| dc.description.abstract | This thesis addresses the recurrent issue of cost overruns in the oil and gas sector, focusing
on projects conducted by Rosenberg Worley. Despite extensive research on cost overruns,
effective solutions to mitigate these repeated occurrences still remain elusive. This research
aims to identify the primary factors affecting cost estimation inaccuracies and cost overruns
at Rosenberg Worley and thoroughly analyze the current procedures and methodologies used
by the company.
The study begins with a comprehensive literature review to establish a foundation, followed
by detailed examinations of two case studies on the Nova and Duva projects from Rosenberg
Worley. Data from these case studies were sourced from classified project documents,
including Scope of Work documents, Baseline reports, and Cost Estimation reports. By
integrating the analyzed literature with practical data, this research identifies key factors
contributing to cost overruns and suggests strategies for mitigating these overruns and
improving cost estimation.
Key findings emphasize the importance of accuracy in initial project planning, thorough risk
management strategies, and maintaining an accurate and flexible schedule throughout the
project lifecycle. The analysis revealed that insufficient scope definition and frequent scope
changes significantly contribute to cost overruns. As a result, recommendations are made to
address these factors and mitigate future cost overruns.
This thesis contributes to the field by providing practical recommendations for improving cost
estimation accuracy and reducing cost overruns, based on extensive research from both
literature and practical data from Rosenberg Worley, ultimately enhancing project success in
the oil and gas industry. | |