Content area
Oil and gas development projects have traditionally been based on a project execution model where the relationship between the owner and contractor has tended to be of a formal and somewhat adversarial character. Saga Petroleum AS has put resources into developing a new model. The new model has been developed for cost-effective reasons when developing cost marginal fields, increasing competition within the oil industry, and considering the consequences of the European Economic Area Utilities Directive. The process has two steps. First, a revision is introduced, and the refining of this model is ongoing, based on lessons learned from model conversion. The intention of such a model is to make the relationship between owner and contractor closer and more cooperative. The effect on various aspects of the owner-contractor relationship is discussed.