Case Study

Outsourcing in the oil & gas contracting industry: The Snorre B project

20 pages
August 1999
Reference: IMD-6-0214

The case is based in the Oil & Gas Contracting Industry and uses a particular project; ‘The Snorre B Project’ as the vehicle to explain the outsourcing trends in this industry. The Snorre B project involves the design and construction of a semi-submersible oil platform for insulation in the North Sea on the Norwegian Shelf. The project represents the first experience for both the operator – SAGA Petroleum, and the contractor – Kvaerner Oil & Gas (KOGAS) Norway to work with the new type of EPCI (Engineer, Procure, Construct, and Install) contract. In essence the contractor assumes the responsibility for managing all the phases of the project, as compared to the more traditional approach where different contractors were responsible for the engineering, procurement, construction and installation of the platform. The case highlights some of the challenges of outsourcing the management of a project of this magnitude, and also the importance of getting the contracts right so as to ensure a common goal among the partners. In particular the case deals with the management and allocation of risk between the partners.

Keywords
Outsourcing, Risk Management, Production Management, Operations Management
Settings
Norway
1998-1999
Type
Field Research
Copyright
© 1999
Available Languages
English
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Looking for something specific?
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics