WHAT IS A PROJECT?
Like any article about something complex and multifaceted in the beginning it is necessary to stay on key terms, a good understanding of which avoids unnecessary discussions, objections and misunderstandings in the reader.
So, any project (if it is indeed the project) has a number of characteristics, considering that you can say for sure whether this kind of activity to the project or is it something else (conveyor, small-scale or large production). What are these characteristics?
Time limited - every project has a clear time frame (this does not apply to its results). If such a framework is not defined, it is called the operating activities and can last indefinitely. In Russia, the absence of pre-fixed dates, or rather - their voluntarist offset to the right side - one of the main factors, which could affect the ultimate economic performance indicators of the project.
Uniqueness - the project must generate unique results, achievements and products; otherwise such an enterprise becomes mass production. This concept is often replaced in Russia. And hear phrases like - "project - any business which requires to attract money or your connections/relations ". For reasons unknown to us the depth technical study of the project departs frequently sidelined the closer the project is underway.
Sequence - any project evolves over time, passing through certain stages, but it never changes the content that is installed on the stage of initiation of the project. Initiation, by the way, one of the most important stages, because of how the formulated product of the project and the conditions for its implementation depends on whether the project will be effective, whether implemented on time and get you the output is exactly what wanted originally.
HUMAN FACTOR IN PROJECTS
One of the most challenging (and interesting at the same time) properties of most of the projects - the presence of a significant number of parties, the project participants with different interests that need to be brought together to achieve the common goal of a successful project. This is one of the most difficult tasks, which is inherent in any project. Meeting this challenge will ensure successful and effective cooperation of all parties to achieve all the objectives of the project. When implementing projects inevitably a conflict of interest because, although all parties share a common goal, their individual interests may be very different and often contradictory.
For many international projects typically involve participants from different countries. In such cases, there is a risk of a conflict involving the use of a variety of laws and practices of projects that are specific to each country.
IMPLEMENTATION STAGES OF MAJOR PROJECTS
On the major projects described in more detail in the relevant section.
Before describing the stages of major projects, it is important to note the position of the main authors in the implementation of major projects in the oil and gas industry. Based on the analysis of methodological approaches implementation of major projects our assessment is based on the CPP procedure (Capital Project Process). In our opinion this is the most convenient coordinate system, aimed primarily at the investor interests and risks . Maybe we just got used to work in this system. In any case, this approach is convenient for both the project team and for investors.
Under the Major projects we realize projects with a total capital investment of more than US $ 100 million. In this publication, to a greater extent it would be a series of projects involving the exploitation of hydrocarbons (Greenfields) from the exploration stage and ending with field commissioning. Total investment in such projects _ as a rule, are more than US $ 100 million.
So, a little about the CPP process. The process itself is divided into five key stages: "Appraise", "Select", "Define", "Execution", "Operation / End". Upon completion of each stage it is required to make decision on the continuation modification or cancellation of the project. The most important from the viewpoint of design are the first three. In turn, among the three main role is played by the project team on the first two. It is here that made the maximum contribution to the project of knowledge and technology it is here that the choice is made in favor of (or failure) of the project. In this article, the main focus of the presentation will focus on the stages of "Appraise" and "Select"
This is the most important stages in terms of reducing the level of uncertainty and risk management of the project. On these two stages produced the basic concept of the project, which in the future (when properly develop approaches) almost remains unchanged. That's why we believe the quality of the first stage the most important in the whole life cycle of the project. On this basis, it is possible to put forward the claim that "project management - is to work with uncertainties and risks". This statement is actually true, because it highlights that have to work on the project team.
Within each stage, in order to monitor and control the process, can be used various corporate instruments and procedures, such as the Financial Memorandum (FM) package for decision-making (DSP - Decision Support Package), White Paper (White Paper), the Governing Council the Company, the Investment Committee, the Board of Directors.
Deciphering some concepts and terms
Financial Memorandum (FM) - request for funding, as a rule, the specific scope of work within the same stage with a description of the expected key qualitative and quantitative results;
Decision Making Package (DSP) - the information package that provides information on the project: the main objectives, strategies, current outputs, targets a detailed plan for the next phase;
White Paper (WP) - an information package that provides information on the project / projects in the context of the overall development strategy of the Company and taking into account the medium-term and long-term technical and economic performance.
Simply put - you can not take immediately and start with the project and request for funding. Investor (shareholder, bank, investment funds) needs to be prepared: first, to show the overall picture of the situation in the industry where proposed implementation of the project, the situation of the industry on the world stage, at the level of the Country and project position the Company level. Next step is to show what you know about a specific project that was done, by whom, when, how it affected your suggested (project team) strategy implementation and proper implementation of your strategy. Crowned presented a series of documents - FM, or request for funding. There are already dry figures and graphs, but, as you know, this is the last frontier to which the investor is suitable trained and who is forced easy if indicators of economic efficiency of your project within the established investor or shareholder. Seemingly simple chain of actions, but from personal experience we can say - the first two stages are often made formally, and the third team gets so many questions and comments that had to spend time to do those two stages, the implementation of which it is not "invested heavily ".
Deciding on the readiness of the transition from stage to stage is determined Gate - a key point where involve independent (from the project team) experts of different levels in order to assess the readiness of the transition to the next stage of the project. This approach allows you to leave the road from serious financial risks and miscalculations in the design.
A set of tools and features of their application, of course, determined by the peculiarities of corporate policy and standards, but generally referred to instruments or their analogues are an integral part of project activities.
Regardless of the stage of the project and the level of uncertainty, the project team always performs a full cycle calculations and assessments to see the project as a whole. "The main objective of the project team - to reduce the level of uncertainty of the project from stage to stage as it develops"
Basically, the main factor of successful development projects, it is not corny it sounds, is the formation of an effective team. "Cadres decide everything", and it is not we come up with, but confirm. We decided separately to fix our attention on it, because we believe that in spite of the simple truth of the above statement, in practice, the importance of this issue neglected. The main reason...more info
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