Our client, the operator of five integrated oil and gas facilities in a developing country, needed to lower its unit cost in response to the large decrease in oil price.
PIP performed a diagnostic engagement that identified, amongst other opportunities, that the culture of production optimisation was poor. Daily targets did not reflect current capacities, production variance against targets were not explained, root cause analysis was not routinely performed on losses, and the front-line operators were not being held accountable for well and plant performance. PIP was subsequently engaged to implement a full business improvement programme.
- A fully integrated and functioning production optimisation system that:
- Set daily targets linked to system capacity, typically 5-10% higher than the former targets
- Measured losses and gains daily and assigned resources to deal quickly with issues of that day
- Assessed root causes of losses, assigned owners and stewards resolution of prioritised solutions
- Operators being measured against key operating parameters (KOP) for each location
- Visual boards at each location that were used at shift changes and contain the KOPs