Year: 2008
Type: dissertation
Abstract: Capital expenditure projects in the oil and gas industry are often confronted with large budget and schedule overruns.On top of that, the industry struggles with delivering its projects in a safe, secure and environmentally friendly way.Given the trend that the complexity of projects in the oil and gas industry is continuously increasing, investing effort in preventing budget and schedule overruns and environmental, security and safety incidents from occurring is becoming more important than ever before.Front-end loading, investing heavily in the phases of a project up to the final investment decision, is thought to be an effective way to increase the value of an opportunity and to decrease the problems that could arise during their implementation.However, front-end loading is not free; expenses vary from 1% to 7% of the total project expenditures.Furthermore, given the business demand for fast project delivery, it is not desirable to spend too much time on the front-end phases of a project.Given these facts, this thesis aims to ( 1) provide a scientific basis for understanding and analyzing the front-end development phases of capital expenditure projects and (2) present a framework for fitting the front-end development to the specific project situation.The research approach that was used for achieving these goals contained qualitative and quantitative parts.In a literature review it was found that the following front-end development aspects are generally considered to be important for delivering successful capital expenditure projects:• Using a structured stage-gated project management process.• Developing well integrated project teams.• Applying value improving practices.
Author: G.A. Van der Weijde
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W161988803