Risk Management of International Projects in Gas Industry by Example of "Arctic LNG-2"

Increased economic pressure on the entire Russian economy forced the top management of many companies to reconsider their views on risk management, including almost the entire fuel and energy complex began to develop their own risk management systems to prevent large economic losses. The purpose of this work is to assess the economic efficiency of the Arctic LNG-2 project, analyze the risks of this project and provide recommendations for their management. First, the study analyzed existing risk management methods, basic standards, and also reflected the specifics of risk management in the oil and gas sector. Then a situational analysis of the project was carried out, the main risks were identified, and a questionnaire survey of experts and engineers was carried out for a qualitative assessment of risks and their ranking. Taking into account the qualitative assessment, a quantitative analysis of the most significant risks was carried out, the economic efficiency of the project was determined and recommendations for risk management were proposed for this project. The main recommendations include concluding futures contracts with buyers, searching for new sales markets, and it was also proposed to move the third line of the plant to another Novatek’s project.