Deliverable

Deliverables: The Foundation of Oil & Gas Projects

In the complex world of oil and gas, where vast sums of money are invested and intricate processes are employed, deliverables play a crucial role in project success. They represent the tangible outcomes and outputs of specific tasks, phases, or the entire project itself, providing clear milestones and benchmarks for progress.

Definition: A deliverable is a tangible or intangible outcome or output that is produced and delivered as part of a project. It can be a physical item, a document, a service, or a combination of these.

Key Characteristics of Deliverables:

Specific: Each deliverable should be clearly defined and measurable, with specific criteria for acceptance.
Measurable: Progress on deliverables should be quantifiable and easily tracked.
Achievable: Deliverables must be realistically attainable within the project scope and timeframe.
Relevant: Deliverables should directly contribute to the overall project objectives.
Time-bound: Each deliverable has a defined deadline for completion.

Examples of Deliverables in Oil & Gas:

Exploration: 3D seismic data, well logs, geological reports, drilling permits.
Production: Drilling rigs, production platforms, pipelines, well completion reports.
Processing: Crude oil, natural gas, refined products, processing facility design documents.
Transportation: Tankers, pipelines, transportation infrastructure reports.
Marketing and Sales: Sales contracts, market analysis reports, customer agreements.

Importance of Deliverables:

Project Management: Deliverables provide structure and clarity to project plans, enabling effective scheduling, resource allocation, and communication.
Progress Tracking: By defining and tracking deliverables, stakeholders can monitor project progress and identify potential risks or delays.
Quality Control: Each deliverable serves as a checkpoint for quality assurance, ensuring that the project meets specified standards.
Accountability: Deliverables assign responsibility to specific individuals or teams, fostering accountability and clarity in roles.
Client Satisfaction: Successfully delivering on agreed-upon deliverables helps build trust and maintain client satisfaction.

Deliverables vs. Products:

While both terms relate to tangible outputs, they differ in their scope and purpose.

Deliverables: Represent specific outputs within a project, focusing on short-term goals and milestones.
Products: Are the final, complete outcomes of the project, representing the larger achievement or solution.

For example, a drilling rig might be a deliverable in an oil & gas project, while the production of oil and gas is the ultimate product of that project.

Conclusion:

Deliverables are essential for effective project management in the oil & gas industry. By clearly defining, tracking, and delivering on these outputs, companies can enhance project control, ensure quality, and ultimately drive success in their endeavors.

Test Your Knowledge

Deliverables Quiz

Instructions: Choose the best answer for each question.

1. Which of the following is NOT a key characteristic of a deliverable?

a) Specific
b) Measurable
c) Affordable
d) Achievable

Answer

c) Affordable

2. Which of the following is an example of a deliverable in the exploration phase of an oil & gas project?

a) Drilling rig
b) 3D seismic data
c) Sales contracts
d) Pipeline construction

Answer

b) 3D seismic data

3. Deliverables are important for project management because they:

a) Help estimate project costs.
b) Provide structure and clarity to project plans.
c) Guarantee project success.
d) Eliminate all risks and delays.

Answer

b) Provide structure and clarity to project plans.

4. What is the main difference between a deliverable and a product?

a) Deliverables are intangible, while products are tangible.
b) Deliverables are short-term outputs, while products are the final outcomes.
c) Deliverables are only for internal use, while products are for external clients.
d) Deliverables are always more expensive than products.

Answer

b) Deliverables are short-term outputs, while products are the final outcomes.

5. Successfully delivering on agreed-upon deliverables is important for:

a) Project budget control.
b) Client satisfaction.
c) Employee motivation.
d) All of the above.

Answer

d) All of the above.

Deliverables Exercise

Scenario: You are a project manager for an oil & gas exploration project. Your team is responsible for collecting and analyzing geological data to identify potential drilling locations.

Task:

Identify 3 key deliverables for your team within this exploration phase.
For each deliverable, define:
- Specific criteria for acceptance
- How progress on the deliverable will be measured
- The deadline for completion

Example:

Deliverable: Geological data acquisition report
Acceptance Criteria: Report includes comprehensive data from all designated locations, incorporating various geological analyses and interpretations.
Measurement: Completion of report with all required data and analysis sections.
Deadline: 6 weeks from project start.

Exercice Correction

Here are some possible deliverables for the exploration phase with their defined criteria, measurement, and deadlines. Remember, these are examples, and you should adapt them to your specific project requirements.

1. Deliverable: Geological Survey Report

Acceptance Criteria: Comprehensive report detailing geological formations, rock types, potential oil/gas traps, and other relevant data within the designated exploration area. Includes maps, diagrams, and data tables.
Measurement: Completion of the report with accurate data, thorough analysis, and well-formatted presentation.
Deadline: 8 weeks from project start.

2. Deliverable: 3D Seismic Data Acquisition and Processing

Acceptance Criteria: Acquisition of high-resolution 3D seismic data covering the targeted exploration area. Data is processed and interpreted to identify potential reservoir locations and assess their quality.
Measurement: Completion of seismic surveys and processing, including analysis of data and creation of 3D visualizations.
Deadline: 12 weeks from project start.

3. Deliverable: Potential Drilling Site Recommendations

Acceptance Criteria: Based on the collected geological data, seismic interpretation, and risk assessments, a report recommending specific drilling sites with justifications for each location's potential.
Measurement: Completion of the report with identified drilling sites, supported by comprehensive geological and seismic data.
Deadline: 16 weeks from project start.

Books

Project Management for Oil and Gas: A Comprehensive Guide to Planning, Executing, and Controlling Projects by John R. Meredith and Samuel J. Mantel Jr.: This book provides a detailed overview of project management principles and best practices specifically tailored for the oil & gas industry. It covers various aspects of project management, including deliverables, risk management, and cost control.
The Oil & Gas Industry: A Comprehensive Guide by John P. Harbin: This comprehensive guide provides a broad understanding of the oil & gas industry, including exploration, production, processing, transportation, and marketing. It also discusses the importance of project management and deliverables in each stage.
Project Management Body of Knowledge (PMBOK Guide): This guide, published by the Project Management Institute (PMI), is a global standard for project management practices. It defines key concepts, processes, and tools related to project management, including deliverables, work breakdown structures, and project planning.

Articles

Deliverables in Project Management: A Guide to Success by ProjectManager.com: This article provides a general overview of deliverables in project management, covering their importance, key characteristics, and examples. It can be a helpful starting point for understanding the concept.
The Importance of Deliverables in Oil and Gas Projects by Energy Global: This article discusses the specific role of deliverables in oil & gas projects, emphasizing their contribution to project success, stakeholder communication, and risk mitigation.
Deliverables in Oil & Gas: A Practical Guide by Oil & Gas 360: This article offers practical advice on defining, managing, and tracking deliverables in oil & gas projects. It provides insights on creating clear deliverable specifications, assigning responsibility, and monitoring progress.

Online Resources

Project Management Institute (PMI): PMI's website offers a wealth of information on project management, including resources, certifications, and research. You can find articles, webinars, and case studies related to deliverables in various industries, including oil & gas.
Oil & Gas Journal: This industry publication provides news, analysis, and research on the global oil & gas industry. You can find articles on various topics related to project management and deliverables in the oil & gas sector.
World Oil: This industry magazine offers insights and technical information on drilling, production, refining, and other aspects of the oil & gas industry. You can access articles and research on project management, including deliverables and their impact on project outcomes.

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