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How we helped an oil & gas consortium eliminate over 100,000 man-hours of maintenance from its backlog

May 22, 2023 | Organisational Effectiveness

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Background

Maintenance and asset management are crucial in the oil and gas industry to ensure safe, reliable, and efficient operation of expensive and complex equipment like drilling rigs, pipelines, and refineries. They help in reducing operational risks, ensuring worker and environmental safety, complying with regulations, and extending equipment lifespan.

Asset management aids in optimising resources, reducing costs, prioritising maintenance and upgrades, and implementing reliability-centred maintenance approaches. Effective maintenance and asset management practices are essential to maximise asset value, minimise downtime, and improve equipment reliability.

Our client is an oil and gas consortium that won a bid to handle the asset integrity, maintenance and reliability, fabric maintenance, shutdowns, and modification projects for assets that produced approximately 340,000 barrels of oil equivalent daily.

Analysis

We were initially brought in to deliver a transition plan that accompanied the maintenance contract attached to the winning bid. We performed a root-to-leaf analysis of the existing operational processes and organisational structure, before providing a target operating model at a detailed level. A subsequent twelve-week analysis provided the basis for a new organisation that would support the initial transition and ongoing improvement activities.

From here, the client decided to engage with us directly post-transition to help ensure the delivery of critical short-term objectives and develop a simple, standardised operating model. Part of this development work involved implementing the appropriate solutions through coaching of the senior team.

Project Approach & Implementation

We conducted workshops and interviews and gathered all appropriate data. At the same time, we also established a management control system (MCS) to support robust project management. The MCS covered standardised report and meeting terms of references which cascaded and connected consistently through the levels of seniority.

The MCS provided the structure that we used to design, teach, facilitate and coach the central team — and deliver the transition on time and in full.

As part of the transition, the client was required to recruit some 700 operational roles — which required significant management attention. We were lucky enough to be able to gain access to all areas of the business, and provide robust root cause analysis and improvement development coaching to the immediate team.

Our core principles relating to MCS, KPIs and performance management governance structures proved invaluable in taking a methodical approach to creating a solid foundation of core processes for the client.

“Renoir has made a fantastic contribution to our journey, right from the start, up through to where we are now — an organisation of over 1000 employees. They have been a fantastic support to the management team, both collectively and individually.”

Engineering & Construction Executive Lead

Key Results

108,000 man hours

of safety critical maintenance activity eliminated from backlog

The transition to the new structure — covering maintenance and key engineering functions – was completed comprehensively and on time. We also helped the client implement a comprehensive purchase requisition process that covered multiple clients and suppliers.

In addition to the operational performance improvements, a top-tier MCS was implemented covering elements such as meetings, meeting terms of reference, KPIs, and reports, among others. Extensive training and coaching ensured that the systems and processes were fully embedded in the new operational model for the contract.

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