SPE-182970-MS

Keeping Oil & Gas EPC Major Projects Under Control: Strategic & Innovative
Project Management Practices

Hamad Al-Hajji and Shehzad Khan, Kuwait Oil Company

Copyright 2016, Society of Petroleum Engineers

This paper was prepared for presentation at the Abu Dhabi International Petroleum Exhibition & Conference held in Abu Dhabi, UAE, 7-10 November 2016.

This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents
of the paper have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect
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consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may
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Abstract
The Petroleum industry requires construction and maintenance of ‘upstream’ and ‘downstream’ facilities.
Kuwait Oil Company is dealing with exploration and production of crude oil & natural gas. EPC projects
plays an important role in generation of new physical facilities to maintain or enhance production. Project
management has developed tremendously over time due to evolvement of numerous strategies to deal with
construction activities. Schedule and Budget are the two major concerns required to be optimized during
execution. Therefore, a very effective & efficient project management system is needed and has to be framed
to deal with the major capital construction projects. In effect, help organization make impact on country's
economy.
The objective of this paper is to explore few successful in-house projects to find out what went well to
identify and analyze key techniques employed to mitigate causes of delay in order to recommend strategic
and innovative methods to realize maximum benefits by completing the project on time and within budget.
This paper examines various project control methods covering project constraints for formulating strategies,
planning, budgeting, procedures, processes, performance measurement, etc. contributing to the successes
of acclaimed projects.
The paper has provided advisory-notes on the real-time innovative methods for executing projects, which
helps in making the projects more process oriented. The other critical factors, are the best practices to
simplify project management techniques and making them more explicit. By applying these innovative
approaches, most of the tacit knowledge that is used get converted into an explicit knowledge through
proactive participation.
The study has provided an insight in some novel innovative and strategic project management techniques
leading to saving in time and cost by overcoming causes of delay and highlighting suitable measures
to overcome bottlenecks during project life cycle. Some proven state-of-the-art approaches have been
developed in-house by KOC to assure project performance and uphold the Company's reputation and
corporate image. Deploying a combination of these methods as a minimum in project execution has shown
very fruitful results, which in turn has helped KOC in achieving its strategic objectives.
2 SPE-182970-MS

Introduction
As KOC's core business is to explore, develop and produce hydrocarbons, it has envisaged several growth
and development programs to achieve the oil & gas production targets in line with the company's 2020 &
2030 strategic objectives. This consists of programs and projects for construction of new surface facilities
and upgradation of the existing installations. It is usually intended and expected to complete projects earlier
and cheaper so as to attain the goal of increasing production and profitability.
Kuwait Oil Company (KOC) considers project management as one of the key elements in execution of
major EPC projects. KOC believes that a proficient project management system can help in completion of
capital projects on time, within budget, with the highest quality and in the safest manner. Profound initiatives
and mechanisms have been devised and successfully experimented to monitor and control the projects over
their entire life cycle.
It is essential for all companies to minimize risks, time and costs as any delay in completion of project will
lead to loss in production and thus revenue. However, delay in project completion is a universal phenomenon
and the construction projects in Kuwait is no exception. Therefore, the projects need adequate planning,
close monitoring and better approaches for timely completion.
Based on the vast experience, lessons learned and knowledge acquired during the execution of numerous
major capital projects, new project management processes and techniques have been developed or existing
ones are enhanced and systematically applied by KOC to minimize the effect of factors causing project
delay. Only some of the main processes are discussed and elaborated in this paper due to paper limitations.

Major Capital Projects in KOC

For any company dealing with oil and gas as their core business, specifically involved in exploration and
production (E&P) operations has to compulsorily spend capital in construction and maintenance of surface
facilities for drilling, processing, effluent treatment, storage tanks, and transportation means for crude oil,
natural gas and their byproducts.
Similarly, KOC based on its strategic business objectives has been continuously expending capital in
creation of surface facilities to handle hydrocarbon at strategic locations in the following main types of
projects, to name a few, where construction of physical facilities through EPC construction projects are
usually required in order to enhance production and profitability of the organization.
a. Gathering Centres for crude oil processing
b. Booster Stations for LP gas pressure boosting
c. Cross Country Pipelines and Manifolds
d. Effluent Water Treatment/Water Injection Plant/Water Centre
e. Crude Oil Storage Tank Farm
f. Major Infrastructure Development Projects
g. Major Modification/Revamp of existing Facilities
h. Telemetry & Security
i. Substation & Overhead Power Lines
An indicative number of major projects undertaken by KOC during the considered period of 10 years i.e.
2008 – 2018 segregated under above stated categories can be seen in the Fig. 1.1. The categories of projects
have been depicted in the graph in the color code as shown in the legend. There are many mega projects
under way beyond the stated period.
SPE-182970-MS 3

Figure 1.1—No. of Major Projects completed / Forecast

Insight of Project Cycle & Process Map

The Project lifecycle in KOC is usually organized into five stages from initiation till project turnover &
operations to successfully achieve the project requirements in order to accomplish the strategic business
objectives of the Company. Each stage with its own set of activities runs in sequence or in some cases
may have some overlap with the succeeding stage with an aim to complete the project on schedule. Some
of the activities under each stage are more critical than others and needs greater attention. It is therefore
needed that these activities should be addressed with utmost importance to avoid any slippage to the project
schedule. Responsibility of each stage lies with the team handling that stage.
KOC with its project management capabilities and experience in handling large EPC projects
continuously strives to identify these critical process areas. More information is gathered by capturing
lesson learned from the earlier completed projects and implementing the recommendations in the upcoming
projects for better benefits.
Efforts are always put in to enhance or develop innovative and strategic methods or practices for
continuous improvements in the processes to make them more effective and efficient. Thus resolving issues
and taking right decisions will help in reducing the project life cycle.
KOC has also embarked upon the Lean Six Sigma methodology to improve business processes by
eliminating defects and bringing collaborative team efforts for its implementation. In this context, several
green belt and black belt projects have been undertaken in supervision of qualified consultants to improve
project processes and make them more effective.
An indicative detailed project cycle & process map is provided in Figure 1.2 with associated critical
activities for due attention.
4 SPE-182970-MS

Figure 1.2—Project Cycle and Process Map

Overview of Causes of Project Delay

Construction projects have great deal of preoccupation with increasing safety and regulatory requirements,
technological & quality aspects, changing socio-economic environment, scope modifications and increase
in cost with passage of time due to inflation & escalation, which may have adverse effects on the project
performance.
SPE-182970-MS 5

The organizational objectives can be met through timely identification of these causes and by applying
efficient & effective project management processes and techniques to manage and control the projects.
Delay in construction projects is a situation where the project cannot be completed within the planned
time. It can be further defined as the expected completion either beyond the completion date specified in the
contract, or beyond the date agreed among the parties for project delivery. The effects of delay may include
time overrun, cost overrun, disputes, arbitration, litigation, or total abandonment of the project.
The factors of project delay in a construction project are mostly related to the following categories:
a. Project Management-Administrative
b. Design - FEED
c. Contract Action
d. Construction
e. Financial - Economical
f. Statutory Laws & Regulations
g. Act of God
Some of the most frequent causes of project delay in oil & gas construction projects (falling under one
or more categories stated above) can be seen in Figure 1.3 (as per separate study by the Authors).

Figure 1.3—Most frequent causes of project delay

In order to mitigate the risks of delay in oil & gas construction projects, it is recommended to improve
the overall project management process and carefully formulate the EPC contracts, with greater emphasis
towards the causes of delay specified in the Figure 1.3.

Key Challenges in Managing Projects

It is a known fact that project execution has never been a smooth ride and many challenges have to be faced
by client and contractor during the project phases. The best way to resolve is to decompose the problem
to find the root cause so that our knowledge, information, and judgment can be applied. Some of the main
challenges faced while executing major projects are highlighted at Table 1.1.
6 SPE-182970-MS

Table 1.1—Key Challenges & Mitigation Actions

Significant Project Risks Mitigation Actions

▪ Timely allocation of Controlling Team & PMC

Timely commencement of FEED activities
▪ Securing funds for FEED through CPP process

▪ Proper feasibility studies to be conducted

Frequent changes in the Scope of Work during the FEED & construction ▪ Regular meetings between the Stakeholders
stages ▪ Design review by all concerned teams
▪ Implementation of Stage Gate System

▪ Asset to be involved during the FEED activities

Accuracy of the process parameters / design data provided by Requesting
▪ No assumptions of input data for design
Team
▪ Design data through official communication

▪ Timely raising of BP / AFE (normal cycle)

Budget Proposal & AFE approvals ▪ Expediting through online approval system
▪ Seeking approval as an additional item

▪ Timely submission for approvals

Timely approvals from internal / external Authorities. ▪ Follow-up and expediting
▪ Utilization of online approval system

Bids submission date extensions requested by Bidders. (accepting due to ▪ Prospective bidders list to be updated regularly
limited participation of bidders and to maintain competition) ▪ Provide more defined & clear scope of work in the tender packages

▪ Competency assessment for Contractors.

▪ Deputation of an integrated team at Contractor's design office to
expedite documents approvals.
Contractors’ delay in project execution due to poor performance and lack
▪ Continuous monitoring of project progress and taking corrective actions.
of resources
▪ Progress review meetings with Contractor to resolve issues and to
expedite progress.
▪ Efficient project progress reporting system

▪ Annual shutdown plans for tie-ins are to be coordinated between the

Non-availability / deviation from planned shut-down for Tie-ins. Asset, CT and Contractor
▪ Both parties should adhere to the plan

▪ Proactive correspondences, regular coordination meetings to be held.

▪ Creation of integrated team at the early stage of the project.
Lack of effective communication between the Stakeholders
▪ Steering committee consisting of stakeholders for resolution of key
project issues.

▪ Timely procurement actions by the Contractor

▪ Placement of expeditor at Vendor's premises for Critical Long Lead
Items.
Contractor's delay in delivery of long-lead material on site. ▪ Stage payment system to improve cash flow.
▪ Senior Management visits at vendor facilities
▪ Regular update of Approved Vendors List.
▪ Fast track the design of critical long lead items

▪ Quality site surveys to be undertaken prior to location finalization

Location finalization and Interferences / conflict with other projects at site. ▪ Creating steering committee to resolve project issues.
▪ Regular checks and communication to avoid reallocation or conflicts.

Unavailability of Power Reservation Power Reservation shall not be redirected to other needs

Non-availability of Vendors during equipment commissioning and start-up. Advance planning and expediting with Contractor/Vendors.

▪ Facility Integrity Management System (FIMS) & HSE Risk Registers to

be maintained
▪ Conducting regular HSE awareness & training sessions for Contractors,
and KOC staff
Contractor's noncompliance with KOC HSEMS regulations during project ▪ SOCs & SVVs are made mandatory.
execution ▪ HSE audits are utilized to ensure compliance
▪ HSE Live online system is to be used to report any incident / accident
▪ Contractors Pre-qualification should be done based on their past HSE
performances
▪ Following ISO 14001 & OHSAS 18001 guidelines

(continued on next page.)

SPE-182970-MS 7

Table 1.1—(continued).

Significant Project Risks Mitigation Actions

Shortage of experienced project team members within the company to meet ▪ Advance planning & mobilization of manpower
capital project demand. ▪ Training & Development to increase skilled resources

Senior management & Staff commitment ▪ Performance measurement through BSC / SMAIP / MAIP targets

Need for an effective Project Management

Projects undergo certain difficulties during their life cycle and many risks are encountered as stated above.
One of roles of project team is to resolve these issues and concerns by taking right decisions and corrective
actions on time in order to successfully complete the projects. Some of the problems, which may need senior
management intervention, are required to be elevated for timely actions. An effective communication and
progress reporting system will keep the concerned people up-to-date with real-time and accurate progress
information.
Project management, as defined in PMBOK of PMI, USA, is application of knowledge, skills, tools and
techniques to project activities to meet the project requirements. Every project has constraints and limitations
with their own associated approved tolerance levels. The key project constraints i.e. scope, schedule, budget,
and quality can be depicted in the form of a triangle. Each leg of the triangle defines a constraint that directly
affects the other legs. All three legs affect the quality.
The principle elements of project management to name a few are identifying needs in alignment with
company's strategic objectives, defining scope of work, feasibility & conceptualizing, preliminary design
& estimating, planning, scheduling, FEED, budget approvals, tendering, awarding, monitoring, controlling,
executing and finally closing of the project. The right mix of planning, monitoring, and controlling can
make the difference in completing the projects on time, within budget, and with required quality.
KOC has established and maintained a well-defined Project Management System. In KOC, generally the
EPC contracts for major projects are based on LSTK model of contracting. LSTK contracting strategy brings
lesser risk on the client. It emphasizes time as an essence of the contract. All project activities are directed
towards the achievement of project objectives with respect to time, scope and quality. Project Management
Consultants of international repute are often deputed by KOC, if felt necessary to manage complex critical
and strategic projects.
Project planning and scheduling should aim at timely execution of works by measuring works against
the approved project schedule and to apply corrective measures in case of any time deviations. Time is
an integral part of every plan a company develops for performing contract work. There is a relationship
between the schedule, the scope of work, and the project conditions. Changes to any one or more of the
above three can affect the project completion.

Key Successful Elements

The critical success factors for timely turnover and closure of many projects is attributed mainly to the
management commitment, company's policies & practices and prevailing project management culture.
KOC's philosophy is that EPC Contractors or any other firm conducting business with KOC are
significant contributors to its business performance and considers them as Business Partners and accordingly
their involvement is highly visible in KOC work activities especially in HSE management system, Fire
safety and procedures related to projects.
KOC has established interrelated project processes, which are consistently followed during project life
cycle. They are enhanced from time to time based on the experience gathered, knowledge gained and lessons
learned from the successes/failures of the past projects. These elements play a crucial role in managing
8 SPE-182970-MS

projects by controlling the delay causing factors at the early stage of the project without allowing them to
grow or expand so as to affect the project performances (refer Figure 1.4).

Figure 1.4—Elements of Project Management

There are other added elements contributing to the successes such as right contracting strategy, better
payment terms with advance payments option in the contract, early procurement of long lead items, advance
shutdown / tie-ins plans, capturing & implementing lessons learned, incentive schemes, value engineering
and effective quality management system.
Another important aspect of gaining maximum business value from project management practices is that
the projects are led by people having strong leadership quality, business acumen and subject expertise.
The processes shown in Figure 1.4 are further elaborated below to understand their nature and benefits:

Management Commitment: Intangible Benefits

The determination for "Better Project Performance" starts from the commitment of management as it
cascades down to the project level with greater motivational drive. The full commitment from the Company's
management is very crucial for the success of any management system. Management support and timely
intervention whenever required will help projects going on even in difficult situations. Various plans to
connect the management with all work levels have been devised and put in operation by KOC.

Project Stage Gate System: Tangible Benefits

The Project Gate System Process, is the governing framework designed and used by KOC for selecting,
planning and managing capital projects in a consistent and disciplined manner. The Project Gate System
structures the realization of a business opportunity (i.e. project) into five logical stages (refer Fig 1.2). Each
stage has a set of clear objectives that include the required activities and deliverables that the projects has
to accomplish in order to successfully achieve the business goals.
Stage Gates are milestones where the projects demonstrate that they meet pre-defined objectives and
criteria. Each stage ends with stage gate review and closure. Upon completion of each of the stages, a
decision-making committee (PRC) reviews the status of the projects documented in ‘Decision Support
SPE-182970-MS 9

Package' to assess whether said stage is complete and the project is ready to progress to the next stage or
whether alternative courses of action are required.
Project Gate System has been beneficial by ensuring that all the requirement of a particular stage has been
completed and recommends to move ahead by closing the stage gate through effective decision making.
This has helped in improving the outcome of capital projects with less rework, thus saving time and cost.

Capital Project Proposal Process: Tangible Benefits

The CPP process is a valuable business practice utilized during stage 2.2, which assists Senior Management
in the decision-making for capital investments and to obtain approval for conducting FEED in the next
stage 3.1. It also helps in securing funds required to commence FEED activities in a short duration from
the Asset's operations budget without waiting for next capital budget cycle thus saving approx. 9 months'
time from the project cycle.
The CPP document is initiated by the Requesting Team upon need for new surface facility with brief
scope of the project and preliminary project requirements and forwarded to the assigned Controlling Team
to update the CPP document with elaborated scope of work (after interface meetings), cost estimate to carry
out FEED (by PMC) and overall L1 schedule for the project. The completed document is sent back to
RT for getting necessary approvals at their end. RT get it evaluated by Operation Planning and obtained
necessary approvals from the management. Upon getting necessary approvals in approx. 3 months' time, RT
will inform the CT to start FEED activities. Budget & Cost Team will provide accounting string. The FEED
duration is approx. 9-12 months' time depending upon the complexity and size of the project. CPP process
is over once the FEED is 100% complete and tender package & TCE of −10/+15% accuracy are ready.

Project Management Plan: Intangible Benefits

PMP is a document usually prepared at the beginning of a stage (FEED, Contract Action and Execution).
It consists of scope of work, project methodology, execution strategy, organizational charts, roles &
responsibilities, man-hours estimate, L-1 schedule, cost optimization plan, risk management plan, etc. The
PMP needs to be reviewed and approved before implementation. It gives a clear picture about the project
and helps the project team in handling the project efficiently. It provides road map for the project at the
early stage for better planning and control.

Project Risk Management: Tangible Benefits

Management of risks in projects play a major role in achieving the business objectives. It encompasses early
detection of risks at all stages of the project so that mitigation plans to address these risks can be put in place.
The risk management system consists of risks identification, prioritization, and suitable mitigation actions.
KOC utilizes the support of PMCs while handling projects. The PMCs follow their own system of Risks
Management. This potentially can lead to varying quantification of risks and may affect the Prioritization
and Treatment. Thus, to reduce the varying treatment of risks, KOC has developed and implemented a
standard project risks assessment guidelines for conducting risk assessment and standard probability and
impact matrix for risk ratings with the objective to achieve projects requirements. Standard templates and
automated formats have been designed for preparing risk registers and mitigation plans.
This has made the project risks management system more effective and has benefited by considerable
reduction in the review time. Also, by identifying and addressing risks on timely manner has been very
beneficial to prevent delays due to unforeseen project risks.

Online Approvals System: Tangible Benefits

It has been seen in past that lot of paper work and time has been expended in getting approvals from various
approving authorities, both internal and external. Steps and efforts have been put to streamline the approval
processes wherever possible by making it online approval system in oracle or Maximo ERP system.
10 SPE-182970-MS

Some of the processes are CPP approval, BP approval, AFE approval, Capex annual re-phasing,
Opex annual allocation, project documents management, etc. These processes have resulted in substantial
reduction in approval processing time thus leading to reduction in project cycle time.

Tendering Processes: Tangible Benefits

Contract action stage consists of tendering processes commencing with raising of CR, bidding process, bids
evaluation, issue of RFA, necessary committees approvals and award of contract. The duration for each step
has been fixed as standard time. However, efforts are put to complete the tasks earlier than the stated time
limit by taking following initiatives:
1. CR is raised prior to approval of BP so that contract action can commence.
2. Draft tender package is circulated among the concerned teams for review and comments prior to
approval of BP in order to save time.
3. Bid evaluation is carried out in less than the prescribed time by deploying fast track arrangements.
4. Introduction of the KPM ‘Contract Cycle Time Reduction' in company BSC has resulted in
reduction of an average of 30% of time.

Integrated Cross-Functional Team: Tangible Benefits

When a contract is awarded, the contractor commences development of project drawings and documents and
issues it to the client for review and approval within the specified time in the contract. There are large number
of documents to be generated and sent to and fro between the contractor's design office and client office
for comments and approvals. Sometimes approval of documents takes several round of reviews. The final
shape of the project will be based on these approved drawings and design documents. Any miscalculation or
misinterpretation by the contractor may lead to a wrong path and may be a disaster for the project. Therefore,
it is felt necessary that all concerned teams should be part of this exercise and requires mobilization of full
time dedicated team to the contractor home office.
Thus, forming an integrated team consisting of RT, CT, and PMC's qualified representatives and locating
them at the contractor design office during detailed engineering phase has speed up review and approvals
of documents. This practice has resulted in substantial reduction in review & approval time thus leading
to reduction in project cycle time.

Progress Reporting System: Intangible Benefits

KOC has always focused on the project progress reporting system as it plays an important role in project
management. There are pre designed formats provided in the contract document for various levels and type
of reports to be generated by the contractor during the contract period.
Different reports with varying levels of information is provided to Senior management, middle level and
lower level management depending upon their requirements. The achievements during the period highlights
the performances, whereas the issues & concerns section indicates the areas where priority should be given
and attention is required to resolve them on timely manner.
It is ensured that the information provided is as per stakeholder's requirement, correct and updated. It
should be dispatched on timely manner so that necessary decisions as required can be taken on time. This
will also lead to satisfaction for the stakeholders.

Interface meetings & Proactive Communication: Intangible Benefits

As per PMBOK-PMI, 90% of the Project Manager's time should be utilized in communication. Interface
meeting or face-to-face discussion is a very effective tool as several authorities are partaking together to
deliberate on the possible solutions to the problem which is sometimes difficult to convey through formal
writings.
SPE-182970-MS 11

Project issues can be resolved by putting up facts through verbal communications, which needs to be
recorded as Minutes of Meeting for future reference.
Proactive communication leads to information reaching to the stakeholders on time so that the corrective
measures can be taken on immediate basis.
The above is followed and encouraged, which has resulted in savings in time and cost.

Progress Monitoring & Controlling: Tangible Benefits

While the project is progressing, it is necessary to establish a control system to measure, report and forecast
deviations to the project scope, budget and schedule. The project performance is continuously monitored
against an approved baseline plan of the project. The progress percentage, major highlights and any issues/
concerns with proposed mitigation plan are reported periodically both on weekly and monthly basis to
all the stakeholders. Remedial measures, wherever required to be taken are followed and expedited to
achieve project objectives. Recovery plan for any schedule slippage is sought from the contractor and its
implementation is ensured. This has helped in controlling the project activities for maintaining the project
schedule and cost.

Performance Management System: Tangible Benefits

Performance management system has been implemented in the entire KOC covering almost all the areas
of business and is linked to company's strategic objectives. The main components are BSC, SMAIP, MAIP
and KPIs. Motivating KPMs for new initiatives and process enhancement are included in these programs.
Targets are set through annual target setting exercise. Reasonable and achievable targets are set after
extensive target setting exercise and approved by the Senior Management. Attractive incentive schemes are
formulated by the corporate performance management teams and linked to these measures.
CEO, DCEOs, Managers, Team Leaders and other lower level staff are part of these programs. They
identify specific criteria and actions for employees and contractors in order to achieve these goals and
targets, which have positive influence on projects performances. As a rough order of estimate, a reduction
of approx. 10% in overall duration of project is envisaged due to motivation and strict vigilance of the
management on the project performance.

Quantified Benefits
As described above in the individual process elements, there are magnitudes of benefits that can be derived
by suitable implementation of these elements in projects. It can also be seen that some benefits are tangible
while others may be intangible in nature, but eventually they all can have positive impacts on the project
performances. These benefits support the project's time, cost, and enable the project management to be more
agile to adapt to variations in project needs.
Historical data from several past projects has been collected to conduct analysis in terms of schedule for
the time taken with respect to the current and earlier approaches and utilized to compare with the standard
times for these approaches. It can be realized from the Figures 1.5 & 1.6 that considerable reduction in time
can be achieved after implementing the stated innovative and strategic practices.
12 SPE-182970-MS

Figure 1.5—Process Elements Duration

Figure 1.6—Process Elements Duration Analysis

Interpretation of Outcomes
The Figure 1.5 shows the time taken before and after implementation of new/improved methods and also
indicates that there is considerable reduction in the duration of process elements compared to the earlier
approaches and has come closer to their standard times.
The analysis conducted at Figure 1.6 for percentage reduction in duration with respect to before and
standard times indicates the following:
– If the processes are properly utilized, it can lead to substantial reduction for some of the process
elements.
– It can be seen that some processes are within the range or even taking less time than the standard.
– For some processes, there is still scope for further improvement with respect to their standard
times.

Other Benefits
Few other benefits which add a long lasting strategic advantage are:
SPE-182970-MS 13

– Systematic approach to the project activities

– Increase in scalability and flexibility
– Potential savings due to reduction in overall project time
– Effective knowledge management system
– Develop analytical and decision making skills through Lessons Learned and historical data

Statistical Validation
The benefits, promulgated above was further validated by converting the same data into attribute form and
conducting a test of hypothesis for comparing the achieved and not achieved targets (refer Figure 1.7).

Figure 1.7—Before/After Binomial Capability Comparison

It can be inferred from the above analysis that taking the stated 8 elements under consideration, the
exceeded time was reduced from 29.00% to 5.50% with 95% confidence after implementing the solutions.

Conclusions
Project Management is vital to project success. Effective project management can enhance the project
performance and consequently the productivity of the company. It is the key to ensure that the company's
strategic objectives are achieved as per plan. Hence, an effective project management is the need of the hour
to assure program/project performances and uphold the Company's reputation and corporate image.

Acknowledgements
The Authors would like to thank the KOC Management for allowing us to publish this paper. We would
like to thank the entire Major Project Groups and Project Support Services Group for their professional
approach, efforts and contributions in successful accomplishment of capital projects activities, which can
be produced in this paper.

Nomenclature
AFE : Approval for Expenditure
A.O : Adjustment Order
BP : Budget Proposal
BSC : Balanced Score Card
CEO : Chief Executive Officer
CPP : Capital Project Proposal
CT : Controlling Team
14 SPE-182970-MS

CR : Contract Requisition
DCEO : Deputy Chief Executive Officer
EPC : Engineering, Procurement & Construction
FEED : Front End Engineering & Design
KPC : Kuwait Petroleum Corporation
KPI : Key Performance Indicator
KPM : Key Performance Measure
KOC : Kuwait Oil Company
LSTK : Lump sum Turnkey
MAIP : Manager Annual Incentive Plan
PMC : Project Management Consultant
PMP : Project Management Plan
RT : Requesting Team
RFA : Recommendation for Award
SMAIP : Snr. Management Annual Incentive Plan
SOC : Safety Observation Conversation
TCE : Tender Check Estimate
SVV : Site Verification Visit

References
1 Project Management Book of Knowledge (PMBOK) 5th Edition, PMI, USA
2 Project Gate System Manual, KOC
3 CPP Manual, KOC
4 BSC, SMAIP, MAIP Guidelines, KOC
5 Risk Assessment Guidelines, KOC
6 Garold D. Oberlender (2000), Project Management for Engineering and Construction, McGraw
Hill Publishing, New Delhi
7 Chalabi FA, Camp D. (1984), "Causes of delay and overruns of construction projects in
developing countrie"s
8 Chan WM. Kumaraswamy MM (1998), Contributors to construction delays. Construction
Management and Economics 16, pp. 17–29

Author
Hamad Al-Hajji is a Civil Engineer. He has an experience of over 20 years with Oil & Gas Industry in
design, engineering and project management. At present, he is working with Kuwait Oil Company as Team
Leader for Project Control Team of Project Support Services Group. Email: [email protected]

Shehzad Khan is a Mechanical Engineer. He has an experience of over 25 years with Oil & Gas Industry
in maintenance, design, engineering and project management. At present, he is working with Kuwait
Oil Company as Engineer Planning in Project Control Team of Project Support Services Group. Email:
[email protected]