Adaptive project portfolio model for oil and gas industry

<p><strong>Abstract. </strong>Organizations operating under conditions of uncertainty are facing more hurdles with the implementation of strategies than their formulation. The topic of this research refers to oil and gas industry ordinarily affected by various external factors. Therefore, this study examines the linkage between business strategy and successful project portfolio management. Earlier research in this field has generated a great number of models and approaches to enhance the strategy implementation process by the means of project portfolio. However there is no coherent and integral framework covering the whole cycle from strategy to success. Based on the literature review a conceptual model considering strategic orientation and flexible project portfolio structuring is developed. This model can be used for future empirical research on the influence of uncertain environment on project portfolio management.</p><p><strong>Problem statement. </strong>The overall purpose of this research is to establish an adaptive project portfolio model for companies operating under conditions of uncertainty in oil and gas industry.</p><p>To reach the aim stated four precise objectives should be attained:</p><p style="margin-left:53.45pt;"><strong>1.&nbsp;&nbsp;&nbsp;&nbsp; </strong>Sort out most suitable models from traditional project portfolio approaches.</p><p style="margin-left:53.45pt;"><strong>2.&nbsp;&nbsp;&nbsp;&nbsp; </strong>Scrutinize primary data on different portfolio systems and its distinctive features.</p><p style="margin-left:53.45pt;"><strong>3.&nbsp;&nbsp;&nbsp;&nbsp; </strong>Elaborate an optimal adaptive scheme composed of previously chosen project portfolio approaches.</p><p style="margin-left:53.45pt;"><strong>4.&nbsp;&nbsp;&nbsp;&nbsp; </strong>Justify the alignment of the created model with existed strategic initiatives and organizational structure in Gazprom</p><p><strong>Methodology. &nbsp;</strong>Sorting out most flexible approaches from traditional and adaptive PPM requires critical reviewing of the current models. Detailed literature review will prevail in this part to study thoroughly benefits and drawbacks of every existing approach. To construct an optimal adaptive scheme the research requests support from&nbsp; several experts from department of risk analysis in Gazprom. Notwithstanding the final model seems to be appropriate for any oil and gas company implementing PPM it is crucial to present at least theoretically validation. In order to achieve this goal attachment of the created model to the existed strategic initiatives and organizational structure will be examined in the Gazprom.</p><p><strong>Results anticipated. </strong>Most appropriate parts from conventional project portfolio approaches should include scoring model, strategic buckets and real options. Finally, it is assumed that a consequent algorithm combining scoring, strategic buckets and real options should be developed. The alignment of such algorithm to strategic initiatives and organizational structure of Gazprom will reveal the majority of shortcomings and assist in suggesting recommendations related to developed adaptive PPM scheme under conditions of uncertainty.</p>