Project Decision Making in the Oil and Gas Industry

Introduction

Do the decisions made within your project organization provide clear direction for future projects? Large-scale projects in the oil and gas industry today face significant challenges, as they grow increasingly complex, innovative, and technologically demanding. It is crucial to ensure proper project selection, with clear benefits defined and understood from the outset, and thorough planning to support successful delivery. Making sound, informed project decisions is a critical task for organizations, though it can be difficult to execute effectively. This Project Decision Making in the Oil and Gas Industry training course offers a step-by-step guide to decision-making processes. It introduces decision analysis, using various decision criteria and types of information, both high and low in quality. The course also explores decision alternatives, as well as the goals and objectives that drive effective decision-making.

This course will highlight:

• The need to undertake Front End Design & Survey in an Oil & Gas environment
• How to establish the key requirements necessary to support Oil& Gas project approval
• How Oil & Gas organisations ascertain the strategic fit and relevant options for project delivery

Objectives

By the end of this training course, participants will be able to:

• Identify with relevant stakeholders and communication needs in the Oil & Gas industry
• Understand key contextual requirements within the project environment
• Accurately estimate and allocate project costs and associated benefits
• Systematically define, design, and integrate end-user requirements in the project decisions
• Understand how the time-value of money techniques help to support decisions
• Identify risk sources and learn how to mitigate potential risks and deal with uncertainty

Training Methodology

Course participants will receive a thorough training on the subjects covered with the Tutor utilising a variety of proven adult learning teaching and facilitation techniques. Project methodology includes an insight into organisational decision methods and short and long-term strategy considerations. The course includes an evaluation of project leadership skills required and will evaluate an applicable case study, with group discussion and critical analysis of this and other actual Oil & Gas projects.

Who Should Attend?

This training course is suitable to a wide range of professionals but will greatly benefit:

• Project Management Professionals
• Commercial Management Professionals
• Contracts Management Professionals
• Financial Management Professionals
• All other business services professionals who have the responsibility for planning, decision-making and controlling project schedules and costs in client and contracting companies

Course Outline

Day 1: Concepts of Project Management

• Projects and Programs
• Project Life Cycles and Stage Gates

Intricacies of Project Approval in the Oil & Gas Industry

• Project Sanctioning and approval Process. (PSAP) for the Oil & Gas Industry
• Development of the Strategic Project Business Case
• Project Identification–Awareness of accountability of Project Ideas
• Exploration Survey & Drilling

Day 2: Project Context in the Oil & Gas Industry

• Appreciation of macro-environment in relation to project choice
• Understand who stakeholders are and how they may impact upon the project
• Regulatory framework, institutional factors and infrastructure

Strategic decision making through the Project Life Cycle

• Project Feasibility Decision makers
• Project Preparation & Planning responsibilities

Project Leadership Skills

• Build an executive leadership style that guides the project toward greater performance and profit
• Understand the Project Organisation in a typical Oil & Gas project
• Project Manager–Unique Requirements

Day 3: Project Financing and Financial Modelling for Oil & Gas Projects

• Project finance: Limited and non-recourse project finance
• Structuring project finance deals
• Financing/ credit risk considerations for the Oil & Gas project

Evaluation Mathematics in Project Finance

• The time value of money – how it applies to project finance
• Yields and rate of return - Discounted Cash Flow (DCF) analysis

Day 4: Identify Reasons for Project Failures and Successes

• Understand why some projects fail
• Gain an understanding of successful projects and analyse reasons for success

Starting with the End in Mind

• Define success criteria and KPI’s of an example Oil & Gas project
• Capture Project Requirements
• Development of the Project Charter

Project Management Integration

• Understand the need for a project team approach
• Importance of communication in an Oil & Gas project
• Project Systems and Processes for procurement, award of contracts, workforce management

Day 5: Project Stakeholder Engagement

• Identify and plan to engage with the project’s key stakeholders
• Centralised vs. Participatory Monitoring

Project Reporting Techniques

• Optimal Project Review Types and Intervals
• Control Decision-making
• Project Evaluation criteria

Preparing for Project Decommissioning

• Decommissioning and rehabilitation considerations