PROJECT MANAGEMENT IN THE GLOBAL OIL AND GAS INDUSTRY BY CO-CREATING STRATEGIC VALUE FOR THE INDUSTRY

Abstract

Project development and marketing on large oil and gas projects (LOGPs) by engineering-procurement-construction (EPC) contractors respond to massive capital investment (CAPEX) undertakings by oil and gas industry owners and takes on multi-lateral interactions carried out by a dozen actors proactively participating in the EPC contractors’ business ecosystem created to remain competitive toward owner companies, which form of project marketing is different from a straight forward contractor – owner interaction found in the other branches of contracting industry. Most of such interactions are based on strategic trust among the relevant members built over decades of heavy win-win transactions. This study has found the actors that compose the project development and marketing cycle in LOGPs, explored dominant logics of EPC contractor’s project development and marketing, and analysed how primary actors in LOGP development and implementation co-create strategic values for both the respective corporations and sustainable overall industry growth. The business ecosystem theory posits that a business ecosystem is an economic community supported by interacting organizations; the company holding a leadership role is valued by the community because it enables members to move toward shared visions to align their investments – this refers to the platform services theory and to find mutually supportive roles.

Keywords

• project development and marketing, large oil and gas projects (logp), strategic trust-based value co-creation, hard vehicle and soft vehicle of contractor competitiveness