Cost overruns in hydrocarbon megaprojects: a critical review and implications for research
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journal contribution
posted on 2016-12-01, 00:00 authored by O J Olaniran, P E D Love, D Edwards, O A Olatunji, Jane MatthewsJane Matthews© 2015 by the Project Management Institute Cost overruns are prevalent in hydrocarbon (oil and gas) megaprojects. A recent report indicates that 64% of ongoing megaprojects globally are facing cost overruns. Despite their increasing occurrence, there has been limited published research in the mainstream literature that has specifically examined why and how they occur. Consequently, suggestions regarding how to constructively address cost overruns in hydrocarbon megaprojects are scant. To better understand the causal nature of cost overruns in hydrocarbon megaprojects, this article provides a critical review of the extant literature. Findings from the research indicate that complex interactions between project characteristics, people, technology, and structure and culture contribute to cost overruns occurring. As a result, it is suggested that chaos theory can be used to explain how cost overruns arise in hydrocarbon megaprojects. This article provides a reference point for engendering future research in this pervasive and fertile area.
History
Journal
Project Management JournalVolume
46Issue
6Pagination
126 - 138Publisher
SAGE PublicationsLocation
London, Eng.Publisher DOI
ISSN
1938-9507eISSN
1938-9507Language
engPublication classification
C1.1 Refereed article in a scholarly journalUsage metrics
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