Methodology for Project Evaluation

Abstract

Recent studies reveal that the offshore projects undertaken on the Norwegian Continental Shelf failed consistently to deliver on time and budget. The study performed by Norwegian Petroleum Directorate (NPD) confirms major cost & schedule overruns. It was identified that numerous International oil and gas projects faced similar challenges in meeting the budgets and schedule. In spite of having various project management techniques, the oil companies (operators) still experience challenges to track the project deliverables. With the current lower oil prices, executing projects on time (OTD-On Time Delivery) according to the agreed budget is the need of the hour for the Norwegian oil and gas industry. This thesis looks into developing a methodology to track the projects and handles various project issues early so as to manage effective project deliveries. This study identifies various key issues that have promoted project failures in different project phases on an EPCIC project model. This thesis shows how to effectively capture the project issues and enhance overall project performance. This thesis covers various critical parameters that need to be managed in various phases of the EPCIC project. This thesis thus proposes a project evaluation methodology through using a “stage gate” criteria and also proposes a project model that could effectively manage the projects.