Risk management in oil and gas construction projects in Vietnam

Nguyen V. Thuyet, Stephen O. Ogunlana, Prasanta K. Dey*

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

Purpose - The purpose of the paper is to the identify risk factors, which affect oil and gas construction projects in Vietnam and derive risk responses. Design/methodology/approach - Questionnaire survey was conducted with the involvement of project executives of PetroVietnam and statistical analysis was carried out in order to identify the major project risks. Subsequently, mitigating measures were derived using informal interviews with the various levels of management of PetroVietnam. Findings - Bureaucratic government system and long project approval procedures, poor design, incompetence of project team, inadequate tendering practices, and late internal approval processes from the owner were identified as major risks. The executives suggested various strategies to mitigate the identified risks. Reforming the government system, effective partnership with foreign collaborators, training project executives, implementing contractor evaluation using multiple criteria decision-making technique, and enhancing authorities of project people were suggested as viable approaches. Practical implications - The improvement measures as derived in this study would improve chances of project success in the oil and gas industry in Vietnam. Originality/value - There are several risk management studies on managing projects in developing countries. However, as risk factors vary considerably across industry and countries, the study of risk management for successful projects in the oil and gas industry in Vietnam is unique and has tremendous importance for effective project management.

Original languageEnglish
Pages (from-to)175-194
Number of pages20
JournalInternational Journal of Energy Sector Management
Volume1
Issue number2
DOIs
Publication statusPublished - 27 Jun 2007

Keywords

  • gas industry
  • oil industry
  • project management
  • risk management
  • Vietnam

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