OGF Article Integrated Project Delivery: A Paradigm Shift for Oil and Gas Projects in the UAE and the Middle East Region

SPE.org 

In the BP Statistical Review of World Energy (BP 2014), it was cited that consumption and production have increased for oil and natural gas to record levels across the globe. In parallel, hydrocarbon companies have been ramping up spending to meet those capital needs. Developing economies nonetheless strive to dominate global energy supply, accounting for 80% of growth last year and nearly 100% of growth over the past decade (BP 2014). These figures are directly in proportion to projects that have schedule delays; as an example, 87% in the Middle East, 82% in Africa, and 80% in Asia Pacific. In relation to the size of cost overruns and scheduled delays, it was highlighted that 65% of the projects analyzed were facing cost overruns, with an average increase of 23% of the approved budget (EY 2014).