A Scoring Model to Evaluate Offshore Oil Projects: Case of Eni and Mellitah Oil & Gas

Abstract

Offshore oil projects have many different and unique characteristics, such as larger project size, higher number of scopes, and higher complexity. In fact, offshore oil projects described as mega projects are ones that require significant assessment and acquisition methods in order to reduce risks and failures. Traditionally, cash flow analysis and return on investment are the most known factors to evaluate offshore oil projects.However, there are several other internal and external factors that affect the overall performance of offshore oil projects. A comprehensive approach and advanced tools are required to evaluate these factors that can have a significant impact before any investment decisions are made.This study emphasizes some critical and challenging factors that affect the successful implementation of offshore oil projects and scores these factors to highlight their weight of impact on offshore oil projects using a hierarchical decision model (HDM). A comprehensive literature review was conducted to recognize the complexities of these factors. Four perspectives were identified in order to assess the attributes that are necessary for successful offshore projects. These perspectives are economical, technical, political, and safety and environmental. Under each perspective, there are multiple criteria that are linked to each other with complex processes and unique challenges. A hierarchical decision model, along with desirability curves, was implemented to evaluate offshore oil projects in order to improve investment decisions and reduce failure. i ii DEDICATION I dedicate my dissertation work to my family for their endless love, support and encouragement. To my beloved parents, Abdussalam and Sabria To my lovely wife, Rowida MiladTo my kids, Abdulssalam, Aisha and Atika iii ACKNOWLEDGMENTS I would like to thank the following people, without whom I would not have been ableto complete this research, and without whom I would not have made it through my doctoral degree! First of all, I would like to express my sincere gratitude to my adviser and committee chair Dr. Tugrul U. Daim for the continuous support of my Ph.D study and research, for his patience, motivation, enthusiasm, and immense knowledge. Without his guidance and persistent help this research would not be possible.