The challenges of executing projects on-budget and on-time in the UK and Norway
There has been a major increase in upstream activity and development investment in the UK and Norway over the past five years. This has led to a tight supply chain, cost inflation, delays and the erosion of project returns. As a result, industry is increasingly focused on project execution performance. Of the 100 new field developments sanctioned or brought onstream between 2009 and 2013, 74% are over budget and 70% are delayed. The average cost overrun is 18% and delay is six months.
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An unprecedented level of development activity
Fields brought onstream or sanctioned in the UK and Norway between 2009 and 2013