(74c) Project Portfolio Capital at RISK and the Enterprise Project Delivery System

The impact of large, high risk mega projects in oil and gas firms' portfolios is often misunderstood and unappreciated. Often project delivery systems that were adequate for moderate size projects are totally inadequate for mega projects that involve multi site international sourcing for engineering, material, fabrication and construction. Failure to recognize the mismatch and to upgrade the firm project delivery system means that projects do not meet their business objectives such as: the assets under perform, the project starts up late, the project is over budget, etc.

We present in this paper a methodology for evaluation of the project delivery system and its ability to support the firm's capital portfolio. Further we provide Capital at Risk models that notionally show firm capital exposure for failure to upgrade the project delivery system.