ECON6007 Petroleum Project Management & Decision Analysis Solution

This assignment solution focuses on petroleum project management, specifically addressing a subsea well intervention project. It identifies and discusses six key project management tools and techniques essential for successful project delivery, including scope statement development, stakeholder analysis, communication planning, work breakdown structure review, risk tracking, and schedule updating. The solution also includes a decision tree and Expected Monetary Value (EMV) analysis to determine the optimal project duration, alongside a Gantt chart, project activity network, and critical path analysis. Furthermore, it evaluates the feasibility of fast-tracking a specific activity (Activity G) within the project. Desklib offers a variety of solved assignments and past papers for students.

Running head: PETROLEUM PROJECT MANAGEMENT
ECON6007 Petroleum Economics & Project Management Stream
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1PETROLEUM PROJECT MANAGEMENT
Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................3
Answer to Question 3......................................................................................................................4
a. Gantt chart for the project........................................................................................................4
b. Project activity network...........................................................................................................4
c. Computation of Early Start, Early Finish, Late Start, Late Finish, Free Float and Total float
for each activity...........................................................................................................................5
d. List of activities on critical path..............................................................................................5
e. Fast tracking of Activity G......................................................................................................5
Bibliography....................................................................................................................................6

2PETROLEUM PROJECT MANAGEMENT
Answer to Question 1
Every project is unique and has different criteria for execution hence, it is necessary to
implement appropriate tools and techniques for managing projects. The key tools and techniques
of project management that must be employed to ensure successful delivery of the project are
presented as below:
Development of scope statement: A document with scope statement have to be
developed to present the deliverables that will be included or excluded from the project. This
document will serve as the document for negotiation of objectives as well as deliverables
(Martinelli, Russ and Milosevic 2016).
Conduction of stakeholder analysis: The analysis of stakeholders is an essential element
to ensure successful delivery of projects. It is required to evaluate requirements of the various
associated people and the influence that they have over the project. Proper gathering of
requirements ensure successful accomplishment of project.
Establishment of communication plan: Communication plays an important role in the
project progress as well as completion (Cleden 2017). Hence, the development of suitable
communication plan effectively contributes towards successful delivery of a project.
Review of developed Work Breakdown Structure: The Work breakdown structure
developed for the project have to be reviewed for checking that the required activities are being
identified properly.

3PETROLEUM PROJECT MANAGEMENT
Tracking of issues and risks: The conflict and risk management is essential to ensure
that the progress of the project as estimated (Turner 2016). The proper implementation of risk
management strategies and procedures will help to ensure successful delivery of the project.
Updating of schedule for the project and reviewing the critical path: The developed
schedule for the project has to be checked for any discrepancies or errors to ensure that the
activities are carried out as per the estimated timeline (Heagney 2016). The critical path activities
have to be taken into consideration while executing the project so that the critical activities does
not impact on the project duration.
Answer to Question 2
Above figure shows the decision tree and EMV Analysis of no of months intervals.
Lesser the EMV Value better would it be. In this case, 10-month node shows the least
value i.e. 218000 and it will be most effective.

4PETROLEUM PROJECT MANAGEMENT
Answer to Question 3
a. Gantt chart for the project
b. Project activity network

5PETROLEUM PROJECT MANAGEMENT
c. Computation of Early Start, Early Finish, Late Start, Late Finish, Free Float and
Total float for each activity
Task
Name Early Start Early Finish Late Start Late Finish Free
Float Total Float
A Wed 30-05-18 Wed 30-05-
18 Wed 30-05-18 Wed 30-05-18 0 wks 0 wks
B Wed 18-07-18 Tue 24-07-18 Wed 25-07-18 Tue 31-07-18 1 wk 1 wk
C Wed 30-05-18 Tue 10-07-18 Wed 30-05-18 Tue 10-07-18 0 wks 0 wks
D Wed 30-05-18 Tue 12-06-18 Wed 13-06-18 Tue 26-06-18 0 wks 2 wks
E Wed 11-07-18 Tue 17-07-18 Wed 11-07-18 Tue 17-07-18 0 wks 0 wks
F Wed 18-07-18 Tue 24-07-18 Wed 25-07-18 Tue 31-07-18 1 wk 1 wk
G Wed 30-05-18 Tue 26-06-18 Wed 04-07-18 Tue 31-07-18 5 wks 5 wks
H Wed 01-08-18 Tue 07-08-18 Wed 01-08-18 Tue 07-08-18 0 wks 0 wks
I Wed 13-06-18 Tue 26-06-18 Wed 27-06-18 Tue 10-07-18 2 wks 2 wks
J Wed 08-08-18 Tue 14-08-18 Wed 08-08-18 Tue 14-08-18 0 wks 0 wks
K Wed 18-07-18 Tue 31-07-18 Wed 18-07-18 Tue 31-07-18 0 wks 0 wks
L Wed 18-07-18 Tue 24-07-18 Wed 08-08-18 Tue 14-08-18 3 wks 3 wks
M Tue 14-08-18 Tue 14-08-18 Tue 14-08-18 Tue 14-08-18 0 wks 0 wks
d. List of activities on critical path
Task Name Duration Start Finish
A 0 wks Wed 30-05-18 Wed 30-05-18
C 6 wks Wed 30-05-18 Tue 10-07-18
E 1 wk Wed 11-07-18 Tue 17-07-18
H 1 wk Wed 01-08-18 Tue 07-08-18
J 1 wk Wed 08-08-18 Tue 14-08-18
K 2 wks Wed 18-07-18 Tue 31-07-18
M 0 wks Tue 14-08-18 Tue 14-08-18
e. Fast tracking of Activity G
The activity G should not be fast tracked as the final outcome of the project is dependent
on activity H. The activity H is dependent on the activity G and it is also dependent of activity B,

6PETROLEUM PROJECT MANAGEMENT
K and F. Hence fast tracking of the activity G will not have significant impact on duration of the
project thus there is no requirement to spend additional costs to fast track activity G.
Bibliography
Cleden, David. Managing project uncertainty. Routledge, 2017.
Heagney, Joseph. Fundamentals of project management. AMACOM Div American Mgmt Assn,
2016.
JOSEPH. PHILLIPS, P. M. P., IIBA CBAP, and CompTIA PMP. PMP PROJECT
MANAGEMENT PROFESSIONAL STUDY GUIDE. McGraw-Hill Education, 2018.
Kerzner, Harold, and Harold R. Kerzner. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons, 2017.
Kerzner, Harold. Project management best practices: Achieving global excellence. John Wiley &
Sons, 2018.
Martinelli, Russ J., and Dragan Z. Milosevic. Project management toolbox: tools and techniques
for the practicing project manager. John Wiley & Sons, 2016.
McNeil, Alexander J., Rüdiger Frey, and Paul Embrechts. Quantitative risk management:
Concepts, techniques and tools. Princeton university press, 2015.
Turner, Rodney. Gower handbook of project management. Routledge, 2016.