Definition: An Oil & Gas and Petrochemical Project refers to an investment planned in the future by an End User or an operator. By definition the word “Project” shall be used until this investment turns into a formal order for execution when the “Project” becomes therefore a “Contract”.
Comment: Compared with other businesses, the border line between “Project” and “Contract” is sometime confusing in the Oil & Gas and Petrochemical industry because most of the critical decisions, technically and commercially, are made during the “Project” phase. It is the most strategic period for the suppliers to promote their solutions and for the End Users to define their process. This intense interactivity between all players which may take years while the “Contract” execution goes normally much faster leads to use extensively the word “Project” even when awarded.
