Project development and marketing in the global oil and gas industry – a constellation of stakeholders co-creating strategic value for the industry

Authors

DOI:

https://doi.org/10.32347/tit2021.42.0301

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

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 of 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.

References

Berends T.C. (2007). Engineering and construction projects for oil and gas processing facilities: Contracting, uncertainty, and the economics of information. Energy Policy, 35, 4260-4270.

Banerjee R., Bergen M., Dutta S., & Ray S. (2012). Applications of agency theory in B2B marketing: Review and fu-ture directions. In G.L. Lilien, & R. Grewal (Eds.), Handbook of business-to-business marketing, Cheltenham, UK: Edward El-gar Publishing, Inc, 41-46.

Bloomquist T. & Wilson T. (2007). Project marketing in multi-project organizations: A comparison of IS/IT and engineering firms. Industrial Marketing Manage-ment, 36(2), 206-218.

Construction Industry Institute (1994). Pre-project planning: beginning a project right way. Austin, USA: Construction In-dustry Institute.

Construction Industry Institute (2018). OPERATING SYSTEM 2.O” unlocking project value. Austin, USA: Construction Industry Institute. https://slideplayer.com/slide/14254402/.

Cova B., Ghauri P. & Salle R. (2002). Project marketing – beyond competitive bidding. Chichester: Wiley.

Cova B. & Salle R. (2007). Introduction to IMM special issue on ‘Project marketing and marketing of solutions’. A comprehen-sive approach to project marketing and marketing of solutions. Industrial Market-ing Management, 36(2), 158-172.

Engineering Advancement Association of Japan - ENAA (1996). Research report on ‘multi project management’ at Japanese EPC companies (in Japanese: unpublished). Tokyo: Engineering Advancement Associa-tion of Japan.

Engineering News-Record (2018). ENR’s Top 100 International Contractors. August 2017: Engineering News-Record.

Er M., Turner R., Lecoeuvre L. & Sankaran S. (2019). Marketing for the Project: Project marketing by the contractor. International Journal of Managing Pro-jects in Business, 12(1), 211-227.

Ernst and Young (2016) Spotlight on oil & gas mega projects: EYGM Limited

European Construction Institute (2018). Event report “Existential Crisis – Rethink-ing how capital programmes are deliv-ered”: European Construction Institute. http://www.eci-online.org/news/rethinking-how-capital- programmes-are-delivered-event-report/.

Eweje J.A. (2010). Investigating factors that affect project manager decisions on oil and gas megaprojects, and how they impact the realisation of strategic value (Unpublished doctoral thesis). Lille School of Management, Lille, France.

Eweje J., Turner R., & Müller R. (2012). Maximizing strategic value from megaprojects: The influence of information-feed on decision-making by the project manager. International Journal of Project Management, 30(6), 639-651.

Iansiti M., & Levien R. (2004). The keystone advantage: what the new dynamics of business ecosystems mean for strategy, innovation, and sustainability: Harvard Business Press.

International Energy Agency (2015). World energy outlook 2015: International Energy Agency.

Kaempf M., Haley S. (2011). Risk management in the Arctic offshore: wicked problems require new paradigms. ISER Working Paper 2011.3. UAA University of Alaska Anchorage Institute of Social and Economic Research (ISER). http://hdl.handle.net/11122/4066/.

Lecoeuvre-Soudain L. & Deshayes P. (2006). From marketing to project man-agement. Project Management Journal, 37(5), 103-112.

Merrow E.W. (2012). Oil and gas industry mega projects: our track record. Oil and Gas Facilities, April 2012 issue: Soci-ety of Petroleum Engineers, 38-42.

Mohammad M. and Price A. (2003). Procurement strategies for the oil and gas industry: conventional versus innovative approaches. IN: Proceedings of 2003 2nd Malaysian Research Group conference (MRG), Manchester, Great Britain, 27 September 2003.

Moore J.F. (1996). The death of compe-tition: Leadership & Strategy in the Age of Business Ecosystems. New York: Harper Business. ISBN 0-88730-850-3.

Oil & Gas Journal (2003). Study: Project management capability key to select-ing engineering contractors: Oil and Gas Journal July 14 2003 Issue.

Redda Y.T. (2016). Investigating and modelling the success of large oil and gas projects (unpublished doctoral thesis): SKEMA Business School, Lille, France.

Skaates M.A., Tikkanen H., Lindblom J. (2002) Relationships and project market-ing success. Journal of Business & Industrial Marketing, 17 Issue: 5, 389-406, https://doi.org/10.1108/08858620210439068.

Tanaka H. (2006a). The engineering & construction industry: a mature model for the future of project management success. Paper presented at PMI® Research Con-ference: New Directions in Project Man-agement, Montréal, Québec, Canada. Newtown Square, PA: Project Management Institute. https://www.pmi.org/learning/library/engineering-construction-model-project-management-success-8083.

Tanaka H. (2006b). Cross-cultural project management on major-sized global oil and gas plant projects. In Cleland, D.I. and Ireland, L. Ed. Project Manager’s Hand-book - applying best practices across global industries Chapter 10: The McGraw-Hill Companies, 151-165.

Tanaka H. (2014). Toward project and program management paradigm in the space of complexity: a case study of mega and complex oil and gas development and infrastructure projects. Procedia - Social and Behavioural Sciences Journal, 119: Elsevier, 65-74.

Tanaka H. (2018). EPC project market-ing in the global oil and gas industry - a constellation of stakeholders co-creating strategic value for both enterprises and sustainable industry overall growth: case study, working paper and summary presentation at Project Perspectives 2018 organized by European Institute for Ad-vanced Studies in Management (EIASM) and SKEMA Business School: SKEMA Business School, Lille France.

Tanji N., Tanaka H. & Bushuyev S.D. (2014). Benchmarking the state-of-the-art information and communication technology (ICT) infrastructure supporting management of major-sized engineering and construction projects. Управління розвит-ком складних систем, 18, ISSN 2219-5300, 11-16.

Thévenot L. (2001). Organized complexity: conventions of coordination and the composition of economic arrangements. European Journal of Social Theory, 4(4), 405-425.

Turner J.R. (2006). Partnering in projects – single project partnering, long-term partnering. In Cleland D.I. & Gareis, R. Ed. Global Project Management Handbook Second Edition. New York: The McGraw-Hill Companies, 20.1-20.14

Turner J.R., Hueman M., Anbari F.T., & Bredillet C.N. (2010). Perspectives on Projects. Routledge. London, UK, and New York, USA.

Turner J.R., & Lecoeuvre L. (2017). Marketing by, for and of the project: pro-ject marketing by three organizations. In-ternational Journal of Managing Projects in Business.

Tikkanen H., Kujala J., & Artto K. (2007). The marketing strategy of a project-based firm: The Four Portfolios Framework. Industrial Marketing Management, 36(2), 194-205.

Vargo S. & Lusch S. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1-17. https://doi.org/10.1509/jmkg.68.1.1.24036.

Yeo K.T. & Ning J.H. (2002). Integrating supply chain and critical chain concepts in engineer-procure-construct (EPC) projects. International Journal of Project Management, 20 Iss. 4.

Downloads

Published

2021-10-29

How to Cite

Tanaka, H., & Bushuyev, S. (2021). Project development and marketing in the global oil and gas industry – a constellation of stakeholders co-creating strategic value for the industry. International Scientific Journal "Transfer of Innovative Technologies", 4(2), 60–76. https://doi.org/10.32347/tit2021.42.0301

Issue

Section

Information Technology