Godwin project - Talisman Energy
July - September 2011
We carried out a cost and schedule risk review on the Godwin project, for Talisman Energy in Aberdeen. The multi-disciplinary project
involves drilling an extended-reach well and modifying Arbroath reception facilities
to accept the new fluids. It will assist in extending the life of the existing Montrose-Arbroath
infrastructure, while providing the opportunity to complete other scopes of work
and enhancement projects that augment these intents.
The risk review supported approval for the project at the Define to Execute gate.
We took the project team through:
- identifying the cost and schedule risks to the Godwin project;
- assessing the risks in terms of probability and impact;
- identifying and capturing mitigation actions for the risks;
- performing an integrated cost and schedule risk analysis to show the overall effect
of the risks on the project.
The risk review gave the Godwin project team a demonstrable understanding of the
schedule and cost risk to the project. They used it to justify contingency allocation,
assure partners of risk-awareness, and to help focus management on key decisions
that were important to the project. It was one of the required tools to achieve
sanction for the project.
According to the project’s Senior Cost Engineer:
"We appreciated the capture of 'discrete risks', as
well as traditional three-point estimates – for example a significant uncertainty
was around the rig availability. The risk review captured challenge around when
the rig would arrive, and the consequences of that: the rig moving, the sequencing
of the work, and the logistics of using its Norwegian crew. It allowed the team
to plan for this (and other risks).
"What stood out compared to other risk consultants
we have used was the analytical piece – it helped prevent it being just a tick-box
exercise. Giving the right information at the right time allowed the team and management
to understand the nature of the work they are undertaking.
"It was also good because it followed Talisman guidelines
– Simon adapted his approach to suit Talisman’s risk register format and scoring
schemes. We also appreciated Simon’s facilitation skills to identify the key drivers,
in workshops that included our commercial and operational partners – allowing us
and them to express opinions without losing focus.
"The risk review helped us in getting to, and being
comfortable with, the contingency: in understanding it, and in having better information
to reduce or increase it. Contingency is held by the development manager, and this
understanding helps him, and allowed decisions to be made between us and our partners,
to progress and achieve sanction."