Projects: Risk Mitigation Plan – Regulatory and Licensing Risk
Objective: To mitigate the risk of delay in project execution as a result of possible extended delay in regulatory approval (case of accidental side-track in an observation well in the development area.)
Focus: Strategy Growth Performance
Domain: Strategy & Risk
Client: SAGD operator
An incident of accidental sidetrack in an observation well in the development area resulted in connectivity of aquifer layers, and also breach of cap-rock integrity. Suddenly the project was exposed to risk of delay in receipt of regulatory approval hence prolonged delay in project sanction. Client wanted to evaluate the situation and pick the best mitigation strategy.
We advised our client on:
– Stakeholder engagement, framing, boundaries, priorities and definition of success,
– Impact assessment of several delay scenarios,
– Development of possible remedial options including possible technical fixes (and their change of success), resource sterilization, monitoring program, etc.
– Assessment of the remedial options in terms of impact on schedule, project value, sterilized resource, scope, etc.
– Re-validation of KPIs, determination of the best option, least acceptable, and not acceptable options,
– Setting engagement strategies, communication and negotiation approach with the regulator,
– Review, finalizing and documentation of the plan,
– Execution of the plan,
Implementation of our proposed risk mitigation plan resulted in:
– Reduced project risk through identification of risks and implementation of mitigation plans ahead of the time,
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