Documente Academic
Documente Profesional
Documente Cultură
LECTURER
SR DR ZULKIFLEE ABDUL SAMAD
STUDENT
ANAS BIN ALAM FAIZLI
Assignment Questions EMCA5203 International Project Management
January 2010 Sr Dr. Zulkiflee Abdul Samad
ASSIGNMENT QUESTIONS
INSTRUCTIONS TO CANDIDATES:
Answer both questions. The answer for each question should be about 2,500 words.
1. International projects are not too different from standard projects when it
comes to the nature of the organisation, industry, location in the value chain,
and duration. There are obvious differences, however, regarding purpose,
scope, the main stakeholders, and risk intensity.
(50 marks)
Another two differences that can be pointed out between a standard and an
international project is the currency and legal issues that are involved. Where in a
standard project the currency are normally single while in an international project
multiple currencies are involved. On the legal aspect, an international project
normally involves more than one legal issues and regulatory bodies. An example
was the Hyundai Project. Fabrication of Bunga Raya A platform was completed in
time but has some legal confrontations with the Korean contractors Hyundai Heavy
Industries. Fabrication was in Vietnam and it was agreed to have arbitration in
England. This is to ensure that all parties involved will not proceed to court if failed
to reach for an agreement.
Let us wrap the narrative by studying and take a look at one international project in
the oil and gas industry. Talisman Malaysia Limited (TML), an oil and gas operator
based in Calgary, Canada has been awarded a block by PETRONAS Malaysia to
operate PM-3 CAA which has discovered commercial quantities of hydrocarbons in
the field named as Bunga Tulip. It is approximately 8.5km southeast of the Bunga
Raya field which has been developed in 2003. The development of the field will
commence with the installation of a Braced Monopod Light Weight (LWS) in
March 2006. The target for first oil production is by July 2006. The LWS will provide
a total of eight conductor slots, and a topside facility will be installed which will be
designed to collect the produced hydrocarbon. The hydrocarbon will be routed to the
BR-C platform which will be comingled with East Bunga Raya crude which will then
transported to BR-D for processing.
Assignment Questions EMCA5203 International Project Management
January 2010 Sr Dr. Zulkiflee Abdul Samad
Figure 1.1 Schematic Layout of Bunga Tulip in relations to other facilities in the field
The schematic is self explanatory and it shows the development that will be taken for
Bunga Tulip LWS.
Total project cost estimated for Bunga Tulip is USD 62.8 million. The estimates
are based from a previous similar platform which was developed in Phase 1. The
project kick off using a go-by design from the previous similar platform and the detail
engineering design was awarded to RNZ Engineering which is based in Malaysia.
After completing the design, the fabrication contract was awarded to PTSC M&C
which the yard is in Vung Tau, Vietnam. The project was completed in time and
incurred slightly above 10% for variation orders. The installation contractor was from
McDermott, USA.
Look at these setups. It will be impossible to manage the project by having only
one office in one single location. An international project will have more than one
office in multiple locations. This project alone has more than 4 offices in Malaysia
and two offices in Vietnam with one major fabrication yard. A normal standard
project will not have this setup.
Assignment Questions EMCA5203 International Project Management
January 2010 Sr Dr. Zulkiflee Abdul Samad
Having said this, in Malaysia they are plenty of international projects but is normally
seen as a standard project due to its smaller scale of size but have failed to be
managed properly due to this. When international projects are not managed the way
Assignment Questions EMCA5203 International Project Management
January 2010 Sr Dr. Zulkiflee Abdul Samad
(50 marks)
Figure 1.3 The schematic shows the development of the Northern Fields which have
one mother platform, a Central Processing Platform and 3 Wellhead Riser Platforms.
The development cost is budgeted to be less than USD 1.5 billion and was
completed within budget and time frame. It is a successful feat for a project this size
to be completed within time, costs and quality. How the project did make it? This
is the interesting part as the project has proven that the key to a successful project
lies in the success of it project management. Let us take a look at the organization
chart of the project.
Figure 1.4 The organization chart for the development of Northern Field
Assignment Questions EMCA5203 International Project Management
January 2010 Sr Dr. Zulkiflee Abdul Samad
In instilling shared objective the approach taken was to ensure that the objective is
shared by every contractor involved. Among the steps taken was to hold team
building to allow for the team to understand each other and have some games in
order to send them messages that only by teamwork will win the day and complete
Assignment Questions EMCA5203 International Project Management
January 2010 Sr Dr. Zulkiflee Abdul Samad