Cost Overruns in Hydrocarbon Megaprojects: A Critical Review and Implications for Research

Olaniran, Olugbenga Jide and Love, Peter E. D and Edwards, David and Olatunji, Oluwole Alfred ORCID: https://orcid.org/0000-0002-9726-4218 and Matthews, Jane (2015) Cost Overruns in Hydrocarbon Megaprojects: A Critical Review and Implications for Research. Project Management Journal, 46 (6). pp. 126-138. ISSN 8756-9728


Abstract

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.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 05 May 2022 03:35
Last Modified: 05 May 2022 03:35
Uncontrolled Keywords: cost overrun; hydrocarbon; learning; megaprojects; research
Fields of Research (2020): 33 BUILT ENVIRONMENT AND DESIGN > 3302 Building > 330299 Building not elsewhere classified
33 BUILT ENVIRONMENT AND DESIGN > 3302 Building > 330207 Quantity surveying
33 BUILT ENVIRONMENT AND DESIGN > 3302 Building > 330203 Building industry studies
Socio-Economic Objectives (2020): 12 CONSTRUCTION > 1299 Other construction > 129999 Other construction not elsewhere classified
Identification Number or DOI: https://doi.org/10.1002/pmj.21556
URI: http://eprints.usq.edu.au/id/eprint/48068

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