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(OWN-2132) Delivering Market Driven Oil and Gas Projects within Investor Expectations

Primary Author: Elena Rybina
Co-Author(s): Dmitriy Skorobogatov; Sean T. Regan, CCP CEP EVP FAACE; Julie K. Owen, CCP PSP

Audience Focus: Intermediate
Application Type: Research
Venue: 2016 AACE International Annual Meeting, Toronto, ON, Canada

Abstract: Investment projects these days are executed in a fast-changing market driven environment, requiring investors to continuously improve techniques and tools of project management. Projects must transform from traditional project management concepts of delivering the project on scope, within quality, on-time within budget. The new project delivery requirement adds another requirement to provide maximum economic benefit as a result of the investment. The presentation will cover the approaches to integrating processes of project and investment management from goal setting to monitoring, post-investment control and motivating participants.
In particular this paper discusses the following topics:
• Key metrics of an investment project from an investor’s perspective
• Financial modeling of a project incorporating the results of CAPEX and OPEX estimation, schedule data, production parameters
• Project goal setting based on the results of financial modeling
• Linking key project indicators and project team’s incentive scheme
• The development of managerial decisions for optimizing costs and maximizing economic benefit. Complex change management

The outlined approaches allow creating a system for efficient management of investment projects through integrating goals of all the stakeholders.