Engineering Projects and Jobs: lifelong learning,

endless opportunities
Hervé Baron - RIG 94
Project Manager, Le Gaz Integral
Author of “The Oil & Gas Engineering Guide”, Editions Technip
http://www.toblog.fr/en/baron.html

How has the Engineering & Construction industry evolved over the last
10 years?

Firstly, I would like to mention one of the challenges on which the various players (clients, contractors)
have focussed over the last 10 years or so: the safety of personnel on construction sites.

The results are outstanding, the focus has been relentless.

The Safety culture is now second nature in the industry. It is a great accomplishment, considering in
particular the very diverse work force employed on remote construction sites. These personnel come from
numerous countries and may have received little or no education and training. Most are unfamiliar with the
hazards of a large construction site and have very little concern for their own safety.

The main change related to the execution of projects that has occurred in the last 20 years or so is the shift
to all inclusive contracts.

This means that the contractor has the responsibility for all activities of the project, from design to start-up
under “turn-key” contracts. Such contracts are also fixed price and the contractor is subject to high
penalties in case of delay. In fact, all the project execution risks have been transferred to the contractors.

Are projects successfully executed?

Project performance is often viewed as poor, with most projects subject to large delays, typically a year for
a 3 year project, but this is due to unrealistic schedules in the first place!

Cost pressure has resulted in the split of the work - such as sub-contracting engineering in low cost
countries to reduce cost - which has also added numerous interfaces which inevitably introduce delays.

Haven’t project execution methods improved a lot?

Yes, the project execution methods and tools are very mature. There are, for instance, well established steps
for sanctioning the design as it progresses. This is essential to the planning and mobilization of resources.

Project controls have also improved a lot, and project execution patterns are well known. However, due to
the ever-different project set-ups, i.e. the split of the project tasks between actors that are never the same
from one job to the other, issues will arise that will always be different.

On one job, it will be the shortage of a sub-contractor in one type of engineering resource, on another the
overload of a sub-supplier, on another the delay of a construction trade preventing the progress of
others…etc.

So how do you identify a project's Achilles heel ?

You need to constantly think outside the box to anticipate future issues. Threats change throughout the
project’s execution.

What makes a good Project Manager?

A good Project Manager is above all one who will foster team work. Roles need to be adjusted during a
project’s execution. This will always require some individuals to contribute beyond their job ticket. The
project leader’s role as the catalyst fostering team work is essential.
This is a real challenge as the project team is always different from one project to the other. The project
leader has to turn a new set of individuals who have never met into a team that works together and whose
members help each other. And this must be achieved very quickly, in a few months!

Western Engineering companies now encounter tough competition from newcomers. How can they
fight back?

It is true that the difference in wages is high: for the cost of one engineering hour in the West, you get 8
hours in India!
But the really smart choice is the choice based on the quality - rather than cost - of resources. The cost of
manpower is actually relatively small in large, capital-intensive, projects and the cost savings that an
individual can bring are huge.

I recall a conversation with Pierre Vaillaud (RAF 59), when he was CEO of Technip. It took place on a
plane. I was 6 months into my professional life, on my way to a 2 week visit to an offshore field in the
Middle East. He told me that what I was going to make of this visit was, to a large extent, up to me.

He said that the opportunity of Western countries lays in the fact that they were democracies. We are used
to question and challenge what we are told.

A project engineer decides, to a large extent, his or her priorities, which is of paramount importance. If
your staff focusses on the right priorities, you very quickly recoup the higher Western hourly rate!

Individual freedom also fosters pro-activity, drive, and decision making, which are essential in fast moving
environment.

I trust that, in an ever faster changing world, the ability to quickly adapt and build on the latest available
technologies will become the real differentiators.

Western contractors are now moving to more technological projects. The oil industry always offers
opportunities to push technological frontiers, as more remote reserves are being tapped, tougher conditions
(for example, the Arctic) are being encountered, larger size facilities are being built etc.

For this, we need to foster the development of technical skills. In terms of initial education, what IFP
School offers is unique. As an occasional lecturer there, I am continually amazed by the variety and the
quality of the faculty. So many professionals coming from all over the industry to deliver classes showing
students what they actually deal with in real life. This is so valuable!

What's it like for a graduate engineer entering projects?

Project positions are not usually entry jobs.

Common schemes for new recruits to oil companies comprise a few years in Process / Pre-Project, then in
Operations, in order to build a technical foundation, before moving to Projects.

This makes sense: an engineer needs to be familiar with the operation of oil & gas facilities before moving
into their design.

Similarly, while working for a contractor the norm is to spend a few years in a technical discipline,
preferably Process, as it is the one that writes the technical part for others to play. One then moves on to a
Project Engineer role.
 The illustration here shows a
simplified workflow of
engineering activities and the
various disciplines involved.

You can see that there are

many interfaces between
disciplines, with vendors etc.

Additionally, project
activities are now carried out
in multiple locations and by
multiple parties in a drive to
reduce cost. The challenge of
a project’s execution today is
the co-ordination of all
involved parties.

It has created new and

interesting coordinating
roles. Being at the interface
of two parties, such Project
Engineers quickly get to
understand what is really
important to the project’s
execution.
The Engineering Work Process

What is a career in Projects like?

Exciting and very lively! There is no routine in project work. Every day of a project’s execution is
different.

Each project is unique in many ways: the feedstock, location, companies and contractors involved are never
the same.

In addition, a project team is like a small scale company inside a bigger one. You can tap the large
expertise available in a big company while working day-to-day in a small team. That’s great!

You will work in several parts of the world, with colleagues from ever changing countries and cultures.

What are the different jobs on

projects?

A project encompasses all aspects of

business, as shown in the illustration
here. One deals with all functions,
ranging from the designer to the lawyer
and everything in between.

A main difference is whether one works

on the client or the contractor side.
Working on the client side in a
supervisory role is tempting but one
would learn much more on the contractor
side.

Working on the contractor side is the

only way to get to know the work itself.
What difficulties could one face while entering a career in Projects?

15 years ago engineering was done wholly in the contractor’s home office. It is nowadays systematically
split, for cost reasons, between high impact tasks, done in the home office, and man-hour intensive ones,
done in low cost centers. This does not make it easy for the newcomer to gain experience of the overall
execution.

Another difficulty is the technical complexity of the industry. Fast learners will require at least 10 years of
experience to feel some sort of technical mastery. This can discourage some, who would be more inclined
to join newer industries where one can be on top of things as he or she leaves school!

So what are the pros of entering a career in projects?

Many! First of all, the Oil & Gas Industry has lots of money which means that you will have sufficient
financial means to pursue your endeavors.

An individual’s impact can also be very significant, easily impacting the bottom line by several millions of
USD.

A project has an in-built thrilling dynamic.

The endeavor of a project is something amazing: I am continually baffled by how, in just 4 years, a
relatively small team can affect the creation of a huge facility in the middle of nowhere.

There are also few other professions where you will encounter – and have to work with – such a variety of
nationalities and cultures. These exchanges are greatly enriching!

Finally, what would you recommend to a newcomer?

To give yourself time to build a solid technical foundation… and not to be afraid to “indulge” in technical
roles. Technology is our future.