Lukoil Overseas

Situation:

1. Start-up PMO and mega projects organisations servicing a growing international portfolio of onshore, offshore, upstream and downstream projects Iraq, Uzbekistan, Caspian, Kazakhstan and Former Soviet Union with value USD$40bn+.
2. Soviet culture of operations running projects with centralised “cookie cutter” engineering.
3. Significant gap between international oil and gas best practice and Russian practice.
4. No formal wells, drilling or surface facilities project control frameworks or management systems.
5. No formal HSE, social, process safety, asset integrity or security management systems. Simple 4 page OHSAS 18001 booklet.

Actions:

1. Formation of Integrated Project Management System (IPMS) unit as part of PMO.
2. Development of “HSSE in Projects” Manual – A Projects HSSE MS, embedding a project HSSE standards framework into the capital projects Phase Gate management system (Identify, Select, Define, Execute and Operate).
3. Development of project HSSE standards for Process Safety and Asset Integrity, Occupational Safety, Industrial Hygiene/Occupational Health, Environment and Social and Security.
4. Roll out and implementation of “HSSE in Projects” across major projects. Supported by certified HSSE in Projects training process and provision of consulting services to projects.
5. HSSE supported extensive projects peer review process.

•Results:

1. Formal and fully documented HSSE MS.
2. Quantum change in “HSSE in Projects” culture and results.
3. World class Iraq project teams (Mishriff and Yamama) consistently delivering outstanding HSSE performance.
4. Late but enthusiastic adoption in Russian major projects.
5. Viewed as a success - spawned the Operations Management System for West Qurna 2.