Critical Risk Factors Associated with Schedule Delays in Gas Processing Facility Projects: Case Study in Indonesia

Critical Risk Factors Associated with Schedule Delays in Gas Processing Facility Projects: Case Study in Indonesia

Purpose: This research intends to provide project stakeholders with a thorough understanding of the risk landscape in gas processing projects from project owner's perspective, allowing them to navigate the maze of problems and ensure project success, thereby promoting energy security and economic growth. Design/methodology/approach: Survey employing focus group discussion (FGD) and questionnaires has been used empirically to identify significant risk factors in the Indonesian gas processing facility project. At first literature research revealed a total of 122 risk variables, of which 97 were validated in FGD by a panel of experts to have effect on the gas processing facility project. Then, questionnaires comprising 97 verified risk variables were delivered to 40 respondents, of whom 33 provided their feedback about the probability and impact of those risks on project schedule performance. The resulting data was evaluated using statistical descriptive analytic techniques, and the study quantifies the relative influence of each risk factor with the use of statistical tools SPSS 28. Findings: This paper found that Contractor financial problem and risks related to virus pandemic are prominent risk factors. Additional significant variables encompass engineering, procurement, construction, and commissioning (EPCC) related risk factors. Research limitations/implications: Further analysis still needs to be performed to explore how project critical risk findings affect cost and quality in other upstream oil and gas projects, and also in projects with different spectra such as in oil and gas downstream sectors. Originality/value: This study comprehensively identifies and analyzes key risks and further investigates the interdependencies and cascading effects of these risks on gas processing facility project, shedding light on their synergistic amplification of schedule burdens.