Abstract:
One of the major issues of oil and gas industry is risk management that nowadays has been challenged due to necessity for investing in complicated projects. So there has been a need to design a kind of contract with special structure and principles in order to provide the possibility of the best risk management. Project alliancing that in Iran engineering literature named Integrated Project Delivery (IPD) has been created in response to this kind of need and necessity. Such a novel approach has begun from England and nowadays is applied in some other countries such as Australia. So in this article, the Authors have studied the principles governing project alliancing in oil and gas industry from the perspective of risk confrontation strategies. This principles such as several liability in independent points of project, principle of gainshare-painshare and so on, have been discovered from reviewing template of project alliancing contracts, instructions and published articles. As a result the precise performance of these principles in the relationships of participants, provide the possibility of the best risk management such as Andrew Project performed by British Petroleum and its contractors.
Machine summary:
Investigating the principles governing Project Alliance Contracts in the oil and gas industry from the perspective of risk mitigation strategies Seyyed Nasrullah Ebrahimi 1, Samira Gholamdokht *2 1.
In response, it must be said that the principles governing Project Alliance Contracts have provided a more suitable environment for optimal project execution and risk mitigation, making the achievement of such results possible.
In other words, the strategy of risk avoidance and acceptance can be seen as two sides of the same coin; therefore, the study of risk acceptance and avoidance strategies, considering the special nature of Project Alliance Contracts, has been conducted, from which three principles can be extracted: the principle of individual responsibility in the area of independence, the principle of non-interference, and the principle of joint management.
Now the question arises: if each member has individual responsibility regarding their own area of independence and, based on the principle of non-interference, refrains from accepting the potential risks of other areas, then how can an alliance contract be considered a type of partnership contract?
Regardless of the type of classification, the risk sharing strategy in a project alliance contract is observed in the form of three principles: joint and individual responsibility at project connection points, decision-making based on the best interest of the project, and sharing of cost and benefit.
In such contracts, the risk reduction strategy is incorporated in the form of the principles of "Cooperation 1", "Coordination 2", "Open and Honest Communications 3", "Trust 4", "Principle of No Dispute 5", and "No Blame Culture 6", which we will explain in detail below.
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