Nexen – Significant savings made by changing to alternative valve in well interventions

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Problem statement

Nexen routinely used Shear Seal Valves in well interventions but the dimensions of the valve actuator caused logistical problems which cost time and manpower.

Aims

To reduce cost and manpower in well interventions.

Method

  • An alternative valve design was sought which would reduce cost and logistical problems.
  • The Slimbore Shear Seal Valve was identified which uses a ball valve to create a valve which has tall and slim dimensions.

Impact

  • Nexen has saved approx. £30,000 per each well intervention as a result of changing to an alternative valve.
  • Nexen is now using Slimbore Shear Seal Valve, which uses a different type of valve (ball valve) to create a valve which has tall and slim dimensions.
  • The valve fits through a much smaller aperture and means that a much smaller deck plate can be removed manually.
  • The valve can also be lifted and placed using the in-situ wireline mast tugger line which removes the requirement for a platform deck crew, crane driver and scaffolders.

Total well interventions 20  (2015 & 2016)

Total savings anticipated £30,00o per well intervention

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Maersk Oil – Engineering a unique solution

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Problem statement

Correcting the slippage of buoyancy modules on the Global Producer III FPSO vessel’s risers without replacing the riser or carrying out a planned shutdown is an extremely expensive and risky operation.  The challenge was to find a way to correct this slippage whilst keeping the riser in operation, something that hadn’t been done before.

Aim

To correct the buoyancy module slippage in a targeted manner using a remotely operated vehicle (ROV), allowing us to move away from conducting saturation diving operations and also engineer a solution that could be implemented whilst in operation.

Method

  • The Maersk Oil team engaged with SubC Partner, inventor and owner of the technical solution. Over six months, the team created a bespoke tool that connected to an ROV.
  • The tool had to be specifically designed for the task because there were a number of specific requirements.
  • It had to work underwater while connected to the ROV, dock onto the riser and remove the old buoyancy module and inner clamp. It had then to bring the old parts to the surface, pick up the new clamp and module and go back down to the riser to install the new parts.
  • The new clamp was also installed with rubber compliant pads to stop future slippage, a technique already effectively used by Maersk Oil.

Impact

  • Replacing the buoyancy modules on a live riser system had never successfully been completed before. The Maersk Oil team met this challenge head on and in collaboration with SubC Partner, a bespoke tool was developed to replace the buoyancy modules, correcting the slippage.
  • The solution avoided the need to replace the whole riser, an extremely expensive and risky operation, and also meant that the riser could be kept in operation during the replacement, resulting in no production loss.
  • By using a tool docked onto an ROV the need for saturation diving personnel was eradicated, reducing the risk to human life.
  • The installation of rubber compliant pads on the inner clamp helps prevent future slippage.
  • Replacing the buoyancy modules is more efficient compared to the alternative of replacing the riser entirely; there was no impact to production and the solution saw around 80% savings compared to alternative method. This solution has been shared at a Society for Underwater Technology (SUT) lecture.

Total hours saved: No significant saving

Total savings anticipated: Solution cost approx. 20% of the average fee of replacing a riser, around 80% saving.

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Agilis – Cost estimate certainty

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Problem statement

From 2011-2016 fewer than 25% of oil and gas projects in the UKCS were delivered on time. Projects averaged 10 months delay and came in around 35% over budget (OGA).

Aims

Use better techniques to improve oil and gas project cost estimates.

Method

Collaboration between Agilis, a process improvement consultant and Barnett Waddingham, a leading UK actuarial firm.

Agilis cost model framing workshop engages with uncertainty and addresses bias. Barnet Waddingham draw on their experience of probabilistic modelling and estimate governance for the insurance and financial sectors to provide a more rigorous cost model for oil and gas projects that recognises complexity and reduces uncertainty.

Impact

  • Better understanding of project risk exposure: avoids over/under-provisioning
  • Allows planning for uncertainty: e.g. pre-emptive “delay analysis”
  • Provides a robust and transparent governance standard familiar to banks, investors and government: cheaper finance

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Wood group – Rising to the late-life asset maintenance challenge

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Submitted by Philip Oliver (Transformational Change Manager)

Problem statement

Keeping costs of maintaining ageing assets under
control prior to cessation of production (CoP), while maintaining integrity.

Aims

  • Evaluate work scopes to offer alternative solutions to client’s benefit.
  • Reduce maintenance scope of various projects in a late-life asset management context.

Method

As part of ongoing evaluation of work scopes, a
thorough review was carried out of a fabric maintenance programme to maintain platform integrity. Two opportunities were identified to either reduce or remove the painting scope. The proposed reduction required engagement with the client’s technical authorities to agree to a deviation on painting standards, which are written for operating assets and are not always appropriate for assets coming to the end of their field life.

Impact

A 42 per cent reduction in work scope was realised. The drilling derrick painting scope was reduced considerably by using wax oil instead of normal paint. As this took less time to complete, the job could be carried out during a planned drilling outage, saving an additional £1,120,000 (cost of drilling downtime for original scope).

Total days saved: 27

Total savings anticipated: £2.16m

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Nexen – Driving greater efficiency of platform supply vessel fleet through controlling offshore non-productive time

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Problem statement

Nexen sought to reduce offshore non-productive time (NPT) to drive greater efficiency of the platform supply vessel (PSV) fleet.

Aims

  • To reduce logistics NPT to below 30 per cent in 2015.
  • To manage logistic costs more effectively.

Method

  • Offshore teams were challenged to place greater emphasis on planning and scheduling to ensure the PSVs were working more efficiently.
  • Vessel NPT metrics were also examined which demonstrated that further cost management improvements could be implemented, including vessel sharing and ultimately reducing the PSV fleet.

Impact

  • The focus on reducing offshore NPT has enabled Nexen to challenge the manner in which it operates its PSV fleet and change entrenched ways of working.
  • This has resulted in the reduction of the PSV fleet by one term vessel and a reduction in dependency on
    ad hoc spot-hires.
  • It has resulted in annualised savings of £3.5-£4 million.
  • Further improvements to vessel sailing schedules have the potential to reduce the PSV fleet further, saving an additional £1.25-£1.5 million per annum.
  • Vessel savings were a major contributor in improving Nexen’s lifting costs in 2016.

Reduced NFT: 30%

Annualised savings: £3.5-4 million

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Proserv deploy abrasive cutting from a semi-sub on North Sea wells decommissioning project

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Submitted by Proserv

Impact

Proserv’s Multi-String Cutting (MSC) tooling was efficiently integrated with the drill pipe and recovery operations were optimised to allow the recovered wellheads to be removed from Proserv’s tool string without disconnecting the control lines or the tooling from the drill pipe. This minimised the time between deployments to the time required to skid between the wells.

Through the deployment of Proserv’s MSC tool the operator was able to achieve a smooth frictionless cut through multiple casing strings, cemented or not, in one trip. The rigidity and control of the drill pipe coupled with the sealing mechanism on the Proserv MSC decreased cutting times by around 25  per cent. This ultimately contributed to the successful, safe abandonment of the eight wells, well ahead of schedule.

The use of abrasives cutting technology, as part of a plugging and abandonment campaign from a semi-sub drilling rig, is believed to be an industry first in the North Sea.

Description of Best Practice

Proserv was contracted by a North Sea operator to abandon eight Category 1 subsea wells from a semi-sub drilling rig using our Multi-String Cutting (MSC) tooling, which uses abrasive water cutting technology. This tooling has an established track record in the Gulf of Mexico from vessels and platforms, and was introduced into the North Sea in 2014. Proserv has a successful track record in the North Sea of abandoning more than 20 Category 1 wells for multiple operators from light well intervention vessels. For this work scope, Proserv’s MSC tooling was deployed from a semi-sub rig using drill pipe. The MSC assembly was integrated with a wellhead retrieval tool that latches into the profile of the camhub wellheads. This allowed the cut and recovery of the wellhead to be carried out in a single trip regardless of casing configuration.

Over the course of nine operational days including recovery of the wells to deck and skidding the rig, Proserv successfully abandoned all eight wells. The well architectures had a variety of casing designs ranging from 10.75 inch through to 30 inch conductors.

Contact: Stewart Macindoe
Stewart.Macindoe@Proserv.com

Halliburton – Vendor Managed Inventory

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Submitted by Halliburton

Impact

The average consumable spend per workshop hour Dec-14 to Jan-15 was £2.04 per hour.

The average consumable spend per workshop hour in Jan to Mar-16  spend was 81p per hour (i.e a 60% reduction in consumable cost per workshop hour)

Not included in the above figures are the saving and reductions that Vendor Managed Inventory (VMI) machine provides in the following:

  • inventory stock holding (releases working capital);
  • saves admin/processing time on: raising purchase requisitions/purchase orders, goods receipt, storage/counting, goods issuing; and most importantly,
  • saves the workshop technicians time in them walking to the stores to ask for basic consumables.

Description of Best Practice

A VMI machine was installed and became operational within one of Halliburton’s workshops in Aberdeen in March 2015. These machines hold fast moving consumable workshop items such as PPE, abrasives, glues, tape, aerosols, etc, and allow technicians controlled access to withdraw these goods straight from the machines instead of the traditional trips to stores or raising requisitions. Not only do these machines save the technicians time but they avoid the entire requisition/purchasing/invoice processing effort/costs involved with traditional sourcing as the contents remain the property of the supplier until used. The machines are connected directly to the internet and send stock usage info to the vendor’s office 3 times daily so that replenishment (against min/max levels) can be planned multiple days weekly as required. Monthly billing and online interface simplify administration while allowing detailed reviews of usage patterns. Swipe card security, touch screen and photo catalogue interface makes average “picking time” circa 15 seconds.

The VMI machines are supplied free of charge by the vendor and set-up costs are very minimal (electrical power and a native internet connection) and the machines are reconfigurable and can be relocated.

The usage of the machines is monitored and weekly and monthly usage reports are automatically e-mailed to facility supervisors and materials for review – supervisors were easily able to identify unusual or excessive use and challenge individuals.

Contact: John Suggett
john.suggett@halliburton.com

Nexen – System Scaffold reduces risk of Confined Space Entry (CSE)

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Submitted by Nexen Petroleum U.K. Limited

Impact

Safety First – The use of System Scaffold resulted in a reduction in manual handling and the duration of personnel working within a confined space.

In total a 66% reduction in man hours was achieved using the System Scaffold.

The excellent team work and collaborative effort between Nexen and Stork resulted in the work scope being completed on time and without incident or accident.

Description of Best Practice

During the Buzzard 2016 turnaround, invasive maintenance was required on the first and second stage production separators.  Part of this activity required internal access to the vessels to erect scaffolding, which involved the hazard of entering and working in a confined space.

The Stork System Scaffold was not only quicker to erect and dismantle, with fewer components, it also required less manual handling and transportation of materials – which was particularly beneficial given the confined area where the worksite was based.

The use of System Scaffold resulted in a reduction in manual handling and the duration of personnel working within a confined space.

To reduce the risk of Confined Space Entry (CSE), System Scaffold was adopted as an alternative type of access.  This type of scaffolding could be erected and dismantled quicker than conventional ‘tube and fitting’ type scaffold.  It meant that there were significantly less components and eliminated the requirement for numerous fitting connections.

Contact: Tracey Miller

tracey.miller@nexencnoocltd.com  

BP – Mastering effective daily management at terminal delivers performance improvements

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Submitted by BP

Impact

  • BP has delivered efficiency improvements on Sullom Voe Terminal’s Renewals and Turnaround projects by adopting a visual management process to expose, and then eliminate, waste.
  • Plan attainment of Renewal and Turnaround resources can now exceed 80% and safety improvements have also been recorded.
  • The system has evolved over the last year to incorporate comprehensive metrics to identify continuous improvements in everything from how the working day is structured to equipment hire, schedule variance, vendor invoicing and HSE audits.
  • An improved and collaborative work environment means less frustration among individuals.

Description of Best Practice

BP has delivered performance improvements on our Sullom Voe Terminal Renewals and Turnarounds projects by applying a visual management approach and implementing what the project team call the ‘war room’.

The Sullom Voe Terminal was built in the 1980s and most of the major plant items are now operating beyond their original design life. A number of different projects are currently underway to help support the current east of Shetland fields and expanding fields in West of Shetland.

As a result of this large and rapid growth of work fronts at site and the limited resources of Operations, coupled with the resulting lack of clarity associated with accountability, delays were being encountered in a number of the Renewals and Turnarounds team projects.

In 2014, the project leadership team could see that there were inefficiencies: plan attainment was only 50%, against a target of at least 80%. However, with numerous contract companies and BP functions involved, resolving technical and operational issues was a challenging and time consuming process. Daily morning meetings would uncover an issue or that some of the workforce were not at their scheduled activity due to being held up on the previous job. But with workers starting at 8am, it was usually already too late to do anything about it and several hours could be lost by moving them to the required job.

So, the project team established a daily forum open to all functions and contract companies that would bring work through and assign visible accountability for resolving any obstacles.

Known as the ‘war room’, key stakeholders meet at the end of each day to identify, and act on any issues for the following day. Heads of each of the service companies, as well as representatives from the relevant Operations departments and the person accountable for each job all attend. With everyone in the room at the same time it is a way to quickly resolve issues in preparation for the next day.

The team also adopted a combination of simple and effective visual information aids.

Gary Macdonald is Construction Manager for Renewals and Turnarounds. “Red and green dots symbolise each issue’s status. Red means an issue has arisen with no planned solution and we therefore discuss to resolve the issue and identify who will implement it. Green means a solution has been identified, the issue has been resolved and the function or supplier raising the issue is happy. Only the team raising the issue has the authority to change the status from red to green. Once green, the issue is recorded and reviewed so that it can be decided if a more formal continuous improvement event is required.”

The system has evolved over the last year to incorporate comprehensive metrics to identify continuous improvements in everything from how the working day is structured to equipment hire, schedule variance, vendor invoicing and HSE audits.

The process has exposed waste so that it can be eliminated and prevented from recurring, making the workplace and therefore project more efficient. Plan attainment can achieve more than 80%, with cost savings delivered and safety improvements also recorded.

“Now, representatives from each discipline leave knowing exactly how the day went, where their labour is going tomorrow and outstanding issues are being worked through to resolution,” says Gary.

Contact: Stephanie McHardy

stephanie.mchardy@bp.com

BP- Waste ‘swap’ delivers savings of £9million

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Impact

  • BP has saved approximately £9 million by changing how we manage waste water from well plugging operations on our Valhall oil field.
  • The new, offshore-based approach avoids the need to transport and treat the waste onshore and send to landfill.
  • Well clean up fluids can now also be recovered and reused.

Description of Best Practice

BP has delivered an innovative solution for offshore well waste management on our giant Valhall oil field in thesouthern Norwegian North Sea, where 31 older wells will be permanently plugged over the coming years.

Preparing a well for permanent closure generates thousands of cubic metres of water containing oil based muds, cuttings and cleaning fluids. Due to lack of capacity and/or facilities offshore, this waste water is traditionally shipped onshore to be treated and then disposed of safely at significant cost.

On Valhall, a single waste injector facility was being used to treat and then inject the giant complex’s drainage waste water into the ground. However, this waste water is 98% pure and the project team realised it would be more efficient to use this facility to treat and then inject the higher solids waste water generated from the plug and abandonment operations.

At the same time, a separate cleaning plant was installed on the nearby drilling rig being used for the long-term plug and abandonment programme. The platform’s drainage water is now piped to the rig, where it is treated and purified to the extent it can be discharged to sea.

Planning for the new system took four months and the first lot of waste was transferred in June 2015. The drilling rig has since treated 49,362 barrels of open drain water from the Valhall complex while the platform has received 85,228 barrels of waste from the plugging and abandonment operation, delivering cost savings of approximately £9 million. The new approach also avoids the need to transport and treat the waste onshore and send to landfill

An unplanned benefit has been that the brine water used for clean up of the wells is being reused. Some 3,200 barrels have been recovered during the treatment phase and reused on other well kill operations.

Arnfinn Grøette, Waste and Fluid Operation Specialist, said: “Before the project, a single well abandonment generated approximately 2,000m3 of waste water and cost £950,000 to send back onshore for treatment and disposal. Now, a major part of this is treated to a defined specification before it is sent to the solids handling module on the production platform and then reinjected.”

Jeroen Nijhof, Engineering Team Lead, added: “The Wells team essentially swapped our waste with Operations. It sounds simple but it was vital to have everyone in all functions on board and to believe it was possible before embarking on the project. It demonstrates what is achievable when different functions come together to find a solution to a problem.

Contact: Stephanie McHardy, BP
stephanie.mchardy@gmail.com