Publications

ConocoPhillips (Grissik) Ltd. (CPGL) is executing a major capital project during challenging oil price environment. The scope of the project is the installation of new compression facilities including its associated utilities system at a Gas Station, onshore South Sumatera, to maintain gas production. 3.5 (three point five) million man-hours were budgeted until completion of this project which requires simultaneous operations (SIMOPS) on a brown field. In the execution phase, 1 (one) Engineering, Procurement, and Construction (EPC) contract and 5 (five) Long Lead Item (LLI) contracts are managed by CPGL as the Client, to achieve the project objectives. This paper describes on how the EPC project risks are integratedly-managed by involving project team members, from the early stage of the project up to execution. Risk management process consisting of risk management planning, identification, analysis, response planning, and control are implemented by the Client, and EPC Contractor as well during project execution. Full commitment and support from Project Leadership Team of both sides, with open and honest communication are critical success factors for integrated project risk management. The quantitative risk analysis run periodically by the Client and EPC Contractor has played an important role in providing realistic expectations for the project completion dates and cost. Excellent collaboration in integrated project risk management has resulted project on-track, targeting Place into Service (PIS) on schedule and forecasting under budget (less than Corporate AFE and SKKMIGAS AFE) project, with minimal change orders and good safety record. Keywords: risk management, quantitative risk analysis