CRITICAL SUCCESS FACTORS FOR LARGE HYDROCARBON PROJECTS

ABSTRACT

According to World Energy Outlook 2020, investment of near about USD 1.2 Trillion is required every year to meet global energy demand for the period of 2020-30. Out of this, substantial portion of investment is expected in the hydrocarbon industry. Like many other industries, hydrocarbon industry is hit hard by Covid-19 pandemic with decrease in demand though recovery in demand picked up gradually from the latter half of year 2021. Timely execution of Large Hydrocarbon (LHC) projects within budgeted estimates is necessary to keep the faith of investors in this sector and to attract further investment. The LHC projects are more complex in nature due to various stakeholders' involvement, which may typically involve process technology licensors, owners, project management consultants, contractors, government agencies etc. The purpose of this study is to find out the Critical Success Factors (CSFs) for LHC projects. The study commenced with comprehensive literature review for identification of reported CSFs for various industries. Thereafter, data collected from expert interviews and questionnaire survey are analyzed to find out CSFs for LHC projects. The study provides a list of CSFs which may be referred as guiding tool by industry practitioners and may help in reducing the schedule and cost overruns. © 2022 ISEC Press.