Risk Management Study On Oil Terminal EPC Project In J Country

After more than 40 years development,international engineering industry of China has started from the traditional engineering contracting project and the economic aid project in the early 1970 s.From 2013 with President Xi’s “Belt and Road” initiative being proposed and implementation,more and more domestic engineering enterprises have extended their overseas works.Different countries and regions have significant different external environments,governments or private owners’ requirements for engineering standards and management have gradually increased,and the government has become more and more cautious in sovereign or financial guarantees,and the difficulty of project implementation is increasingly high,and risks are getting higher,so the project loss has occurred or the execution period is delayed from time to time.At the same time,the covid-19 pandemic has appeared globally for nearly 2 years.The global economic recovery is slow,and trade protectionism rises up,and the local area war and terrorist attacks are frequent.Today’s world is experiencing a great change that has not happened in a century.Since the cost competitive advantage declines,international arbitration and litigation are increasing,and facing severe risk conditions,enterprise urgently need to establish and further improve the management capabilities of international engineering projects.This thesis first elaborates the theory of project risk management in the international engineering business,mainly summarizes commonly used theoretical methods and approaches from the purpose,scope,identification,evaluation,response,and monitoring.Then take the“Oil Terminal Project in J Country” as the study case,which is a non-Chinese financing and typical EPC general contracting project based on the international public bidding,and involved by the PMC consultant from developed countries.After that,start from the study and analysis of the project initial data and the on-site visit and investigation,the overall risk checklist is identified and established from the three dimensions of risk sourcing,which are the external environment,the project itself and the project stakeholders,based on the work practice of project bidding and implementation.The nine major risks,which are selected according to the company capability,experience and project status,are analyzed and evaluated in details.The risk grade of each risk events was obtained based on the assessment of the probability and the possible losses of each risk.Then the weights of the major risk events are assigned,in order to calculate the project overall risk grade.Then,with the deeply study on the engineering market and project conditions,the response strategy and measures to the nine major risks are developed,including the items need for contract negotiations,prevention or response measures to be taken during implementation.Risk management objectives,organization chart and management measures are raised to constitute the risk management plan in the implementation phase;Then,the list of HSE management procedures and emergency response plan in the implementation phase is preliminarily planned which should be combined and conducted during implementation phase.Finally,the long-term effected guarantee measures are brought up to improve the risk management level and capability of the company and project team.This thesis analyses and accesses the entire project risks from the tendering stage.The risk grades of the 9 main risks are assessed separately,i.e.,1 high,3 medium-high,3 medium,2low,and the general risk grade of the whole project is assessed medium-high as a conclusion.A series of relative measures are raised up to be adopted in the early period.It could facilitate the project management team to strive for the conditions in the contract negotiations,and concern,monitor and early-warn the risks,and then to be followed and disposed in the implementation stage.Meantime,the guarantee measures are proposed to expedite the sustained improving and enhancing of the risk management level and capability of the company and project team.