Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Version: 18.11.2003
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https://casecent.re/p/11590
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Abstract
The case is based in the Oil and Gas Contracting Industry and uses a particular project: ''The Snorre B Project'' as the vehicle to explain the outsourcing trends in this industry. The Snorre B Project involves the design and construction of a semi-submersible oil platform for insulation in the North Sea on the Norwegian Shelf. The project represents the first experience for both the operator - SAGA Petroleum, and the contractor - Kvaerner Oil and Gas (KOGAS) Norway, to work with the new type of EPCI (Engineer, Procure, Construct and Install) contract. In essence the contractor assumes the responsibility for managing all the phases of the project, as compared to the more traditional approach where different contractors were responsible for the engineering, procurement, construction and installation of the platform. The case highlights some of the challenges of outsourcing the management of a project of this magnitude, and also the importance of getting the contracts right so as to ensure a common goal among the partners.
About
Abstract
The case is based in the Oil and Gas Contracting Industry and uses a particular project: ''The Snorre B Project'' as the vehicle to explain the outsourcing trends in this industry. The Snorre B Project involves the design and construction of a semi-submersible oil platform for insulation in the North Sea on the Norwegian Shelf. The project represents the first experience for both the operator - SAGA Petroleum, and the contractor - Kvaerner Oil and Gas (KOGAS) Norway, to work with the new type of EPCI (Engineer, Procure, Construct and Install) contract. In essence the contractor assumes the responsibility for managing all the phases of the project, as compared to the more traditional approach where different contractors were responsible for the engineering, procurement, construction and installation of the platform. The case highlights some of the challenges of outsourcing the management of a project of this magnitude, and also the importance of getting the contracts right so as to ensure a common goal among the partners.