Addressing the productivity challenge using a build, own, operate, maintain (BOOM) contracting model

2014 ◽  
Vol 54 (2) ◽  
pp. 517
Author(s):  
Geoff Bird ◽  
Rob Radici
Keyword(s):  
Success Factors ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Infrastructure Development ◽  
Gas Industry ◽  
Critical Success ◽  
Risk Environments ◽  
Subsequent Phase ◽  
Contracting Model ◽  
Project Lifecycle

Poor productivity is one of the major challenges facing the oil and gas industry in Australia. This is evidenced by significant cost and schedule overruns on every major LNG development during the recent Australian LNG construction boom. In a world where gas is a global commodity that can be easily exported, the consequences of poor productivity mean that investment dollars are directed overseas to lower risk environments to the detriment of resource development in Australia. This extended abstract explores the causes of poor productivity and it argues that one of the principle reasons is a fragmented contracting strategy, which results in the scope being split among different contractors at various phases of the project lifecycle, requiring complex and often inefficient interface management. This combined with little commercial incentive for contractors to minimise cost for the subsequent phase of the project means the responsibility falls with the operator to optimise costs during the project lifecycle. This extended abstract proposes that BOOM commercial model and contracting strategy is one way to address the productivity challenge. This model incentivises the contractor to engineer to reduce construction cost and to construct to minimise operational and maintenance costs by ensuring the contractor has a significant stake. This better aligns the commercial interests of the contractor and operator. This extended abstract also addresses the types of infrastructure development the model is best suited to and some of the critical success factors required to deliver a successful BOOM outcome.

scholarly journals Critical Success Factors for ERP Projects: Recommendations from a Canadian Exploratory Study

2020 ◽  
Vol 15 (2) ◽  
pp. 80
Author(s):  
Sreekumar Menon
Keyword(s):  
Enterprise Resource Planning ◽  
Critical Success Factors ◽  
Success Factors ◽  
Oil And Gas ◽  
Single Case ◽  
Resource Planning ◽  
Oil And Gas Industry ◽  
Structured Interview ◽  
Gas Industry ◽  
Critical Success

This research paper discusses key recommendations for improving future Enterprise Resource Planning (ERP) implementations based on insights from an exploratory qualitative single case study in the Canadian Oil and Gas Industry. The study was conducted using a semi-structured interview guide from twenty participants belonging to four project role groups of senior leaders, project managers, project team members, and business users. The research evoked a comprehensive list of forty-two critical success factors (CSFs) and out of which, top ten CSFs discussed include: Know your data, longer and more integrated testing, utilization of the right people, longer stabilization period (hyper-care), communication, address legal and fiscal requirements, hyper-care must be longer, early buy-in from business, have a Lean Agile program, less customization and more vanilla out of the box, and project must be business-driven and not IT-driven. This study is one of first ERP case studies in the Canadian oil and gas industry and the research recommendations can prove to be beneficial for organizations when undertaking ERP implementations.

scholarly journals Critical Success Factors of the Reliability-Centred Maintenance Implementation in the Oil and Gas Industry

Symmetry ◽  
2020 ◽  
Vol 12 (10) ◽  
pp. 1585 ◽  
Author(s):  
Masoomeh Zeinalnezhad ◽  
Abdoulmohammad Gholamzadeh Chofreh ◽  
Feybi Ariani Goni ◽  
Jiří Jaromír Klemeš
Keyword(s):  
Critical Success Factors ◽  
Success Factors ◽  
Oil And Gas ◽  
Nominal Group Technique ◽  
Oil And Gas Industry ◽  
Nominal Group ◽  
Gas Industry ◽  
Implementation Phase ◽  
Critical Success ◽  
Critical Measure

Reliability-Centred Maintenance (RCM) is a strategic process to improve the maintenance planning of companies which contributes to sustainable production. This method has been applied by numerous industries to achieve an efficient maintenance process, but many have not fully completed their goals. The reason for this failure is that RCM implementation is complex, and organisations need to have adequate preparations before they implement it. In the pre-implementation phase, it is necessary to know the number of Critical Success Factors (CSFs) as a critical measure for implementing the RCM method successfully. Therefore, it is important for practitioners to apply a symmetric mechanism involving fuzzy systems to achieve the desired RCM implementation. There are a limited number of studies that have observed these factors regarding the characteristics of oil and gas companies, especially in the pre-implementation phase. Addressing RCM pre-implementation issues is of high importance from the economic perspective of sustainability for oil and gas organisations. The objective of this study is to investigate significant items in RCM pre-implementation through a combination of quantitative and qualitative analyses. The Nominal Group Technique (NGT) method is applied by gaining the opinion of experts to determine the factors and prioritising them using mathematical modelling. A group of related experts from the oil and gas industry were initially interviewed and surveyed to determine the critical success factors. These identified factors were then analysed using quantitative analysis to identify the important degrees and scored using Fuzzy Analytic Network Process (FANP). Fifteen major factors affecting the criticality of successful RCM implementation have been identified and prioritised, based on their weights. The model proposed in this study could be used as a guideline for assessing CSFs in other countries. To apply the proposed model in different contexts, it needs to be modified according to the needs, policies, and perspectives of each country.

A hybrid model for ranking critical successful factors of Lean Six Sigma in the oil and gas industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amir Karbassi Yazdi ◽  
Thomas Hanne ◽  
Juan Carlos Osorio Gómez
Keyword(s):  
Delphi Method ◽  
Success Factors ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Lean Six Sigma ◽  
Ratio Analysis ◽  
Gas Industry ◽  
Content Type ◽  
Critical Success ◽  
Practical Implications

PurposeThe aim of this paper is to find and prioritise multiple critical success factors (CSFs) for the implementation of LSS in the oil and gas industry.Design/methodology/approachBased on a preselected list of possible CFSs, experts are involved in screening them with the Delphi method. As a result, 22 customised CSFs are selected. To prioritise these CSFs, the step-wise weight assessment ratio analysis (SWARA) method is applied to find weights corresponding to the decision-making preferences. Since the regular permutation-based weight assessment can be classified as NP-hard, the problem is solved by a metaheuristic method. For this purpose, a genetic algorithm (GA) is used.FindingsThe resulting prioritisation of CSFs helps companies find out which factors have a high priority in order to focus on them. The less important factors can be neglected and thus do not require limited resources.Research limitations/implicationsOnly a specific set of methods have been considered.Practical implicationsThe resulting prioritisation of CSFs helps companies find out which factors have a high priority in order to focus on them.Social implicationsThe methodology supports respective evaluations in general.Originality/valueThe paper contributes to the very limited research on the implementation of LSS in the oil and gas industry, and, in addition, it suggests the usage of SWARA, a permutation method and a GA, which have not yet been researched, for the prioritisation of CSFs of LSS.

scholarly journals Assessment of critical success factors of business process re-engineering in the Nigerian oil and gas industry

2015 ◽  
Vol 46 (2) ◽  
pp. 1-14 ◽  
Author(s):  
U. O. Asikhia ◽  
D. O. Awolusi
Keyword(s):  
Organizational Performance ◽  
Performance Measures ◽  
Business Process ◽  
Critical Success Factors ◽  
Success Factors ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Operational Performance ◽  
Critical Success ◽  
Oil And Gas Companies

Business Process Re-engineering (BPR) is defined as the critical analysis and radical redesign of existing business processes to achieve breakthrough improvements in performance measures like cost, quality, speed, profitability and services. The purpose of this paper is to identify the critical success factors of BPR implementation, to evaluate their effects on the primary measures as expressed by the operational performance and the secondary measures as expressed by the organizational performance, and to find out the effect of the operational performance on the organizational performance of Nigerian oil and gas companies. To achieve these objectives, an empirical study was conducted via the administration of 650 self-administered copies of questionnaire to a randomly selected senior and management staff of eight (8) re-engineered Oil and Gas Companies in Nigeria. Using the framework from Khong & Richardson (2003), factors manifesting operational performance and organizational performance were regressed on the Critical Success Factors (CSFs) manifesting successful BPR. Findings based on the survey revealed that successful BPR can positively affect both operational and organizational performance measures in the Nigerian oil and gas companies.

scholarly journals Incidents and Disaster Avoidance: The Role of Communication Management and the Organizational Communication Climate in High-Risk Environments

2021 ◽  
Vol 13 (18) ◽  
pp. 10138
Author(s):  
Shahrina Md Nordin ◽  
Ammar Redza Ahmad Rizal ◽  
Rafidah Abd Rashid ◽  
Rohayu Che Omar ◽  
Unggul Priyadi
Keyword(s):  
High Risk ◽  
Organizational Communication ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Communication Climate ◽  
Communication Management ◽  
Gas Industry ◽  
Risk Environments ◽  
High Risk Environments

Health, safety and the working environment are of paramount importance, especially in the high-risk environments found at facilities in the oil and gas industry, where hazards are inevitable and accidents may lead to regrettable situations such as explosions, oil spills and other disasters. The high number of accidents and disasters at such facilities bring safety-related matters to the fore. The complexity of the communication process is very often underestimated, where failures in communication could lead to major disasters. This paper investigates the role of communication management and the organizational communication climate and their impact on incidents and disaster avoidance. This study embarks on a quantitative approach involving 260 personnel from high-risk workplaces at oil and gas facilities, based on purposive sampling. Hypotheses were tested using PLS-SEM to identify causal relationships and for mediation analysis. The findings of this study show that communication management and the organizational communication climate have a significant impact on disaster avoidance. The organizational communication climate is also found to be a significant mediator for the relationship between communication management and disaster avoidance. Communication management and the organizational communication climate need to be enhanced and to be integrated with other technology and innovation to improve safety regulation adherence in the oil and gas industry.

Female workforce participation in the Australian oil and gas industry—a global comparison

2012 ◽  
Vol 52 (2) ◽  
pp. 709 ◽  
Author(s):  
Melissa Marinelli ◽  
Kristy McGrath
Keyword(s):  
Business Performance ◽  
Success Factors ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
University Graduates ◽  
Gas Industry ◽  
Diverse Workforce ◽  
Oil Companies ◽  
Representation Of Women ◽  
Global Comparison

As the Australian oil and gas industry faces a continued shortage of skilled employees, increasing the representation of women in this industry is a business imperative. Economic success and competitive advantage may depend on attracting and retaining the skills of women. Research shows that a gender-diverse workforce can also be linked to improved business performance, innovation and corporate governance. While women make up 46% of the Australian workforce and more than 50% of university graduates, present statistics show that on average 13% of workers in the Australian oil and gas industry are women. This is a lower proportion than comparable industries in Canada and Norway: women make up 21% and 19% of workers, respectively. In Norwegian oil companies, this level is as high as 30% (4). This extended abstract briefly discusses the present research about women's retention and progression within the Australian resource sector. It outlines the initiatives being undertaken by government, industry bodies and organisations to increase the representation of women in the Australian sector, and comparable industries in Norway and Canada. This extended abstract concludes with a case study about the challenges and lessons learnt in establishing a corporate initiative to increase female participation at Clough Limited. Women@Clough is a professional forum established in April 2011 to improve the attraction, retention and progression of women in the Clough workforce. Strategies and key success factors in the establishment of the program are also examined.

Biodiversity offsetting: implications for the oil and gas industry in Australia

2010 ◽  
Vol 50 (1) ◽  
pp. 187
Author(s):  
Toivo Zoete
Keyword(s):  
Biological Diversity ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Infrastructure Development ◽  
Gas Industry ◽  
Policy Frameworks ◽  
The Subject ◽  
Licence To Operate ◽  
New Policies ◽  
Social Licence To Operate

Energy and infrastructure developments often involve or traverse extensive tracts of land that are frequently covered with stands of native vegetation, providing habitat to a range of different plant and animal species. The biodiversity (biological diversity) contained in these stands is the subject of several pieces of legislation in Australia that place restrictions and conditions on those whose activities interfere with this biodiversity. Social licence to operate is another motivation for development organisations to tread softly when it comes to preparing for activities within these zones. With sound and early planning, much interference can be prevented, but sometimes it is unavoidable and measures will need to be developed to address the resulting impacts. Offsetting is one form of measure available to conserve biodiversity when all other options fail, although it can also be used in addition to other measures. Offsetting allows for actions to be taken by developers to compensate for adverse impacts of their developments. Several policies have been released outlining State and Commonwealth positions on biodiversity offsetting in the last few years. When seeking approvals, energy and infrastructure development organisations need to plan ahead according to these policies. To this purpose, this paper outlines the various policy frameworks that exist for biodiversity offsetting across Australia. Implications for the oil and gas industry are provided. The industry has several characteristics that allow it to take advantage of the new policies, which are discussed. Among these are the ready access to land for offsets and, in the case of the coal seam gas industry, the availability of water to kick-start the creation or restoration of biodiversity on land that was previously cleared.

Indigenous employment—it works

2009 ◽  
Vol 49 (2) ◽  
pp. 597
Author(s):  
Steve Tiley
Keyword(s):  
Role Models ◽  
Success Factors ◽  
Oil And Gas ◽  
Career Planning ◽  
Oil And Gas Industry ◽  
Growth Strategy ◽  
Gas Industry ◽  
New Employees ◽  
Key Success Factors ◽  
School Based

It is predicted that by 2020 the Northern Territory’s Aboriginal population will rise from 33% to 50% of the total population base. Parallel to this, business and government agencies will need to source thousands of new employees in anticipation of northern Australia’s economic growth forecast. In a wider context, if we struck an arc from Geraldton in Western Australia to Gladstone in Queensland, we know the resources sector is investing billions of dollars in new projects. In this same area of Australia we find thousands of Indigenous candidates seeking employment opportunities who are both willing and capable of operating and maintaining the assets. This paper will outline how Universal Engineering—a small fabrication and engineering contractor in the oil and gas industry—has approached its skill shortage problems. By encouraging non-traditional recruitment and retention strategies, various solutions and achievements are highlighted, showing how Universal Engineering has succeeded with recruiting, training and retaining Indigenous apprentices as part of its overall employment growth strategy. By engaging Indigenous employees over the past 10 years, Universal Engineering has refined its Indigenous training strategies and would like to share its knowledge with other employers in the oil and gas sectors. Our key success factors include the development of human resources systems, ensuring that parents—Mum, Auntie or Grandma—are willing to mentor their children through the initial training and employment phases and by adopting school based apprenticeships (taking place in years 11 and 12). These greatly assist with literacy and numeracy improvements and help the transition into the workplace. In the longer term, Universal is establishing role models and strong career planning to let our employees know they have stability and a future in the company, and indeed in the industry as a whole.

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