Investigation Into the Current Project Risk Management Practices Within the Libyan Oil and Gas Industry
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INVESTIGATION INTO THE CURRENT PROJECT RISK MANAGEMENT PRACTICES WITHIN THE LIBYAN OIL AND GAS INDUSTRY RAEIF ELHOUSH Ph.D. Thesis 2017 INVESTIGATION INTO THE CURRENT PROJECT RISK MANAGEMENT PRACTICES WITHIN THE LIBYAN OIL AND GAS INDUSTRY RAEIF ELHOUSH School of the Built Environment University of Salford, Salford, UK Submitted in Partial Fulfilment of the Requirements of the Degree of Doctor of Philosophy, 2017 Table of Content LIST OF FIGURES ............................................................................................................................ VI LIST OF TABLES ............................................................................................................................. VII ACKNOWLEDGEMENT ................................................................................................................. VIII DEDICATION .................................................................................................................................. IX ABBREVIATIONS ............................................................................................................................. X ABSTRACT ................................................................................................................................... XIII CHAPTER 1 INTRODUCTION ............................................................................................................ 1 1.1 BACKGROUND OF THE STUDY .............................................................................................................. 1 1.2 JUSTIFICATION OF THE STUDY .............................................................................................................. 3 1.3 AIM AND OBJECTIVES ......................................................................................................................... 5 1.4 RESEARCH METHODOLOGY ................................................................................................................. 6 1.5 SCOPE OF THE STUDY ......................................................................................................................... 8 1.6 CONTRIBUTION TO KNOWLEDGE .......................................................................................................... 8 1.7 ORGANISATION OF THE THESIS ............................................................................................................ 9 CHAPTER 2 OVERVIEW OF THE OIL AND GAS INDUSTRY ............................................................... 11 2.1 INTRODUCTION .............................................................................................................................. 11 2.2 THE OIL AND GAS INDUSTRY: OVERVIEW AND IMPORTANCE .................................................................... 11 2.2.1 International Oil Companies ............................................................................................... 14 2.2.2 National Oil Companies ...................................................................................................... 15 2.2.3 Organisation of Petroleum Exporting Countries ................................................................. 16 2.2.4 Non-OPEC countries ............................................................................................................ 17 2.3 LIBYA AS A COUNTRY ....................................................................................................................... 18 2.4 LIBYA’S OIL AND GAS SECTOR ............................................................................................................ 19 2.5 LIBYA’S OIL AND GAS PRODUCTION ..................................................................................................... 20 2.6 THE ROLE OF OIL AND GAS IN THE LIBYAN ECONOMY ............................................................................. 22 2.7 NOC OF LIBYA: OVERVIEW AND IMPORTANCE ..................................................................................... 23 2.8 THE NOC BEFORE AND AFTER THE CIVIL WAR ....................................................................................... 25 2.9 CHALLENGES WITHIN THE LIBYAN OIL AND GAS INDUSTRY ....................................................................... 26 2.10 LINK TO THE CURRENT RESEARCH ..................................................................................................... 26 2.11 SUMMARY ................................................................................................................................... 27 CHAPTER 3 PROJECT RISK MANAGEMENT .................................................................................... 28 3.1 INTRODUCTION .............................................................................................................................. 28 3.2 DEFINITION OF RISK ......................................................................................................................... 28 3.3 RISK MANAGEMENT ........................................................................................................................ 31 3.3.1 Definition of risk management ........................................................................................... 32 3.4 PROJECT AND PROJECT MANAGEMENT ............................................................................................... 34 3.4.1 What is a project? ............................................................................................................... 35 3.4.2 The Concept of Project management ................................................................................. 36 3.4.2.1 Definition of project management ............................................................................................................... 38 3.5 PROJECT RISK MANAGEMENT ........................................................................................................... 39 3.5.1 The concept of project risk management ........................................................................... 39 3.5.2 Definitions of project risk management ............................................................................. 42 3.5.3 The benefits of project risk management ........................................................................... 43 3.5.4 Risk factors that influence project risk management ......................................................... 43 I 3.5.5 Project risk management practices .................................................................................... 46 3.5.5.1 Project riSk identification ............................................................................................................................. 47 3.5.5.2 Project riSk analySiS/asSesSment .................................................................................................................. 47 3.5.5.3 Project riSk responSe .................................................................................................................................... 49 3.5.5.4 Project riSk control ....................................................................................................................................... 50 3.5.6 Different frameworks and guidelines for the project risk management ............................. 50 3.5.6.1 PMI PMBOK .................................................................................................................................................. 50 3.5.6.2 PRAM guide .................................................................................................................................................. 51 3.5.6.3 BS 6079-3:2000 ............................................................................................................................................. 52 3.5.6.4 BS 62198:2014 – Managing riSk in projectS – Application guidelineS .......................................................... 53 3.5.7 Tools and techniques to support project risk management ................................................ 54 3.5.7.1 Selecting an effective project riSk management tool or technique ............................................................. 57 3.5.7.1.1 Phase of the riSk management procesS ............................................................................................... 57 3.5.7.1.2 Project life cycle phases ....................................................................................................................... 58 3.5.7.1.3 Corporate maturity regarding riSk ....................................................................................................... 58 3.5.7.2 LimitationS of project riSk management practices, toolS and techniques .................................................... 58 3.5.8 Project risk management and project performance ........................................................... 61 3.5.8.1 Project SuccesS ............................................................................................................................................. 62 3.5.9 Challenges in developing effective project risk management practices ............................. 67 3.5.10 Critical success factors for implementation of effective project risk management practices ...................................................................................................................................... 70 3.6 PROJECT PERFORMANCE IN THE OIL AND GAS INDUSTRY ......................................................................... 73 3.6.1