Causes of delay in the construction phase of oil and gas projects in Malaysia

  • Authors

    • S Umeesh Kumar Suppramaniam
    • Syuhaida Ismail
    • Subaashnii Suppramaniam
    2018-05-22
    https://doi.org/10.14419/ijet.v7i2.29.13318
  • Causes of Delays, Construction Phase, Oil and Gas Projects, Malaysia.
  • The drop-in oil price in recent years has seen the oil and gas projects affected negatively. Thus, most Engineering, Procurement, and Construction (EPC) companies are opting to optimise the project especially in terms of mitigating delays in construction to achieve the project expectation. Delay causes threat to a project objectives in terms of time, cost and quality. It is also a crucial element in deviating from the client’s expectation in terms of productivity, safety and standards. This paper aims at examining the causes of delay in the construction phase of oil and gas projects in Malaysia.  A comprehensive literature review from various sources through books, conference proceedings, the internet, project management journals as well as oil and gas industry journals was made to materialise this paper. There were a few studies that related to this problem and shared a similar view with general construction projects, yet only a fraction of the factors was accepted due to the differences between the two industries. Other variances of the papers included on regional basis or on specific countries. The factors of these attributes were still accepted since it was still applicable to the oil and gas industry and there were not any major variances between countries. The paper has found that there are several significant factors that cause delays in the construction phase of oil and gas projects in Malaysia. The similarity of these delay factors can be grouped into six major groups, namely client, contractor, engineering, external, project and resources. This initial study is based purely on literature review, comparison of similar cases, cross referencing and critical judging. The causes of delay specific to the construction phase in oil and gas projects in Malaysia should be further researched with focus only in the Malaysian projects and industry players.

     

     
  • References

    1. [1] Latif NAiA, Fong SK, Sandragasu L, Taufik TM. The Malaysian Oil & Gas Industry - Challenging Times, but Fundamentals Intact. PwC Malaysia, 2016.

      [2] CIDB. CONSTRUCTION INDUSTRY REVIEW AND PROSPECT 2015/2016. CIDB Malaysia, 2016.

      [3] Gonzalez JLM, Taylor IP, Aguilar JC, de la Escalera LM, editors. Risk and Reliability Modeling to Support Logistics Performance for Oil and Gas Terminals. 2014 10th International Pipeline Conference; 2014: American Society of Mechanical Engineers.

      [4] Garcia R, Lessard D, Singh A. Strategic partnering in oil and gas: A capabilities perspective. Energy Strategy Reviews. 2014;3:21-9.

      [5] Holmager M, Dybdahl S. OffshoreBook Oil & Gas: Offshoreenergy.dk; 2014.

      [6] Devold H. Oil and gas production handbook: an introduction to oil and gas production: Lulu. com; 2013.

      [7] Furlow W. Commissioning: Making the Connection Between Construction and Operations. 2014.

      [8] Boschee P. Planning for Initial Startup Success. 2012.

      [9] Sadeghi K. An overview of design, analysis, construction and installation of offshore petroleum platforms suitable for Cyprus oil/gas fields. GAU J Soc & Appl Sci. 2007;2(4):1-16.

      [10] Badiru AB, Osisanya SO. Project management for the oil and gas industry: a world system approach: CRC Press; 2016.

      [11] Paganie D. Report finds nearly $230 billion in oil and gas projects deferred. Offshore Magazine, 2016.

      [12] Tippee B. Iranian upstream bidding delayed again. Oil and Gas Journal, 2017.

      [13] Akal AYBA. Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt. International Journal of Accounting, Finance and Risk Management. 2016;Volume 1(Issue 1):Pages: 19-24.

      [14] Klinger P. Woodside plays down Wheatstone delay. The West Australian 2016.

      [15] Burke J. Central Asia-China Gas Pipeline Expansion Delayed Again. EurasiaNet.org, 2017.

      [16] Beavan K. Northern Gas Pipeline construction start date delayed awaiting land access approvals. ABC Australia, 2017.

      [17] Kane L. Oil and gas project delays hurting Canada's reputation, industry group says. National Observer, 2016.

      [18] Gloystein H. Australia's gas projects face major delays, benefiting the US. The Sydney Morning Herald. 2017.

      [19] OGN. Jizan start-up seen only by 2018. Oil & Gas News. 2017.

      [20] Atanasova S. Sohar refinery project delayed until Q1 2017. Arabian Oil and Gas, 2016.

      [21] Ngui Y. Petronas May Delay Canadian LNG Project. Wall Street Journal. 2016.

      [22] Sustaita M. Petronas delays PFLNG 2 amid slump. Offshore Engineer. 2016.

      [23] Abdullah AA, Rahman HA, Awang MS. Identification of the major project management issues in oil and gas industry in Malaysia. International Journal of Business and Social Science. 2011;2(11).

      [24] Ruqaishi M, Bashir HA. Causes of delay in construction projects in the oil and gas industry in the gulf cooperation council countries: a case study. Journal of Management in Engineering. 2013;31(3):05014017.

      [25] Salama M, El Hamid MA, Keogh B, editors. Investigating the Causes of Delay within Oil and Gas Projects in the UAE. 24th Annual ARCOM Conference; 2008.

      [26] Salama M, El Hamid MA, Keogh B, editors. Investigating the causes of delay within oil and gas projects in the UAE. Procs 24th Annual ARCOM Conference; 2008.

      [27] Nawi MNMN, Lee A. Factors influencing project delay: a case study of the vale malaysia minerals project (VMMP). International Journal of Supply Chain Management. 2016;5(4):178-84.

      [28] Memon AH, Rahman IA, Akram M, Ali NM. Significant factors causing time overrun in construction projects of Peninsular Malaysia. Modern Applied Science. 2014;8(4):16.

      [29] Memon AH, Abdul Rahman I, Aziz AAA. Time overrun in construction projects from the perspective of project management consultant (PMC). Journal of Surveying, Construction and Property. 2011;2(1).

      [30] Nawi M, Deraman R, Hasmori M, Azimi M, Lee A. Factors influencing project delay: a case study of the vale malaysia minerals project (VMMP). Int J Sup Chain Mgt Vol. 2016;5(4):178.

      [31] Rui Z, Peng F, Ling K, Chang H, Chen G, Zhou X. Investigation into the performance of oil and gas projects. Journal of Natural Gas Science and Engineering. 2017;38:12-20.

      [32] Fallahnejad MH. Delay causes in Iran gas pipeline projects. International Journal of project management. 2013;31(1):136-46.

      [33] Othman A, Ismail S, editors. Delay in Government Project Delivery in Kedah, Malaysia. CONFERENCE PROCEEDINGS IRC-2014; 2014.

      [34] Othman A, Ismail S. Delay in Government Project Delivery in Kedah, Malaysia. Recent Advances in Civil Engineering and Mechanics. 2014:248-54.

      [35] Simanjuntak JT, Mahendrawan A. Factors Affecting Delay of Upstream Oil and Gas Development Projects in Indonesia: Case Study 2012 - 2013. 2015/10/20/. SPE: Society of Petroleum Engineers; 2015.

      [36] Simanjuntak JT, Mahendrawan A. Factors Affecting Delay of Upstream Oil and Gas Development Projectors in Indonesia: Case Study 2012-2013. 2015.

      [37] Shah RK. An Exploration of Causes for Delay and Cost Overruns In Construction Projects: Case Study of Australia, Malaysia & Ghana. Journal of Advanced College of Engineering and Management. 2016;2:41-55.

  • Downloads

  • How to Cite

    Umeesh Kumar Suppramaniam, S., Ismail, S., & Suppramaniam, S. (2018). Causes of delay in the construction phase of oil and gas projects in Malaysia. International Journal of Engineering & Technology, 7(2.29), 203-209. https://doi.org/10.14419/ijet.v7i2.29.13318