North Sea Project Management
Authors: Gregg Dennis E. 
Published: December 2007

Distinguished Author Series articles are general, descriptive representations that summarize the state of the art in an area of technology by describing recent developments for readers who are not specialists in the topics discussed. Written by individuals recognized as experts in the area, these articles provide key references to more definitive work and present specific details only to illustrate the technology. Purpose: to inform the general readership of recent advances in various areas of petroleum engineering.

Introduction

Very large oil and gas development projects, typified by recent arctic and North Sea developments, have brought increased appreciation within the"upstream" segment of the petroleum industry of project management as a distinct management form. A growing number of papers on the management aspects of development projects is appearing in petroleum engineering conferences and projects is appearing in petroleum engineering conferences and publications. Though management arguably is not an engineering publications. Though management arguably is not an engineering subject, these large projects are highly technical, more often than not involve prototype methods or equipment, and have been managed predominantly by engineers. including petroleum engineers. In predominantly by engineers. including petroleum engineers. In European parlance, they engage the "engineering industry." Therefore, it seems appropriate to review the subject of project management in an engineering journal. This review is intended (1) to describe project management as practiced in the North Sea, (2) to provide a useful checklist of practiced in the North Sea, (2) to provide a useful checklist of the steps involved in project planning, execution, and control, and (3) to give a convenient bibliography for reading in greater depth. It also should create increase dawareness of the special technical skills and tools available for managing verylarge and complex development projects. The review treats preproject planning, overall project organization and management, vital control functions, and finally, contracting and internal resource management. Though this review focuses on the North Sea, the management principles discussed should apply to large projects anywhere. Several references relating to other areas and other industries Support this.

Preproject Planning Preproject Planning The value of thorough planning in advance of project commencement cannot be over emphasized. Perhaps one of the reasons this step is so important is the inherently urgent nature of typical field development projects. Field development is at the end of a long cycle of exploration and delineation. These sunk investments earn nothing until production begins. Additionally, optimal development of offshore fieldsdictates installation of most or all the facilities required to develop afield, and perhaps even to deplete it, before production begins. This perhaps seven to deplete it, before production begins. This results in very high investment before the first revenue begins. Venture economics are seriously-sometimes critically-affected by the speed of development. The time between discovery and project commitment is a precious opportunity to plan before the "roof falls in" with full project activity. Preproject planning should embrace and integrate every factor from the reservoir to field operation.

JPT

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