2

Agenda
I
Introduction to Project Management in Oil and Gas Industry

II
Introduction to Project Interface Management in Oil and Gas
Industry

III
Case Study :
Concept Selection Phase in Field Offshore Deepwater
Development
IV
Project Management Certification

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PART I
INTRODUCTION TO PROJECT MANAGEMENT IN OIL AND GAS
INDUSTRY

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I.1 Project Definition

Reference : PMBOK

Temporary endeavor with a beginning and an end

Creates unique product, service or result
Is progressively elaborated
Distinguishing characteristics of each unique project will be
progressively detailed as the project is better understood

Progressively means “proceeding in steps, continuing steadily by

increments”, while elaborated means “ worked out with care and
detail, developed thoroughly”

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I.1 Project Definition

Reference : PMBOK

Temporary endeavor with a beginning and an end

Creates unique product, service or result
Is progressively elaborated
Distinguishing characteristics of each unique project will be
progressively detailed as the project is better understood

Progressively means “proceeding in steps, continuing steadily by

increments”, while elaborated means “ worked out with care and
detail, developed thoroughly”

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I.2 Project Attributes
Reference : PMBOK

A Project :

• Has a unique purpose

• Is temporary

• Is developed using progressive elaboration

• Requires resources, often from various areas

• Should have a primary customer or sponsor

•The project sponsor usually provides the direction and funding the project

• Involves uncertainty

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I.3 Project vs Operational Work
Reference : PMBOK

Projects Operations
•To attain its objectives and terminate • To sustain the business
•Create own charter, organization and goals • Semi permanent charter, organization and
•Catalyst for change goals
•Unique product or services • Maintain status quo
•Heterogeneous teams • Standard product or services
•Start and end dates • Homogenous teams
• On going
Examples Examples
• Build LNG Plant • LNG Plant Production
• Geotechnical Investigation • Writing a progress update memo
• Ground water well construction • Attending a conference
• Opening a new shop • Meeting with an employee
• Arrange for a conference • Opening the shop

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I.4a Project Management, Program Management &
Portfolio Management
Ref.:
PMBOK

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I.5 What is Project Management?
Reference : PMBOK

The Application of knowledge, skills, techniques and tools to project activities to

meet project requirements.

Project management is accomplished through the application and integration of

the process such as:

1. Initiating

2. Planning

3. Executing

4. Monitoring and Controlling

5. Closing

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I.6 Project Constraint
Reference : PMBOK

Scope
•What work will be done as part of the project?
•What unique product, service, or result does the
customer or sponsor expect from the project as its
deliverables?

Cost
•What is the cost to complete the project?
•What is the project budget?

Time
•How long it takes to complete the project?
•What is the project schedule?

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I.7 Managing the Project
Ref. : PMBOK

Project managers are assigned by the performing organization to achieve the

project objectives.

A project manager is in charge of all aspects of the project including, but not limited to:
○ Developing the project management plan and all related component plans,
○ Keeping the project on track in terms of schedule and budget,
○ Identifying, monitoring, and responding to risk, and
○ Providing accurate and timely reporting of project metrics.

The project manager is the lead person responsible for communicating with all
stakeholders, particularly the project sponsor, project team, and other key stakeholders.

The project manager occupies the center of the interactions between stakeholders and the
project itself.

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I.8 Project Life Cycle
Reference : PMBOK

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I.9 Product vs Project Life Cycle Relationships
Reference : PMBOK

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I.9 Product vs Project Life Cycle Relationships

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I.10 Stakeholder
Reference : PMBOK

A Stakeholder are individuals and organizations that are actively involved in the Project,
or whose interest may be positively or negatively affected as a result of project execution or
project completion

•External Stakeholders
•Internal Stakeholders

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I.11 Impact of Stakeholder Based on Project Time

Reference : PMBOK

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I.12 Organizational Structure
Reference : PMBOK

Organizational structures range from functional to projectized, with a

variety of matrix structures between them

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I.13 Functional Organization
Reference : PMBOK

Key Points:
• The organization is grouped by areas of specialization within different functional areas
• Projects generally occur within a single department
• Information required from other department will be routed through departmental heads
• Team members complete project work in addition to normal department work

Advantages:
• Easier management of specialists
• Team member reports to only one supervisor
• Similar resources are centralized, the company
is grouped by specialties
• Clearly defined career paths in areas of work
specialization

Disadvantages:
• People are more emphasis on their functional specialty to the detriment of the project
• No career path in project management
• Project Manager has little or no authority offshore-skills.com
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I.14 Projectized Organization
Reference : PMBOK

Key Points:
• The Project Manager has control of projects
• Personnel are assigned and reports to a Project Manager
• Team members complete only project work and when it is over they don’t have “home”
• Communication generally occurs only within project

Advantages:
• Efficient project organization
• Loyalty to project
• More effective communications than
functional

Disadvantages:
• No “home” when project is completed
• Lack of professionalism in discipline
• Duplication of facilities and job functions
• Less efficient use of resources

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I.14 Weak Matrix Organization
Reference : PMBOK

Key Points:
• Team members report to Functional Manager
• Team members do project work in addition to normal departmental work
• Power rest with the Functional Manager
• Project Manager plays a role of:
• Project Expeditor: Can not make any decision. Staff assistant and Communication
Coordinator
• Project Coordinator: Similar to Project Expeditor except has some power to make decision.

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I.15 Balanced Matrix Organization
Reference : PMBOK

Key Points:
• Two Bosses
• Team members report to Project Manager and Functional Manager
• Team members do project work in addition to normal departmental work
• Power is shared between the functional and project manager

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I.16 Strong Matrix Organization
Reference : PMBOK

Key Point:
• Power rest with the Project Manager

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I.17 Project Management Process
Reference : PMBOK

The project processes are performed by the project team and generally fall into one of two
major categories:

• Project management processes ensure the effective flow of the project throughout its
existence.
These processes encompass the tools and techniques involved in applying the skills and
capabilities
described in the Knowledge Areas.

• Product-oriented processes specify and create the project’s product. Product-oriented

processes are
typically defined by the project life cycle (as discussed in Section 1.9) and vary by application
area.

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I.18 Five Project Management Process Group
Reference : PMBOK

The process flow diagram provides an overall

summary of the basic flow and interactions among
Process Groups and specific stakeholders.

A Process Group includes the constituent project

management processes that are linked by the
respective inputs and outputs where the result or
outcome of one process becomes the input to
another.

The Process Groups are not project phases.

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I.19 Project Management Process Groups and
Knowledge Areas Mapping
Reference : PMBOK

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I.20 Team Management
Reference : PMBOK

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I.21 Project Development Management Phase

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I.22 Earn Value Management

Link : EVM

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I.23 Oil and Gas Industry Regulation

1. PTK-037 POD
2. PTK-038 WP&B
3. PTK-039 AFE
4. All procurement activities are bound by BPMIGAS Regulation on Supply Chain Management for
PSC No. 007-REVISI-2/PTK/I/2011 - Providing guideline on supply chain management,
procurement of goods and services, asset management, custom, and project management in
BPMIGAS/PSC/JOBTAC. In general, all purchases of goods and services are done by either
tender or direct selection/direct appointment (with certain requirements) and with only
suppliers which are registered locally. Highlights in the procurement (goods & services)
regulation guidelines :
- Tender Plan and Contract Award > $5M needs BPMIGAS approval

Non compliance to the procurement regulation will result to non-cost recovery and
may lead to disciplinary action to the PSC’s personnel.

Link : POD, WP&B dan AFE

http://www.skspmigas-esdm.go.id/
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I.18-a Initiating Process Group
Reference : PMBOK

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I.18-b PlanningProcess Group
Reference : PMBOK

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I.18-c Executing Process Group
Reference : PMBOK

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I.18-d Monitoring & Controlling Process Group
Reference : PMBOK

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I.18-e Closing Process Group
Reference : PMBOK

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PART II
INTRODUCTION TO PROJECT INTERFACE MANAGEMENT
IN OIL AND GAS INDUSTRY

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II.1 Interface Management Overview

Typical Subsea Interfaces:

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II.3 Interface Management Overview

Definition of Interface :
An interface is the place at which independent systems meet or communicate with each other.

It is an interaction of cross‐project Delivery Team members necessary to exploit the synergy that is
possible by having the right people engaged in communication.

This dialogue is focused on ensuring that project identifies and implements the best solutions
effectively.

Multidiscipline Communication
It’s Colorful

Communication is the key in Project

Execution

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II.1 Interface Management Overview

Interface Management Plan :

 It’s built‐in & integral part of overall Project Management.
 Supports Project Manager for project execution on‐time & within budget.
 The responsibility is entrusted to Project Interface Engineer.
 Is developed for Client, Contractor(s) and subs (suppliers/vendors).
 Applicable for project life‐cycle : Pre‐FEED/FEED, Detailed Engineering, Procurement,
Construction, Installation (EPCI).
 This presentation summarizes the scope of Interface Management, procedure, systems &
processes.
 On mega‐projects, how it is implemented? Across Continents in different time zones and in
multi‐cultural environments? And, finally the . . . .
 Key to successful interface is frequent and effective Communication.\
 Is utilized to manage the interfaces between all parties involved during project life cycle.
 Is employed to incorporate process, tools and organizational structure.
 Later in the project the interface system is developed to incorporate delivery control, status of
equipment, fabrication, installation and finally the management of lesson learned.

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Process
Interface Management Encompasses Entire Project Process Group :

Interface Management Encompasses Entire Project Phases:

Interface Management Cover s Nine Knowledge Areas

• Project Integration Management

• Project Scope Management • Project HR Management
• Project Time Management • Project Communications Management
• Project Cost Management • Project Risk Management
• Project Quality Management • Project Procure Management

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II.3 Interface Categories

External Interfaces:

External Interfaces
• Occur between Contractor & Client and their external org /entities.
• Outside of the Contractor’s responsibility (If specified by Client).
• Cross scope boundaries of two or more Delivery Teams and/or Development Systems,
(Ex. PL contractors for Export Lines, etc.)
PS : For Client and their sub-contractors these are internal interfaces.

Internal Interfaces:

Internal Interfaces
• Occur within work areas of Contractor’s responsibility.
• Allow flow of information, identify Receiving and Providing
• Occur between the disciplines, e.g., Engineering, Construction, Quality, Procurement, Project
Services, Commissioning, etc.
PS : This includes Project Controls, Document Controls and any of Contractor’s suppliers / vendors.

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II.3 Interface Types

Interface Types:

Tangible or Hard Interfaces

Have a physical connection such as a structural steel connection, pipe termination, or cable
connection, Ex. Tie‐In Points.
Intangible or soft interfaces
Involve only the exchange of information such as design criteria, clearance requirements or utility
needs between Delivery Teams or between a Delivery Team and an external party.
Technical interfaces
Are tangibles or hard interfaces that occur within structures, systems and equipment, Ex. Tie‐In
Points.
Execution interfaces
Occur when different contractors conduct their scope of work in series with interfaces that are
dependent on each other or simultaneous when concurrent activities impact each other. (Here
Construction Manager is in lead).
Organizational Interfaces
Result in a significant loss/gain in schedule or capital to the originating Delivery Team or to the
project in general.
Critical interfaces
Result in a significant loss/gain in schedule or capital, those not performing have potential to
negatively impact project performance.

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II.5 Interface Management Strategy
Interface Management Strategy

Ensures all interfaces between the various parties are identified and controlled to ensure
integrity between the different elements associated with the project.

Maintains up‐to‐date Interface Registers and forms bridge between various parties
involved in the execution of the Project.

Defines precisely the interface requirements associated with each party involved in a
particular interface.

Defines the responsibilities for the parties involved with the interface so that individuals
can be assigned and made accountable to follow‐up the required actions.

Monitors the transfer of information relating to interfaces between the relevant parties,
including Risk Identification & Mitigation Management, and VEP (Value Engineering &
Constructability) Programs.

Monitors the status of the interface actions to enable active follow‐up if necessary by the
Project Management Team, including potential change requests, variation requests, etc.

In short, creates an environment to minimize loss of revenue.

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PART III
SAMPLE CASE STUDY :
CONCEPT SELECTION IN OFFSHORE DEEPWATER FIELD
DEVELOPMENT

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PART IV
PROJECT MANAGEMENT CERTIFICATION

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IV.1 Project Management Professional Certifications
Professional Certifications in Project Management

Professional Certifications in Project Management

1. IAMPI (Ikatan Ahli Manajemen Proyek Indonesia)
IAMPI website: http://www.iampi.org/
2. Project Management Institute (PMI)
a. Certifies Associate in Project Management (CAPM)
A secondary degree (high school diploma or the global equivalent)
AND
At least 1,500 hours of project experience
OR
23 hours of project management education by the time you sit for the exam.

b. Project Management Professional (PMP)

A secondary degree (high school diploma, associate’s degree, or the global equivalent)
with at least five years of project management experience, with 7,500 hours leading and
directing projects and 35 hours of project management education.
OR
A four-year degree (bachelor’s degree or the global equivalent) and at least three years
of project management experience, with 4,500 hours leading and directing projects and
35 hours of project management education.

PMI website : http://www.pmi.org/

PMI Indonesia Chapter : http://www.pmi-indonesia.org
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“The Deep Seafloor is The New Real Surface”

Offshore-Skills.com

Terimakasih
Thank You

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