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Case Study

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

2023/03/30

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

Cre­ation and deliv­ery of one-stop shop job aid for the com­pa­ny stand up 

Con­cep­tu­al cre­ation of a man­age­ment con­trol sys­tem for senior management 

Iden­ti­fi­ca­tion of oper­a­tional KPI’s for Oper­a­tions, Pro­duc­tion Per­for­mance, Main­te­nance and Mods/Shutdown

CONCLUSION

The project team lever­aged the con­sid­er­able expe­ri­ence and exper­tise from indi­vid­u­als at all lev­els to pro­duce a sin­gle, cen­tral point of ref­er­ence for the new asset, there­by fos­ter­ing a shared under­stand­ing and focus with­in the new structure.

This assist­ed in dri­ving con­sis­ten­cy in the approach to oper­a­tions and effi­cient train­ing and devel­op­ment. The stan­dard­i­s­a­tion improved the facil­i­ta­tion of cross-functional col­lab­o­ra­tion, improved com­mu­ni­ca­tion, and enhanced knowl­edge sharing.

The new asset achieved stand-up with­out inci­dent and with­in the tar­get­ed mile­stones. The com­pa­ny now has a sol­id foun­da­tion to sup­port a shared cul­ture, set of behav­iours and lead­er­ship styles in order to deliv­er safe and reli­able operations.

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