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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 ASA 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. A discussion of the effect on various aspects of the owner-to-contractor relationship in the project execution phase is given in order to illuminate the changes introduced by the new model.
The background and basis for the analysis of the renewal of the project execution model for Saga Petroleum ASA, a Norwegian oil company, is the introduction of a new project execution model presented and documented by the technology and development division in Saga Petroleum ASA in 1995, and the further development and refinement since then. The analysis of the new execution model is primarily made from a project control point of view. Initially, an at-large presentation of Saga Petroleum is given, including a description of the organization and the company's national and international activities. Further, a description of the reasons for Saga introducing the new execution model is given, and a thorough discussion of changes in the owner-to-contractor relationship caused by the model. Here, changes in Saga's requirements to its contractors are described, as well as the changes in follow-up activities and control functions for Saga personnel. The refinement and changes to the new project execution model since it was introduced are described briefly.
Finally, some concluding remarks describing Saga's experience with the new execution model so far are given. These remarks reflect lessons learned from ongoing development projects after the new project execution model was introduced. The remarks are of an indicative character, since the model was implemented early in 1995, so limited experience is available. Description of Saga Petroleum
Saga Petroleum ASA...