Benchmarking: Does Your Project Measures UP?
Updated: Nov 14, 2022
By: Tariq Siddiqui
Benchmarks, provides a reality check to pre final investment decision (FID) assessment on key project measures and potential post FID performance. They also serves as competitive comparison of the company's performance to the industry peer group.
Mega industrial projects (> $1.0 Billion) are serious undertaking. The benchmarks indicate that only 20 % of E&P mega project succeed, as compared to the 50% of mega project in the other industries (ex:power). Will your project be successful or a Failure?? I strongly suggest you read ‘Industrial Mega Projects’ by Edward Merrow. According to Ed, ‘In 300 global mega projects, 65% failed to meet the stated business objectives and most of them were unprofitable.
In this video, we will look at how Front-End Loading (FEL) and project measures help benchmark the upstream capital projects and improve their profitability and reliability.