A conference dedicated to discussing the challenges to Managing project and construction risk is warmly received by the industry.
United Arab Emirates (Press Release) November 5, 2007 --
Growing strains on the market have prompted calls for a industry meeting. Representatives from all the major oil companies in the gulf are speaking on their experiences at the upcoming summit.
The oil and gas industry is truly flexing its muscles. The current rate of expansion across a variety of areas is unprecedented with construction and development of new projects and project expansion reaching its zenith. Managing project risk is a huge challenge and must satisfy all stakeholders while wrestling with dynamic market forces over the life of a project
There are of course a number of reasons why a company may undertake a project: financial payback, maintaining levels of operation, replacing old facilities or incorporating new safety or environmental standards to name but a few. The key success factor in all cases is the management of risk. Assigning them appropriately, taking measures to mitigate against them and minimizing their impacts are the principal mechanisms and what any company’s project management organization must effectively execute. No project is the same so each risk will be unique in nature. Early identification, classification and qualification of risks involved in any new project are essential to minimize delays and ensure success throughout all project phases.
The challenge many face is that client companies are all competing for the same engineering contractor resources, making the pressure to attract reasonable contractors high. Enhancing approaches to different types of engineering work and contracting strategies for an EPC is needed in the current climate. Cultural and legal aspects are often undervalued in project management, especially joint ventures where front end planning and finding the right partners are an integral part of the development process. Reinforcement of guiding principals for the establishment of joint ventures is important to evaluate and support developments across the industry.
Since virtually all work for a project is carried out under contracts of some sort, the types of contract used and the terms of these contracts have a major impact on how risks are managed. Many see the substantial increase in the number of major projects in the oil and gas sector over the coming period as necessitating a reassessment of contracting strategies to ensure company’s are the preferred client and attract the appropriate caliber and number of bidders to a project.
Having a dedicated and learned team is essential to success. However, any project can have a lengthy life cycle limiting the diversity of exposure to the types of challenges faced. The Oil and Gas Construction Project Risk Management Conference is engineered to allow project managers of varying experiences to attain first hand knowledge and experience of a variety of projects currently in development.
The oil and gas industry is truly flexing its muscles. The current rate of expansion across a variety of areas is unprecedented with construction and development of new projects and project expansion reaching its zenith. Managing project risk is a huge challenge and must satisfy all stakeholders while wrestling with dynamic market forces over the life of a project
There are of course a number of reasons why a company may undertake a project: financial payback, maintaining levels of operation, replacing old facilities or incorporating new safety or environmental standards to name but a few. The key success factor in all cases is the management of risk. Assigning them appropriately, taking measures to mitigate against them and minimizing their impacts are the principal mechanisms and what any company’s project management organization must effectively execute. No project is the same so each risk will be unique in nature. Early identification, classification and qualification of risks involved in any new project are essential to minimize delays and ensure success throughout all project phases.
The challenge many face is that client companies are all competing for the same engineering contractor resources, making the pressure to attract reasonable contractors high. Enhancing approaches to different types of engineering work and contracting strategies for an EPC is needed in the current climate. Cultural and legal aspects are often undervalued in project management, especially joint ventures where front end planning and finding the right partners are an integral part of the development process. Reinforcement of guiding principals for the establishment of joint ventures is important to evaluate and support developments across the industry.
Since virtually all work for a project is carried out under contracts of some sort, the types of contract used and the terms of these contracts have a major impact on how risks are managed. Many see the substantial increase in the number of major projects in the oil and gas sector over the coming period as necessitating a reassessment of contracting strategies to ensure company’s are the preferred client and attract the appropriate caliber and number of bidders to a project.
Having a dedicated and learned team is essential to success. However, any project can have a lengthy life cycle limiting the diversity of exposure to the types of challenges faced. The Oil and Gas Construction Project Risk Management Conference is engineered to allow project managers of varying experiences to attain first hand knowledge and experience of a variety of projects currently in development.
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