Project Execution Risk

PROJECT RISKS AND MITIGATION PLAN

The key cost, schedule and execution risks associated with the MIPS Pipeline Project and the
proposed mitigation are summarized in the table below.
Phase / Risk
Detail Design Phase
Inadequate FEED
Site verification
Late changes to overall
execution plan
Fabrication phase
Late design changes

Consequence

Mitigation

Scope increase
Scope increase
Schedule delay

Feed review
Early site verification
Early approval of execution
plan

Schedule and cost effect

Freeze design as early as

possible and achieve AFC
documents status prior to subcontracting.
Early presentation of
personnel and milestone
target for COMPANY approval

Late approval of
CONTRACTORs personnel
for key positions, fabrication
documents and schedules
Delay in equipment delivery

Delayed fabrication
Start-up

Equipment not meeting

MPN specs

Delayed installation

Incomplete work or Change

Orders at time of Load Out.
Carry Over work to
Installation / Hook-up phase

Schedule and cost effect.

Install. & Hook-up Phase

Carry Over work from
fabricators.

Schedule and cost effect

Extended Hook-Up phase.

Schedule- and cost effect

Specific plans to be developed

for all critical path equipment.
Ensure design allows
equipment to be lifted or
skidded into topsides after
erection of decks. Strong
expediting of equipment.
Ensure FAT is completed in
time.
Ensure manufacturer
surveillance, QC inspections,
and FAT attendance. Verify
compliance through MC
check-sheets and reporting
Ensure tight compliance with
Mechanical Completion
procedure. Accelerate by
request extended shifts.
Increase manpower.
Reschedule to minimize
consequences.

Close follow up of fabricator

performance.

Late design changes

Changes in operational
criteria of marine spread
operations
Increase installation lift
weight of piping spools /
deck modifications
Mechanical breakdown of
marine Spread

Schedule- and cost effect of

Hook-up phase
Marine spread stand by.
Schedule and cost effect

Tight control of engineering

and operational changes.
Tight control of engineering
and operational changes.

Cost effect. Larger spread/

lift capacity.

Tight control of installed

weights. Weight contingency.

Schedule effect

Pre-verification of ships,
barges etc. and HAZOP of
marine operations.

Commissioning & Start-Up

Late approval of operability Delayed Commissioning
and maintenance
and subsequent Start up
documents.
and delivery

Time-consuming internal
approval process of
commissioned systems and
handover

Other factors
Community disturbance at
work sites

Delayed Start up process

and Handover to Customer

Delayed schedule and

delivery time and safety risk
to personnel

Early start of operability and

maintenance procedures.
Define milestone completion
time for document and training
completion.
Clearly define acceptance
criteria and have customer
personnel available offshore,
authorized to sign acceptance

Proactive management will be

put in place to anticipate and
resolve issues with host
communities.