Continuous Improvements in Project Management Practices Through PMOs - The Case of Buzios Field

Abstract

This paper presents a series of improvements Petrobras has been undertaking in its Project Management (PM) practices and the shaping of a multi-level Project Management Office (PMO) structure through the case of Buzios implementation program. Buzios is Petrobras’ largest ultra-deepwater oil field, which already contains 4 large-scale operational floating production units (all of them among the company's top producing facilities) and at least seven additional modules to be implemented by 2027, each of which is a megaproject per se. The re-shaping of the PMO strategy in Petrobras observed a layered approach with improvements in strategic (corporate), tactical (portfolio) and operational (program/projects) level. PMOs were responsible for strengthening project planning and control practices, improving training of project management teams and aligning the portfolio to the corporate strategy. On Buzios production development program operational level, the PMO was a key driver to increase project and asset value. After a comprehensive assessment of stakeholder interests, the main practices prioritized for the structuring of Buzios PMO were: (i) exploitation of synergies between projects; (ii) standardization and alignment of project management practices; (iii) increase of information availability; (iv) improvement in communication flow and governance and (iv) dissemination of lessons learned among the teams. To attain these goals, the initiative itself was organized as a project and deliverables were classified in a Work Breakdown Structure (WBS) based on four main streams of action: Governance and Communication - establishment of a multi-level project governance, including the senior executive company level; Quality and Control - establishment of centralized and integrated planning and control processes and centralization of activities at the PMO level; Digitalization - automation of processes, and massive provision of self-service project/portfolio information; and Critical Resource management - establishment of a formal and structured process to support resource allocation. Some of the main results obtained are listed below, in line with the previously established pillars: Governance and Communication - timely decision-making was facilitated and integration of teams was increased; Quality and Control - improvement in cost and schedule predictability; Digitalization - cost/labor reduction and increased efficiency; Critical Resource management - more effective and organized sharing of resources among projects. Literature already recognizes the use of rigorous methodologies and PM practices as a driver for improvement in project outcome. The application of such practices in a program comprised by a handful of megaprojects (as provided by the world class asset of Buzios) allowed the validation of several theoretical constructs and at the same time generated value for the company's portfolio. Other companies can benefit from the lessons learned herein and incorporate them into their management systems.