«Problems of economics and management of oil and gas complex»

Organizational and methodological aspects of economic efficiency of contract strategies for oil and gas EPC-projects

UDC: 338.45
DOI: -

Authors:

¹ National University of Oil and Gas "Gubkin University", Moscow, Russia

Keywords: economic efficiency, large capital projects, contract strategy, economic value, optimal resource management, international oil and gas companies, project practices, value engineering practices, economics

Annotation:

The relevance of the article is caused by the fact that the implementation of large capital projects (LCP) in the oil and gas sector by international oil and gas companies (IOGC) requires an approach that considers both economic and organizational and methodological aspects. Taking into account these factors will allow increasing the effectiveness of EPC-contracts. As a result, the investment attractiveness of oil and gas projects will increase, which will have a tangible effect not only on the industry's economy, but also on the country's economy as a whole. The purpose of the study is revealed through the interrelationship between the efficiency of the LCP, the economic value of the LCP, and the efficiency of the IOG companies’ activities. An important aspect of the study conducted by the authors of the article is the achievement of a high degree of coincidence between the business function of the international oil and gas companies and the result of the LCP implementation. The authors of the article highlight the following key factors of the economic value of LCPs: project’s scope of works, cost (minimum CAPEX), reliability of the schedule (project implementation schedule), and optimal management of IOGC resources. The authors' analysis of the impact of economic value factors on the development of LCP contract strategies has revealed the approaches that contribute to maximizing the economic IOG companies’ efficiency through the elaboration of LCP contract strategies. Among the organizational aspects, the authors of the article highlight the collegial activities (value engineering practices) carried out by IOG companies. These instruments ensure a higher level of the decisions accuracy incorporated into the contract strategy. The authors also provide an analysis of related factors that contribute to the growth of the economic efficiency of IOG companies. In particular, the structural transformation of the industry in the 1990s and 2000s years and the introduction of unified project regulations, which ensured the compatibility of the project practices of IOG companies and their contractors, are considered. The information, presented in the article, is based on the personal experience of the authors, acquired in the process of their direct participation in the implementation of the large capital projects by the largest Russian and international oil and gas companies. It is proposed to use the results of the research in the practical activities of Russian oil and gas companies to improve the economic efficiency of IOG companies.

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