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Title Developing Block 2 Angola: A multidimensional approach to managing development risk
Creator/Author Morris, R.L. ; Romero, R.R.
Publication Date1996 Dec 01
OSTI IdentifierOSTI ID: 415699
Other Number(s)JPTJAM; ISSN 0149-2136
Resource TypeJournal Article
Resource RelationJPT, Journal of Petroleum Technology ; VOL. 48 ; ISSUE: 12 ; PBD: Dec 1996
Subject02 PETROLEUM ; ANGOLA; OIL FIELDS; RESERVOIR ENGINEERING; PROGRAM MANAGEMENT; RESOURCE DEVELOPMENT; WARFARE; OFFSHORE SITES
Description/Abstract This case study focuses on a$380-million project involving development of eight new offshore fields in Block 2 Angola, which became a success story despite facing major obstacles during early phases of the project. This study highlight how a multidimensional approach to managing risk and uncertainty, coupled with excellent cooperation with partners and government, can lead to an economic success. With the interruption of the Angolan peace process in 1992, Block 2 was directly affected during the construction phase of the project. For a 2-year period and until the signing of the Lusaka Peace Accords in 1994, which re-established a cease-fire in Angola, mitigation of risk and uncertainty became the primary driver in completing this project. As a minority shareholder in Block 2, Texaco Angola (Texaco-Panada Inc.--Angola) as operator needed to gain consensus among all its partners and the government for a revised development plan, taking into account some very divergent views of the risks facing the partnership. Ensuring the security of personnel, continuity of income, and maintaining sound project economics were required to gain the consensus needed to move ahead. A complete redesign of the development concept ensued while in the construction phase. The result was that this project was completed approximately 3 years later with acceptable economics. Unconventional and innovative design, financial hedging, and project-management solutions are highlighted to illustrate how this was accomplished.
Country of PublicationUnited States
LanguageEnglish
Formatpp. 1123-1126 ; PL:
System Entry Date2001 May 05

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