A review on disaster risk mitigation in the oil and gas project

Rodhi, Nova Nevila; Anwar, Nadjadji; Wiguna, I Putu Artama

doi:10.1088/1755-1315/106/1/012009

Cited by 3 publications

(2 citation statements)

References 10 publications

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“…The construction prosperity, supported by prompt economic and population increase, has attracted oversea contractors to export their services to the developing countries such as Yemen, especially in the oil and gas sector. In this research, the multinational or overseas oil and gas construction projects are involved parties; hence, the risks identified based on the external factors which produced due to the project environment rather than the internal risk aspects as set forth in the previous studies such as Rodhi et al (2018), Thuyet et al (2007), El-Sayegh et al (2018), Khodeir and Mohamed (2015).…”

Section: Introductionmentioning

confidence: 99%

Assessment of the effect of external risk factors on the success of an oil and gas construction project

Kassem

Khoiry

Hamzah

2020

ECAM

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PurposeConstruction projects in the oil and gas sector are greatly affected by external risk factors, especially those related to the economy, politics, security and stability factors. Hence, this research aimed to investigate the fundamental relationship between the external risk factors and their effects on the construction project success using Structural Equation Modeling method and PLS-SEM approach.Design/methodology/approachData collected through a structured survey distributed to projects teams in the oil and gas sectors in Yemeni companies involved in mega construction projects. A hierarchical model for assessing causative external risk factors and their effects on project success was developed and analyzed using Smart PLS 3 software of SEM.FindingsThe findings showed that economic, political, force majeure and security-related risk factors had a strong effect on project success. Besides, the Coefficient of Determination (R-squared value) equals 0.743, represented the proportion of variation in the dependent variable(s), which can be explained by one or more predictor variable. Moreover, the predictive relevance value Q2 is 0.375 above zero, which indicates that the conceptual model can predict the endogenous latent constructs. The calculated Goodness of Fit (GoF) Index of the model was 0.699, which shows that the developed model had substantial explanatory power to represent the relationship between the cause of external risk factors to and the effect on construction project success.Research limitations/implicationsThis research was limited to the oil and gas construction projects in Yemen as case study.Practical implicationsPractically, this study highlights the external risk factors that cause a negative effect on the success of oil and gas construction projects in Yemen. The research model of these factors is the first step in the risk management process to develop strategic responses for risks and explain the relationship between cause and effect on project success.Social implicationsThe model of external risks factors that cause the failure of construction projects helps develop response strategies for these risks, thereby increasing the chances of project success reflected in the oil and gas sector, which is a main tributary of the national economy in developing countries.Originality/valueThere is a need to improve the planning of economic and security performance as well as to mitigate political risk factors effects on project success and other risk factors discussed in this study, which effect on construction project success according to their priorities.

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Section: Introductionmentioning

confidence: 99%

Assessment of the effect of external risk factors on the success of an oil and gas construction project

Kassem

Khoiry

Hamzah

2020

ECAM

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“…With increasing uncertainty and complexity in the environment of projects, project managers today need to manage project risks efficiently in order to manage project uncertainties and reduce project deviations from the predetermined goals. Due to factors such as investment costs, multiple stakeholders, environmental effects, community and available technologies, projects are generally exposed to various risks [1]. Meanwhile, construction projects in oil and gas industry are generally costly, large, and complex and play a vital role in the economic, environmental, social, and political areas.…”

Section: Introductionmentioning

confidence: 99%

A Framework for Project Risk Assessment in Dynamic Networks: A Case Study of Oil and Gas Megaproject Construction

et al. 2021

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Conventionally, risk assessment methods suffer from ignoring the dynamic nature of risks. Therefore, this study demonstrates an interactive approach to risks and prioritizes risks based on their overall cyclic events acting on the attainment of the goals of a project during its life cycle. Hence, the risks of the project of gas condensate storage tank construction (G.C.S.T.C) are first identified and evaluated by using a fuzzy inference system (F.I.S); then, the created risk network is simulated over the project life cycle by using the results of the F.I.S; finally, the impacts of the risks are assessed by applying purposeful indicators. Based on the results, the risk of the increase in the economic sanctions most significantly impacts on achieving the project goals, and lack of the governmental support, the variation of the fiscal governmental policy, high inflation rates, and sharp changes in the exchange rate are considered as the important risks. The results also demonstrated that these five risks improved the attainment of the project goals by more than 55%, while the total improvement on the 21 other risks enhanced the achievement of the project goals by less than 45%.

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Risk Management Assessment in Oil and Gas Construction Projects Using Structural Equation Modeling (PLS-SEM)

Kassem

2022

Gases

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Oil and gas construction projects are of great importance to support and facilitate the process of operation and production. However, these projects usually face chronic risks that lead to time overrun, cost overrun, and poor quality, affecting the projects’ success. Hence, this study focused on identifying, classifying, and modeling the risk factors that have negative effects on the success of construction projects in Yemen. The data were collected through a structured questionnaire. Statistical analysis, relative important index method, and probability impact matrix analysis were carried out to classify and rank the risk factors. The partial least squares path modeling or partial least squares structural equation modeling (PLS-PM, PLS-SEM) is a method for structural equation modeling that allows an estimation of complex cause–effect relationships in path models with latent variables. PLS-SEM was employed to analyze data collected from a questionnaire survey of 314 participants comprising the clients, contractors, and consultants working in oil and gas construction projects. The results showed that the goodness of fit index of the model is 0.638. The developed model was deemed to fit because the analysis result of the coefficient of determination test (R2) of the model was 0.720, which indicates the significant explanation of the developed model for the relationship between the causes of risks and their effects on the success of projects. The most impacted internal risk categories include project management, feasibility study design, and resource material availability. The main external risk elements include political, economic, and security considerations. The created risk factor model explained the influence of risk factors on the success of construction projects effectively, according to statistical and expert validation tests.

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A review on disaster risk mitigation in the oil and gas project

Cited by 3 publications

References 10 publications

Assessment of the effect of external risk factors on the success of an oil and gas construction project

Assessment of the effect of external risk factors on the success of an oil and gas construction project

A Framework for Project Risk Assessment in Dynamic Networks: A Case Study of Oil and Gas Megaproject Construction

Risk Management Assessment in Oil and Gas Construction Projects Using Structural Equation Modeling (PLS-SEM)

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