Risk Management Of Petroleum EPC General Contracting Projects

Since 2000,the energy industry has developed rapidly around the world.The growing number of large petroleum engineering projects has attracted more attention and provided more jobs.In China,the management of petroleum engineering projects is also becoming more complete and more standardized.In recent years,China’s petroleum industry not only to summarizes past experiences,but also to learn the excellent management ideas and methods of foreign countries,such as Shell’s HSE system and so on.As energy development intensifies,the requirements of project’s quality and duration are improving,and the project’s scale becoming larger and more complicated,the equipment becoming more and more standardized and precise,so that traditional subcontracting mode is becoming harder to control.Therefore,according to foreign experience,most new large petroleum engineering projects are gradually turning to the EPC general contracting management mode.However,this one-stop service contracting mode is learned from abroad and a lot of things are different at home and abroad,so the EPC general contracting mode is not really adapt to China.Especially in some special cultural environment in China,some traditional risk management methods are not applicable in the project of the EPC general contracting mode.At first,this paper introduces the relevant research status and theoretical principle of the EPC general contracting mode and risk management at home and abroad,and explains the definition,content and characteristics of the petroleum engineering project and the EPC general contracting mode.In China,the EPC general contracting mode of petroleum engineering project is still in its infancy,this paper focuses on researching the risks that may be caused by some special environmental factors in China or some internal organizational defects,through the case analysis of the Longwangmiao project.Therefore,this paper gives a detailed introduction to the Longwangmiao project.As the key case of this paper,it has some defects in EPC general contracting mode,and the management is relatively chaotic.So I analyzed the management status of the Longwangmiao project.On the one hand,it starts with the defects of the organizational structure and analyzes the reasons for its emergence and the impact on the whole project.On the other hand,focus on the shortcomings of risk management and analyzed its disadvantages.Then this paper carries out the risk identification and evaluation of the Longwangmiao project through the risk management process,and develops the effective countermeasures.According to the risk management process,this paper firstly adopts the expert investigation method and the situation analysis method to identify and analyze the possible risks in the project of the Longwangmiao project.This paper classifies it according to different angles and describes the characteristics of the risk of the Longwangmiao project.Secondly,the author does risk assessment to the Longwangmiao project by index method and the analytic hierarchy process to get the probability of occurrence of the risk and the severity of impact which those typical and key risks could have.Then the author draws those results into a table to form a systematic model of project risk assessment,which is expected to provide some guidance for similar project risk management.The last step of risk management is to discuss the most appropriate countermeasures for the related risks according to the risk identification and risk assessment results of the Longwangmiao project,and the proposed table is formed.Finally,through the experience of the case in the Longwangmiao project,it is necessary to reflect on the potential problems of the petroleum EPC general contracting project.According to the complete risk management process,the optimization suggestions for the petroleum EPC general contracting project are proposed to achieve the purpose of better risk management.