What are some of the principal reasons why project management has become such an efficient tool for handling novel and complex activities in recent years? What do you see as being the primary challenges to introducing a project management methodology in the petroleum industry, that is, why is it difficult to shift to a project-based approach to management in many oil and gas companies? (Maximum 2 pages) Question No. 2 (10 marks) You have been given the following information about an FPSO project because you're one of the team members: Activity Predecessors Duration Estimates (Days) Pessimistic Likely Optimistic A - 7 5 2 B A 5 3 2 C B 14 8 6 D B 20 10 6 E C,D 8 3 3 F C 10 5 3 G E,F 12 6 4 H D,G 16 6 5 a. Draw an AON network diagram illustrating the sequencing requirements for the project activities. (4 marks) b. Compute the Early Start, Early Finish, Late Start, Late Finish and Total float for each activity. (2 marks) c. List the activities that are on the critical path. (1 mark) d. Using the beta distribution, estimate the activity durations and variances for each task. (3 mark) Question No. 3 (10 marks) You are the Project manager in charge of Browse LNG Development, operated by Woodside Energy. You are about to complete the front-end engineering and design phase and time is your major constraint. You face a $1,000 penalty for every calendar day you deliver late. You must decide which contractor to use for a critical task, and the goal is to minimize your expected cost. One contractor, the "low-but-risky bidder" comes in with a $110,000 bid, but you estimate a 50% chance it would be 90 days late. Another contractor bids $140,000 and you assess a 10% chance of it being late and only 30 days at that. This is the "high-but-reliable bidder" Question: Which contractor would you choose? Task: a. Work out the solution by constructing a Decision Tree, showing clearly the decision nodes, chance and outcome nodes. b