The construction of a gas pipeline from the North Slope to markets in Canada and the lower 48 has long been a priority for Alaska and a major factor in state politics.  The passage of the Alaska Gasline Inducement Act (AGIA) in 2007 presented the industry with a new approach to funding and licensing such a project.  It also presented the State’s Department of Natural Resources with unprecedented challenges in organizing and implementing a process for obtaining and evaluating applications to build the pipeline.

We assisted the State in designing the Request for Applications and implementing an application evaluation process incorporating assessments of likelihood of success.  As a result of these efforts, Westney Consulting Group was specifically recognized in a news conference by the Governor of Alaska and the Commissioner of the Department of Natural Resources for its contributions to the success of the Alaska Gasline application process.

This company provides upstream developments with custom-built facilities using its proprietary process technology and was accustomed to smaller projects which could be managed successfully on an ad-hoc basis.  They needed to improve profitability and predictability as well as develop an improved capability for larger more complex projects.  An improvement initiative was therefore initiated under the direct leadership of the CEO.

We supported this effort by benchmarking the organization and performing a gap analysis relative to the competencies required for future projects, then worked with a leadership team to implement recommendations. As a result of these efforts, although management expected that 18 to 24 months would be needed for meaningful improvements to materialize, in fact margins improved significantly in only 9 months, and the company was able to take on much larger projects one year earlier than expected.

A major chemical manufacturer was engaged in a joint venture to develop a multi-billion dollar production facility in the Middle East – a location with which their construction experience was limited. 

We assisted the joint venture in developing an improved understanding of the strategic risks facing the project, the associated financial risk exposure, and the alternative execution strategies available to address those risks and ensure an acceptable financial result.  As a result of these efforts, the board of directors implemented a significant change in strategy, thereby avoiding what would otherwise have been significant delays and cost overruns. 

A major, diversified holding company with significant investments in a portfolio of capital construction projects needed an independent assessment of the potential cost and completion dates for key projects in order to plan financing strategies and have the information needed for disclosure in an upcoming 10K report.

We supported the board of directors of the holding company and executive management of the operating company in assessing the risks, providing a probabilistic analysis of costs and completion dates, and developing strategic options to reduce risk.  As a result of these efforts, the board had timely information to meet disclosure requirements and implement effective mitigation strategies.

A large independent oil company had a growing portfolio of major development projects, combined with and a strong culture of flexibility and individual independence.  Improvements in project predictability and performance were needed, but success depended on gaining acceptance that a formal methodology would truly enhance project management effectiveness.

We supported the development of the enhanced work processes and involved key players in the assessment of current capabilities (when compared to the demands of the project portfolio) and in a series of rollout meetings.  As a result of these efforts, when the company found itself competing for the role of operator on a challenging and critically important deepwater project, it was able to be successful due to its ability to gain confidence by the non-operators due to the effectiveness of its PM process and organization.

A developer of alternative energy projects was engaged in the front-end engineering and planning of a multi-billion dollar coal gasification & liquefaction project.  The ability to achieve financial close was the critical factor for the project to proceed, and this, in turn, required a thorough understanding of risks and development of strategies for their cost-effective allocation.

We supported the developer, engineering contractors, independent engineer, and lender in facilitating a comprehensive assessment of the major risks to completion, and the development of an execution strategy that was responsive to these risks and conducive to achieving financial close.  As a result of this program, the developer made significant adjustments to the front end strategy and was able to developed an improved approach to risk management.

A supermajor, committed to a significant refinery expansion to handle synthetic crude, had identified team effectiveness as a major risk factor to cost and schedule.  Executive-level concerns existed about the owner’s team, the refinery operations team, and the contractor’s team, both individually and collectively.  

We provided an independent assessment of team effectiveness, identified major issues and areas for improvement, and proceeded to work with management to implement services to improve team alignment and resolve organizational issues, resulting in a significant improvement in performance.

An international oil company was developing its multi-year strategy for its path forward in a major oil producing nation.  In spite of huge investments, all options from exit to major increases in investment were on the table, and significant political, economic and logistical risks had to be considered.  The company was well aware of the changing role of international oil companies and the increased power and influence of host countries holding most of the world’s hydrocarbon reserves.

We supported the CEO of the client’s in-country operating company by facilitating a strategic business / country planning process involving a diverse team of international executives and outside experts.  As a result of this process, the company developed an innovative strategy that leveraged competitive advantages, reflected lessons learned, and addressed major risks.

An international oil company was engaged in a major program of developments in a joint venture with a national oil company representing a large percentage of the world’s hydrocarbon assets.  This massive development had to be managed as a program of projects, and required a sophisticated strategy and management plan, reflecting, among other things, the many and complex interfaces to be managed.

We supported the management team of the overall program as well as an individual project management team in the dcvelopment of program – level strategies and project – level execution plans.  As a result of this effort, the client improved alignment of the major stakeholders and enhanced planning effectiveness.

An international petrochemical company and its Chinese partner were developing a major chemical manufacturing facility in China.  The partners were challenged to implement an integrated organization, develop program execution strategies appropriate to a project of this magnitude, and implement Value Improving Practices such as Process Simplification, Value Engineering and Constructability.

We supported the project team in facilitating program planning, aligning the organizations, and implementing value improving practices (VIPs).  As a result of VIP implementation, savings of over $75 million were identified.

The merger of two oil companies created a new organization which would be taking on a much more challenging project portfolio than either company had previously. Management was, nevertheless, under pressure to achieve synergies by eliminating in-house capabilities and staff and needed the ability to demonstrate the financial value of an in-house engineering and project management function.

We evaluated the company’s upstream project portfolio in terms of project risk, size, complexity etc., and translated this to a risk-driven competency model.  The impact of project delivery system effectiveness on “capital at risk” was evaluated as a means of determining the value of improving the delivery system organization. This client implemented Westney’s recommendations including the development of major capabilities that had not existed in the company prior to that time.  It is now considered a very strong player for major international projects.

When a large national oil company became publicly traded, its executives identified a need to ensure that its large upstream CAPEX investment portfolio was being managed in accordance with the latest thinking and best practices.  Of particular interest was the cost-efficiencies associated with projects in the Gulf of Mexico.

Partnered with a leading engineering firm, we developed and presented a series of management seminars covering current best practices and trends in CAPEX portfolio management, project management, and field development.  In addition, we and our engineering partner provided full-time consulting to project teams to facilitate the introduction of improved work processes.  As a result, the client improved portfolio planning and project performance.