Journal issues: 1/2017
22 March, 2017
THE SPECIFIC CHALLENGES IN PROJECT MANAGEMENT FOR THE OIL AND GAS INDUSTRY
FSBEI HE SamSTU, Samara, Russian Federation
FSBEI HE SamSTU, Samara, the Russian Federation
This study is focused on the current system of project management practices by the oil and gas industry companies; the key project management principles are being reviewed from the standpoint of finding effective solutions to the issues facing operating companies of the industry. The classification of the projects is presented in terms of the investment volumes that are required to implement the projects and therefore these projects are classified as low-budget, mid-budget and big-budget projects, accordingly. The paper shows oil & gas operating company’s project risk assessment methodology using qualitative and quantitative analysis methods. The specifics of risk assessment methods are presented on the basis of simulation modeling which is the most reliable and widely used process in the oil and gas industry. To factor in the risks of potential oil pipeline failures and incidents, a methodological tool has been proposed for the model that incorporates an incident response procedure which is included into the costs incurred or mitigates the integral effect by a discounted amount of expenses associated with the incident response operations throughout the life cycle of a facility. The above-named approaches are based on a step-by-step determination of the effectiveness by using the model in order to conduct the risk assessment of the projects. The principal advantages of the model include transparency of evaluations, simplicity of their understanding and assessment of the project performance by all participants. The process of project implementation incorporates multiple phases and that requires careful assessment of the economic efficiency of the projects. The effective project management system is therefore one of the factors contributing to successful implementation of the project and providing for further development of the industry as well. This study paper fully proves that it is expedient to apply these project management principles so to enable investments by the oil and gas operating companies and that includes the need in conducting project risk management.
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effectiveness; investments; management; oil and gas industry; projects; инвестиции; нефтегазовая отрасль; проекты; управление; эффективность DOI 10.17122/ogbus-2017-1-217-235 References to this article (GOST) Savkin S.O., Maslova O.P. THE SPECIFIC CHALLENGES IN PROJECT MANAGEMENT FOR THE OIL AND GAS INDUSTRY // Oil and Gas Business: electronic scientific journal/USPTU. 2017. №1. P.217-235. URL: http://ogbus.ru/issues/1_2017/ogbus_1_2017_p217-235_MaslovaOP_en.pdf