Mapping the Success Dimensions of Large Oil and Gas Projects

Abstract In order to satisfy the increase in world energy demand, the global oil and gas industry is expected to invest US$ 25 trillion from 2015 to 2040 in development projects (IEA, 2015). However oil and gas projects have had a long track record of sluggish performance. This study investigated the performance of Development (Pre-FID) Large Oil and Gas Projects and determinants of their success. Adopting a view that project success comprises success factors and criteria considered simultaneously, 11 success criteria and 57 success factors were first identified using a systematic and exhaustive literature review backed up by validation from experienced practitioners. A global online survey was then conducted to solicit the perceptions of project directors and managers from Owners and EPC Contractors regarding the identified success criteria and factors. A total of 96 and valid responses were received. Exploratory factor analysis using SPSS software identified three success criteria groupings - (1) Project Management Success, (2) Business Success, and (3) Future Potential/Growth. For success factors the number of groupings is six. These are (1) Project Management, Leadership & Team Competence, (2) Front End Loading, (3) Project External Context and Compliance, (4) Project Impacts on External Environment, (5) Project Risk and Quality Management, and (6) Project Connectivity with Local Resources Capacity. The criteria and factors identified are directly applicable to projects and programs in other domains such as mining, large scale infrastructure development, ship building, and defense acquisition. The results of this study can be used as a starting point towards the development of a success measurement methodology for industrial megaprojects.