Project Management in the Oil and Gas Industry

Table 3.1 Work breakdown structure.
What
The WBS is a high-level breakdown of work scope, a list of main 
project deliverables, and can be broken down by materials, 
contracts, area, or defined work packages.
Why
The WBS is used to break jobs into linked tasks. It is the basis for the 
estimate, the cost report, and the execution plan. Having a common 
format across all elements of the project results in simpler cost 
tracking and forecasting.
How
The project team should brainstorm the best way to control 
and implement the project by assessing the project execution 
methodology together with the commissioning sequence.
When The WBS should be included in the project execution plan, early in the 
select phase, and revised throughout to define and execute. 
Who
Project Leader, Planner, SPA, Construction Engineer, Commissioning 
Engineer, Estimator

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Project Management in the Oil and Gas Industry
• Send a formal memo to all project managers requesting their 
project plans.
• Meet with senior managers to help them develop a new 
tracking system for managing projects.
• Review the project charters and Gantt charts for all 
projects.
3.2 Responsibilities of the Team
In general, for industrial projects and, specifically, petrochemical proj-
ects, there is usually a modification, which will be a minor project, such 
as constructing a new tank, new compressor, pumps, or other mechanical 
equipment. The team is usually formulated from different disciplines from 
different project departments for this one project.
The planning team, who is responsible for preparing the schedule at this 
stage, has a vital role to distribute the main stages of the project to mem-
bers of the team. Every main stage has a key stage owner (KSO), whose 
responsibility is to achieve the required targets within a reasonable time. 
The responsibilities of the KSO include the following:
• Identify the work to the level of small tasks
• Identify relations between activities and tasks and clearly 
define them
• Estimate time with a high accuracy
• Ensure that business is done in a timely manner in accordance 
with the required quality
• Ensure that work is proceeding in accordance with the 
procedures and requirements for quality assurance
• Maintain ongoing follow-up
• Compose periodic, accurate reports. 
As the project or construction manager, you will face problems during a 
project and you should resolve them in an accurate time. These problems 
will be mainly as follows:
• The necessary authority to complete the work
• The necessary tools to complete the work
• The right atmosphere to achieve the required quality of work
• Direct support from the project manager or the official 
sponsor of the project
• The performance expectation is clearly understood.

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Pitfalls in Time Schedule Planning 91
When choosing the KSO, the following should be considered in the 
potential KSO:
• Skills
• Depth of information and knowledge 
• Previous experience in the same area
• The time which is required to complete the work
• Accuracy in the completion of previous work
• Ability to solve problems
• Ability to manage time
• Ability to work individually and with a team
• The volume of work and the current work of the KSO
• Ability to take and give advice and support
• Ability to work under stressful conditions
• The necessary training required now and in the future
Now the key stages plan is available and every key stage owner has 
defined responsibilities. Therefore, it is time to start estimating the time 
needed for each activity in the key stages.