Project Management in Oil and Gas Industry: A Review

Oil and gas (O&G) industry contributes to the economic as one of the most important sectors by taking into advantages as being the most demanding, challenging and exciting engineering and technological advances which interests the engineers at large. As the O&G industry has become financially attractive yet risky to be implemented, it is important to look into the effective way of managing the O&G projects. Hence, via literature review, this paper is emerged with the aim of reviewing the project management in O&G industry by determining the O&& execution phase as well as examining the O&G project management approach based on the typical O&G platform development stage. It is found that in the O&G project execution, a systematic for project management is developed with the aim to improve the decision making process and overall project execution, where typically, the systematic project management consist of five main phases, mainly (1) appraisal; (2) selection and definition, which are both associated with (3) planning phase; as well as (4) execution and first year operation which are associated with (5) control phase. The project management approach is also found to be executed in the typical O&G development stages, namely: (1) conceptual design; (2) Front End Engineering Design (FEED); (3) procurement of long lead equipment; (4) detailed design; (5) construction/fabrication; (6) onshore pre-commissioning; (7) transportation/installation (applicable for offshore platforms); and (8) hook up and commissioning prior to handover to end user. The findings of this paper is expected to provide a clear picture and understanding on how the O&G project should be effectively managed via proper approaches of project management.