MPM7001: Project Management Report on Duqm Oil Refinery

This report provides a comprehensive analysis of the Duqm Oil Refinery project, focusing on project management principles and practices. The report begins with an executive summary and an introduction to the project, which involves the development of a new refinery in Duqm, Oman, by Douglas OHI. It critically evaluates five key knowledge areas: communication, scope, quality, resources, and risks. For each area, the report examines past, present, and future scenarios, offering critical analysis and evaluation. Furthermore, the report identifies and appraises strategies for achieving project management excellence within each knowledge area, including recommendations for the company and project management team. The report concludes with overall recommendations to enhance the company's project management capabilities and includes a detailed communication matrix, and discusses stakeholder management, scope management, and quality control. The report aims to provide insights into the practical application of project management theories and practices, offering a valuable resource for students and professionals in the field. It also discusses financial and operational risks associated with the project.

Running head: PROJECT MANAGEMENT THEORY AND PRACTICES
PROJECT MANAGEMENT THEORY AND PRACTICES
Name of the Student
Name of the University
Author Note:

1PROJECT MANAGEMENT THEORY AND PRACTICES
Executive summary
Douglas OHI is a project between the Interserve, it has been performed jointly and is also
known as the international support services, equipment services group and construction along
with the Oman Holdings International Company. This particular project is supposed to open
doors to numerous chances for various businesses situated in Duqm which would be able to cater
to various auxiliary requirements of refinery. Oman Oil Company had performed the
responsibility of the catalyst for developing numerous industrial hubs as well as regions across
Oman. The development of the refinery would contribute in helping to support the entire
business landscape present in Duqm and hence would also contribute in creating a specific
infrastructure that is attractive for numerous investors who belong to foreign. The areas that have
been included within the report includes communication, scope, quality, resources and risks. This
particular report presents the critique, evaluation and analysis of five knowledge areas within the
concept of project management. This would help in developing the area in future along with
addition of jobs to the local finance. This particular project would mark the starting of a
completely new era for the enterprises along with providing new opportunities in the sector of
energy. This report discusses regarding various knowledge areas within the concept of project
management.

2PROJECT MANAGEMENT THEORY AND PRACTICES
Table of Contents
Introduction..........................................................................................................................3
Discussion............................................................................................................................4
Project Management Knowledge Areas..........................................................................4
Communication............................................................................................................4
Scope............................................................................................................................6
Quality.........................................................................................................................6
Stakeholder..................................................................................................................6
Risk..............................................................................................................................7
Critical Analysis and Evaluation of 5 areas for past, current and future project.............8
For each of knowledge area, Identify and Evaluate Project Management excellence. .11
Overall recommendation to how to enhance the company’s and choice of project’s
project management capability..................................................................................................13
Conclusion.........................................................................................................................15
References..........................................................................................................................17

3PROJECT MANAGEMENT THEORY AND PRACTICES
Introduction
The organization that has chosen for this particular report includes Douglas OHI and the
project that has been chosen within the organization includes Developing New Duqm Oil
Refinery. According to interserve group, this project is a joint project between Douglas OHI
which had obtained two contracts for the purpose of working on developing the new Duqm Oil
Refinery in Oman (Al Zeidi 2016). Douglas OHI is usually a joint project between the
Interserve, this is also known as the international support services, equipment services group and
construction along with the Oman Holdings International Company SAOG which also delivers
building and civil projects in Sultanate of Oman (Mohsin, Zhou and Iqbal 2018). The scope of
this particular contract includes civil as well as underground piping for supporting the
installation of pipe racks, equipment along with various specialist structures as well as networks
across the 1 and 2 packages (Han, Elbaz and Roberts 2016). This particular project is supposed
to open doors to numerous chances for various businesses situated in Duqm which would be able
to cater to various auxiliary requirements of refinery. It would be extended towards various new
horizons which would drive wide financial cooperation for the purpose of serving numerous
common interests between the countries (Kimura, Morikawa and Phoumin 2017). This particular
report presents the critique, evaluation and analysis of five knowledge areas within the concept
of project management. The areas that have been included within the report includes
communication, scope, quality, resources and risks. For every area of knowledge, the report
identifies, critically evaluates and appraises the previous, present as well as future scenarios of
the project (Mohsin, Zhou and Iqbal 2018). For every knowledge area, the report further
identifies, critically evaluates as well as apprises ways that can be used for the purpose of
achieving excellence in project management. It further mentioned what the company as well as

4PROJECT MANAGEMENT THEORY AND PRACTICES
project management team would require to do (Wu, Li and Qu 2017). These areas are mentioned
in details in the discussion part of the report.
Discussion
Project Management Knowledge Areas
Communication
The communication process that is used by Douglas OH for performing the new project includes
the stated communication plan.
COMMUNICATIONS MATRIX
Project
Name:
Develo
p New Duqm
Oil Refinery
National
Center: Oman
Project
Manager Name:
Please
Fill
Pr
oject
Descripti
on:
Duqm Refinery and Petrochemical Industries Co.
LLC has contracts with Douglas OHI in 2 separate
terms, regarding the working on the platform of
DRPIC’s 230,000-b/d refinery and petrochemical for
having complex processing of Duqm Special Economic
Zone in Duqm which is located in the coast of Oman.
ID
C
ommun
ication
Vehicle
T
arge
t
Audi
ence
Descrip
tion/Purpose
F
reque
ncy
O
wne
r
D
istribu
tion
Vehicl
e
I
nter
nal /
Exte
rnal
?
C
omme
nts
1 W
eekly
status
report
P
rojec
t
Tea
m
This
section will be
performed for
having a
proper
understanding
of tasks that
are to be
W
eekly
P
eter
Bak
er,
Anil
Kum
ar,
Davi
e
mail
I
ntern
al
T
his
comm
unicati
on
proce
ss will
be

5PROJECT MANAGEMENT THEORY AND PRACTICES
performed for
execution of
the entire
project. Again
with the help of
proper
communication
data
transaction
among the
project team
members can
be performed
and this willk
ensure that
proper
information that
are to be
communicated
can be
performed.
nder
Khin
dey,
Dan
ny
Van
Biljo
n
highly
monit
ored
by the
projec
t team
leader
. After
proper
monit
oring,
it is
expect
ed
that
proper
comm
unicati
on in
betwe
en the
stakeh
olders
of
Dougl
as
OHI
can
be
made.
2 D
aily
status
report
P
rojec
t
man
ager
Director
of the project
will be
communicati9n
g with the
project
manager for
getting a better
understanding
of the project
overview and
status of the
project. Proper
analysis of the
data that are
provided for
D
aily
W
ayne
Can
well
F
ace to
face
I
ntern
al
I
n this
phase
the
projec
t
mana
ger
will be
providi
ng the
latest
updat
es to
the
direct

6PROJECT MANAGEMENT THEORY AND PRACTICES
the processing
of updating pof
data will be
performed in
this
communication
stage.
ors
and
will be
receivi
ng
feedb
ack
from
them.
This
will
ensur
e that
proper
mana
geme
nt of
the
projec
t will
be
perfor
med
and
hence
chang
es
that
are to
be
introd
uced
will be
perfor
med
in a
proper
mann
er.
3 M
onthly
status
report
D
irect
or
CEO of
the project
takes updates
from director
and hence
takes feedback
from the CEO
M
onthly
A
aron
Hen
ness
y
F
ace to
Face
I
ntern
al
A
llocati
on of
the
task
and
setting

7PROJECT MANAGEMENT THEORY AND PRACTICES
and introduces
the changes
that are to be
implemented
as per the want
of CEO. This is
the most
important
communication
stage as the
goals and
motive of the
project are set
in this phase.
of
goal
will be
made.
This is
the
main
reaso
n that
proper
mana
geme
nt of
the
decisi
on
makin
g is
perfor
med.
Scope
Scope of Duqm Refinery and Petrochemical Industries Co. LLC via contractors a d let 2
separate contractors for processing of the contracts of Develop New Duqm Oil Refinery for
working in the processing of DRPIC’s 230,000-b/d refinery and petrochemical. Duqm Refinery
& Petrochemical Industries Co. LLC (DRPIC), the project is concerned with the processing of
the state owned Oman Oil CO and Kuwait Petroleum (Courtney-Hatcher et al, 2013). Via help of
the contractors having a separate contract with Douglas OHI, which has been a JV of Interserve
Group Ltd. and Oman Holdings International Co. SOAG (Alshubiri and Hussein 2016).
Quality
Quality of the project is diversified in 3 stages. This is the main reason that EPC
packaging is performed in a proper manner. For measuring the quality processing, EPC Package
1, will be performed as per largest of the project package that includes three packages. This

8PROJECT MANAGEMENT THEORY AND PRACTICES
covers EPC and commissioning of the main projects which are the units of refinery via TRD JV
(Raguimov 2017). As per the EPC Package 2, covering the delivery process of EPC will be well
maintained for proper commissioning of training and different start ups. As per the EPC package
3, covering EPC, commissioning of operating services are performed via off suite installation
and hence product storage and export terminal can be performed. Quality processing is
performed for designing of the hydrocracking and hydro treating is performed.
Stakeholder
The resources that are required for the execution of the project are as follows: -
 Aaron Hennessy (General Manager): Aaron has been the General Manager of Douglas
OHI. He brings with the sound track record for the processing of implementing
innovation for proper collaborating with the other stakeholders. He has been present in
the business organization for over 20 years (Al Zeidi 2016).
 Wayne Canwell (Commercial Manager): Wayne Canwell had joined Douglas OHI in
September 2018. He has been performing this duty for over the years and has been
handling the commercial aspects that will be considered for business management was
performed by Wayne Canwell (Nichols 2016).
Risk
The Risks that are present in the execution of the project are as follows: -
 Financial issues: The Financial issue that might arise includes improper budget planning.
This improper budget planning will lead to funding constraints and lead to project failure.
 Operational Issues: The major operational issue that will be present includes the fact that
improper allocation of tasks will be affecting task execution in a negative manner
(Raguimov 2017).

9PROJECT MANAGEMENT THEORY AND PRACTICES

10PROJECT MANAGEMENT THEORY AND PRACTICES
Critical Analysis and Evaluation of 5 areas for past, current and future
project
Douglas OHIhas come up with two contracts which are based on the development of new
Duqm oil refinery in Oman. The refinery is expected to be constructed in special zone of Duqm
around 600km South of Oman (Goel 2016). The given project is being developed by
Petrochemical and Duqm refinery, which is a 50-50 joint venture in between Oman oil company
and International Petroleum Investment company. At the beginning of 2015, the work of site
preparation was started in the year 2015 (Chaziza 2019). The main construction is expected to be
started in the year 2016. The refinery is expected to come on online platform in the year 2020.
Project Stakeholder Management: Oman Oil organization is commercial firm which is
completely owned by government of Oman. In the year 1996, the organization was incorporated
so that they can invest in the energy sectors (Raguimov 2017). It can be either inside and outside
of Oman. In the participation of energy and energy-based projects, the organization aims to play
a key role in diversifying the economy of Oman. The country aims to investment of Omani and
other related private industries. Duqm refinery is found to be a joint venture which is there in
between Kuwait Petroleum and Oman Oil organization. Each of the given refineries aims to hold
an interest of 50% of the refinery (Kerzner 2017). KPI stands for Kuwait Petroleum International
is a well-known firm which is completely organized under the England Law. In the year 1983, it
was established as an international downstream of KPC. The firm is considered to be as one
world top ten energy firm.
Project Communication Management: Communication with stakeholder is considered to
be as one of the key factors which allow them to be satisfied. It merely comes into picture in case
of any unexpected changes (Meredith, Mantel and Shafer 2017). It is very much important to

11PROJECT MANAGEMENT THEORY AND PRACTICES
develop communication plan for keeping with all the stakeholders in the current loop through the
project. Communication is done when any kind of unexpected problem comes into picture.
Communication Management plan aims to highlight the communication with the various
stakeholders. It mainly aims to highlight any kind of communication procedure for any kind of
unexpected issues. At the time of project execution, the communication plan in taken
consideration and communication is managed in much effective way (Fleming and Koppelman
2016). Regular Status point of the project communication is completely reviewed, and revision
of the project is done accordingly. In the earlier days of this new Duqm oil refinery was found to
be inappropriate. After that, communication among the stakeholder of the project needs to be
improvised from present scenario.
Project Scope Management: It merely requires involvement of overall scope of the
project. The given work is merely inclusive within the given project. Any kind of scope change
can easily result in one of the top cause for the changes in the project. It is important to
understanding the overall boundaries of the project (Heagney, 2016). It is defined mainly from
outside and monitored on a regular interval. It becomes very much easy for people to provide
unauthorized work in their project in case of big project. Most of the projects come up with
minimum cost amount. At the time of completing the given work, they motivate towards the
minimum scope value. Scope management plan can be considered to be part of project
management plan which is found to be section that stands on the alone document. At this
particular stage, all the detail requirements of given product and services are completely
assembled. If the deliverables of the project are assembled, then it needs to be validated by the
help of recipients (Walker 2015). It will merely come into picture at the phase of monitoring and
controlling process. The given scope statement needs to be completely revised on a regular basis

12PROJECT MANAGEMENT THEORY AND PRACTICES
concerning work and present status of the project. The scope of the given project stands out to be
around civil and underground pipeline, which is needed for equipment installation. It merely
comprises of piperacks and structure and network in package of 1 and 2. Douglas is rewarded as
7 million pounds by the contract for providing the building integration work. The scope of
contract is merely inclusive of proper contraction and its coordination among 23 buildings
(Verzuh 2015). The total area is found to be around 18, 328 square metres. Duqm refinery is
found to be greenfield project which is located in special economic zone of Duqm. The refinery
stands to have capacity of 230,000 barrels for crude oil on everyday basis.
Project Quality Management: Health and safety campaign has been mainly developed
by Duqm refinery. The main focus is all about enhancing the awareness of 9 golden rules for
overall safety in the industry. It is mainly done, so that reduce the overall number of accidents
and injuries at the construction site (Binder 2016). Duqm refinery campaign has come up with
initiatives which are needed for delivering long term social benefits. Much similar tackling is
seen at pressing the overall community needs. The refinery campaign needs to implement a list
of regulation like implementing permit for work at per requirement, implementing electrical
safety procedure, avoiding working at height if possible, implementing confined space procedure
(Kerzner 2017). Also, they need to drive responsibilities, stopping the work in case of unsafe,
following rigging and procedure of lifting.
Project risk management: Oil and Gas firms need to depend on industry based control
system which is needed for managing safety and reliable operation. The firms are focusing on
increase in integration between technologies making the given system faster and efficient (Lock
2017). The overall future is increasing at a rapid rate where robotics and Internet of things have
come into picture. Overall increase in connectivity aims to drive value by deployment of data

13PROJECT MANAGEMENT THEORY AND PRACTICES
and analytics for finding new market. With increase in overall risk, the organization need to
adapt their digital strategy. Pipelines, refineries and tank aim to heavily depend on industrial
control system so that they can maintain smooth and safe operation (Sears et al. 2015). With the
development of sensor technology, remote capabilities, IoT technology aims to unlock
tremendous value by removing redundancy and enhancing uptime.
For each of knowledge area, Identify and Evaluate Project Management
excellence
Project Scope Management: This particular knowledge area mainly requires
involvement of project scope. The work is mainly inclusive in this particular project. Scope
change is considered to be as one of the biggest cause of this oil refinery project (Joslin and
Müller 2015). The overall boundaries of this project are completely defined, which is outset and
monitored on regular basis. It becomes very much easy for people for unauthorized work in the
project. The overall refinery project aims to absorb the whole thing. Most of the project aims
estimates the whole thing with a minimum cost (Heldman 2018). For completing the whole
work, the mere focus is all about minimum value of scope. At the beginning instance of the
project, the project is merely motivated towards the maximum.
Project Quality Management: Quality is considered to be as one of the important aspects
of three aspects that is Time, Cost and Quality. Project management team needs to provide much
better quality so that they can put much more time and cost. It is considered to be an integral
nature for the overall quality of the project deliverables (Goel 2016). The quality level needs to
be established at the instance of project delivery. It is mainly specified in the project
management plan. When any kind of issue comes into picture, then there is a need for proper
plan for dealing with it. Quality management plan can be stated as a section of project

14PROJECT MANAGEMENT THEORY AND PRACTICES
management plan that comprises of quality specification for given product and services (Chaziza
2019). The process aims to highlight that the deliverables of the project need to be inspected so
that they are working most appropriately.
Project risk management: Proper management of risk is considered to be as one of the
important aspects of the project. Some of the risk is identified up front and need to be analysed
within project management plan. Stakeholders need to forgive any kind of unexpected issues in
much faster way (Meredith, Mantel and Shafer 2017). It is the duty of project manager for
safeguarding their overall investment. Project management team needs to identify various kind
of risk for giving priority and category. Some of the major risk in the project are identified and
placed in the risk register. Several project comes up with one or two risks which precedence over
each other. As soon as the risk in this Oil refinery has been ranked as per the priority, then their
impact needs to be judged on their project. In some of the vital risk, there is need for response
plan which is drafted for all the associated parties.
Project Stakeholder Management: There is nothing much important than project
stakeholder. This Oil refinery project will be declared successful if and only if stakeholders are
completely satisfied with the project (Fleming and Koppelman 2016). Stakeholder of the project
needs to be actively managed and properly addressed in the project management plan. In the
beginning stage of the project, some of the major stakeholders of the Oil refinery project is
identified. Stakeholder management plan comprises of each stakeholder which are given priority
concerning concern and overall impact on their project (Raguimov 2017). At the interval stage of
the project, each of the given stakeholders needs to be determined for their need. It is mainly
done so that they can address any kind of necessary changes.

15PROJECT MANAGEMENT THEORY AND PRACTICES
Project Communication Management: Proper communication with the stakeholder is
considered to be as one of the important factors which help stakeholder to be completely
satisfied. It tends to work even there are some unexpected changes taking place (Kerzner 2017).
It is very much important to develop a proper communication plan for Oil refinery project so that
they can keep picture in the loop. Communication aims to begin in the early phase along with
analysing any kind of unexpected issues. Communication management plan aims to identify
communication at regular interval where requirements of each stakeholder are taken into
consideration. It merely comprises of progress updates and investing circulars (Heagney 2016).
The mere focus in all about identifying any specific kind of communication procedure for any
kind of unexpected issues or overall changes in this refinery project.
Overall recommendation to how to enhance the company’s and choice of
project’s project management capability
The recommendations that might be followed by the company’s and choice of the
project’s project management capability are as follows
1. Avoiding poor estimating or scheduling: the estimation as well as process of
scheduling includes the scoping along with sizing of the project. It would further help in
estimating the time as well as the effort that is required and hence develop a calendar
schedule, this considers various factors such as availability of resources, acquisition of
technology along with the business cycles (Wu, Zhu and Bai 2016). The advantages of
proper estimates include less amount of errors, less amount of overtime, less pressure on
schedule and reduced amount of staff turnover. It further provides better coordination
with the tasks that are non-development in nature, proper budgeting along with more
credibility for the project team (Belmont 2016). On the basis of longitudinal findings of

16PROJECT MANAGEMENT THEORY AND PRACTICES
Standish group, the organizations had been better in estimating the overall amount of
cost. It had been estimated that the average cost overrun keeps reducing but the
estimation of time is even worse. In the year of 2000, the time overruns had reached up to
63%, since then they have been increased to 82% (Mohapatra 2017). On the basis of the
research, project teams would be able to improve the estimation of as well as scheduling
with the help of developer based estimates, this is considered as a modified Delphi
approach, algorithms as well as historical data such as COCOMO II.
2. Usage of estimation software: estimation software could be used like QSM SLIM-
Estimate, Construx Estimate and SEER-SEM. along with this, the estimation process can
also be made a series of various iterative refinements along with numerous estimated that
would be presented in ranges (Jupp, Fowler and Dobretsov 2017). These ranges would be
responsible in continuously narrowing along with the progress of the project as time
passes by. This particular concept can be represented in a graphical format which is
known as estimate-convergence graph, it is also known as cone of uncertainty (Speers
and Henchy 2016). The project manager would be responsible for creating the upper as
well as lower bounds of cone with the help of multiplication of the single point estimate
by optimistic factor, this would be done for the process of obtaining pessimistic estimate.
This process has the chance to provide 100% cushion in the very beginning of the phase
of feasibility, around 75 percent of cushion in the phase of defining, around 50 percent of
cushion in the design phase and around 25 percent cushion in the starting of the entire
project (Badiru and Osisanya 2016). Project managers would be allowed to update the
estimates at the ending of every phase, this would result in improving their accuracy all
through the development of the life cycle of the project.

17PROJECT MANAGEMENT THEORY AND PRACTICES
3. Avoid ineffective measures for stakeholder management: this step has to be carried
out by the project in an effective manner, if not done, it might result in failure of a certain
project. Various researchers had identified numerous practices that could be used for the
purpose of stakeholder management, these practices include the usage of stakeholder
worksheet along with the assessment graph (Caetani, Ferreira and Borenstein 2016). This
particular tool is considered as important because it facilitates the mapping of the power
of stakeholders in a three dimensional manner which means the influence over others
along with the direct control over the resources, level of interest of stakeholders,
stakeholder degree of the support and resistance (Han, Elbaz and Roberts 2016). This tool
can also be used for the purpose of identifying the stakeholders that require most
attention from the team of project management. If the project team fails in satisfying the
stakeholders, it would fail in determining the success of the complete project, regardless
of how the end products is technologically sound.
4. Avoid improper planning: in the process of developing or acquiring the systems that
would help in supporting the new business initiatives and hence keep the top level of
management happy, various project managers usually tend to abbreviate the process of
planning (Kimura, Morikawa and Phoumin 2017). The three practices that might help in
avoiding any sort of negative outcome include developing a certain project charter,
properly defined governance of project as well as portfolio management.
Conclusion
From the above discussion, it can be stated that the project of Develop New Duqm Oil
Refinery had been considered as the largest cross-border GCC investment in the specific sector
of downstream. The highness had prompted the launch of the project’s construction work. This

18PROJECT MANAGEMENT THEORY AND PRACTICES
particular project had been planned for being cornerstone for numerous more projects under
downstream in the future. Oman Oil Company had performed the responsibility of the catalyst
for developing numerous industrial hubs as well as regions across Oman. The Duqm Oil
Refinery is a particular project which tends to symbolize proper collaboration among Kuwait and
Oman. The development of the refinery would contribute in helping to support the entire
business landscape present in Duqm and hence would also contribute in creating a specific
infrastructure that is attractive for numerous investors who belong to foreign. This further would
help in developing the area in future along with addition of jobs to the local finance. OCC had
striven in integrating various investment projects and hence aim in increasing value from the
resources of Oman with the help of development of the industry of petrochemical. This particular
project would mark the starting of a completely new era for the enterprises along with providing
new opportunities in the sector of energy. This report discusses regarding various knowledge
areas within the concept of project management. The knowledge areas that had been discussed in
this particular project include communication, scope, stakeholders, resources used in the project
and risks. For every knowledge area, the report identifies, critically evaluates and appraises the
past, current as well as future scenarios of project. This report further identifies, critically
evaluates as well as appraises the ways by which the project would be able to appraise for
achieving project management excellence. The report further recommends ways by which the
organization as well as this particular project can enhance the project management capabilities.
Every knowledge area has identified, critically evaluated as well as appraised the ways by which
project excellence can be obtained. These concepts had been discussed in the report in detailed
manner.

19PROJECT MANAGEMENT THEORY AND PRACTICES

20PROJECT MANAGEMENT THEORY AND PRACTICES
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