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Time and Cost Performance of Oil Wells

Drilling and Completion Projects in Warri Delta State, Nigeria: A Situational Analysis

 

FEATURED PAPER

By Ibeawuchi Ifeanyi Echeme

Department of Project Management Technology
Federal University of Technology

Owerri, Nigeria

 



Abstract

This study focused on the time and cost performance of Oil Well Drilling and Completion projects in Warri Delta State as to the success or failure of Aroh- 1 and 2 Oil Well projects.  The aim basically is to assess the performance of these projects with regards to cost and schedule requirements and the possible causes of variation, if any. Earned value analysis (EVA) model was the major tool used for the project monitoring and it was also used to analyze the performance of these projects. Aroh-1 and 2 Oil Well drilling and completion projects were selected for the analysis using judgmental sampling base on the availability of necessary data. The analysis revealed that most of the activities undertaken by the contractors show some elements of “fatigue” as they experienced cost and time overrun. This problem seems to come from the mechanical and logistics arrangement which appears in the form of equipment breakdown and delays by the staff of Joint Tax Force (JTF).    

Keywords: time and cost overrun; project performance; Aroh-1 and 2; oil well drilling and completion; cost and time performance; earned value analysis.

Introduction

Nigeria is developing country that is heavily dependent on petroleum resources for development. This much awaited development can only be achieved if projects, especially the oil and gas projects, can be realized free of any negative variations in cost, time and quality performances. This is because they are the major criteria for judging projects success. Project is therefore seen as a proposal for an investment to increase, expand and/or develop certain facilities in order to increase the production of goods and/ or services in a community during a given period of time (Echeme, 2015). Again for evaluative purposes, a project is a unit of investment, which can be distinguished technically, commercially and economically from other investment. Akpan and Chizea (2013) explained the term project to connote any unique activity, situation, task , programme, scheme, or any human endeavour in which human, time and other resources are utilized to satisfy a definable and definite one-off (single or multiple) objective, the realization of the set objective generally signals the completion of this unique activity.

Furthermore, it was added that the word “completion” as used may not be implicit and could be discriminatory as it can come out to be unsatisfactory completion depending on the set criteria. An unsatisfactory completion connotes that though the project was realized, its realization did not adhere to the set criteria of cost, schedule and quality. However, Kezner (2009) added that a successful project implementation occurs if the project, comes on-time, on-budget, achieves all the goals originally set for it, and is adopted and used by the clients for whom the project is intended. It implies the successful achievement of time, cost and quality objectives, as well as the quality of the project process. Since the existence of a project is for development purposes, the determination of the time and cost performance becomes very necessary, especially for oil and gas projects in Warri, Delta state.

This study analyzed the level of performance of time and cost indices in the Oil Well Drilling and Completion project execution in Warri, Delta State. The benefits derivable from a successful project management, especially in the area of execution have renowned multiplier effects on the economies of our various societies.

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To read entire paper, click here

 

How to cite this paper: Echeme, I. I. (2018); Time and Cost Performance of Oil Well Drilling and Completion Projects in Warri Delta State, Nigeria: A Situational Analysis, PM World Journal, Vol. VII, Issue VI – June. Retrieved from https://pmworldjournal.net/wp-content/uploads/2018/06/pmwj71-Jun2018-Echeme-time-and-cost-performance-of-oil-projects-in-warri-delta-state.pdf



About the Author


Ibeawuchi Ifeanyi Echeme, PhD

Federal University of Technology, Oweri

Nigeria

 

 

Ibeawuchi Ifeanyi Echeme is a lecturer in the department of Project Management Technology, Federal University of Technology, Owerri. Echeme has a B.Tech, MSc, and PhD in Project Management Technology and has published more than fifteen (15) articles in both international and national reputable journals. Dr. Echeme has published a textbook on Project Time, Cost and Quality Management. He is a Certified Project Director (CPD) and a member of International Project Management Professionals (IPMP). Dr. Echeme has presented papers in conferences and workshops within and outside Nigeria. He can be contacted through; [email protected]

Tel +2348032403835.

To view other works by Dr. Echeme, visit his author profile in the PM World Library at https://pmworldlibrary.net/authors/ibeawuchi-i-echeme-phd/