A Study of the Sources and Mitigation Strategies of Financial Risks in Large-Scale Maintenance Projects

Turnaround/Shutdown maintenance is one of the major maintenance activities for Oil & Gas and petrochemical plants. To implement the maintenance activities such as asset integrity checks, long pending repairs, and major overhauls the plant should be shutdown. These activities shall be carried out on a periodic basis to optimize a plant's performance, to meet statutory requirements such as government and Insurance norms. Normally complete plant shutdown during turnaround maintenance is taking place for 50 days and organizations normally hire external contractors to execute these massive activities in abbreviated period. Companies have economic loss during Turnaround time because of production loss, business opportunity loss, higher maintenance cost and Health, safety, and environmental issues. Projects are nanced from company prots in the year in which they are executed. This study shares industrial best practices to reduce nancial risk by reducing loss of prot which is occurring because of turnaround maintenance projects. This explore deliberates principal project cost constraints and industry best practices to address those risks.