      • 3.5.7.3 Time schedule control
  • 3.6 Planning Overview
  • Quiz
• 4 Project Cost Control
  • 4.1 Introduction
  • 4.2 Cost Types
    • 4.2.1 Cost Estimate
      • 4.2.1.1 Top-Down Estimates
      • 4.2.1.2 Bottom-Up Estimates
      • 4.2.1.3 Analogous Estimates
      • 4.2.1.4 Parametric Estimates
    • 4.2.2 Steel Structure Cost Estimate
    • 4.2.3 Detailed Cost
    • 4.2.4 Cost Estimate to Project Control
  • 4.3 Economic Analysis to Project Cost
    • 4.3.1 Work Breakdown Structure (WBS)
    • 4.3.2 Organization Breakdown Structure (OBS)
    • 4.3.3 OBS/WBS Matrix
    • 4.3.4 Work Packages
    • 4.3.5 Cost Control
    • 4.3.6 (S) Curve
    • 4.3.7 Engineering Cost Control
  • 4.4 Cash Flow Calculation
    • 4.4.1 Project Cash Flow
    • 4.4.2 Impact on Increasing Cost
    • 4.4.3 Project Late Impact
    • 4.4.4 Impact of Operation Efficiency
  • Quiz
• 5 Resource Hiring
  • 5.1 Introduction
  • 5.2 Project Organization
    • 5.2.1 Types of Organizations
      • 5.2.1.1 Project Organization as a Part of the Company
      • 5.2.1.2 Separate Project Organization
      • 5.2.1.3 Matrix Organization
    • 5.2.2 Selecting the Best Organization
  • 5.3 Roles and Responsibilities of the Project Manager
    • 5.3.1 Project Manager as a Leader
  • 5.4 Administrative Organization for Total Quality Management
  • 5.5 Team Member Selection
  • 5.6 Managing the Team
  • 5.7 Allocate Resources to Project Plan
    • 5.7.1 Example
  • 5.8 Relation Between Project Parties
  • 5.9 Document and Information Transfer
  • 5.10 Information Transfer
  • 5.11 Quality Control in the Design Phase
    • 5.11.1 Inputs and Outputs of the Design Phase
    • 5.11.2 Design Verification
    • 5.11.3 Change in the Design
    • 5.11.4 Approval of the Design
  • Quiz
• 6 Tendering, Bidding, and Contract Traps
  • 6.1 Introduction
  • 6.2 Contracts
    • 6.2.1 Measured Contract
    • 6.2.2 Lump Sum
    • 6.2.3 Cost Plus
  • 6.3 Contract Between the Owner and Engineering Office
  • 6.4 The Importance of Contracts in Assuring the Quality of the Project
  • 6.5 Contracts in ISO
  • 6.6 FIDIC Contracts
  • 6.7 General Conditions in the Contracts
  • 6.8 Arbitration and the Arbitrator
  • 6.9 Bids and Tenders
    • 6.9.1 Public (Open) Tender
    • 6.9.2 Limited Tender
    • 6.9.3 Negotiated Tender
    • 6.9.4 Direct Order
    • 6.9.5 Tender Technical Evaluation
    • 6.9.6 Commercial Evaluation
      • 6.9.6.1 Commercial Evaluation Methods
  • 6.10 Closeout Report
  • Quiz
• 7 New Approach in Managing Oil and Gas Projects
  • 7.1 Introduction
  • 7.2 Quality System
  • 7.3 ISO 9000
  • 7.4 Quality Management Requirements
    • 7.4.1 Quality Manual
    • 7.4.2 Quality Plan
    • 7.4.3 Quality Control
      • 7.4.3.1 Why is Quality Control Important?
      • 7.4.3.2 Submittal Data
      • 7.4.3.3 How to Check Incoming Materials
      • 7.4.3.4 Methods of Laying Out and Checking Work
      • 7.4.3.5 Material/Equipment Compliance Tests
      • 7.4.3.6 When to Inspect Work
      • 7.4.3.7 Paperwork/Documentation
      • 7.4.3.8 Quality Control Plans
    • 7.4.4 Quality Assurance
      • 7.4.4.1 Quality Assurance in the ISO
      • 7.4.4.2 The Responsibility of the Contractor (Manufacturer)
      • 7.4.4.3 Responsibility of the Owner
  • 7.5 Project Quality Control in Various Stages
    • 7.5.1 Feasibility Study Stage
    • 7.5.2 Feed (Preliminary) Engineering
    • 7.5.3 Detailed Engineering Study
      • 7.5.3.1 Design Quality Control
    • 7.5.4 Execution Phase
      • 7.5.4.1 ISO and Control Work
      • 7.5.4.2 Inspection Procedures
      • 7.5.4.3 Importance of Contracts in Assuring the Project Quality
      • 7.5.4.4 Checklists
  • 7.6 Operational Phase of the Project
  • 7.7 Total Building Commissioning System
    • 7.7.1 Planning Stage
      • 7.7.1.1 Identify Commissioning Team
      • 7.7.1.2 Define Owner’s Project Requirements with the Customer Agency
      • 7.7.1.3 Develop Preliminary Commissioning Plan
      • 7.7.1.4 Commissioning for Certifications (LEED, Energy Star, etc.)
      • 7.7.1.5 Commissioning Agent Costs
      • 7.7.1.6 Cost-Benefit Analysis for Commissioning
    • 7.7.2 Design Stage
      • 7.7.2.1 Incorporate Commissioning into A/E and CM Scope of Services
    • 7.7.3 Construction Stage
      • 7.7.3.1 Review Submittals for Performance Parameters
      • 7.7.3.2 Develop and Utilize Construction Checklists
      • 7.7.3.3 Oversee and Document Functional Performance Testing
      • 7.7.3.4 Test Data Records
      • 7.7.3.5 Hold Commissioning Team Meetings and Report Progress
      • 7.7.3.6 Conduct Owner Training
      • 7.7.3.7 Turnover Commissioning Record
    • 7.7.4 Building Commissioning Process Post-Construction Stage
      • 7.7.4.1 Post-Construction Stage
      • 7.7.4.2 Perform Deferred and Seasonal Testing
      • 7.7.4.3 Re-inspect/Review Performance Before End of Warranty Period
      • 7.7.4.4 Complete Final Commissioning Report
      • 7.7.4.5 Recommission Facility Every 3–5 Years
      • 7.7.4.6 Recommissioning
    • 7.7.5 Advantages for Total Building Commissioning System
  • Quiz
• 8 Practical Risk Management for Oil and Gas Projects
  • 8.1 Introduction
    • 8.1.1 The Risk Management Process
  • 8.2 Project Risks
  • 8.3 Risk Assessment
  • 8.4 Risk Identification
    • 8.4.1 Methods of Defining Risk
      • 8.4.1.1 Brainstorming
      • 8.4.1.2 Delphi Technique
      • 8.4.1.3 Nominal Group Technique
      • 8.4.1.4 Crawford Slip
      • 8.4.1.5 Expert Interviews
      • 8.4.1.6 Root Cause Identification
      • 8.4.1.7 Checklists
      • 8.4.1.8 Documentation Reviews
    • 8.4.2 Grouping the Risks
  • 8.5 Define Priorities
    • 8.5.1 Matrix Method
    • 8.5.2 Tabulated Method
  • 8.6 Risk Response Planning and Strategies
  • 8.7 Risk Monitoring and Control
  • 8.8 Example
  • 8.9 Operations risk
    • 8.10 Methods of Risk Avoidance
  • Quiz
• References
• EULA