A West African LNG project was approaching commercial start-up and needed to develop a comprehensive set of operational procedures to support the commercial team in the operations of the project.
Gas Strategies worked closely with the Client’s Commercial team to identify, develop and implement a suite of internal procedures to ensure that commercial and operational risks and contractual rights and obligations would be managed efficiently upon commencing operations.
Initially the rights and obligations embodied in the agreements were identified and recorded. From these lists the contractual processes, linking different rights and obligations were identified and each contractual process was then mapped out and described as a flow chart. These flow charts were then used in conjunction with the project’s organisation, roles and responsibilities, information systems and delegation of authorities to draft project commercial procedures.
A key part of the support provided to the Client included advising on and defining the interfaces, roles and responsibilities of key processes with the Commercial team and sharing and agreeing the roles and responsibilities with the Operations, Finance and Legal and other teams to implement and operationalise all contracts effectively across the wider project organisation.
The procedures that were developed were written as a set of clear instructions to be followed by operators and form the basis for a reference guide to be used by all teams (Commercial, Legal, Finance and Operations) in dealing with day-to-day commercial activities as well as non-routine events.
Furthermore the roles and responsibilities for each team and individual were incorporated into the drafted commercial procedures. This helped our Client to build teams and identify required capabilities, as well as to identify the risks and gaps in operations, and put in place governance of decision-making with respect to key commercial and operational processes.