The use of performance measurement as a basis for project control of offshore modification oil and gas projects

• Published in: Production planning & control Vol. 21; no. 8; pp. 760 - 773
• Main Authors: Fouché, Deon Paul, Rolstadas, Asbjørn
• Format: Journal Article
• Language: English
• Published: London Taylor & Francis Group 01.12.2010; Taylor & Francis LLC
• Subjects: benchmarking; Cost estimates; cost estimating; cost risk simulation; earned value; experience transfer; Extrapolation; Monitoring; Natural gas; Norms; Offshore; offshore modifications; Offshore oil exploration & development; oil and gas industry; Performance evaluation; Performance measurement; Platforms; Production controls; Production planning; project control; Project management; Quantitative analysis; Studies
• ISSN: 0953-7287; 1366-5871
• DOI: 10.1080/09537281003661385

The methods presented in this article are based on the qualitative and quantitative analysis of close-out data drawn from a portfolio of 38 modification projects. The primary premise is that modification projects are intrinsically subject to quantity and complexity growth during the course of detailed engineering as a consequence of the indeterminate interface with the existing facility. The normative project control routines need to be supplemented by material take-offs-based weight monitoring as a basis for re-estimation and re-calibration of the project baselines as detailed engineering proceeds in order to mitigate this uncertainty as early as possible. Similarly, estimating needs to be based on norms drawn from performance measurement of modification work rather than extrapolations from greenfield projects, particularly the work performed on the platforms. This article presents a portfolio of project control methods based on the performance measurement principle covering the short term of single projects as well as the longer term multi-project perspective.