A reputation for
excellence John Plugge, vice president of project management and execution; and Jim Flood, vice president of arctic and eastern Canada, discuss how ExxonMobil Development Company leads the industry in project execution.
ExxonMobil has become recognized for completing oil and gas development projects faster and at a lower cost than its competition. Why is that? Plugge: The underlying reason dates back to Exxon’s decision before the merger with Mobil to establish one upstream company that was all about project man- agement. That move reflected the corporation’s anticipation of significant growth in the number and size of development projects around the world, including many in higher-cost environ- ments. Rather than the traditional model of carrying out develop- ment through affiliates, Exxon foresaw the efficiencies of having one organization consistently and flexibly deploying its expertise wherever needed. How has the company ad- vanced its reputation for proj- ect execution since the merger? Plugge: First, ExxonMobil Devel- opment Company (EMDC) has had the benefit of working with the industry’s largest and most diverse portfolio of projects. Our portfolio contains more than 120 projects to develop 24 billion
oil-equivalent barrels represent- ing conventional and uncon- ventional oil and gas, heavy oil, and liquefied natural gas (LNG) around the globe. This diversity has allowed us to be selective in pursuing the right projects at the right time. In addition, we have developed a structured project management system that has enabled not only performance consistency but a means for continuous improvement. Most importantly, in completing more than 100 projects over the past 15 years, we have developed a highly experienced workforce with a depth of technical and management expertise that is unmatched by our competitors. Flood: Let me add that our project management structure focuses accountability for project execution at a regional level with the backing of one global organi- zation that provides the people, processes and tools for those projects. Our global organization “sees the world,” so to speak, and within 24 hours we can apply lessons learned from one region to another when issues occur, regardless of whether they’re positive or negative. We have the ability to fly in project
experts to provide solutions to any issues. We know of no other international oil company with that capability.
What factors must you consider in early project planning?
Plugge: Among the more critical steps is selecting a leadership team that understands the tech- nical side of the work and has the right management skills. This decision evolves out of a process by which we decide if a project will be routine, meaning that it is something we have done before, or nonroutine. Nonroutine projects tend to be bigger, more complex and require many years to complete. By distinguishing routine versus nonroutine early on, we can select the leaders and teams best suited for the project. Flood: Based on EMDC’s 15-plus years of proven, demonstrated project experience, we under- stand that it’s critical to lock down the development concept as soon as possible. The key then is to manage each of the critical transi- tions, from front-end engineering to detailed design to the begin- ning of the construction phase so that we can resolve all major
Story by Mike Long
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