Petronas' contractor compliance index and some recommendations for E&P project management in Vietnam
Abstract
The model of management and supervision of oil and gas exploration and production activities in Malaysia has many similarities with Vietnam, ie. mainly applying the form of product sharing contract (PSC); the National Petroleum Company (Petronas, Vietnam Oil and Gas Group) represents the host country directly managing oil and gas exploration and production activities.
Since 2013, Petronas has issued a Contractor Compliance Index (CCI) to evaluate the performance and compliance level of contractors/operators who implement oil and gas exploration and production projects in Malaysia with specific criteria and details based on Petronas Procedures and Guidelines for Upstream Activities (PPGUA).
The CCI consists of 112 criteria which are divided into 12 main components: HSE, exploration, development, production, subsurface, drilling, commercial and tendering, finance, technical data submission, training commitment, Malaysianisation, work programme and budget. Each component may have one or more sub-components and indicators (112 criteria in total) where the contractors/operators will be assessed, evaluated and the final score will be classified as Good, Fair, Unsatisfactory and Poor. The procedure of annual assessment of contractors/operators is defined by Petronas based on PPGUA.
The article analyses and assesses Petronas’ management of contractors/operators and points out the major components of criteria while suggesting the method to use this guidelines in similar conditions of Petrovietnam.
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