Analysis of Oil Well Drilling Costs in Different Locations with PERT-CPM Project Planning Techniques

Globalization and increasing competition made the completion of projects on time foreseen and with available resources mandatory. Therefore, to conduct the cost and the time components of projects at the optimal level, effective project management is needed and project planning techniques are utilized. For large-scale projects, the most important source of success is certainly a good project plan and project management. The productivity of the projects will increase with a good project management and it creates opportunities for companies. The purpose of this study is to make the project plans of the projects of oil well drilling with similar depths in different locations by using PERT-CPM projectplanning techniques and to reveal how the differences of location affects the time and costs of the projects. Another purpose is to make the implementation of the project-planning techniques in a different sector be contributed to the literature. The implementation of the PERT-CPM techniques on two oil well projects is included in the study via WINQSB program. The time of the activities to be performed were estimated for the relevant projects and the project plans were prepared. Besides, the transactions of the total costs estimations were carried out. Budget constraints were determined by the project engineers of the Company, the acceleration acts to each point of time possible under these budget constraints were performed, and out of these accelerated project plans, optimal project plans were obtained for each well. Based on the assumption that no delays occurred in the activities during the projects, it was projected that as a result of the implementation of the optimal plans, the relevant projects could be completed before their expected completion times with 13,89% and 7,36% profits, respectively. Consequently, it is thought that it would be beneficial to the companies to use the new project plans made in accordance with the optimal acceleration points at the management and control stage of the projects having high cost and risk elements. The study, which based on the data supplied from a petroleum company, was carried out in cooperation with the Petroleum Engineers having field experience.

Keywords:

Project Management, drill, different locations, cost time,

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