Survey shows red tape key reason for project delays

04 July 2008
Bureaucracy is the key reason for delays to projects carried out by the region’s state oil companies, according to a survey published in MEED this week.

Two-thirds of respondents to MEED’s second annual survey of national oil companies (NOCs) say bureaucracy is the main factor delaying the completion of state-run projects.

Almost one-third of the projects that respondents have worked on for NOCs over the past three years have suffered delays.

Equipment procurement is the next most critical factor, according to respondents, with 56 per cent saying it has played an important role in delaying projects over the past three years.

Rising costs, which are often seen as the main reason for projects being delayed or cancelled in other sectors such as construction, are cited as a problem by less than 30 per cent of respondents.

Of all the projects in which survey respondents have participated over the past 36 months, more than 250, or 30 per cent, have been delayed, they say. The average setback for the projects was six months.

Half of respondents also say political interference was a key factor in the delays, while the same number say the poor productivity of local labour was important.

About 40 per cent of respondents say the problem of finding experienced staff is also an important factor in the delays.

For the full MEED survey results, see this week’s Special Report beginning on page 31.

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