Wheatstone Project Management - Case Study Example

Project (Management) Research Paper By Name Course Instructor Institution City/State Date Project (Management) Research Paper Introduction Basically, a project is a short-term given that it has a classified commencement as well as end in time, and as a result, classified resources and scope (Khan, 2006, p.13). In addition, Morris (2008, p.22) posit that a project is inimitable since it is not an everyday process, but rather a certain set of undertakings intended to achieve a particular goal. Therefore, a project team time and again entails individuals who normally do not work collectively, but instead from time to time from various companies and across manifold geographies. Project management, in that case, is the utilization of techniques, skills, as well as knowledge to carry out projects efficiently and effectively (Shenhar, 2008, p.16). According to Curran and Curran (2008, p.20) project management is an organizations’ strategic competency, allowing them to attach project outcomes to organisational goals, and as a result, enhanced competition in their markets. In this regard, Wheatstone LNG project is a designed plant located at west of Onslow in Western Australia (Downstreamtoday, 2010). According to Latimer (2013), collection systems for subsea gas will convey production to the manufacturing base where condensate as well as the gas will be correspondingly desiccated, dewatered, squashed and transported by means of an export pipeline to the Ashburton-based onshore gas plant. The Wheatstone LNG plant according to Downstreamtoday (2010) will contain a yearly capacity of fifteen million tonnes of liquefied natural gas. In the initial phase of the project, the Wheatstone plant will contain two LNG trains, each with a 4.3million tonnes capacity annually, as well as a gas plant. The project design and engineering works are being carried out by three companies namely Technip, Intecsea and Bechtel Oil & Gas Chemicals Inc. In this regard, the study seeks to critically analyse Wheatstone LNG Project’s merit with regard to strategic organisational objectives; as well as offering critical examination of the broad project management processes undertaken in that project.  Brief Background about Wheatstone LNG Project Undoubtedly, the Wheatstone Project remains to be one of Australia’s biggest resource projects, which according to Kennedy and Gismatullin (2014) offers a larger supply security as well as substantial fiscal benefits like opportunities for local businesses, government returns as well as employment. An absolute investment resolution to ensue with the Wheatstone LNG Project was completed in 2011, and construction begun the very same year. Together with the Gorgon Project, Dyball et al. (2012, p.16) thinks that th Wheatstone project will strengthen Australian position as a leading LNG operator as well as natural gas supplier in the Asia-Pacific expanse. Importantly, the Wheatstone Project will consist of an onshore facility situated at ANSIA (Ashburton North Strategic Industrial Area), 7.5 miles west of Onslow in Pilbara region (Downstreamtoday, 2010). The establishment project consist of two LNG trains with a collective volume of 8.5 MTPA as well as a local-based gas plant. Most importantly, the projects is a joint venture linking several companies: Chevron owns 64.5 percent of the project, followed by Apache, which has 13 percent, then Wheatstone Pty Ltd has 8 percent, KUFPEC (Kuwait Foreign Petroleum Exploration Company) has 7 percent, Shell has 6 percent, plus Kyushu Electric Power Company that owns 1.5 percent of the project (Downstreamtoday, 2010).  Experts in project management hold the view that the project location, which in this case is ANSIA, is a perfect site for an LNG hub bearing in mind its closeness to the infinite gas resources across the Western Carnarvon Basin (Beaubouef, 2012, p.109). Already, the project has dedicated over 80% LNG Chevron equity from the Project to top LNG customers, who consist of Tohoku, TEPCO, Chubu Electric Power Company, Kyushu Electric Power Company, as well as Electric Power Company (Downstreamtoday, 2010). Organisational Objectives the Project Supports Without doubt, a thriving project needs a broad scope of stakeholders to work together and team up. According to Arrow (2008, p.6), the temperament of stakeholders roles will rely upon the organisation size, the project portfolio size, and type of project. Eventually, any carried out project such as the Wheatstone LNG project is somehow intended to impact its targeted market. Therefore, Curran and Curran (2008, p.21) thinks that if the project team have failed to correctly identify the target market, or lack information with regards to market's desires and needs, the initiated project will probably generate results that are unfavourable. Dyball et al. (2012, p.17) posit that whether the project is a marketing crusade or the establishment of a new plant like Wheatstone LNG plant, it is essential to have a timeline outlining, which outlines all the task that must be accomplished. Therefore, if a task is concluded subsequent to its time limit, or further than the required order, it can unfavourably have an effect on the project success. In Wheatstone LNG project, a business desire may crop up to suit a novel environmental regulation that needs the involved companies to care for and sanitize waste matter streams. Once an organisation desire is acknowledged and aligned with the organisational strategic goals, Shenhar (2008, p.16) asserts that a project could be instigated depending on contentment of viability criteria. Normally a mini project is endorsed and funds allocated to perform a feasibility test prior to the launching of the full-scale project. Significantly, the project manager is the primary resource allocated to any project. Even though a debate on competencies of project manager is outside this article the dimensions, it is worth stating that project managers have to be competent enough to show sophisticated level of both leadership and management qualities. An assessment based on fiscal impact by ACIL Tasman, established that the Wheatstone LNG Project intends to provide a way of releasing value from the wide-ranging gas resources of the Western Carnarvon Basin. The Wheatstone Project intends to change the Australian economy, increase export and GDP revenue, offer an enormous boost in government returns, generating employment opportunities both during the operation as well as construction, and offer a means to advance development in the gas-based industry. The Project benefits according to Latimer (2013) have the ability to broaden across the financial system as the Australian federal and state government uses the revenue from its project incomes share to economic and social programs. Beaubouef (2012, p.110) posits that these programs can enhance the life quality of Australians by offering vital services as well as improving the productivity of Australia. Management of the Project Scores of projects as well as organizations make use of the same ideology to determine the success o the project. Question asked by many partakers is if the project is completed within the requested timeframe, if the project delivered all desires for which the project was carried out and lastly if the project attained the outcome within known budget (Shenhar, 2008, p.17). Therefore, if the response was positive to the above questions, then mark up a thriving project for the business organisation. For this reason, Svitzer have been offered a contract to offer Tug Services for the project plus are at the moment carrying on by means of that program’s execution phases. According to Latimer (2013), the agreement was awarded following the success of the company in the Gorgon Project tender. The contract consists of new Tugs constructions, the establishment of out-and-out processes as well as onboard processes along with maintenance of Marine operating standards. To be successful the company must look for a Project Manager for Wheatstone Implementation as well as an Operations Manager who must guarantee the delivery of high-class towage services along with the retainment of a well-built working connection with its essential customer, especially the Chevron. In all roles, the project manager should be tasked with making sure that the execution programs are distributed promptly as well as within the contract’s cost, quality, and scope parameters. Indisputably, this will consist of maintaining admirable connections with the key consumer as well as principal stakeholders plus making use of a high degree of know-how as well as professionalism. In addition, the project manager will be the centre for external and internal customers plus have liability for ensuring that all involved entities are relentlessly up to date with fundamental issues influencing the Wheatstone project. According to Dyball et al. (2012) this chance will make use of project manager’s mobilisation as well as project management abilities in an enormous resources development. Naturally, the entity must be a persistent person who takes pleasure in the taking responsibility challenges for a project as well as conveying premium results. Conclusion Conclusively, all companies build up their strategic organisational goals rooted in the objectives they propose, and so if the business objectives are vague, it might leave the company to instigate projects that do not achieve the goals or objectives of the business. Noticeably, The Wheatstone project benefits would stream through the Australia’s financial system as the salaries and wages of project workers as well as contractors are used and as contractors offer an array of resources and services to the project. The Wheatstone project will be effectively succeed if it is managed by a project manager who by nature is an excellent communicator, and who as well recognise the desire for successfully managing the project and taking the project with the solutions development. References Arrow, J., 2008. Knowledge-Based Proactive Project Risk Management. AACE International Transactions, vol. 1, no. 1, pp.1-10. Beaubouef, B., 2012. Operators planning some 5,800 mi of offshore pipelines through 2017. Offshore (Tulsa), vol. 72, no. 8, pp.108-10. Curran, K.M. & Curran, M.W., 2008. Handling the Truth in Risk Management. Cost Engineering Journal, vol. 50, no. 10, pp.19-24. Downstreamtoday, 2010. Wheatstone LNG. [Online] Available at: https://www.downstreamtoday.com/projects/project.aspx?project_id=69&AspxAutoDetectCookieSupport=1 [Accessed 3 March 2014]. Dyball, P., McCulley, R. & Colier, P., 2012. Skills shortage complicates Australian resource boom. Offshore Engineer, vol. 37, no. 4, pp.15-17. Kennedy, W. & Gismatullin, E., 2014. Shell Exits Wheatstone LNG After $1.1 Billion Sale to Kuwait. [Online] Available at: http://www.bloomberg.com/news/2014-01-20/shell-to-sell-stake-in-wheatstone-lng-to-kuwait-for-1-1-billion.html [Accessed 3 March 2014]. Khan, A., 2006. Project Scope Management. Cost Engineering Journal, vol. 48, no. 6, pp.12-16. Latimer, C., 2013. Downer wins $400m Wheatstone project. [Online] (2.0) Available at: http://www.miningaustralia.com.au/news/downer-wins-400m-wheatstone-project [Accessed 3 March 2014]. Morris, R.A., 2008. STOP THE INSANITY of failing projects. Industrial Management, vol. 50, no. 6, pp.20-24. Shenhar, A.J., 2008. Unleashing the Power of Project Management. 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