LEGENDRE: PROJECT MANAGING AN INNOVATIVE DEVELOPMENT

Abstract

This paper describes the development of the Legendre Oil fields from a project management perspective, and reflects on the contracting strategies and management style adopted in order to make a relatively small field of 44 MMbbl (6.998MkL) economically viable.

The fields are due to come on stream in mid 2001, utilising a converted jack-up production facility and FSO tanker.

The contracting of the main production facility and FSO under ‘service agreements’ means that contactors are fully responsible for the conversion, maintenance and operation of the facilities. Nevertheless, Woodside as Operator retains responsibility for operations under the prevailing legislation.

The ‘service agreements’ were developed through building on Apache’s experience in the Stag Project. They enable strong alignment in the objectives of both the Joint Venture Partners (JVP) and contractors, but require vision and more attention to detail in comparison to conventional contracting strategies since the Agreement must cater for the full field life and potentially beyond. This paper discusses the learning gathered and the successes achieved in meeting the project objectives and sharing risk.

Additionally, the experiences in developing trust and confidence in the ability of a third party to commission and operate production facilities on Woodside’s behalf are examined.

In presenting the paper, we will give an up to date and topical summary of the project.