Industry Overruns and Overspending
It is reported that 15 years ago, only 10 percent of major oil and gas projects ran over budget by more than half. By 2013, that number had nearly tripled to 28 percent.
According to a Schlumberger Business Consulting report, this budget-
Among the most effective ways to mitigate these risks, is to increase the effectiveness of project controls, enabling the capture and immediate reporting of accurate data regarding cost, resourcing and schedule; allowing quicker and more efficient decision making to head off delays and overspends.
Which Projects are at Risk?
Whilst these risks and challenges can affect most elements of a project; upstream or downstream, our experience shows that some of the greatest shortfalls in adequate project controls occurs during the construction and retrofit of assets such as Floating Production Vessels (FPSOs), and Rigs. Perhaps it’s the huge man hour spend which highlights the problem. It is not uncommon for an FPSO under refurbishment or fabrication to require a daily man-
Utilising Processes and Technology to Reduce Costs and Delays
With the typical project control methods adopted by even the largest companies involved in oil and gas projects, it’s just not possible (or just not done) to produce reports fast enough to provide timely insight into project performance; systems and processes are not in place to provide early warning of the impact on cost that a change in scope or a change in schedule will create; in these situations variations, disruption and delays become the silent monster which can financially cripple a project, for some or all of the participants.
Effective cost controls not only improve profitability, but they are the key to building accurate budgets, maintaining data integrity, measuring project expenditures, gathering data in a timely and accurate fashion and reporting in a clear, routine and understandable format.
Our Methods and Processes
Our cost saving processes and systems can provide a basis for our clients engaged on these projects, to ensure they do not end up paying for unproductive time that is the responsibility of others and beyond the allowable limits of the contract. For the shipyard, those same methods and techniques help ensure that additional hours spent due to changes and interruptions which others are responsible for. For all involved parties, the extra control gives early warning and can head off further delays before they develop and enables the parties to reach a correct and fair allocation and commercial resolution of quickly growing overspends.
What our process and service involves -
What the service achieves -