Driving Performance through an Aligned Operating Model in Oil and Gas Asset Integration

INTRODUCTION

Aligned operational processes and procedures can help oil and gas companies achieve consistency, efficiency, standardization, compliance, and training and development. This can lead to improved performance, reduced risk, and increased competitiveness in the industry.

Our Client is a major energy player and a leading oil and gas operator on the United Kingdom Continental Shelf, with equity production of 100,000+ Boe/d. Natural gas represents most of their production in the UK, which comes from several operated fields in various major hubs.

The UK upstream portfolio consists of a diverse set of assets in various lifecycle stages from new major developments through to mature assets.

THE CHALLENGE

The Client acquired various new natural gas fields. Rather than operate the new assets as separate standalone entities, the decision was taken to create a single asset structure. It was recognised that there were differing operational processes and procedures between the assets which required harmonising, and that existing procedures could be made more efficient. In short, there was no shared operating model.

A challenging but achievable deadline for the organisation stand-up was set, and Renoir was contracted to provide expertise in achieving the deadline.

PROJECT APPROACH & OPPORTUNITY ANALYSIS

An initial analysis was conducted to identify the main differences between operational processes and management systems. The results of this analysis formed the basis to establish a shared understanding of these differences, determine the necessary steps to harmonize processes and systems and develop a set of key performance indicators (KPIs) that would enhance efficiency and drive performance across the newly created asset.

Renoir was subsequently engaged in defining the harmonised management system along with a set of KPIs that were better aligned with the asset but at the same time consistent with Client’s overall management system.

Renoir supported the merging of the two assets, with a scope focusing on onshore field operations i.e. maintenance and integrity, operations, modifications and shutdowns and production performance.

The scope included setting up rooms, designated for online, real-time collaboration between the assets offshore and onshore teams. As part of the approach, the team attended each of the operational meetings, engaged with leaders and team members and understood the corporate governance surrounding each meeting and practice. Project progress and concerns were discussed at the weekly steering committee meetings, chaired by the Field Operations Manager.

This structured approach to integrated and cross-functional communications was one of the key drivers to the Project’s success.

It would have been good to have had Renoir months earlier.

Operations Leader

IMPLEMENTATION

The main aim of the exercise was to develop the Field Operations Reference Guide for the new asset, covering:

1. Roles and responsibilities within the new asset.
2. Process definitions (consistent with the company’s standard operating processes along with RACIs linked to roles and responsibilities.
3. Operating model elements such as key meetings (cadences, participants, frequencies, terms of references etc.).
4. A draft set of KPIs which were linked to the key meetings as defined above.
5. Contact lists along with key points of contact depending on the topic.

As part of the improvement process, a meeting evaluation system was set up in order to understand the efficiency of the existing meetings and highlight areas of improvement. Lessons learned from attending these meetings were then incorporated into the meetings terms of reference and provided the basis for light coaching.

Finally, a set of KPIs were developed as part of a senior management control system and which allow tighter management of the organisation’s performance. These KPIs were to be fully implemented once the new organisation had a chance to settle.

KEY RESULT