Final Presentation

Submitted To:
Dr.Saber Elmabrouk

Prepared By:
Abdelhakim Betamar

Dept:
Engineering Project Management

Reg No:
21400452 Risk Management
RISK MANAGEMENT
Introducing Directional Drilling Services To The Libyan
Market
 Contents
Introduction
Objectives
Directional Drilling
Risk Management
Risk Identification
Strategic Risks
Operational Risks
Compliance Risks
Financial Risks
Personnel Risks
Risk Monitoring
Information Gathering Tools
Conclusion
 Introduction
VPS is a Petroleum
Services Company
providing a range of
services to Oil Operators,
some other Service
Companies and Drilling
Contractors as well

Before it is time to the yearly budget meeting the

Country Manager is planning to introduce and add a
new service to his portfolio
 Why is the company introducing a new
service ? (Objectives)

Customer Satisfaction

Profit

Growth

Market Leadership

Diversification
 Directional Drilling
Is the practice for drilling non-vertical wells
 Directional Drilling (Cont)
How do we do this ?

This will be accomplished through

the use of tools and Instruments in

the “drill-string”, the tools will be

assembled and configured to drill

the well bore as per the planned path

and the instruments will help doing

this by transmitting dozens of measurements

about this path form down hole to surface

 Directional Drilling (Cont)
Why wells are drilled directionally ?

 Increasing the exposed

section length through
the reservoir

 Drilling into the

reservoir where vertical
access is difficult or not possible.

 Allowing more wellheads to be grouped together on one surface

location

 Drilling along the underside of a reservoir-constraining fault

 Risk Management

Every business faces risks that could

present threats to its success.

Therefore risk management should

be a central part of any business
strategic management

Risk Management helps you to identify

and address the risks facing your business and in doing so increase
the likelihood of successfully achieving your businesses
objectives.
 Risk Management Process

Risk
Risk
Identification
Identification

●
Process ●
Review Meetings
●
Strategy ●
Reports
●
Information
Gathering Tools

Risk
Risk Risk
Risk Monitoring
Monitoring
Management
Management
Do We Really know Our Risks ?
 Risk Identification
RISK
Personn Strategi
el c

Financi Operati
al onal

Complia
nce
 Strategic Risks
Changes Among Customers or in Demand

Competitors

Negative Impact to Reputation/Loss of Trust

Merger and Acquisition Activities

Failure to Achieve Objectives

Political and Security Issues

Research and Development

 Risk Assessment
Impact

Severe Significant Moderate Minor Negligible Probability

(10) (8) (5) (3) (1)
50 40 25 15 5 Very Likely to Occur (5)

40 32 20 12 4 Likely (4)

30 24 15 9 3 Possible (3)

20 16 10 6 2 Unlikely (2)

10 8 5 3 1 Very Unlikely (1)

 Strategic Risks Assessment
Responsibility Rate Impact Probability Strategic Risk
Marketing/ 24 Significant(8) Possible(3) Changes Among Customers
Operation or in Demand
Marketing 32 Significant(8) Likely(4) Competitors
Country 30 Severe(10) Possible(3) Negative Impact to
Manager/ Reputation/Loss of Trust
Marketing
Board of 24 Significant(8) Possible(3) Merger and Acquisition
Directors Activities
Country 30 Severe(10) Possible(3) Failure to Achieve
Manager Objectives
Country 40 Severe(10) Likely(4) Political and Security Issues
Manager
Board of 40 Sever(10) Likely(4) Research and Development
Directors
 Strategic Risks
R&D Customers
18% 11%
Competitors
15%

Political & Secuirity

18%
Reputation
14%

Objectives Merger
14% 11%
 Strategic Risks Responses
Changes Among
Customers or in Demand

Competitors

Negative Impact to
Reputation/Loss of Trust

Merger and Acquisition

Activities

Failure to Achieve
Objectives

Political and Security

Issues

Research and
Development
 Operational Risks
Tool failure or Damage

Loss of Tools and Equipment

Maintenance

Failure to Coordinate and Deliver Services

Operator Inefficiency/Errors

Suppliers and Service Providers

IT Systems
 Operational Risks Assessment
Responsibility Rate Impact Probability Operational Risk
Operation 32 Significant(8) Likely(4) Tool failure or Damage
Country 40 Severe(10) Likely(4) Loss of Tools and
Manager/ Equipment
Operation/
Legal
Operation 32 Significant(8) Likely(4) Maintenance
Country 24 Significant(8) Possible(3) Failure to Coordinate and
Manager/ Deliver Services
Operation
Operation/HR 30 Severe(10) Possible(3) Operator Inefficiency/Errors
Operation/ 24 Significant(8) Possible(3) Suppliers and Service
Procurement Providers
Operation/IT 30 Severe(10) Possible(3) IT Systems
 Operational Risks

IT Systems Tools Failure

14% 14%
Suppliers
14% Equipment Loss
17%

Operators Errors
17%

Maintenance
14%
Service Delivery
10%
 Operational Risks Responses

Tool Failure or Damage

Loss of Tools and

Equipment

Maintenance

Failure to Coordinate and

Deliver Services

Operator
Inefficiency/Errors

Suppliers and Service

Providers

IT Systems
 Compliance Risks
Breach of Local Statutory Laws or Tax System

Breach of Company Business Principles

Operating License

Complications and Bureaucracy

Environmental Regulations

Health and Safety Regulations (Employees/Workplace)

Contracts/Agreements

Client Data Protection

 Compliance Risks Assessment
Responsibility Rate Impact Probability Compliance Risk
Country 30 Severe(10) Possible(3) Breach of Local Statutory
Manager/ Laws or Tax System
Legal
Country 30 Severe(10) Possible(3) Breach of Company
Manager Business Principles
Country 30 Severe(10) Possible(3) Operating License
Manager
Country 40 Significant(8) Very Complications and
Manager/PR Likely(5) Bureaucracy
Safety 30 Severe(10) Possible(3) Environmental Regulations
Safety 30 Severe(10) Possible(3) Health and Safety
Legal 30 Severe(10) Possible(3) Contracts/Agreements
Operation/IT 30 Severe(10) Possible(3) Client Data Protection
 Compliance Risks

Client Data Protection

Contracts
12%
13% Laws/Tax
12%
Company Principles
Health & Safety
12%
13%
Operating License
13%

Environmental Complications/Bureaucracy
12% 16%
 Compliance Risks Responses
Breach of Local Statutory
Laws or Tax System

Breach of Company
Business Principles

Operating License

Complications and
Bureaucracy

Environmental
Regulations

Health and Safety

Contracts/Agreements

Client Data Protection

 Financial Risks

Investment (Funding)

Cash Flow

Currency Exchange Rates

Receivables

Cost Fluctuations
 Financial Risks Assessment
Responsibility Rate Impact Probability Financial Risk
Board of 30 Severe(10) Possible(3) Investment (Funding)
Directors/
Country
Manager
Country 30 Severe(10) Possible(3) Cash Flow
Manager/
Finance
Finance 24 Significant(8) Possible(3) Currency Exchange Rates
Operation/ 24 Significant(8) Possible(3) Receivables
Marketing/
Finance
Procurement/ 24 Significant(8) Possible(3) Cost Fluctuations
Finance
 Financial Risks

Cost Fluctuations Investment

18% 23%

Receivables
18%

Cash Flow
23%

Exchange Rates
18%
 Financial Risks Responses

Funding (Investment)

Cash Flow

Currency Exchange Rates

Receivables

Cost Fluctuations
 Personnel Risks

Professional and Special Expertise

Expatriate Issues

Insufficient or Lack of Skills

Strikes and Poor Employment Relations

Recruitment and Employment

 Personnel Risks Assessment

Responsibility Rate Impact Probability Personnel Risk

Operation/HR 40 Severe(10) Likely(4) Professional and Special
Expertise
HR/PR 30 Severe(10) Possible(3) Expatriate Issues
Operation/HR 30 Severe(10) Possible(3) Insufficient or Lack of Skills
Country 24 Significant(8) Possible(3) Strikes and Poor
Manager/HR Employment Relations
Country 30 Severe(10) Possible(3) Recruitment and
Manager/HR Employment
 Personnel Risks

Recruitment
16% Professionals & Experts
27%
Employment Relations
16%

Expatriate Issues
Insufficient Skills 21%
20%
 Personnel Risks Responses
Professional and Special
Expertise

Expatriate Issues

Insufficient or Lack of
Skills

Strikes and Poor

Employment Relations

Recruitment and
Employment
 Monitoring Risks

Evaluation (Actual/Planned)

Ensure Planned Changes do not Introduce Further or New Risks.

Regular Meetings /Management Reviews

Reporting

Use of Management Systems Standards (ISO)

Audits
 Information Gathering Tools

Meetings (Brainstorming)
Experience

Reports

SWOT Analysis
 Conclusion

There is no doubt about the increasing changes and

challenges facing our business today and this definitely
makes Risk Management a fundamental substantial
feature in our business activities, the use of risk
management practices allow us to strengthen our
organization through informed strategic and business
decisions so we can continue to meet our objectives and
goals.