The Influence of Project Assurance Governance in Partnership Models
Authors: Mahruqi S. 
Published: November 2024

The objective of this paper is to improve the new model of the non-conventional project management and specify the standardization of various type of partnership models in project delivery governance and technical assurance processes by ensure consistency when developing opportunities for hydrocarbon and non-hydrocarbon facilities (Partnership Model). This paper has investigated the following topics:

Governance and Assurance requirements for projects containing partnership model. Project delivery strategy selection and process on various types of Partnership Model Availability Assurance of partnership model facilities, and production monitoring process. Outlining the most effective agreement duration for each partnership model.

This development methodology will provide invaluable appraisal governance that shape and regulate various partnership models across the project phases (Identify to Operate) and ensure a robust technical functional specification requirement for each model (Figure 01-"Partnership Models Governance and Assurance Process"), extracted from Public-Private Partnership (PPP) concept.

The assurance process will cover and mitigate technical, and assurance challenges associated with different partnership models on Projects not limited to the following:

Payment Structure: Economics scenarios with or without financing to be considered during technical evaluation model. Buy-Back Fee: an option to establish an agreement with/without transferring the ownership of the assets from investor for various type of 3rd party, BOT projects via partnership model. Project Assurance Plan: Establishing a risk-based framework and principles that allow operating companies to be more flexible and operate efficiently. Functional Specification: Project Owners to provide robust functional specification at early stage (Select phase) of the projects. Communication Protocol: Managing interface by establishing a solid communication protocol between the client facilities and investor (BOT, DBOOM, BOOT) facilities, to guarantee the desired outputs. Standard Equipment: Equipment segmentation for different types of partnership models. Production Monitoring: Proposed metering protocol to avoid technical constraint during Operation phase. Technical/Technology Risk Assessment: De-risk the full development through early production for hydrocarbon facilities or reduction an environmental exposure via non-hydrocarbon projects. Limitation: The process investigated the limitation for each partnership model option based on existing 3rd party or BOT, DBOOM projects learnings.

It’s recognized that there may be some complex scope in partnership model projects that fall under more than one segmentation category e.g. Gas to Power (GTP) projects could potentially be combined with gas processing facility sourcing strategy. This study will highlight the importance of governance and assurance processes and a hybrid PPP (3rd Party, BOT, DBOOM, IPP Projects, etc.) concept that serves projects delivery in the energy Industry. Figure 01EPC and O&M Project Delivery Quilt