Detailed Project Management Plan: Oil Rig Construction in North Sea

This report details a comprehensive project management plan for the construction of an oil rig in the North Sea by EFC Group for Awilco Drilling. The plan meticulously addresses all facets of project management, including scope, cost, time, stakeholder, risk, communications, procurement, quality, and transition management. The project's scope encompasses the development and placement of the oil rig, installation of pipelines, and site security, while excluding post-supply operations, oil price determination, and fishing activities. Cost management is addressed with a detailed budget breakdown. Time management focuses on a six-year timeline. The report also considers the challenges of the North Sea environment, including weather hazards and marine life, and proposes strategies for mitigation. This report serves as a guide for the successful execution of the oil rig construction project, ensuring it stays within budget and on schedule.

Running Head: PROJECT MANAGEMENT PLAN
Project Management Plan
Name of the Student
Name of the University

1PROJECT MANAGEMENT PLAN
Executive Summary
An oil rig is a structure that is placed on the surface of a sea in order to pump oil from a mine
situated below the sea bed. Construction of an oil rig is extremely difficult as the entire structure
is to be placed on the surface of the sea after it is constructed. In addition to the surface being
unstable, there are other issues like rapid erosion due to salty water, weather hazards, hostile
animals and others. In this report, a project plan has been developed for the construction of one
such oil rig that will be built and placed on North Sea by EFC Group for Awilco Drilling. In this
plan, all the project management concepts have been considered and analysed in detail.

2PROJECT MANAGEMENT PLAN
Table of Contents
Executive Summary.........................................................................................................................1
1.0 Introduction................................................................................................................................3
2.0 Project Organization..................................................................................................................4
3.0 Project Management Plan..........................................................................................................5
3.1 Scope Management................................................................................................................5
3.1.1 In-Scope..........................................................................................................................6
3.1.2 Out-Scope.......................................................................................................................7
3.2 Cost Management..................................................................................................................8
3.3 Time Management...............................................................................................................10
3.4 Stakeholder Management....................................................................................................18
3.5 Risk Management................................................................................................................21
3.6 Communications Management............................................................................................23
3.7 Procurement Management...................................................................................................23
3.8 Quality Management...........................................................................................................24
3.9 Transition Management.......................................................................................................24
4.0 Conclusion...............................................................................................................................25
5.0 Recommendations....................................................................................................................25
Bibliography..................................................................................................................................27

3PROJECT MANAGEMENT PLAN
1.0 Introduction
Offshore Constructions are required when an organization or a country needs to set up a
building over a sea or ocean. This is generally needed when a significantly large oil field lies
below an ocean bed and there is no way to drill the oil from the land. Some common offshore
structures include the Oil Platform in Brazil, Bombay High in India, Gulf Rig in UAE and
others. Since large drilling structures are to be placed on the top of the ocean surface, the
constructions of the rigs are extremely difficult. In addition to the rigs, a storage system and
pipeline to send the drilled oil to a transport ship for sending it to the refinery also need to be
built. Hence, these construction projects generally consume extremely high expenses and hence,
unless the drilling at such a location is not very profitable, rigs are not built in spite of detecting
an oil bed. In addition to the high costs of construction, the entire process also takes a huge
amount of time – sometimes more than 2-3 years that also exponentially increases the overall
cost, required manpower and other related factors. Hence, for conducting a project like this,
extremely accurate planning is required (although the overall costs often vary over time by a
large extent, mainly due to market changes over the years). Furthermore, a strong financial
backing from government or a multinational business organization is also necessary in order to
execute the project in a right way.
This particular project is to be conducted by EFC Group for building a new oil rig for
Awilco Drilling in partnership with Deep Blue Engineering Solutions. This proposed new rig
will be developed and then transported to be placed on the surface of the North Sea and a
proposed timeline of 6 years have been set for preparation of the entire oil rig and operations are
expected to be started within further one year. Based on the survey of the oil field, it has been

4PROJECT MANAGEMENT PLAN
found that a substantial amount of oil can be drilled in the location that is also expected to
provide sufficient amount of oil for the next 50 years. However, there are also dangers of adverse
natural environment including sea storms and others and hence, suitable measures must be taken
in order to ensure the drilling operations are not affected by the natural calamities and hazards.
Furthermore, the oil rig will have to be placed as close to land as possible in order to reduce
transportation costs. In this report, a detailed project plan has been provided for this particular
construction project that can be used by EFC Group for proceeding with the task of development
of the oil rig in North Sea.
2.0 Project Organization
The organization that is undertaking the entire development project is EFC Group that
works on delivering equipments and constructing drilling structures for the clients i.e. oil and gas
organizations across the continent. For this project, the client is Awilco Drilling PLC that drills
oil from the oil bed and delivers it to various oil refineries across Europe. This particular project
is based on the construction of an oil rig and its placement on the North ,Sea. EFC Group is a
global organization that provides control, monitoring, handling, construction and development of
oil rigs for various oil and gas companies of the world. First founded in 1988, the company
boasts several high profile developments in extremely challenging conditions like central desert,
violent ocean surface and others. On the other hand, Awilco Drilling is a UK based company that
mainly drills oil from the oil bed based on contracts from the oil and gas companies. Awilco
Drilling has gained the contract for drilling oil for the next 10 years from the newly discovered
site in the middle of the North Sea and hence, the company has planned to start constructing the
oil rig just above the oil bed. Awilco is turn has handed the contract to EFC Group and Deep

5PROJECT MANAGEMENT PLAN
Blue Engineering Solutions to design and develop the new oil rig at the site. EFC Group and
Deep Blue Engineering Solutions will work as partners in order to develop the entire rig within
the allocated time schedule of 6 years. However, there are several challenges to the project that
the two companies together must address while setting up the oil rig. The challenges include
weather hazards including sea storms, hostile animals in the water including sharks and other
dangerous fishes like razorfish, various species of jellyfish and the Portuguese Man O’ War. The
extreme density of these organisms in the North Sea will make it difficult for the construction
company to continue to the development works below the ocean bed. Furthermore, there are
other harmless marine plants and animals whose natural habitats may get hampered due to the
placement of the base pillar during the course of the construction. Again, since the construction
will be carried out over six years, there is the risk of gradual erosion of the structures due to
continuous flow of ocean currents as well as very high pressure under the ocean bed. Hence,
EFC Group and Deep Blue Engineering Solutions face a very tough challenge for completing the
project within the specified timeline and within the budget proposed during the contract signing.
Hence, in order to achieve success in the project, the companies need an accurate project plan
that will not only guide them throughout the project but also will provide them with suitable
solutions for overcoming all the challenges as discussed above.
3.0 Project Management Plan
3.1 Scope Management
Based on the requirements of the project, the scope of the project is huge as it is also
spread over a time span of 6-7 years. Moreover, there are certain out-scope items as well they are

6PROJECT MANAGEMENT PLAN
not the responsibilities of the EFC Group to fulfil. The in-scope and out-scope items are
explained as follows.
3.1.1 In-Scope
There are several in-scope deliverables that need to be fulfilled over the course of the
project. These are as follows.
Oil Rig – The fist scope of the project is the development of the base pillar and placement
of the oil rig over the North Sea surface below which, the oil bed has been found. During the
course of six years of the construction, the project will be conducted in a number of stages in
chronological order. First, a survey needs to be undertaken on the site to analyse the density and
types of marine organisms living in the area. Furthermore, in this survey, the actual depth of the
water is to be analysed along with the amount of pressure inside the various layers of the sea
water. Secondly, analysis is required in order to determine to overall drilling structure to be
installed along with the instruments and machineries that will be used to build the entire drilling
structure. In this regard, the overall length of the pipe needs to be determined that will be used to
bring the oil from underground to the rig storage. The distance between the rig to the nearest
harbor also needs to be determined in order to find the transportation costs that will be incurred
while transporting the oil from rig to the refineries.
Installation of Pipeline – This is another deliverable that is within the scope of this
project. This pipeline will be installed starting from the rig storage and will go deep into the sea
bed where the oil mine has been found.
Site Security – This is another deliverable that is within the scope of the project. Since
the site is quite far from the mainland, the site during the construction needs strong security. This

7PROJECT MANAGEMENT PLAN
is mainly because North Sea waters are infested with numerous Nordic and Celtic Pirates that
hunt valuables along the sea and the oil rig site will contain equipments and machineries that are
worth thousands of dollars in the machine market. Furthermore, since the North Sea falls under
international waters, some other countries may try to hijack or destroy the rig owing to the fact
that oil and gas is an extremely profitable industry. Hence, site security must be ensured at all
costs and the on-site workers should have access to satellite phones that can be used to send
distress calls to the mainland or nearby security vessels.
3.1.2 Out-Scope
In addition to the in-scope deliverables, there are some out-scope items that do not fall
within the limits of the project. These are defined so that the focus of the project is not lost by
aiming for the out-scope items. The out-scope items are as follows.
Post Supply Operations – The project contract is limited to the development of the oil rig
only. Hence, the company, EFC Group does not need to consider the post supply operations after
the drilled oil is transported to the mainland. From that point, Awilco will take care of it and send
to the refinery for separation of petroleum products and purification. According to the duties,
EFC Group only needs to develop the rig and set up a suitable storage space for the oil drilled
out from the bed and transport the same to the mainland. The contract is based on these activities
only and is only valid for 10 years but it can be extended based on the performances of EFC
Group regarding oil drilling.
Determination of Oil Prices – Determination of oil exchange price will be determined by
the market as well as Awilco and EFC Group does not have to be involved in the matter. EFC
Group will get a fixed payment mentioned in the contract based on the amount of oil drilled per

8PROJECT MANAGEMENT PLAN
day as well as sufficient compensation for the expenses incurred during the entire construction
period.
Fishing – During the construction and operation period, EFC Group is not allowed to
conduct any kind of fishing activities. There are three main reasons behind this – (i) the company
catch exotic fishes and sell them in the market that will earn EFC Group extra profits, (ii) the
business of the fishermen who catch fish in the area will be severely obstructed and (iii) the
marine ecosystem in this area will be severely affected resulting in the increase of hostility
among the animals and unbalancing in the ecosystem.
3.2 Cost Management
The cost requirements of the project are shown in detail in the following table.
OVERA
LL
PROJE
CT
GRANT
REQUE
ST
Budget
must
account
for all
costs to
complete
the
project
Enter
only the
amount
of the
grant
request
Amount Amount
Design Costs
Category Task Description Qty Rate
Assessments
(geologic,
hydraulic, etc.)
Survey of the Sea Area,
Ecosystem, Sea
Geology, etc. 1.00
$
500,000.
00
$
500,000
$
600,000
Data collection
Data Collection of Sea
Geology, Ecosystem,
etc.
1.00
$
300,000.
00
$
300,000
$
400,000
Conceptual
design
Preparation of Design
Concept for the Oil 1.00
$
100,000.
$
100,000
$
150,000

9PROJECT MANAGEMENT PLAN
Rig 00
Preliminary
design
Preparation of
Preliminary Design for
Oil Rig
1.00
$
300,000.
00
$
300,000
$
400,000
Final design
Preparation of the
Final Oil Rig Design 1.00
$
400,000.
00
$
400,000
$
500,000
Permits
Permit for Operations
in International
Waters
1.00
$
1,000,00
0.00
$
1,000,00
0
$
1,000,00
0
Equipment
Equipments for Setting
Up the Site 35.00
$
100,000.
00
$
3,500,00
0
$
4,000,00
0
Equipment
Equipments for
Building Mechanical
Structures on the Rig
25.00
$
150,000.
00
$
3,750,00
0
$
4,000,00
0
Equipment
Pipeline
1.00
$
500,000.
00
$
500,000
$
600,000
Equipment
Drilling Machine
3.00
$
1,500,00
0.00
$
4,500,00
0
$
8,000,00
0
Other
Security for 10 Years
1.00
$
2,000,00
0.00
$
2,000,00
0
$
2,500,00
0
Administrative
Administration Costs
1.00
$
2,000,00
0.00
$
2,000,00
0
$
2,000,00
0
Other
Transportation Costs
1.00
$
5,000,00
0.00
$
5,000,00
0
$
8,000,00
0
Other
Wages of Workers
1,500.
00
$
100,000.
00
$
150,000,
000
$
200,000,
000
STotal $
173,850,
000
$
232,150,
000
Indirect Costs
Description Appro
ved
Rate
Total
Project
Base
Indirect 0.000
%
$
-
$
-
$
-
Indirect 0.000
%
$
-
$
-
$
-
STotal $
-
$
-

10PROJECT MANAGEMENT PLAN
GTOTA
L
$
173,850,
000
$
232,150,
000
PRISM
Project
Total
$
232,15
0,000
RCO
Percent
age
Match
Percen
tage
1 0.00%
3.3 Time Management
The estimated time schedule for the project is shown in the following table.
Task Name Duration Start Finish
Offshore Construction Project 2235 days Thu 02-11-17 Wed 27-05-26
Project Discussion and Commissioning 545 days Thu 02-11-17 Wed 04-12-19
Locating the Oil Bed 60 days Thu 02-11-17 Wed 24-01-18
Analysis of the Estimated Amount of Oil in the
Oil Bed
90 days Thu 25-01-18 Wed 30-05-18
Meeting and Discussions 45 days Thu 31-05-18 Wed 01-08-18
Initial Project Planning 60 days Thu 02-08-18 Wed 24-10-18
Determination of the Owner of the Oil Bed
Location
15 days Thu 25-10-18 Wed 14-11-18
Escalating the Analysis Report to the 10 days Thu 15-11-18 Wed 28-11-18

11PROJECT MANAGEMENT PLAN
Government
Analysis of the Report by the Government 15 days Thu 29-11-18 Wed 19-12-18
Estimation of the Profitability of the Project 15 days Thu 20-12-18 Wed 09-01-19
Granting Approval from Government for
Proceeding with the Project
30 days Thu 10-01-19 Wed 20-02-19
Licensing Request 10 days Thu 21-02-19 Wed 06-03-19
International Clearance to Proceed with Project 45 days Thu 07-03-19 Wed 08-05-19
License Grant for Proceeding with Project 30 days Thu 09-05-19 Wed 19-06-19
Renting the Location Area from the
Government for 10 years
45 days Thu 20-06-19 Wed 21-08-19
Purchase of the Oil Mine from the Government 90 days Thu 20-06-19 Wed 23-10-19
Determination of Project Nature 30 days Thu 24-10-19 Wed 04-12-19
Completion of Initial Planning 0 days Wed 04-12-19 Wed 04-12-19
Project Planning and Survey 610 days Thu 05-12-19 Wed 06-04-22
Discussion between Organization Board
Members
30 days Thu 05-12-19 Wed 15-01-20