11-13-2012, 12:01 AM
I'm not an engineer or project manager I'm a finance guy but when I read this it seems like the $700,000 XOM & Co had little control over but the $1.2bil In delays/stoppages it seems to me should have been avoided with a good management team in place UNLESS that was due to PNG politics etc which in that case it puts IOC's delays into context. Finally on the $1.4Bil in foreign exchange risk with a project of this magnitude & all the unknowns surrounding the project you would think someone in management would have thought about hedging their foreign exchange risk through currency swaps or a forward contract. With all the other "Risks" associated with the project why would you let exchange risk be another unknown factor. Just my thoughts