Fundamentals of Petroleum Project Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)
Fundamentals
of
Hydrocarbon Project
Management
Lecture 1
Dr Ebenezer Sholarin, PMP

Lecture_1_Fundamentals of Petr. Proj. Management
1st Semester,
2016
Module overview
Project Management Conceptualisation

Individual and Team Issues
Petroleum Project Risk Management
Project Organisational Design
Project Time Planning and Control
Project Cost Planning and Control
Prepared by Dr Ebenezer A. Sholarin, PMP
Meet Your Lecturer
More than 25 years experience in consulting, teaching, R&D, Oil & Gas
project planning, implementation and management in Eastern Europe,
Africa and Asia pacific region;
Designed and implemented course unit: Petroleum economics & project
management in 2004, Petroleum economics, risks and project
management in 2010, Hydrocarbon economics and project
management for Subsea Engineers, 2014.
PhD in Petroleum Economics and Management (1989),
Gubkin University of Oil and Gas, Moscow, Russia.
MSc in Industrial engineering and management (1985)
Post Doctoral Diploma in Environmental Impact Assessment, Murdoch
University, Western Australia (2010)
Accredited Project Management Professional, PMP since 2005.
Book Author: Environmental Project Management: Principles,
Methodology and processes, Springer, 2016.
Director of Education, Project Management Institute, Western Australian
Chapter (2008 2010)
Member, Society of Petroleum Engineer, USA.
Member, Project Management Institute, USA.
Outline
1.
2.
3.
4.
Introduction and module overview

Basic concepts and Definitions.
Projects Versus Operations.
Project Management System
Project Organisational Structure

Project management framework
The triple constraint/PM triangle
5. Management Versus Leadership

6. Engineering, procurement, and construction
management (EPCM).
1. Introduction & Course

overview
The balance between the global supply and demand for
crude oil is becoming progressively tighter, increasingly
requiring our industry to face new and unique
challenges. Our industry of tomorrow will have to
address the demands of operating in an adverse
environment, development of new technologies and
expediting implementation in the field, as well as
optimization of processes and enhancing
collaborative efforts to reduce cost.
Statement made by former SPE President, Dr Behrooz Fattahi, at
his University of Western Australia presentation on Challenges of
the Future, delivered 7th April, 2011
Lecture objectives
At the end of this lecture, you should be able to:
Properly define a project scope and identify key constraints
Recognize basic properties of projects, including their definition.
Differentiate between project management practices and more
traditional, process-oriented business functions.
Understand how effective project management contributes to
achieving strategic objectives.
Recognize the strength and weakness of three basic forms of
organizational structure and their implications for managing
projects.
Management Without Planning

We will start digging from this side of the mountain.
You and your gang start digging from the other side.
When we meet in the middle, we will have made a
tunnel. And if we dont meet, we will have made two
tunnels!
When to Use Project Management?

When the scope of the challenge is larger than
one normally encounters;
An ad hoc undertaking unique or unfamiliar
organizational challenges;
When change is eminent and inevitable;
When there is need for concurrent or value
engineering
What Do we Need?
Innovation and Creativity
Managing Resources with Immersive
Visualization, transparency and Control
Employing Integrated Project
Management System.

How are projects conceived?

Ideas
Vision
Business Opportunity
Execution
I.Q.
Strategy
Capability
Leaders
Vision
Focus
Values
Culture
Current
Reality
Commitment
E.Q.
STO Project Management Model

Strategic
Planning
Tactical
Planning
Operational
Planning
2. Basic Concepts & Definitions
What is PMBoK?
What is a Project?
Project Versus Traditional Business Operations
Project, Program, Portfolio
Petroleum Project Management definitions
Project deliverables
The Triple Constraints or Project Management Triangle.
Front-end Engineering and Design (FEED) Vs Front-end
End Loading (FEL)
PMBOK
What is it?
Project Management Body of Knowledge.
A Guide published by the Project
Management Institute (PMI), USA.
Shell Petroleum has also developed its own
Body of Knowledge. It is called:
Opportunity and Project Management
Guide (OPMG)

What is a Project?
Consider the following definitions of projects:
A project is a unique venture with a beginning and end, conducted
by people to meet established goals within parameters of cost,
schedule, and quality (Buchanan & Boddy, 1992)
Projects are goal-oriented, involve the coordinated undertaking of
interrelated activities, are of finite duration, and are all, to a degree,
unique (Franem J.D., 1995).
A temporary endeavour with a defined beginning and end (usually
time-constrained, and often constrained by funding or deliverables),
undertaken to meet a unique goals and objectives, typically to bring
about beneficial change or added value. (IPMA, 2006).
Project according to PMBoK Guide
Project is a temporary endeavor

undertaken to create a unique product,
service or result
Source: PMI, 2013. A Guide to the Project Management Body of
Knowledge, PMBoK Guide. Project Management Institute Inc., Atlanta.

Characteristics of a Project
A Project has the following attributes:
Projects are complex, one-time endeavor (processes)
with a specific time frame or finite life span, i.e.
temporary.
Projects are limited by budget, schedule and resources.
Projects are developed to resolve a clear goal or set of
goals.
Projects are customer-focused.
Projects are ad hoc endeavors with a clear life cycle.
Projects are building blocks in the design and execution
of organizational strategies.
Projects are terminated upon successful completion of
performance objectives.

Interaction with the business and general environment
Alignment of Projects with Corporate Strategy

Time
Budget
Strategic
Scope
Management
Strategy & finance
Project
Management
Technology
(requirements, design,
make, test)
Organizational
(structure & people)
Time
Human Resources
Cost
Communications
Integration Scope
Risk
Commercial (supply
chain, procurement,
etc.)
Concept
delivered
Quality
Procurement
Stakeholder/Interface
Initiate
Feasibility
Definition
Plan
Execute
Execution
Control
Close
Out
Close-out/
Operations
INTEGRATED PROJECT MANAGEMENT involves planning and delivery of projects throughout project
life cycle, in a fully integrated and consistent manner that cut across all project elements.
Example: An Offshore Project
The Galata Project, situated about 20km from the eastern port of
Varna, is being developed by Melrose Resources. The Galata gas
field is 23km offshore Bulgaria in the Black Sea.The field lies at a
water depth of 35m and has gross proved and recoverable
reserves of 49 billion cubic feet (bcf), and proved and probable
reserves of 81bcf.
Van Gogh Oil Project, Exmouth Sub-Basin, Australia.

FPSO Ningaloo Vision is slightly smaller than other FPSOs in the area,
with a storage capacity of 620,000 barrels of oil and an oil-processing capacity of 63,000bpd.
Example: An Offshore Project (2)

Ivar Aasen Field Development Project
An artistic rendition of the Ivar Aasen Field

Development.
An illustration of the Ivar Aasen Platform.

The platform will be approximately 230m in height.
Example: An Offshore Project (3)

Kirinskoye Gas and Condensate Field,
Sea of Okhotsk, Russian Federation
Polyarnaya Zvezda (Polar Star) semi-submerged

drilling rig is currently drilling the first production well
at the Kirinskoye field.
Chinguetti Oil Field, Mauritania
The Chinguetti field lies off the coast of Mauritania

and will be developed from an FPSO.
3. Projects Vs Operations
E&P Operations
E&P Project
Repeat process or product

Several objectives
Ongoing
People are homogenous
Well-established systems in
place to integrate efforts
Greater certainty of performance,
cost and schedule
Part of line organization
Supports status quo
New process or product

One objective
One short limited life
More heterogeneous
Systems must be created to
integrate efforts.
Greater uncertainty of
performance, cost and schedule.
Outside of the organisation
Upsets status quo.
Source: Graham, R.J. (1992). A Survival Guide for the Accidental Project
Manager, Proceedings of the Annual Project Management Institute
Symposium, Drexel Hill, PA: PMI, pp. 355-361.
Project/Program/Portfolio
A project is a temporary endeavor undertaken to create
a unique product, service, or result (PMBOK)
A Program is a group of projects managed in a
coordinated way to obtain benefits not available from
managing them individually, e.g. CCS program, LNG
Program, GTL Program, ANLEC R&D program.
A Portfolio is a set of projects or programs that are
selected or prioritized in accordance with the
organization's business strategy, e.g. hydrocarbon
portfolio comprising 15 projects (6 oil wells and 5 gas
wells, 4 NGL projects).
Project management definitions

PM is the process of managing, allocating, and timing
resources in order to achieve a given objective in an
expedient manner (Badiru, et al 2008)
PM is the art and science of applying skills, knowledge,
tools and techniques to all aspects of project to achieve
the project mission objective, within the specified time,
budgeted cost and predefined quality specification
(Chan, et al 2009).
PM is the act of collaborating with people using other
required resources such that a project is planned,
organised, and controlled effectively to accomplish its
goals and objectives (Vaidyanathan, G. 2013)
Project Management according to PMBoK Guide
The application of knowledge, skills, tools and

techniques to project activities in order to meet
project requirements (PMBOK, 2013)
What is a deliverable?
A unique and verifiable product, result or capability
to perform a service that is identified in the project
planning documentation, and must be produced and
provided to complete the project.
The process of breaking project deliverables down into
smaller, manageable components so that project tasks and
activities can be planned and estimated is called
Decomposition.
Decomposition in Project Management
4. Project management System

Time
Budget
delivered
given
Scope
Integration Human Resources
Project
Management
Knowledge
Areas
Initiate
Plan
Time
Communications
Cost
Quality
Scope
Procurement
Risk
Stakeholder/Interface
Execute
Control
Close
Out
PROJECT MANAGEMENT:
On time, within budget, to scope execution/ delivery
Petroleum Project
Management Systems
The Paradigm shift
Future
Present
Past
4a Project Organisation Structure

Organisation structure depends on three main
issues:
Team Mix Requirements
Or who you can get!
Procurement/Contracting Strategy
Project Challenge
There are three types of organisational

structure:
Functional
Matrix
Project based or projectised
Types of Organizational Structure

1. Functional Organization
2. Weak Matrix Organization
Functional
Managers
Functions
Working
Level
Project
Coordinator
People work within their functional

organization with little cross-functional
coordination
3. Strong Matrix Organization
Liaisons
People work within their functional

organizations with the project manager
serving as a cross-functional coordinator
4. Project-based Organization
Customers
Project
Manager
Project Manager has authority to make

personnel, budgetary and project decisions
and team has direct contact with customers
People report directly to the project manager,

team members have minimal non-project
responsibilities and may be co-located, team
member keep functional organizations
informed about project progress
Adapted from PMBOK Guide 2013
Responsibility Assignment Matrix (RAM)

PARIS Chart/
RAM
PHASE
Concept &
Initiation
Design &
Development
Implementation
& Control
Commissioning
& Handover
LEGEND
PERSON
Ben
James
John
Ann
David
A=
Accountable
R=Review
Required
I=Input
Required
S=Sign-off
Required
P=
Participant
4b Project Management Framework

Define
Measure
Analyze
Improve
Control
ASSESSMENT
PHASE
SELECTION
PHASE
DEVELOPMENT
PHASE
EXECUTION
PHASE
Initiating
Processes
Planning
Processes
Executing
Processes
Controlling
Processes
Scope
Management
Time
Management
Quality
Management
Communications
Management
Close-out
Processes
Cost
Management
Integration
Management
Risk
Management
OPERATION
PHASE
Human Resource
Management
Procurement
Management
Stakeholder
Management
Adapted from PMI 2013
DMAIC: Methodology for Managing

Hydrocarbon Projects
For each product or process answer the following questions:

Define
What are customers expectations of the process?
Measure
What is the frequency of the defects?
Analyze
Why, when and where do defects occur?
Improve
How can we fix the problem or process?
Control
How can we maintain the gain?
Iterated Links of PM Processes

Measure/Plan
Define
Planning
Processes
Initiating
Processes
Improve/Check
Control/Review
Controlling
Processes
(arrows represent
flow of information)
Executing
Processes
Celebrate
Closing
Processes
Analyze/Do
ISO 9001 Project Management Model

DO
CHECK
PLAN
RECOGNITION
REVIEW
Five Steps of Project Management

IMPLEMENTATION
PLANNING
5. CLOSE
1. DEFINE
2. PLAN
3. ORGANIZE
4. CONTROL
State the
Problem/o
pportunity
Identify
project
activities
Determine
Personnel
Needs
Define
Management
Style
Obtain
Client
Acceptance
Identify
Project
Goal
Estimate
time and
cost
Quality
and
Communi
cation
managem
ent
Identify
Project
Champion
Recruit
Project Team
Establish
Control Tools
Install
Deliverables and
Commissioning
List the
objectives
Determine
Preliminary
Resources
Identify
Risks and
stakeholders
Success criteria
Write
Project
Proposal
Organize
Project
Team Bidding
Assign
Work
Packages
Prepare
Status Reports
Document the
Project
Review
Project
Schedule, cost,
team report
Issue Change
Orders
Issue Final
Report
Conduct PostImplementation
Audit
Deliverables
Project charter
WBS
Project network/
Critical Path
Project proposal
Recruitment Criteria
Define Work packages
Assign work packages
Variance Reports
Status Reports
Final Report
Audit Reports
36
Project Phases
Define
Plan
Organise
Control
Scouting Study (30%)
Decision #1
Design Preparation ( 30% confirmed)
Decision #2
Basic Design (20%)
Decision #3
Project Definition
Project Specs
incl. 10% estimate
Tender & evaluate
Decision #4 =
Final Investment Decision
Detailed design
Procurement
Construction
Commissioning &
Start-Up
Performance Testing
Acceptance
Close
Phase-Gate Project Management
Adapted from Woodside

Petroleum OPREP Material.
Project Management Body of Knowledge
Who are my
stakeholders?
What are their
expectations?
10. Stakeholder
Management
2. Scope
Management
7. Human
Resources
Management
Who do I need for my

project?
Where do I get them
from?
Are the technical

standards being met?
1. Project
Integration
Management
4. Cost
Management
6.. Risk
Management
How do I get what I

need?
Who are the
contractors/suppliers?
What are the costs

involved?
How will I get the funding
I need?
What project plans do I

need?
How do I get every team
member to do this?
8. Communication
Management
How do we collaborate to
work together?
What are the processes
for sharing work?
How many communication
channels do I have?
How long will it take?

How will it fit into the
FDP?
3. Time
Management
5. Quality
Management
What are we going to do?

What needs to be done?
Is the Project worth doing?

What are the road blocks?
9. Procurement
Management
4c
The Triple Constraint or PM Triangle
3-Dimensions of Project Goal

S
Scope
Goal (Target)
Projects must be within cost.

Projects must be delivered on time.
Projects must be within scope.
Projects must meet customer
quality requirements.
Budget
Time
T (Schedule)
Some Examples of a Project Goal

Saudi Aramco Haradh Gas Project:
Objective - To create a $2 billion facility, which will be used to
gather, process and distribute natural gas, tapped from 87 gas
wells, to satisfy the domestic Saudi market within 37 months.
NASA Autonomous Rotorcraft Project:

Objective To develop an unmanned helicopter (rotorcraft) that
would operate with decision-making skill of a piloted aircraft.
Task: Can you identify the scope (target),

time (schedule) and Cost (budget)
from each objective?
Think and develop 3D objectives related to your PM group project.

Dimensions of Scope, Time & Budget

Step 1: Define Scope
(Develop WBS or ABS)
Step 2: Sequence
The Work (Scheduling)
Step 3: Allocate the

Resources (Budgeting)
300
80
75
65
80
25
20
35
5
10
10
5
5
SCOPE
TIME
COST
Project Interface Management
Interface management: the management of common boundaries between people,

systems, equipment, or concepts (Nooteboom 2004).
Project Stakeholder Management

Stakeholder
Roles performed
Client
Person or organisation that owns the project

Provides the financial resources, in cash or in kind, for the project
May initiate project changes
Sponsor
Initiate the project

Champions project from a position of authority
Supports project teams most senior members
Performing
Organisation
Enterprise, whose employees are most directly involved in doing

the work of the project
Project Manager
Person responsible for the management of the project on a daily

basis
Single point of responsibility for achievement of project objectives
Project Team
Members
Responsible for performing project tasks

Provides and applies technical skills
Suppliers/
Contractors
Delivers goods and services to the project as required

Provides logistical support
User
The person or organisation that will make use of the project

product.
Project Communication Management

Communications Channels = n(n-1)
2
What is
the CC?

Project Scope Management
HOW THE CUSTOMER EXPLAINED

IT
HOW THE PROJECT MANAGER

UNDERSTOOD IT
HOW THE ENGINEERS

DESIGNED IT
AND WHAT THE

CUSTOMER REALLY
NEEDED WAS
WHAT OPERATIONS TEAM
ACTUALLY INSTALLED
HOW THE SALES EXECUTIVES

DESCRIBED IT
HOW THE CUSTOMER EXPLAINED

IT
WHAT OPERATIONS TEAM

ACTUALLY INSTALLED
HOW THE PROJECT MANAGER

UNDERSTOOD IT
HOW THE ENGINEERS

DESIGNED IT
HOW THE SALES EXECUTIVES

DESCRIBED IT

Definition:
Project Scope Management includes the
processes required to ensure that the project
includes all the work required, and only the work
required, to complete the project successfully.
PMI PMBoK Guide, 2013, pp. 105
Scope Creep Vs. Gold Plating

Scope Creep
uncontrolled changes or added objectives in a projects scope.
This phenomenon can occur when the scope of a project is not
properly documented, defined, or controlled. It is generally
considered a negative occurrence, and thus, should be avoided.
Scope creep often comes from the customer or stakeholder
Gold Plating
continuing to work on a project or task well past the point where
the extra effort is not worth the value it adds. Gold plating often
comes from the project manager or team members.
Take home message (1)

Defining the scope of a project at the outset is
crucial to its success.
If you dont have a fixed Scope, you have nothing
to manage against
5.
Management Vs Leadership
Management:
Ability to complete work through the efforts of
others.
Leadership:
Ability to motivate others to produce the work
willingly.
Management getting people to do what needs to be done;
Leadership getting people to want to do what needs to be done
Warren Bennis (1994) On Becoming a Leader
Characteristics of an Effective Leader
Ability to:
Develop vision;
Set clear objectives and targets;
Put in place appropriate organizational structure, methods and
processes, Roles and Responsibilities;
Maintain team focus;
Challenge status quo and accept constructive challenge;
Obtain team buy-in;
Get the best out of people by support, mentoring and coaching
Prepared to let people get on with it
Enthusiasm, drive and determination consistently displayed.
Improving technical competence with

business and leadership skills
Competent
Petroleum/Subsea
Engineer
Technical
skill
Leadership
skill
Adding
value
Business
skill
Value
chain
Explore - Develop - Produce - Transport - Sell

So Who is a Project Manager?
PM coordinates and integrates activities

and resources across multiple, functional
lines;
PM plans, organises, evaluate, directs and
controls the execution of the project to meet
the time, cost and performance objectives
PM understands the companys
organisational structures and behavior
PM possesses strong communication and
interpersonal skills and familiar with the
hydrocarbon E&P operations
A Project Manager is distinguished by his knowledge,
known by his method and identified by his tools

Your Role as a Project Manager

Petroleum Geologist
Business/
Risk Analyst
Applying the skills, knowledge, tools and

techniques to project activities to
successfully complete project objectives.
Lead
Engineer
Engineering
Manager

Project Manager
Vs
Line Manager
Project Manager
Lead Engineer/Manager
What is to be done?
How will the task be done?
When will the task be

done?
Where will the task be

done?
Why will the task be done?
Who will do the task?
How much money is

available to do the task?
How well has the functional

input been integrated into
the project?
How well has the total

project been done?
Who deserves promotion

for doing the task well?
Project Managers get things done by working through others.

Where are you in this pyramid?
Challenging projects, opportunities

for innovation and creativity, learning
and creating at a high level.
Important projects, recognition from

others, prestige and status.
Acceptance, be a part of a group,
identification with a successful team
Physical safety, economic security,
freedom from threats
Physical survival needs: water, food,
sleep, warmth, exercise, etc.
6. Engineering Procurement &

Construction Management (EPCM)
Contracts are sought and entered into:
Where services can be obtained economically in the local or
international market;
Where the equipment involved is costly, services required is
temporary or where exceptional skills are indispensable;
To meet temporary peak requirements either in manpower
and/or in equipment.
Another word for procurement is outsourcing
EPCM contracts commonly used for the construction or

expansion of large-scale heavy engineering facilities in
the petroleum, mining and power sectors.
In an EPC contract, the owner defines the scope and
specifications, quality, duration and cost.
Procurement and Outsourcing Strategies

Outsourcing components have increased progressively
over the years.
Some industries have been outsourcing for an extended
time
Fashion industry
Nike all manufacturing outsourced
Electronics Industry
Cisco (major suppliers across the world
Apple (over 70% of components outsourced)
Taiwanese companies now design and manufacture most laptop sold around the world.
PalmOne collaborate with Asian suppliers on the design of their personal digital assistance
(PDA)s
Type of Contract
Lump sum turnkey (LSTK)
Contractor is given defined starting and finishing points and undertakes
to perform the whole of the specified work at a fixed price, bears the risk
of any cost overruns and benefits from any savings that can be made
(e.g., EPC contracts).
Bills of Quantities
Lump sum contracts with detailed bills of quantities forming precise
definition of the scope of work.
Schedule of Rates
This type of contract permits a degree of control over the final cost of
the job, without the need to define the SoW at the tender stage
Reimbursable Cost Plus Profit Fee (RCPPF)

This type of contract should be avoided at all cost because there is no
incentive for the contractor to perform apart from his/her desire to
establish or maintain a good reputation (e.g., EPCM contracts).
Successfully Closing The Project

Project Closeout checklist template
Project Name:
Project Control No.:
Preparer Name:
Preparer Signature:
Customer:
Customer Contact:
contact Phone:
Date Prepared:
Closeout Activity
1. Obtain sign-off for deliverables
2. Update project plan for transfer to next project manager
3. Provide project staffing plan for reduced resource
requirements if applicable
4. Write project turnover memo to all stakeholders
5. Perform postproject review (lesson learned):
... What worked well?
...What did not work well?
...What can be done to improve the next project?
6. Update project history file
7. Give individual performance feedback to team members
8. Close project accounts and finalize all billing
9. No claims or audits are pending on this project
10. All customer-provided equipment returned
Planned
Closeout
Yes N/A No Closeout Date Complete Date
Where to get more information
A Guide to the Project Management Body of Knowledge, PMBOK

Guide, 5th edition, PMI, 2013.
SPE publications: Journal of Petroleum Science and Engineering, JPT,
AAPG, etc.
Havranek, Timothy J., Modern Project Management Techniques for the
Environmental Remediation Industry, St. Lucie Press, Florida, 1999.
Kerzner, Harold. Project Management: A systems Approach to
Planning, Scheduling & Controlling, 10th edition, 2009.
Avraham Shtub, et al, Project Management: Processes, Methodologies
and Economics, Pearson, 2nd edition, 2005.
Virine, L., Trumper, M., Project Decisions: The Art and Science,
Management concepts, 2008.
Pinto, Jeffrey K., Project Management: Achieving Competitive
Advantage, Pearson, 3rd edition, 2013.
Vanhoucke, Mario. Integrated Project Management and Control: First
Comes the Theory, then the Practice, Springer, 2014.
Take home message (2)

...Never accept a project you did not define.
Nor accept a project you have not defined.
It is a recipe for disaster...
Project Planning
Techniques
Lecture 2

Questions for self-assessment

1.
2.
3.
4.
5.
How do you define a project?

Why do petroleum companies do projects?
What are the triple constraint in project management?
How do you identify deliverables in a project?
Mention three types of organisational structure
discussed in the lecture.
6. Project Management consists of how many knowledge
areas? Mention 7 of them.
7. If your project team consists of 15 members, how many
communication channels do you require?

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Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Dr Ebenezer Sholarin, PMP

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Project Management Conceptualisation

Lecture_1_Fundamentals of Petr. Proj. Management

Prepared by Dr Ebenezer A. Sholarin, PMP

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Meet Your Lecturer

Lecture_1_Fundamentals of Petr. Proj. Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Introduction and module overview

Project Organisational Structure

5. Management Versus Leadership

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

1. Introduction & Course

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Lecture_1_Fundamentals of Petr. Proj. Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Management Without Planning

Lecture_1_Fundamentals of Petr. Proj. Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

When to Use Project Management?

Lecture_1_Fundamentals of Petr. Proj. Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Lecture_1_Fundamentals of Petr. Proj. Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

How are projects conceived?

Prepared by Dr Ebenezer A. Sholarin, PMP

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

STO Project Management Model

Lecture_1_Fundamentals of Petr. Proj. Management

Prepared by Dr Ebenezer A. Sholarin, PMP

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

2. Basic Concepts & Definitions

Lecture_1_Fundamentals of Petr. Proj. Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Lecture_1_Fundamentals of Petr. Proj. Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Lecture_1_Fundamentals of Petr. Proj. Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Project according to PMBoK Guide

Project is a temporary endeavor

Lecture_1_Fundamentals of Petr. Proj. Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Lecture_1_Fundamentals of Petr. Proj. Management

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Interaction with the business and general environment

Alignment of Projects with Corporate Strategy

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Example: An Offshore Project

Lecture_1_Fundamentals of Petr. Proj. Management

Van Gogh Oil Project, Exmouth Sub-Basin, Australia.

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Example: An Offshore Project (2)

An artistic rendition of the Ivar Aasen Field

Lecture_1_Fundamentals of Petr. Proj. Management

An illustration of the Ivar Aasen Platform.

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)

Example: An Offshore Project (3)

Polyarnaya Zvezda (Polar Star) semi-submerged

Chinguetti Oil Field, Mauritania

The Chinguetti field lies off the coast of Mauritania

Hydrocarbon Economics & Project Management (PEEN4001/Econ 6007)