An Assessment of Risks in Oil and Gas Construction Projects in Pakistan: A Quantitative Approach Using Failure Modes and Effects Analysis
Journal Title: Journal of Engineering Management and Systems Engineering - Year 2023, Vol 2, Issue 3
Abstract
Effective risk management remains pivotal to the success of any project, especially in the oil and gas industry. This study seeks to identify and quantify the potential risks in Oil and Gas Construction Projects (OGCP) within Pakistan. An exhaustive literature review is undertaken to elucidate various risk classifications and factors. Nine risk classifications emerge from this scrutiny: Health, Safety and Environment (HSE), political, legal, regulatory and bureaucratic, labor and human resources, logistics, economic and financial, technological and technical, and security and management. The novelty of this research lies in the adoption of a quantitative approach, a questionnaire rooted in Failure Modes and Effects Analysis (FMEA), asking respondents to quantify risk factors based on severity, occurrence, and detection. The results obtained from the modified FMEA questionnaire indicate that the highest average risks are associated with logistics, health, environment and safety, and legal, regulatory and bureaucratic factors. Meanwhile, political, human resource, management, and technical and technological factors register as the second-highest risks. Security risk records the least average Risk Priority Number (RPN). The most significant risk factors identified include the lack of a disaster management system, depletion of hydrocarbon resources, corruption, contractual breaches, delays in customs clearance, logistic provider complications, design flaws, technical limitations, and contractor incompetence. This research endeavors to provide academia and industry with expansive knowledge related to the risks inherent in these complex projects.
Authors and Affiliations
Osama Durrani, Qasim Zeeshan
Keywords
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- EP ID EP731802
- DOI 10.56578/jemse020305
- Views 118
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