Case studies

Risk management for Petrom’s “Modernization of 5000 wells” program, project awarded in Helsinki with the IPMA 2009 excellence award

Scope of the program

The objective of the program was the improvement of the environmental performance and the increase of efficiency of 5049 wells in Romania. The following were intended: reduction of production cost, increase of the production volumes and increase of the operational safety.

The program named Modernization of 5000 wells of Petrom

Work at each well location included cleaning of the location, fixing the soil, treatment of slam and management and elimination of waste. In the case of the beam pumping units, the engines have been equipped with new braking devices. All units have been painted with a new layer of paint to protect them against rust.

Our objective

Our contribution was determining the confidence degree for completing the objectives of the project, as well as setting the risk management plans.

We monitored the evolution of the project by running risk analyses in various stages in the course of the project and we ensured its protection against external events.

The program named Modernization of 5000 wells of Petrom

Carrying out

1. Organizing workshops to identify the risks at project level

Organizing workshops to identify the risks at project level

After the analysis meetings to identify and analyze the events which may occur, a risk register resulted, which contains 52 events (threats or opportunities).
At the level of each risk, we established a cause, an effect, the occurrence probability, the impact on the objectives and we identified the possible correction measures.

2. Filling in the risk register

3. Qualitative and quantitative analysis

4. Monte Carlo analysis

5. Running reports and interpretation of results

6. Risk analysis reports

6.a Time/cost distribution graph
Time/Cost Distribution Graph

What is the probability that the project is finalized at the date initially set?
There is only 14% chance that the project is finalized at the date set in the initial planning, without taking into consideration the risks which may occur.

6.b Duration/cost sensitivity graph (Tornado Graph)
Tornado Graph

We established the “hot points” in the planning. Which activities are more sensitive and require our focus? (an activity does not have to be critical to be the most sensitive one).

6.c Comparing plans, before and after identifying the solutions to reduce costs
Plan comparison

By comparing the curves associated with the previous and afterwards situation, at 80% confidence degree, we notice that by implementing solutions to reduce the impact, we reduce the completion term of the project with 71 days.


  • The program was completed on time and under the expected conditions
  • The program reduced the production costs with 2$/barrel
  • Had positive effects on the production volumes and on the operational safety
  • Led to the improving of the situation of the environment, as well as to the improving of the location conditions

The program named Modernization of 5000 wells of Petrom

Project Management Excellence Award in Romania in 2008.

International Project Excellence Award from IPMA (International Project Management Association) in 2009.

This was the first time when a company from Romania won the Global Excellence Award in Project Management.