Sakhalin-1 Project: Delivering Excellence in Project Execution - Essay Example

The case study further discusses the challenges the team members were going through and how they overcome them. For instance, some of the challenges were the poor infrastructure, limited availability of skilled labor, the complex regulatory rules, and the difficult logistics. Thus through careful planning and the effective utilization of the advanced technologies, the oil project first stage was a success. The case further expands on the benefits of the oil project to the Russians, especially the population of the Sakhalin Island.

Finally, the case concludes by future phase of the Sakhalin – 1 project. Thus it is vital to deliver an excellent project execution. The Sakhalin – 1 project is the biggest and the most known development project that deals with the development of gas globally. The project involves the development of gas field that includes the production of oil as energy source. The project development is in the town of Sakhalin, an island in the Russian country. The island is in the northeast shelf of the country.

The countries involved are the United States, the Indians, the Russians, and the Japanese gas and oil companies. The oil development project operation is under the Exxon Neftegas Limited Company (McNeil 1) Background Note The Sakhalin project is one of the biggest sole foreign direct investments in the Russia. The project aims at fulfilling the ever growing demand for energy use in the global world. This is because the oil and gas provides energy to the world for domestic utilization and for exportation to the northeast Asian continent.

The Sakhalin project is one of the major gas and oil projects development in Russia. The oil development project is in collaboration with the United States, Japan, India, and Russia. The project involves the three offshore oil fields namely Dagi, Odoptu, and the Arkutun fields. The oil project is basically undergoing four stages of development, which includes the use of the onshore and the offshore drilling fields. The project was capable of recovering up to four hundred and eighty five billion cubic meters of the natural gas and approximately three hundred and seven million tons of the oil content from these fields (McNeil 3) Exploration and Project Documentation The oil project exploration and its documentation involve teamwork and commitment.

The exploration of this case study enables the team to gain insight into the task of project execution and also in project management. The documentation was by signing of the memorandum with the Russians to facilitate the project. There was the signing of the production-sharing agreement of the participating countries. The document was for use during the start project development (McNeil 4). Development The development of the project case involves teamwork and innovation of new ideas. Some of the factors that were a source of success to the execution of the Sakhalin -1 project are the development steps which involve phases.

The idea was to enable the first phase to be a guide for the future development of the next phases, which evidently made the project development cost effective and affordable by the participating countries (Leader & Ong 320). Phase-1 Development of Chayvo Field The phase – 1 development of the field of Chayvo involves the production of the natural gas and oil. The development was to commence on October 2nd 2005 and take approximately five years, which was the first phase of this project. The amount of money for this development was