Background on Gorgon Project
Michaelides, Bryde and Ohaeri (2014) presumed that managing a project is the initiation of discipline, proper planning, executing the project, controlling and closing the work within a schedule time.
This particular project has been undertaken to examine the project failure or the route causes in a mega project of oil and gas industry with the special case study namely Gorgon Project. It is to be noted that Gorgon project is one of the most popular oil and gas mega project that has continued to attract millions of people in Australian not out of its positivity but because of the wrong reasons. It is known as Chevron’s Gorgon liquefied natural gas project that is one of the world most largest resource project, moreover it’s a single most expensive ever undertaken inside Australia.
The selected project was developed by considering the major shift of global energy production in the oil and gas industry. The Gorgon Project was in position that meet the ever greater share in the current global energy in LNG or Oil and Gas industry. According to the (), Gorgon project is very much complex in consideration to the understanding of the project. Development locales for Gorgon and gas travel on the Barrow Island, which is 70 miles off the drift, several miles from the principle populace focuses.
Convenience then again for the workforce and additionally the essential foundation is new. Development work which is occurring inside the site can be named as the to a great degree breezy site which is interested in significant ocean swell. Dispatched from the real port almost 1000 miles toward the south; enormous pipe-laying vessels work Offshore to interface the gas-fields to the Island.
Some of the basic questions that should be emphasized during the constructions of the Gorgon project include –
1) What are the main results?
2) What are the key Benefits to the community?
3) Why Goals to be achieved at the process of its functionality?
4) What are the existence and inexistence of the Gordon project.
5) How the project get benefitted to the transport sector as well as the Investors?
Moreover, there are basically simple explanations of these projects problems. The causes lie mostly in the low productivity level of the preliminary of this projects, However, the union starters lab our laws and the existing aggressive maritime unions representing the overpaid people (Samawe & Yusof, 2017). One way or another, labor be it workers themselves or their union are all to be blamed However, Any serious attempt at explaining these problems will eventually serves to pose quite different questions which are about how the project is managed.
Project Management Issues
The basic problems associated with Gorgons include quick reading of the agreements covering the workforce that always will raise questions about some commonly quoted wage numbers. The argument about wages driven cost and other blow outs is misconceived for the Reason which will include the first where many of the claims will includes made about wage levels are greatly exaggerated the second issue involves maritime wage costs which makes up only an estimated one per cent of the estimated project cost (Nikulina & Kruk, 2016). Therefore, this means that not even if the most inflated claims about wage figures were correct it will end up that they still would not go close towards explaining a cost blow-out.
Another Undesirable effects (UDE’S) includes the delays. This includes an explain of the cost increases. These delays are usually not accounted for They however need to be analyzed the nature of the project and the performance of the work itself. Groups as well as the interviews are a reveal of the structural problems between the contractors as well as client, safety flaws as well as the waste due towards the poor planning this however will need a higher level of commitment towards the job as well to the success evidence (Grant, 2013).
Moreover, in the standards explanations for the project problems are well flawed, this however raises significant querry about how the cost and time difficulties should be addressed. However it follows logicallyfrom which this will be presented in this report that somehow in a fix of labour relation which will eventually not solve these problem neither will it be a blame to the unions. Gorgon is evident the problems can be related to the workers (Ford, Steen & Verreynne, 2014). However, there will be appearance of the little prospect of the normal management practice applied and the contracting arrangement being changed on this project or the others.
In addition the Gorgon project can be termed as a certainly marked by its geographic, environmental and their logistical complexity’s. However the construction site on Barrow Island, 70 miles which is off the coast, this however lies hundreds of miles from where the main population center which have the labor supplies as well as the industrial infrastructural (Ramazani & Jergeas, 2015). Moreover, the major gas field s are therefore much further out towards the sea. In addition to this, the parts and the material are generally shipped from the major port which are almost approximately 1000 miles to the south where there are huge pipe bipolar laying vessels work offshore.
Labor and Union Issues
There are also other problems associated with the Gordon projects which includes ineffective project management however. Projects planning will often out the necessary schedule management in the elements of schedule development as well as the project hand acceptance. Its progress however ensure the measurement as well as the reporting where their relationship to and their interdependence with other project discipline however meaning that project teams will fail to fully able to understand the most critical activity and therefore a full effect of the change on the normal schedule and other works and packages (Sumbal et al., 2017). In this case the existing challenges of the working with multiple existing contractors, in this case each will have a basic separate but most probably will often interlinked work scopes, exacerbates this planning problem as real-time data is challenging to recover. However, as a result, performance and the impact of change are difficult to model or to its access. In this case the best practices examples will eventually exist where effective (Macey et al., 2014). However, interlinked work breakdown structures will eventually exist with real normal time data input.
Another cumbersome problem is voiced by the industry sources inefficiencies which constitutes the interfering with the work performance. However, this is basically attributed towards the government as well as the existing unions. However, taking the consideration of the complex project such as Gordon’s megaproject, there is bureaucracy that is generated from within the existing companies themselves (Gajic et al., 2014). The administrative complexity which eventually will begin where the process of getting on the existing job itself. As do some other resource.
Another problem with Gorgon is the unloading as well as the reloading in this case there is lashing as well as the re lashing of the material causing a very significant delays. In these cause examples it reveal, workers also have claims that the plans on how to stow the cargoes are often re changed often (Milton, 2014). Workers have complained on the time which have been was wasted at Henderson because of the limit caused by the existing loading crane in wind. In their leading and logs. There is maintenance that the rules on the wind speed was unnecessarily as well as restrictive
Other tying problems are the diplomatic and security issues basically oil and gas companies are been forced to delay their investment in many megaproject on taking into account of the unstable political situations and persisting security concerns, such includes the existing sectarian insurgency (Martin, Lewis & Petersen, 2016). In the Middle East and North Africa there is prone of these. Moreover, failure to resolve points out conflicts which can result in delays or even the postponement of project.
Logistical and Environmental Challenges
Basically, industries performance data always suggests that the major factors that always result to the budget overruns or rather the schedule delay are basic common across all the oil and gas projects areas. However, due to their scales complexity as well as cost, the impact will be eventually be more profound on the megaproject (Connick et al., 2014). Industries research suggests that the non-technical issues are also responsible for the majority of these overrun.
Unnecessary paperwork as well as the delays caused by this are the major issues where in the workshops where there is a site for the assembly work. Complications as well as the flaws in the production system will inevitably arise (de Carvalho, Patah & de Souza Bido, 2015). In addition, this case was termed as unusual because of the added layers in the administration sector which, there is claim of slow in the work up In this issue, a well skilled trade workers will eventually explains how the simple matter in having access to the right areas have been made unnecessarily complication.
Another root cause is lack of binding by the suppliers requirements. In this case the air products one of the companies that supplies equipment’s will be used in freezing LNG. However, trade workers are employed in order to fit out the units according to the workers explanations and needs be towards the local representative of the major supplier how they have been instructed by the contractors on how to torque bolt to a certain level of degree (O’Donnell, 2016). In this exchange among the workers in one focus group will reveals what they have to believe have happened before.
Let take into consideration of the reworking, time, cost as well as false economies. The basic modules the rack the units as well as the other structures which are associated with for the LNG plant as well as its existing associated facilities which are being prepared in different sites before the shipping this is supposed to be done in order to reduce the cost of production but the outcome should appear to have been contributed to the delays on the projects.
Another case is brought by getting the most out of the workforce. Workers who are critical of many aspects of the project are also committed to their jobs. This however emerged in two ways in the focus group (Revie, 2015). Skills as well as the knowledge of the workforce have to offer as well as the ways in which they take pride in the job.
Political and Security Challenges
In the case of using the workers skills, the interviews reveals that there is deep tensions around the ways in which work is being carried out In this case there are many claims which includes the skills of experienced workers are not being utilized appropriately.
There is also shrinking on the matter of the job. There is also delays in the sheets the problem being brought about by the lack of the commitments towards the job the workers were deliberately doing things slow (Shuen, Feiler & Teece, 2014). However if the delays in Gorgon are to be understood it would be understanding labour, labour laws, unions, costs as well as efforts. However, blowouts in costs simply must be explained by involving other components of the projects.
Conclusion
‘In conclusion to all this its fine saying several factors should be ensured in order to make it eligible in attractions on the eyes of the world for the right cause which is meant for. These factors includes joint ventures which can be valued by whole mega projects in oil industries. Another way is access to funding in a proper way where the fund will ensures the industry is run in a smooth way. Another way is proper managements as well as proper and good planning. On the cause of the health it should be ensured safety to the population as well as workers in the industry. Regulatory body should be considered hand in hand. The infrastructure should also be adequate for everyone.
References
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Ford, J. A., Steen, J., & Verreynne, M. L. (2014). How environmental regulations affect innovation in the Australian oil and gas industry: going beyond the Porter Hypothesis. Journal of Cleaner Production, 84, 204-213.
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