Project Risk Management

Installation of Dehydration Unit on EPCC

basis
Shanza Asif 2184133
Asad Rasheed 2184146
Ali Jan Naqvi 2184138
Kamran Ahmed 2184150
Rida Imran 2184147
Asad Iqbal 2184130
Outline
• About PGNIG
• Project Statement
• Project Risk Management Plan
• Risk Response Plan
• Risk Assessment Marix
• Risk Response
• Risk Register
PGNiG
• Polish Oil and Gas Company (POGC)
operates in Pakistan as a branch office
of PGNiG Group Poland.
• Acquired Blocks: Kirthar, District Dadu,
Sindh (Rehman and Rizq)
• Focus Areas: Exploration and Production
• Facilty: Rehman Gas Production and
Processing Facility (RPF)
• Major Client: SSGCL
Project Statement
• PGNiG is forced to sell the produced gas at 20% discount to SSGCL
due to higher moisture ( content (8.1%) than the prescribed limit by
OGRA.
• In order to reduce the moisture content by approximately 1.5% to the
allowable limit (<7%), a Dehydration Unit on EPCC basis needs to be
installed.
Risk Management Plan
• Risks to be managed by a methodical process by which team will
identify, score and rank various risks.
• PM will develop strategy and team will ensure necessary steps to
mitigate as per the response plan.
• Regular checks and status updates on identified risks.
• Upon completion PMO will analyze each risk as well the risk
mitigation strategy for future projects.
Risk Response Strategy
• Mitigation, Avoidance, Transfer, Retain
• Definition of Impact by Objective

Impact Scope Quality Time Cost

Very high The moisture at Unit’s outlet is more than 5% or Unit’s capacity is less than 35 MMscfd Drastically degraded >10 % >20 percent

High The moisture at Unit’s outlet is more than 4% or Unit’s capacity is less than 40 MMscfd Network availability dropped to 95% >8 % >15 percent

Medium The moisture at Unit’s outlet is more than 3% or Unit’s capacity is less than 50 MMscfd 97 % network availability >5 % >10 %

Low The moisture at Unit’s outlet is more than 2% or Unit’s capacity is less than 65 MMscfd 99 % network availability >3 % >5 % increase

Very low The moisture at Unit’s outlet is more than 1.5% or Unit’s capacity is less than 75 MMscfd 99.5 % Network availability >2 % 0-4 %
Risk Assessment Matrix
Scope, Schedule, Quality, Cost Impact Probability
Impact Number Assigned Impact Number Assigned
Very High 5 Very High 5
High 4 High 4
Medium 3 Medium 3
Low 2 Low 2
Very Low 1 Very Low 1

Heat Map
 
5 10 15 20 25
Very High

 
4 8 12 16 20
High
Risk Assessment
 
3 6 9 12 15
Risk Probability x Impact Medium

Impact / Consequence
High 16 to 25
Low 2 4 6 8 10
Medium 6 to 15
Low 0 to 5
Very Low 1 2 3 4 5

 
Rare Unlikely Possible Likely Frequent

 
Risk Response
Risk Severity Risk level Risk response

Existing measures are acceptable. Manage by routine

0 to 5 Low procedures; however, further controls could be
considered for continuous improvement.

Risk must be managed or other hazard controls must be

planned and subsequently implemented as soon as
6 to 15 Medium
possible with high priority to reduce risk probability
and/or impact.

Hazard must be eliminated or other hazard controls

measures must be implemented on top priority to
reduce risk to lower level.
16 to 25 Very high
This can be substituted by a proper documented
reasoning of risk acceptance for strategic and financial
risk categories.
Risk Register
Risk Severity
Risk Description Risk Owner Risk Trigger Risk Category Probability (P) Impact (I) Risk Response
P x I Score
15 Make sure that the personnel
Some equipment is handling the equipment are well
Equipment damage Operations Very High
damaged while Procurement Medium (3) trained professionals who take
during installation Department (5) (Medium)
unloading / installation great care in handling the
equipment
Operations Heavy rains cause Very High 15 This risk has to be accepted as it is
Flood in the area flood which halts the Operations Medium (3)
Department (5) (Medium) out of control of the Project team
installation work
i. Mitigate risk by getting payment
Cost, 12 from SSGC in Dollar as well so the
$ value increase by Project remains feasible
US$ increases in value Procurement
against PKR Department 20% during Project Medium (3) High (4)
duration ii. All the supply contracts are made
Procurement (Medium) in US$ so no payment issue is
created by the vendors later
Due to heavy rains, the 12
equipment is not Mitigate risk by ensuring trained
Damage of equipment Operations,
while loading Procurement handled properly and Procurement Medium (3) High (4) professionals are involved in loading
is damaged during (Medium) of equipment
loading
Human Locals surrounding the Operations, 10 Mitigate the risk by making sure
Locals asking to evict Very High proper lease/ insurance activities
the area Resource area and asking to Human Medium (2) (5) are carried out which protect the
Department leave the area Resource (Medium)
project
Risk Register
Risk Severity
Risk
Risk Description Risk Owner Risk Trigger Probability (P) Impact (I) Risk Response
Category P x I Score

Some key personnel 10

Kidnapping of key Human Resource Human Very High This risk has to be accepted as it is
personnel Department is kidnapped for Resource Low (2) (5) out of control of the Project team
ransom money (Medium)
Technical 8
Issue Mitigate risk by keeping an
Drilling halted Operations There is a problem in Low (2) High (4) engineer on standby who can fix
Department the drill machine the machine timely
Operations (Medium)

Material is late by 2 8 Mitigate risk by having a back-up

Material is not delivered Procurement
on time Department days from the Procurement Low (2) High (4) supplier or look for material already
delivery date (Medium) available in stock

Human Resource 6 Mitigate risk by having an

Required expertise is not Any 2 senior team engineering consultancy contract is
available or leaves the member leaves the Human Low (2) Medium available to acquire a third party
Resource (3) senior engineer services until a
Company Department Company (Medium) replacement is arranged by the
Human Resource department
The Concentration of CO2 4
Increase in This risk is accepted for now and is
at Unit entrance increase Project Manager concentration of CO Scope Very Low (1) High (4) placed in watch list to check for any
from 5% to 10% for a brief 2
(Low) increase in the severity
duration to 15%