A large E&P company needed to understand the likelihood of success for a significant LNG investment
The proposed megaproject represented the largest single investment that the client had ever considered. The project was expected to generate billions of dollars in revenue and thousands of direct hire jobs during it’s 40-50 year operations, all of which created significant scrutiny for the project.
The client was in the process of selecting a concept to commercialize a significant gas resource, and needed an independent expert’s view on the likelihood of project success given the preferred concept and current project parameters. It was crucial for the client to have a firm understanding of the project’s likelihood of success given the current market conditions.
Westney completed a thorough readiness assessment based on 42 Predictability FactorsTM that determine the likelihood of project success
Using our proprietary Predictability Calibration® diagnostic, the Westney team interviewed project team members from both the owner and key contractors. The project was rigorously evaluated on 42 Predictability Factors™ that cover the key determinants of project success.
Key deliverables included:
» “Actual” scores on where the project currently stands relative to what should be expected at the current level of project maturity
» “Achievable” scores based on what is achievable for this particular project, given market and other conditions
» Easy-to-understand, board-level presentation that helps the client quickly identify major risks and opportunities for improvement
» Detailed recommendations regarding how project predictability and performance could be improved
Our independent assessment provided the client with a level of insight they could not have achieved on their own
The client was able to use this diagnostic to facilitate a risk-informed decision-making process with key project stakeholders, including the board of directors and executive management. In the end, Westney gave them a view into their project that led the client to make a decision that they likely would not have reached based on their own analysis. The result was a highly-informed decision regarding a megaproject with significant financial risk.
For more information, read about our approach to assessing project readiness using our proprietary Predictability Calibration ® project diagnostic.