Research On Risk Management Of International Pipeline Construction Under EPC Mode

In a globalized economic environment, China’s enterprises have been taking more and more international projects. EPC contracting management model has been widely implemented in construction. More and more China’s international pipeline projects take the EPC model, such as Sudan pipeline, Kazakhstan crude oil pipeline and the East-West Gas Pipeline Project in India, Thailand, Central Asia pipeline, and Myanmar oil and gas pipeline. Domestic and international engineering project faces different risks. There are complex political and economic environment, and different folk customs, religious taboos and various geographical and climatic conditions in another country. In that case, the international project confronts uncertainties in all aspects, so strengthening international project risk management is in urgent need.The paper is discussed as follows:the paper selects international pipeline project (Myanmar Oil-gas Pipeline Project) as the research object, which is under EPC mode. With relevant concepts and theories of EPC Mode and under the guidance of domestic and international risk management status, the author analyzes and summarizes risk management features of international EPC projects.Risk identification, risk evaluation and risk countermeasure are illustrated respectively from several key stages of EPC project--bidding, design, procurement and construction. Expert investigation, brainstorming and checklists methods are used for risk identification. In the construction phase, probability/consequences and LEC methods are discussed for risk evaluation. According to the different risk levels, appropriate risk response measures are suggested. Combined with the China-Myanmar oil and gas pipeline projects, the implementation of the above methods were introduced in construction and HSE management.