Highly engineered, custom-built offshore platform designs begin with a simple plan to succeed based on managing complexity and risk, yet ultimately, the majority fail to meet the delivery, budgetary, and performance expectations that were identified at the beginning of the project. A significant amount of the Oil & Gas industry's largest facility undertakings were also discovered to fail in one, if not all, of the areas of hitting production targets. Those that were considered successful often achieved these results alongside documented longer deliveries and higher budgets from the outset, and very few that were discovered had best in class performance matching the development of Mobile Offshore Drilling Units (MODUs). This paper looks at the underlying causes of this phenomena and identifies patterns of execution and best practices for succeeding in an inherently complex construction environment. Two projects stood out and the best practices have been researched and compared to a third construction project with similar attributes, which are all discussed in Part One of this paper.
In Part One, the first two projects had well-defined relationships and outcomes and the third project suffered due to attempts to eliminate costs and a dysfunctional relationship between the driller, shipyards, and operator. All three projects were ultimate successes for the oil company. Part Two of the paper we look at the impact of the emerging practice of standardized drilling facilities that eliminates cost and complexity. We discuss in Part Three current drivers in our contracting model, and then Part Four introduces lessons learned from the recent build out of the MODU fleet. In the end, we will highlight how we as an industry can take advantage of the crisis of cost management in a low oil price environment. The theme of industrialization of the construction process is developed from the first two projects and carried into the MODU fleet, which implies that better performance is achievable and the overall complexity and cost of drilling facilities on platform rigs can become a reality.