Introduction:

Risk management is a core skill which needs to be carried out more effectively than ever before due to the scrutiny that our activities are placed under on a daily basis. Given the scale, global nature and value of projects in the oil and gas industry, this requirement is particularly relevant. Recent environmental disasters, geo-political situations and economic instability have increasingly highlighted the need for applying a risk aware structure to all your projects to manage and control your risks, and mitigate against resultant impacts. This course provides an opportunity to understand how best to protect value in the capital intensive project environment that we work in. The course is designed to enable practical lessons from the industry to be learnt and applied in a supportive environment to enhance the knowledge and capabilities of each participant. The course will review the risk process and how best to apply it over the full project lifecycle. Techniques for identifying, analyzing, planning risk responses, and monitoring and controlling risks will be explored and practiced. At all times being mindful of the need for sound health, safety, environmental and reputational factors to be properly managed from the risk perspective. This course will enable the candidates to overcome the huge risk challenges in projects whose scale, complexity and visibility challenges are unique to the oil and gas industry.

Projects in the oil and gas industry bring with them very specific challenges; not only due to their size and scale, but also due to the diverse objectives of the parties involved and the geographic, political and economic factors that are a constant and unpredictable influence. It is vital that you understand the risks and their impact at each stage of the project. Therefore a unique case study has been developed specifically for this program to illustrate the entire project lifecycle of an oil and gas industry project. The participants will work in groups to apply the key learnings to each stage of the project and gain full and thorough understanding of the key pressure points and how to manage, control and mitigate against them. The course will feature:

• Core concepts and principles of risk management unique to oil and gas Industry projects
• Risk identification and measurement of industry specific risks including geo-political, environmental and economics
• Applying a systematic project risk management process to a realistic industry project case study
• Alternative risk identification techniques and their strengths and applicability
• Evaluation of resource effectiveness of alternative responses
• Key lessons and critical success factors for successful project risk management the oil and gas industry

Course Objectives:

By the end of this course, delegates will be able to:

• Review the strategic drivers within the oil and gas industry which determine how we should be tackling risk management for our projects
• Understand why oil and gas projects fail and how to avoid this within your own activity
• Get to grips with key steps to setting up a sound risk management process for any project
• Evaluate the key factors which drive project risk management success and the vital need for a multi-disciplinary team to provide alternative perspectives
• Compare best  practice with colleagues from across the global industry
• Learn in a dynamic, highly interactive and practical environment that will provide you with skills and knowledge to improve your personal and project performance

Who Should Attend?

Project Managers, Project Engineers, and all disciplines that work on integrated project teams for upstream onshore and offshore developments. Construction Engineers, Senior Construction Engineers, Construction Supervisors, Construction General Supervisors, Construction Project Managers, Engineering Technologists, Supervision Engineer, Inspection Engineers, Civil Inspectors, Foremen, Design Structural Engineers, Planners, Structural Engineers, Material Specialists, Quality Control and Quality Assurance Experts, Architects, Supervision Engineers, Team Leaders, Site Officers and Managers, Mechanical Engineers, Technical Professionals, Field Production Supervisor, Operation Engineers, Clients Representatives, Team Leaders, Supervisors, Section Heads and Managers, Professionals who have an interest in a management position, anyone who wants to become a leader in their work role, Project, Purchasing, Finance & Production Officers and personnel, technical professionals including those in Maintenance, Engineering & Production, Secretaries, clerks, administrative and support staff, Risk Managers and those with specific risk responsibilities, Project sponsors and managers, Purchasing and procurement managers who will be supporting projects, Contractors and consultants contributing to projects, Operational staff who need to interface with projects or represent the operational perspective on a project, HSE staff interfacing with project activities, Governance and auditors who will be reviewing or auditing project performance, Anyone who needs to contribute to managing risk

Course Outline:

Project Risk Management Fundamental Concepts and Terminology

• Understanding risk and its application in the oil and gas industry
• Risk: threats and opportunities
• Business versus project risk
• Understanding the business context – balancing technical challenge with business justification

Introduction to the Risk Process

• Overview of risk processes and understanding the most effective approach for an oil and gas industry project
• Compliance with corporate/ organizational approach
• Roles and responsibilities 

Risk Management Planning

• The components of the risk management plan
• Understanding the methodology
• Use of risk categories – modifications to standard categories relevant to the oil & gas industry
• Defining probability and impact scales – how to handle the particular challenge of megaproject impacts
• Developing the appropriate risk matrix
• Determining reporting formats and tracking mechanisms and audits

Risk Identification

• Risk identification inputs
• Tools and techniques of risk identification and their strengths and weaknesses
• Key techniques used in the oil and gas industry and critical success factors to enhance their application
• Risk critical success factors
• Assumptions analysis
• Sabotage teams
• Bow-tie methodology
• The vital importance of a quality risk statement

Risk Analysis

• Qualitative, semi-quantitative and quantitative analysis
• Tools and techniques for risk analysis
• Further factors to consider – the people side of risk
• Evaluating the results
• Risk exposure calculation
• Risk monetization

Planning Risk Responses

• Risk response strategies
• Threat strategies
• Opportunity strategies
• Contingent response strategies
• Analytical selection process – ensuring the protection of value in a capital intensive project environment
• Developing effective action plans – structure, content and approval considerations

Advanced Risk Techniques and How They Are Applied in Oil and Gas Industry Projects

• The applicability of Monte Carlo analysis in the project  lifecycle
• Schedule risk analysis
• Cost risk analysis
• Understanding and interpreting the outputs of risk analysis

Monitoring and Controlling risks

• Determining appropriate reporting and escalation of risks including legal considerations
• Risk auditing – compliance versus value added
• Variance and trend analysis
• Reserve analysis techniques applicable to large scale capital intensive projects

Embedding the Process

• Critical success factors for developing a sound risk culture in the oil and gas industry
• Incorporating lessons learned for managing risks into the organization
• Key findings and learnings from  the oil and gas industry

COURSE LOCATIONS