Publications

Senoro Gas Development Project: A Lesson Learned for Company and Contractor Relationship Management

Proceedings Title : Proc. Indon. Petrol. Assoc., 41st Ann. Conv., 2017

The Senoro gas development project was successfully built by JOB Tomori with a capacity of 2 x 155 MMSCFD in June 2015. There are some dynamic constraints and challenges that the project faced in delivering the project’s scope of work within the committed project duration and timescale. The challenges included land displacements causing changes in the technical base data which resulted in delays to the handover of the land to the contractor. In addition, some contractual disputes between the company and contractor were challenging to resolve since each party had its own interest in the project. A potential delay of the gas delivery to the buyer that may have caused a gas shortfall was also imposed on JOB Tomori, hence comprehensive resolutions were introduced in order to accomplish the project within its allowable schedule and budget. Completing the project as per the agreed project scope of work on schedule and within budget was always the main objective of the project management team of JOB Tomori. Negotiations between the company and contractors were conducted to balance the interests between the company and contractor. The company have an objective to start delivering the gas to the buyer and to avoid any gas shortfall, meanwhile the contractor proposed to have some additional time and costs to fully complete the remaining critical works. The ability to properly manage the conflicts was therefore one of the key drivers for successful project management of the Senoro gas development project. This paper will discuss the journey of the Senoro gas development project from project management perspectives, in which company and contractor relationship management played an important role in completing the project and driving the course of the project. The Contractor that initially insisted on stretching the project’s duration and cost was finally supportive and in agreement with the company’s resolution. Mutual engagement with the contractor had actually placed the company in a beneficial position and JOB Tomori was therefore able to manage the project on scope and within budget and schedule. Keywords: Lesson Learned, Relationship Management, Conflict Resolution, Project Management, Project Management Life Cycle, Stakeholder Management, Risk Management

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