Performance Forum identifies significant differences in offshore project performance
During May, subject matter experts from 24 oil and gas companies gathered in London, Houston, Kuala Lumpur and Perth for the Performance Forum’s series of regional workshops. We were delighted to welcome ExxonMobil, the world’s largest publicly traded international oil and gas company to the workshops for the first time.
Based on operator-completed data that has been collected and analysed, the Performance Forum team shared insights into how the lower cost environment is affecting project performance in different ways across the globe.
Key takeaways include:
- A project management cost increase of 20 percent is realised by the majors versus smaller operators, due to significant differences in team size and experience. This is based on analysis across project type, location and operator size.
- The large differences between brownfield costs and manhours in Norway and the UK have been found to be caused, in part, by legislation.
- Our recent assessment of North Sea liabilities led to the industry view that decommissioning costs could fall by up to 50 percent in the coming years.
A collaborative working session was also held to identify how to measure the correct level of contingency to add to an estimate, and then how to track where and when it is spent.
Managed by Turner & Townsend, the Performance Forum is a Joint Industry Project, supported by 24 upstream oil and gas operators, who choose to collaborate in order to benefit directly from the experience of others.