There are many challenges facing management during the upstream development of Oil & Gas projects. One of the most pressing and with the greatest potential for cost and schedule overruns, is the confusion and re-work resulting from poor definition of responsibilities and work flows.
Companies active in the execution of Oil & Gas development projects invariably have ISO 9001 compliant Quality Management Systems. However, the Company QMS is typically designed to control all business activities, and in most cases, these arrangements are not flexible enough to accommodate the unique and dynamic nature of executing large and complex projects.
Project teams are typically composed from a selection of permanent and contracted staff, each of whom have been selected for their experience or sometimes their availability. While the first attribute is valuable and critical for project success, it must be harnessed within a structured environment to ensure maximum contribution and to ensure a silo culture does not develop.
While the Company QMS may adequately serve the corporate aspects of a business, it may not function well at project level. Considering the CapEx of a hydrocarbon development project is routinely in excess of 1BUSD, and each project is unique in terms of structure, organization and interfaces. The project QMS must be clear, concise and easily communicable.