LNG projects: Risk management framework for Oman LNG

By

ACKNOWLEDGEMENT

I would first like to express my gratitude for my research supervisor, colleagues, and peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

Signature:

Dated:

ABSTRACT

Risks are events that can (if implemented) influence the course of the project. Risks exist in every project, but not always implemented. The risk that was realized becomes a problem. The impact or consequence of risk - the impact of realized risk the possibility to perform certain components of the plan. The impact is usually for the cost, schedule and technical performance of the developed product. For example, in software development risk exposure can lead to the fact that the product will cease to satisfy the customer in full, or even unusable. The impact is often latent period - from the moment of the manifestation of risk before the net change in the system. The global market for LNG is growing rapidly. During the last few years, significant investments have been made in LNG production. The reserves of natural gas do not exist in areas where demand is high. This situation has resulted in the international trade of natural gas. Approximately 30% of natural gas is a part of international trade. However, this percentage is lower than that of crude oil. This dissertation will help to evaluate the integrated risk management framework for Oman LNG

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

GLOSSARY OF TERMS/ABBREVIATIONSVII

CHAPTER 01: INTRODUCTION1

Outline of the Study1

Background of the Study1

Statement of the Problem3

Purpose of the Study3

Aims and Objectives4

Research Questions4

Research Hypothesis4

Rationale of the Study4

Limitations of the Study5

Ethical Considerations5

CHAPTER 02: LITERATURE REVIEW6

Risk Assessment7

Identify Risks9

Analyze Risks10

Risk Description11

Evaluate Risks11

Evaluate Existing Risk Controls12

Ranking Risks12

Currency Exchange Risk13

Business Risk13

Risk Management15

Steps of Risk Management to the Project15

Determining Risk15

Risk Probability15

Risk Affect16

Purpose of Determining the Risk16

Risk Assessment16

Oversight of Risk Management17

Benefits of Risk assessment19

Risk Assessment Criteria19

Case Study of an IT system of a LNG Project20

A Case Study of an IT Firm associated with a LNG Project21

Risk Perception22

The Impact of the Middle East on Pacific Oil and Gas Markets26

The Pacific market26

Demand of LNG27

Description of LNG28

Risks in LNG Projects29

Theoretical Framework29

Complex Supply Chains30

Increasing Interest in LNG Security and Safety31

The Structure of LNG Market32

LNG Risk33

Risks Faced by LNG Companies35

Oman LNG36

Conclusion37

CHAPTER 03: METHODOLOGY39

Research Method39

Mixed Method Research39

Rationale for Methodology40

Secondary Data40

Quantitative and Qualitative Data40

Connecting the Data41

Data Collection Method42

Sample Selection42

CHAPTER 04: FINDINGS43

Risk-Management Strategy47

Technology Qualification49

Risk Management Framework50

On-Stage: Risk Response51

Post-Stage: Risk Assessment52

Project Phases54

Project Execution54

Managing the Project and the Risk55

Contracts55

CHAPTER 05: CONCLUSION58

Direction for Future Investigation61

REFERENCES62

APPENDIX68

Questionnaire68

GLOSSARY OF TERMS/ABBREVIATIONS

IT - Information Technology

ERP - Enterprise Resource Planning

ERM - Enterprise Risk Management

SOX Act - Sarbanes-Oxley Act

VaR - Value at Risk

EIA - Energy Information Administration

LNG - Liquefied Natural Gas

RBV - Risk Based VerificationCHAPTER 01: INTRODUCTION

Outline of the Study

This dissertation will be divided into different ...