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Engineering Projects in the Oil and Gas Industry: A New Look at Old Problems

Author

Listed:
  • T. N. Omysheva

    (LLC LUKOIL-Engineering)

  • S. V. Razmanova

    (Branch of LLC All-Union Scientific Research Institute of Natural Gases and Gas Technologies— Gazprom VNIIGAZ)

  • E. G. Chernova

    (St. Petersburg State University)

Abstract

In the context of sanctions restrictions and import substitution, the modern engineering market in the Russian oil and gas industry is looking for methods and tools that can reduce the severity of the main problems in the implementation of projects, namely, exceeding the budget and deadlines for their implementation. This article examines key aspects of large oil and gas projects: cost overruns (due to the huge unforeseen capital expenditures involved) and schedule variances. The aim of this study is to analyze the reasons for budget overruns and delays in the implementation of projects in the oil and gas sector. The paper provides an overview of foreign studies from the standpoint of the success of oil and gas projects, as well as a new look at design, procurement, and construction in terms of digital transformation for the implementation of capital projects. The ways of practical use of the results of the conducted analysis are proposed, including approaches for developing our own product in Russia, including contracting based on EPC, EPC(M) and industry 4.0 solutions, which could potentially become a significant breakthrough for capital projects in Russia. Conclusions were drawn that the application of cost engineering tools helps reduce the risks of project implementation deadlines being missed and their cost being exceeded.

Suggested Citation

  • T. N. Omysheva & S. V. Razmanova & E. G. Chernova, 2025. "Engineering Projects in the Oil and Gas Industry: A New Look at Old Problems," Studies on Russian Economic Development, Springer, vol. 36(3), pages 368-377, June.
    • Handle: RePEc:spr:sorede:v:36:y:2025:i:3:d:10.1134_s1075700725700091
    DOI: 10.1134/S1075700725700091
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    References listed on IDEAS

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    1. Odeck, James, 2004. "Cost overruns in road construction--what are their sizes and determinants?," Transport Policy, Elsevier, vol. 11(1), pages 43-53, January.
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