A number of risks are associated with these activities including inaccurate interpretation of data; unexpected drilling conditions; inadequate human or technical resource; subsurface risks; engineering, technical and mechanical risks; stakeholder risk, including misalignment of objectives; commercial risk; legal and regulatory risks, including the risk of compliance failures; political risks; failure to assess accurately the project schedule and cost; failure to select the most suitable development concept; cost and time overruns; health, safety, security and environmental (HSSE) risks; equipment shortages; unscheduled outages; and gas pipeline system constraints. In addition, Inflation in raw materials and in the costs of goods and services from industry suppliers and manufacturers presents risks to project economics. In addition, a company’s production volumes (and therefore revenues) are dependent on the continued performance of its production assets which are subject to a number of operational risks including those relating to equipment or limited plant availability due to plant maintenance or shutdowns; asset integrity and HSSE incidents (Hydrocarbon production and operations in harsh and remote working environments present a number of HSSE risks. These risks could result in injury or loss of life, damage to the environment or loss of certain facilities); adverse reserves recovery from the field; the performance of joint venture partners; and exposure to natural hazards such as extreme weather events.
03.08.2009

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