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In recent years Ramboll Oil & Gas has experienced a considerable increase in large scale projects such as Volve – additional wells and South Arne Phase 3 development. Lastly the department will play a central role when preparing tenders for major projects and support sales activities. Posted on February 2, 2012 with tags Denmark, europe, Focus, Gas, increases, Industry, Management, News by topic, oil, project, Ramboll, Subsea. Maersk Oil UK has awarded Ramboll Oil & Gas the detailed design for the Culzean wellhead jacket.
Ramboll Foundation announced that Flemming Bligaard Pedersen will succeed Svend Aage Nielsen as Chairman. Ramboll continued to grow in 2013 in a tough market due to strong performance in most business units. The development of the Kuvykin field in the Russian sector of the North Caspian Sea is taking form.
This is the style for the horizontal gold bars across the top of each article page including the date, author and a more link. The current preoccupation with deepwater development risks and uncertainties has an interesting parallel to the global preoccupation with emerging risks in the broader world economy. This article is aimed toward a petroleum industry audience, and I will draw primarily on upstream oil and gas examples.
We have a proven track record and are able to assist our clients achieve their project objectives. Managing the complexity of major capital projects in today’s oil and gas landscape has never been more critical. Large projects in the oil and gas industry make up a significant percentage of company spend, and therefore there must be particular focus on project management learning and development within the industry to deal with these complex projects. Successful companies continuously improve their project management skills as well as skills specific to oil and gas. Career enhancement for the employees – For individual employees, continuing to learn and develop their professional skills and expand their knowledge base can lead to greater career opportunities within the company.
Companies can retain their best employees – Productive employees are a company’s biggest asset and when they leave (or retire as mentioned earlier) they take with them years of experience, knowledge and skill.
A competent workforce also benefits the industry as a whole – A well trained workforce contributes hugely to the entire oil and gas industry.
The French utilities giant EDF gets ever closer to finalising the heavily anticipated start of the build of the new Hinkley Point C power station.
Successful management of large projects follows a comprehensible and dependable reference framework that guides our decisions and processes. RichTerra has developed a Well Operations Management System that provides a framework for safe, efficient and consistent management of drilling operations. The best part of entire program management is that we are able to extract our consulting fee from the project optimization itself.
Thermal Insulation Projects. PU Coating of Sub Sea Equipment, Structures and Pipe Lines for BP, Exxon Mobile, Shell, Cameron, Aker, FMC, HMC, in Angola Africa, Holland and the UK factory.
ROV & AUV, design and manufacture projects for Nishiyama Corporation, Mishibushi Heavy Industries Japan and Kongsberg.
Companies in the UK oil and gas sector expect to create up to 39,000 jobs over the next two years. Rome wasn’t built in a day; it grew through a series of large projects, managed to schedules and budgets. Today, large projects in the oil and gas industry face similarly daunting challenges as they become increasingly complex and technologically demanding. Our experience working with projects in oil and gas suggests that while best practices and experienced talent are essential, they are not enough.
Successful companies also continuously improve their general project management skills, as well as skills specific to oil and gas.
As activity ramps up and more oil and gas production moves to frontier and unconventional resource areas, projects are becoming larger and more complex. To keep these stage gates relevant, leading oil and gas companies and the contractors who work with them continuously revise their stage-gate frameworks to align them with evolving market conditions. Leaders also work to control costs in the early architectural and planning phases, when key decisions are made.
Well-managed large projects balance simplicity and flexibility with respect for rigor at checkpoints. An integrated project team with clear roles and responsibilities, and a shared interest in the project’s objectives, helps ensure accountability.
A good framework is essential, but it’s not enough to satisfy the demands of major projects in oil and gas.
International oil companies (IOCs) and oil field service companies are building up their internal engineering capabilities to ensure quality among their contractors.
Procurement trends follow cycles, however, and the push for local content requirements could fragment the procurement pool again.
Leading companies work with contractors to determine how risk and opportunity will be shared. Engineers and builders in the oil and gas industry face daunting and unprecedented challenges as they design and construct the infrastructure to extract and process the resources that will power the global economy over the next few decades.
Oilfield services and equipment leaders are restructuring to reduce costs for themselves and their customers while optimizing their portfolios. Reducing capital expenditure is a natural response to low oil prices, but the industry needs to continue to explore and develop to meet long-term demand, which continues to grow. A look at the challenges private equity investors face following a decade of volatility and change, and what it will take to succeed in 2016.

Addressing a few key questions will change your perspective and raise your odds of success.
Therefore the primary assignment of the new department is to further sharpen, handle and carry out major multidisciplinary projects. The department will start up with three ongoing projects located in the North Sea including the Tyra Facility Optimisation. The course is based on the EEMUA User Guide to subsea materials selection and corrosion control, EEMUA Publication 194. Permanent employees of EEMUA and SUT member companies are entitled to a 20% discount off the standard course fee. In fact, the parallels are so strong that we could consider deepwater risks as a subset of emerging risks faced by companies and governments across the globe. But, in addition to lessons learned for deepwater developments, we will also show how very similar our situation is to that of our risk counterparts in other industries.
Against the backdrop of a decline in both global economic conditions and corporate revenues, stakeholders are demanding improved return on investment, reduced risk and exposure to risk and greater transparency. Successful managers of large projects follow an understandable, consistent reference framework that guides their decisions and processes. A shortage of technical talent in the industry – destined to become more acute over the next seven years as a generation of experienced engineers retires – complicates the problem.
Nothing stays static, and in today’s ever changing energy environment that is more the case than ever. Staying on top of best practices and growing on the job can insure that an employee will remain valuable to their employer. The company needs to retain its top talent, by keeping employees motivated, respected and appreciated. Our consultants have direct experience in Oil and Gas project delivery, so who better to consult and advice with your project management development and training.
Our Integrated Spending Management Framework (ISMF) covers all key procurement and spend processes to ensure you are not spending beyond your means. This motivates us to work harder and more efficiently, while the project is operating as a Self Sustaining Fee Model (SSFM) for the operating company and saving money. Consider the Colosseum: An army of workers took less than 10 years to complete it in 80 AD, using 100,000 cubic meters of travertine marble. For example, working space on site was maximized and many activities were outsourced to yards where partly assembled blocks were prepared.
Schedules and budgets are tight, safety is crucial and every project faces a network of stakeholders concerned about its impact on the environment and communities. Successful managers of large projects follow a coherent, consistent reference framework that guides their decisions and processes. A shortage of technical talent in the industry—destined to become more acute over the next seven years as a generation of experienced engineers retires—complicates the problem. These include an offshore facility in the Arctic, budgeted at more than $3 billion, and an $8.4 billion petrochemical complex spread across 45 kilometers in South America. Firms’ portfolios may include hundreds of complex projects, which they prioritize not only on financial goals and risks (including execution, commercial, health-safety- environmental [HSE] and reservoir risks), but also increasingly based on the availability of scarce resources like engineering talent. For small companies, delivery of a smaller, technically complex project may be as demanding as larger projects are for large companies. Leading companies gather technical input early, incorporating it into the project’s framework to make sure it aligns with the organization’s larger goals.
While it’s important to keep project teams on task and schedule, processes that are not easily changeable can place unnecessary hurdles in a project’s path.
In some organizations where decisions and accountability are not clearly allocated to project teams, functional experts may wind up making key decisions.
Corporate functions empower project teams by staffing the best people, defining processes and ensuring control of managerial and technical activities. Successful organizations assess projects continually, not only at formal checkpoints and stage gates, to ensure they are on track to add value. Companies must also continuously improve their general project management skills, balancing trade-offs among costs, schedules, technical demands and stakeholder requirements while also coordinating between the functional center and project teams (see below, “Managing large capital projects,” for a complete list).
Local content rules, which require large project owners to source some goods and services from the host country, are critical in oil and gas projects. They engage policy makers to create long-term strategies that go far beyond their immediate supplier needs, promoting best practices that help local industries meet global standards. Over-engineering can contribute to unnecessary complexity in major projects, while simplicity in design can ensure efficient and competitive solutions. This enables them to better manage projects for national oil companies (NOCs) and other resource holders (see the Bain Brief “National oil companies reshape the playing field” for more on this trend).
Many oil companies are rationalizing their procurement relationships, moving from many shallow relationships to fewer but deeper ones.
If local content efforts are to succeed over the long term, NOCs and other oil and gas companies will have to work with local suppliers to build a strong foundation of support services (see the Bain Brief “How national oil companies can fuel economic development”). One company redefined its contract work breakdown into related contracting modules, allowing it to reassign some contractor jobs and save 13% on goods and services.
Managing risk and opportunity is a continuous process that requires companies to consider not only the most common risks, but also to have experience mitigating unexpected events.
This can forge a much closer relationship than simply trying to transfer risk to contractors while reducing cost and risk for the managing organization.
The authors would like to acknowledge the contributions of Max Panaro and Giacomo Franchini, both with Bain & Company in Milan. To do so, a recent study on emerging risks sponsored by the Financial Times, is worth summarizing.

Even so, as they approach projects of greater complexity and scope, companies cannot afford to bring second rate talent to the game.  Jobs in the oil and gas sector are evolving. Effective training by experienced energy professionals can have a wide ranging impact on the individual being trained, the company he or she works for and the industry as a whole. In good times, when the oil and gas industry is doing well, highly trained employees are well positioned to take on greater responsibilities and managerial roles. Investing in employees by providing them with opportunities to improve their skill level shows them that their contributions are valued by the company. The retro fit system straps to the outside of the hull without interfering with the acoustic signature.
To accomplish this, project leaders relied on tested engineering concepts and organizational innovations. Even so, today’s project managers still rely on concepts that the builders of the Colosseum, as well as other large projects of antiquity, such as the Pyramids of Giza and the Great Wall of China, would recognize: work breakdown plans, design-to-cost and make-or-buy decisions. Even so, as they approach projects of greater complexity and scope, companies cannot afford to bring second-rate talent to the game. Such projects involve many stakeholders, including shareholders, local authorities and regulators, and environmental and community advocates.
Some are building up their internal engineering staffs by as much as 80% to effectively manage the many contractors and suppliers on each project.
However, projects that look very big (for example, upstream shale production projects) may in fact be a collection of smaller projects.
They also engage stakeholders throughout the life of the project, from architecture and design through execution. To move from one stage to the next, managers, coordinating with stakeholders, have to decide if they are ready to move on. For example, it may make sense to define local content requirements well ahead of fron-tend engineering design.
Our analysis of projects that run late or over budget finds the top reason is “not making good decisions with the right people and not making them happen.” This may include failing to invite technical input at the concept phase, disregarding stakeholders or misaligning decision makers’ incentives and project goals. That can create bottlenecks and delays, as decisions percolate up to functional managers with wide-ranging agendas.
Ideally, senior managers who are not part of the project team give a “cold eye” review of the project, costs and progress. Project managers must understand the requirements and plan accordingly, taking into account the relevant risks. A local network of robust suppliers not only benefits the project, but also the local economy. This is an ancient principle: Even the engineers supervising the construction of the Colosseum demanded simple, proven construction techniques, setting a high bar of proof for any deviation that strayed from their templates. For example, some IOCs are trying to spend half their procurement budget with their top 40 vendors, whereas a few years ago that share might have gone to more than 250 companies. Global companies should also strive to manage suppliers at the global level and ensure they’re working with the supplier’s A team, which adds value (and reduces frustration). In the oil and gas industry, it’s never been more important to manage health, safety and environmental risks, given the rising complexity of operations and the close scrutiny by regulators and stakeholders. But that doesn’t diminish their importance or suggest they should be undertaken with any less rigor. New technology and environmental regulation changes the face of the industry so having an educated and well trained staff is imperative. Having a well trained employee base can also ultimately give the company a competitive advantage.
Schedules are compressing, too: For one oil company, more than 90% of its field discoveries from 2009 to 2011 are due online in less than eight years.
Companies that approach their unconventional strategy in the same way they would approach a large, complex project run the risk of over-engineering their upstream production if they treat many small projects like a large one. A diagnostic survey of decision quality, speed, yield and effort can identify areas that need to be changed.
Projects are more likely to succeed when the functional experts have an advisory rather than a decision-making role in assurance, control and steering activities. They report to decision makers on the project’s state of readiness and suggest ways to improve value or cut costs. In some cases, services are not available from local sources, or local providers are not able to deliver against objectives. Risk identification and evaluation is a continuous process throughout a project’s life cycle and across the project portfolio, taking a systemic perspective that considers projects, their phases and relevant risks. As the oil and gas industry embarks on a new generation of major projects, project managers will need to rely on coherent, consistent reference frameworks that guide their decisions and engage the most competent talent they can find in order to keep pace. Comparing the project with others in the portfolio helps prioritize resources in line with company goals.
At one project, engineers reviewed 71 complex engineering actions, from rotating machinery to the layout of pipes, to find simplifications that saved between 1% and 2.5% of costs. Sometimes the reviewer’s analysis will lead the organization to modify a project or change its delivery date.

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