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IPMA ITALY Journal of Applied Project Management
                                                               Volume 1 no. 2 (July 2015)

Nowadays, project managers working            monitored by the project manager
                                              and by the organization he operates
in the oil and gas industry face              in.
                                              Typically, any firm on the market is
challenges of increasing complexity.          structured in such a way that project
                                              requirements are reviewed prior to
Technology is evolving fast. Markets          accept an order from a customer.
                                              In the bid phase, sales teams are
require project schedules to be tight         supposed to have sufficient resources
                                              to scrutinize the requirements and
and, at the same time, adaptive               develop a base offer. This proposal is
                                              normally carefully tailored on what
enough to accommodate new                     vendor can offer and what customer
                                              asks for. As a result of this effort, the
requirements anytime throughout work          organization benefits of a clear
                                              contractual package, to be put in
execution.                                    production according to an agreed
                                              schedule upon signature. If nothing has
There is more than that. Explorations         been left in a grey area, the project will
                                              start with a solid background.
and oil productions are moving more           We can’t expect such as smooth
                                              process in case one or more variations
and more towards remote areas,                are required on orders already in
                                              execution. An extensive evaluation of
leading to develop unconventional             what the implementation of new
                                              requirements would potentially cost to
solutions like floating LNG.                  the project may be a burdensome task
                                              for a team already engaged to
Environmental impacts as well as safety       execute the initial project scope.
                                              Especially if such new requirements are
compliance are acquiring greater              introduced all of a sudden, after
                                              months from works’ kick off.
importance in project management,             As we said, a variation is not necessarily
                                              something detrimental. In contrast, it
as a consequence of a broad cultural          may even help a project to overcome
                                              financial difficulties, by increasing its
change.                                       productivity, or to obtain some buffer
                                              on an initial tight schedule. It all
Last but not least, not infrequently          depends on the ability of the project
                                              manager to manage that variation
stakeholders of large projects consist of     request and materialize all the
                                              opportunities that the change gives
joint ventures created ad hoc, third          rise to.

parties called to check compliance to

regulations and large networks with

different interests, potentially in conflict

each other.

To keep the route in all these

challenging         circumstances,    a

successful manager needs a very

strong framework embracing both

technical    competences            and

behavioral skills.

1. Change orders management

GE Oil & Gas has consolidated a
significant experience in the
management of large and complex
projects in demanding environments.
Such experience suggests that the
variation management is one of the
most important areas to be closely

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