PRISM1 MSc Project: Project Management & Risk in the UK Oil & Gas

This project proposal investigates the interplay between project management principles and risk attitudes within the UK's oil and gas sector. It begins by outlining the vital role of project management, highlighting key aspects like initiation, planning, and execution, with a focus on the project manager's role. The proposal then delves into the specifics of the UK oil and gas industry, acknowledging legal constraints and political risks while emphasizing the sector's economic importance. The aim is to analyze various types of risks associated with the sector and evaluate the existing legal frameworks. The research covers procurement issues, sustainability drivers, and gaps in existing literature, such as the integration of critical chain concepts and the need for sustainable relationships with international partners. The methodology involves comparative case analysis using semi-structured interviews, industry statistics, and secondary literature, aiming to contribute to a better understanding of risk management in the UK oil and gas industry. Desklib provides access to this project and other solved assignments for students.

Running head: PROJECT MANAGEMENT AND ATTITUTE TOWARDS RISK
Project management and attitude towards risk
(Analysis of the UK oil and gas sector)
Name of the Student
Name of the University
Author Note

2PROJECT MANAGEMENT AND ATTITUTE TOWARDS RISK
Table of Contents
Introduction................................................................................................................................3
Aim of the project......................................................................................................................3
Background context...................................................................................................................4
Project scope..............................................................................................................................4
Gap in the existing literature......................................................................................................4
Plan to carry out the research.....................................................................................................5
Critical discussion of the proposal.............................................................................................6
References..................................................................................................................................8

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Introduction
The process of project management can be considered as one of the most vital aspects
regarding a proper development of a project. In the process of project management, there are
many aspects for example initiation, planning, execution. In most of the cases, the project
manager plays a very vital role. The project manager looks over the overall working of the
project. A team of dedicated employees always works for the project manager taking into
consideration means of achieving towards the desired goal of the project. In most of the
project management scenarios, each of the steps which are involved into the process should
be taken into account, and the project manager and the team should always work together to
reach the desired outcome (Berk & Rauch, 2016). The main focus point which should be
taken into consideration is the aspect of the security which is involved into the process of
retrieving the oil and gas in a particular sector. Many a times it is seen that most of the
companies or organisation tend to fall under the law framework which restricts them to
perform their own activity.
The oil and gas industry taking into consideration the UK has been used for the
purpose for many years. In the sector, many legal constraints are faced due to political risk
associated with it, but it can be stated that despite the factors the organisations are well into
the business. Most of the organisation who are involved in the gas and oil sector tend to move
towards countries who have some resources related to it. The oil and gas facilities and the
system are broadly divided into parts for example exploration, upstream, midstream, refining
and petrochemicals. It can be seen in most of the cases the demand for the oil and gas are
high, and on the other hand, the supply is less.
The main aim of the project is to take into consideration the aspect of project
management with it the UK oil and gas sectors. In the part of the project management the

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ma9in concepts, which are taken into consideration, is the process, which are involved in the
concept. The main research is made in the aspect of the risk, which are associated with the
concept. Majorly the area focus is the study of the different factors, which are involved in the
sector and how the remedy of the factors can be done. Another important aspects which is
taken into focus on the report is the laws which are framed to safeguard the working which is
related to the oil and gas sector. The laws are basically framed up by government officials or
bodies which work in the sector of oil and gas.
Aim of the project
The process of project management is a project plan, which is implemented during the
entire process of execution of a project. It involves different phases such defining the
objectives and the project goals. A process of project management mainly involves different
stages or phases for example planning, feasibility, definition, implementation, evaluation and
realisation. In most of the complex project scenario, the application of the processes is made
so that the outcome can be more effective and efficient. A project can be considered as a one-
time activity, which has a specific output or outcome. A project plan always starts taking into
consideration a project charter. In the project charter, it is expected to identify the potential
challenges before the start of the project and handle any of the roadblocks as they arise to
keep the project on time and within the budget (Seelke et al.,2015).
The oil and gas provide about 70 percent relating to the UK’s total primary energy
consumption, with the oil, which is used, for transport and gas, which can be involved in
heating. The oil demand globally grew strongly by the end of 2015 by a margin of 1.8 million
barrel per day (MB/d). This demand factor is expected to rise in few years’ time but on the
other hand, the rate, which is related to the growth, is expected to slow down. The risk
factors, which are related to the sector, is the increase in the chance of distress related to the

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financial condition. The factor of increase in the cost of equality can also be a factor in this
aspect. The main aim of the research proposal is to take into account the various type of risk,
which are associated with it and analyse the UK oil and gas sector. The main factor which
should be taken into consideration is to abide by the laws which are predefined during the
execution of the retrieval of the oil and gas. Different states have different laws which are
basically formed in a way to safeguard the sectors or the areas which contain the maximum
amount of gas and oil. Many a times it is seen most of the organisations do not abide by the
laws in order to proceed with their business. This is due to the factor that some small
organisations or company tend to make profit in a small period of time without taking into
consideration the law framework.
Background context
The basic need of the study mainly arises due to the pressure, which is faced by the oil
and gas sector for the mode of the protection, which is less harmful to the environment. The
concept, which is related to the supply chain management, is gaining importance in the recent
years over the years there has an increase in the mode of the protection from production in a
traditional way to lean production and to present day production sustainably. Studies have
shown that the companies rather take into consideration the aspect of supply chain rather than
solely autonomous entities. (Salas & Hallowell, 2016) Provided a basic framework for the
managers to use the concept of executing supply chain management and provide basic
research including a set of opportunities for future research into the field. Sustainability has
three components attached to it, which are the environment, economic and social equity. The
environmental components seemed to be received great attention from the concept of
sustainable literature. It can be stated here that the concept of sustainability needs to be
integrated into the framework of supply chain operation, which involve emission of
greenhouse gases. The concept of achieving the sustainable requires direct changes in the

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industrial processes, which are used for the process in the business. These facts majorly
indicate that the path, which is leading to the concept of sustainability in the environment,
can be different for the different industry but the main goal remains the same.
Project scope
The main research will cover the procurement problem and the issue, which is faced
by the oil and gas industry in the UK. In some of the points, reference is taken of some other
countries, for example, the US, the South China Sea is predominately known as Malaysia.
The research would take into consideration all the risk that are related and attitude relating to
the project management domain analysing the UK gas and oil sectors. The main
consideration that is taken in the research is the UK due to the reason that UK’s offshore and
gas industry benefit the lives of the people in many ways. It directly produces underpin
society and power to heat homes and power the industry. They also support the sector of
transport fuel for the aspect of carrying of goods and people all over the world and raw
material, which are used for the production of many materials. It can be stated here that
through the extended supply chain, it directly employs many people and contributes, which is
major to UK economy in aspects of technology, tax revenue and exports.
Gap in the existing literature
The research covers the basic drivers who are related to the concept of sustainability,
sustainable investments, sustainable strategies (market driven and process driven). Other
factors, which are involved, are the sustainability reporting system, sustainability
performance assessment and competitive objectives. The overall result, which is identified, is
the drivers, which play an important role in the sector of gas and oil industry. Moreover, the
result, which is founded out, indicates that the sustainable implementation may lead to
increased organisational competitiveness. However taking into consideration relating to other

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research, this research is not free from limitations. Some of the Gap in the existing literature
are as follows:
The research focuses on the concept of oil and gas industry and as such the concept of
generalisation of the result may not be extended to others industrial sectors. The problem,
which is related to the procedure, is not seen in the listing of the research but this not directly
mean that everything is in place. At least one of the major gas and oil contractor stated that he
has decided that no longer pursue Epic contacts relating to the oil and gas industry where it is
required to make lump sum fixed commitments of price (Perrons & Jensen, 2015). The main
focus point would be active leadership and participation in the offshore construction and
engineering market through the concept of reimbursable cost arrangement. This is due to the
factor that the growing imbalance factor, which is included in the risk and the rewards,
associated with offshore projects. Another gap, which was founded out, was the integration of
the critical chain concept and supply chain in EPIC contract to enhance some its weakness
and flaws. EPIC stands for Engineering, procurement, installation and commissioning.
According to (Howson, 2015 ) for a supply chain management to work properly, integration
can be considered as one of the most vital aspects to work systematically. Integration can be
stated more important than fabrication. The usual conflict between the EPIC and the
conventional forms are becoming an important factor. The potential liability for an accident is
large enough that any company would be forced to sell a significant amount of assets. Taking
into consideration the scenario any company, which is related to the gas and oil sector, can
incur significant ongoing and upfront cost which is related to the sale of the portion of the
assets. The aspect of the political risk is always an obvious factor, which should be taken into
consideration in every form. There are always change in the laws which forces most of the
organisation to stop their operation and which finally lead to a monitory loss. A very
important approach, which is taken by most of the organisation, is carefully analysing and

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building a sustainable relationship with its international gas and oil partners to remain in the
end. Depending on the country with which an organisation starts up a business does not
always remain same at the end of the deal. In the sector of oil and gas, many regulatory laws
are enforced which affect the overall working of the organisation. In most of the cases, major
changes have to be formed within the organisation and its working to meet the laws.
Plan to carry out the research
The main approach in the research was to analyse comparative cases using data from
multiple sources. The focus was on a primarily semi-structured interview, which was
supplemented by statistics of industry and secondary literature on the region and the oil
industry more generally. It can be stated here that analysis of comparative case studies is very
much value in this aspect, which directly reveals the causal links, and the mechanism, which
is underlying. The method which is related to the structured comparison of two case studies
which was proposed originally by (Howson, 2015). The main benefit, which can be achieved
from the process, is not the enhancement aspect of the finding generalizability but put on an
effort to inject rigour into the understanding using qualitative research of each of the case,
particularly using drawing contrasts between them. This approach can be considered a
powerful approach in well-matched scenarios where the similarities help in the concept of
highlighting the different paths taken and the paths, which are not taken. The data, which
would be collected through the interview process and the archival sources, would be
compared with the data, which would achieve from searching the UK database for all the oil,
and gas related issue. To conduct the interview, the main plan would be to explore the firms
and the institutional dynamics. The interview process can be very much beneficial in a way
that certain types of answer are made simple in order to understand properly. The process
would be in a cascading manner starting with key informants in the field of local government/
industrial organisation. The information was carefully selected to ensure direct coverage of

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all the different types of stakeholders which may include different types of firm, different
level of government universities and private and public research institutes (Styles,
Dominguez & Chadwick, 2016).
Critical discussion of the proposal
Project management concept
The concept of project management can be explained as an endeavour, which is
temporary and has a distinct starting point and end. As stated by (Asiago, 2017) a project
management process must make a distinct start and end. A project should always have an
outcome, which is unique and must be progressively elaborated. As the definition implies
relating to the concept of project management, not every task can be put into the concept of
project management. It should always be taken into consideration that which project could be
put into the aspect of project management and which do not fall into the category. To device
the definition of the project management and the outcome of the project. Project management
can be considered as a department, which directly centralises the management, which is
related to any project. This means that the PMO or the project management officer is a
repository of all the projects that were executed by a project. (Asiago, 2017) Stated that the
role of the PMO could also be in the sector of billing and other details which are directly
connected with the project. The role of the project manager is also important in this context.
He is entitled to the overall working of the project. The project manager has a team of a
member who executes the actual working of the project. For a project to work properly, there
is much software which can be implemented. In most cases taking into consideration complex
projects the factors, which are related to the time and cost, are fluctuating which makes the
process of implementation difficult these factors can be considered as moving parts in the
project. In such situations, the software’s can be used I order to achieve the desired result.

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Risk in oil and gas sector
The sector, which is related to the oil and gas sector, have many limitations attached
towards its working. The main sectors, which are focused on the restriction part, are how,
where and when the extraction can be done. This interpretation of the restriction can differ
from state to state. As stated by (Howson, 2015) the sector of oil and gas can face political
risks when they are working on deposits abroad. Relating to the oil and gas in the UK, the
companies prefer countries, which are stable in their political aspect. However, most of the
companies tend to move towards a location where they can achieve the oil and gas even
though if it does not match the requirement or the preference. The regulatory environment
can change according to the issue, which may arise if there is a sudden nationalisation or
change in the political aspect. The sector of the oil and gas is always an industry, which is
ever growing. Despite the risk factor which are involved in the concept the demand of the
energy, which is related to the oil, and gas does not decrease in demand. Investors still find
aspects of rewards involved in the oil and gas sector. Most of the process which is related to
the gathering of the oil and gas are majorly tapped out or being tapped out. The concept of
exploration has moved on to areas that mainly involve drilling which is a less friendly
environment for example platform, which is in the middle of the ocean. There are varieties of
unconventional gas and oil extraction techniques that have majorly squeezed out resources in
particular area where it would have been impossible. The risk which is involved in the sector
of oil and gas can be considerate to be one of the most dominant players taking into
consideration other sectors. There can be huge surface land damage if precautions are not
taken during the time of retrieval of the oil and gas. Government any other bodies have
framed up a basic law framework which restricts the retrieval of the oil and gas in particular
areas. The companies should always compile with the laws because if they do not abide with

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the laws then it would be directly affecting the standard of living realting to the people and
sometimes it could end up risking the life of the people.
Conclusion
The report can be concluded on a note that the process, which is related to the concept
of project management, plays a very vital role in every sphere. Different types of the
methodology can be implemented according to the requirement of the project. There are
many projects whose requirement differ it is the role of the project manager to decide which
concept should be applied to individual projects. The oil and gas sector can be very
complicated sector due to the involvement of different policies involved in the concept. These
policies are very much fluctuating. These facts can be one of the important factors for the oil
and gas sector in the UK facing a loss. Most of the companies collaborate with countries to
conduct their business but the deal, which is made at the beginning of the deal, does not stay
same until the end of the implementation. The research has found out that the sector is very
much fragile and most of the organisation despite the complication tend to move towards the
site to conduct their business. Each and every organisation should be compiling with the laws
which are framed by the government officials and other bodies which are related to the
safeguarding of the oil and gas sector in any country. This would be beneficial for the
organisations as well as the people who are involved or are living in those areas.

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References
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to Promote and Secure Local Content Requirements in the Oil and Gas
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the stock markets perceive the CFTC's announcements during the 2008 financial
crisis?. Energy Economics, 54, 337-348.
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Union: Markets and regulators editorial. Energy Policy, 94, 396-400.
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