Content area
Full Text
Main focus in this paper is to present the successfully implementation of the schedule and cost risk processes on the Ormen Lange Project.
The paper is in the following three main parts:
* cost risk analysis;
* schedule risk analysis;
* a discussion on how the treatment of risk elements were combined and merged into the schedule risk and cost risk processes.
The paper outlines how both the schedule risk process and cost risk process has added value to the project management process and contributed to the success of the Ormen Lange project.
The methodology is valid for a wide range of development projects within different areas. Any project with a certain size and time frame could benefit from use of this methodology.
PRESENTATION OF HYDRO OIL & ENERGY
Hydro Oil & Energy (part of Norsk Hydro) is a leading offshore producer of oil and gas, based on a strong position in the development of the Norwegian petroleum industry during the past 40 years. Our world-class project execution skills and expertise in deep waters and rough seas help us realize maximum results from our operations in the North Sea and around the world.
Hydro is operating 13 oil and gas installations and our own production in 2005 averaged 563,000 barrels of oil equivalents, placing us among the largest offshore companies in the world.
Hydro has the Norwegian continental shelf as its base, but we are producing oil and gas in Angola, Canada, Russia and Libya, and have activities in the Gulf of Mexico, Brazil, the Middle East and Denmark.
Half of Hydro's oil and gas exploration activities take place outside Norway, and our production outside of Norway steadily grows - in close cooperation with our partners.
As several oil companies, Hydro strives to find innovative ways to increase oil recovery and is at the forefront in using virtual reality, multi-branch wells, smart wells technology, deep waters and sub sea installations.
THE PROJECT: ORMEN LANGE LANGELED
From October 2007, gas from the frozen arctic will support to keep 10 million Britons as warm as toast. That's when the giant Ormen Lange gas field in the Norwegian Sea comes on tap - and it could cover 20 percent of the UK's gas requirements for up to...