PlanSea Limited- Cost reduction of UKCS marine support operations through efficient fleet scheduling

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Submitted by PlanSea Limited

Impact

  • The study has shown that there is potential to improve the efficiency of the vessel fleeting arrangements by moving to a schedule where vessels service multiple locations.
  • This has the potential to reduce considerably the number of vessel days procured through the efficiencies which in turn will offer cost savings.
  • More work is required to validate the scale of actual savings.
  • improved data management has the potential to greatly enhance operations control and oversight of KPIs
  • Reduced overall vessel time at sea will enhance Health, Safety and Environmental impacts
  • Additionally the software has the potential to impact positively on operations where the assets have a more diverse geographical spread and where fleeting decisions are more complex.

 

Description of Best Practice

Marine support constitutes a large part of the OPEX budget. Any savings realised translate into lower lifting costs, which in turn can support extended field life and, in some cases, new field viability.

A single Platform Supply Vessel (PSV) can cost around £3.5M in annual charter fees, with fuel and port costs adding substantially to the overall cost. There are circa 250 PSVs in the North Sea, circa 1500 PSVs globally.

There is enormous complexity involved in planning and scheduling material for offshore. This means that many operations simplify the process by “fixing” sailing schedules well in advance, forcing other schedules to work around these fixed points. At present, there are very few decision support tools in this area that could help break this logjam.

Nexen Petroleum UK Ltd commissioned PlanSea, a spin-out from The Robert Gordon University (RGU), to examine their UKCS operations to determine whether recent developments in machine learning and optimization could impact positively on their marine support costs.

The study used PlanSea scheduling software to reschedule 65 weeks of recent historical operational offshore support activity under realistic and pessimistic assumptions and using the same data and core fleet. The outcomes were compared on KPIs with the results of actual operations.

Features of the PlanSea scheduling software include :

  • maximising vessel utilisation and efficiency through optimised scheduling
  • right-sizing” vessel fleets
  • minimizing spot market (short term hire) exposure
  • supporting vessel sharing/collaboration schemes (in line with the recent Wood Report)
  • managing operational information including strong interoperability with enterprise information systems
  • minimising time at sea (thus minimising health, safety & environmental risk)

 

Contact: Jim Cargill
jim@plansea.co.uk

Petrofac, Faroe Petroleum and Eni Hewett collaborate to reduce logistics costs

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Petrofac, Faroe Petroleum and Eni Hewett have established an innovative cost-saving partnership to drive efficiencies and commercial synergies across their UK operations in the southern North Sea.

The tripartite agreement sees collaboration between Petrofac as the duty holder and the respective equity owners and operators of the Hewett, Schooner and Ketch gas fields to share logistics and accommodation services across the facilities.

Faroe Petroleum has invested in a new variant of NHV’s Augusta Westland 139 helicopter, enabling an increase in passenger numbers and freight capacity, and will share the usage of the helicopter with Eni Hewett.

In exchange, offshore personnel contracted to the normally unmanned Schooner and Ketch assets will stay nearby on the Eni Hewett complex rather than returning to shore each day, cutting down travel time and ensuring cost efficient mobilisation of personnel. The arrangement also allows for greater flexibility when deploying personnel as Petrofac can mobilise its workforce, as required, across both operations.

This approach will see the partnership deliver significant cost reductions and effectively manage resource mobilisation through a collaborative and open commercial arrangement.

Walter Thain, managing director, Petrofac Offshore Projects and Operations said: “To deliver the greatest value for our customers we always place a strong emphasis on cost management. The challenges we currently face as an industry are unprecedented and require us to constantly think differently and be innovative in the approach we take commercially to operations and engaging our supply chain.

“Reducing the cost of operations in the UKCS is a collective industry responsibility and we are absolutely committed to playing our part. By delivering cost reductions and synergies safely we benefit our customers and support a broader step change in the culture of the UK oil and gas industry.”

Graham Stewart, chief executive of Faroe Petroleum, said: “Since taking over operatorship of Schooner and Ketch last year, we have focused on a number of measures across the supply chain designed to improve operational efficiency without compromising safety which we feel is especially relevant in this new era of low commodity prices. This arrangement is one such innovative measure, which entails the sharing of key services which will materially reduce offshore operating expenditure, and improve operational efficiency.”

Time and cost of internal tank inspections lowered by Cyberhawk

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Cyberhawk Innovations has improved the safety, time and cost of inspecting cargo oil tanks on operational FPSOs using Remotely Operated Aerial Vehicles (ROAVs).

Maersk Oil, which owns and operates the Gryphon FPSO in the UKCS, traditionally inspected cargo tanks for integrity, damage assessment and class certification using rope access technicians who were suspended on ropes to inspect the tank structure, focusing on areas of high stress such as stiffeners, brackets, bracing, webs and stringers.

However, carrying out a visual inspection of the tank using Cyberhawk’s ROAV – Cyberhawk mobilised an experienced two-man ROAV team consisting of an ROAV pilot and inspection engineer – garnered many benefits.

Human risk factors presented by rope access such as working at height for sustained periods and in confined spaces were reduced. The inspection of the critical components of the tank was completed within a day, in comparison with rope access which would usually take between three and four days and significant cost savings were made. In turn, Maersk Oil could identify and more efficiently plan for any possible contact based inspections in both this and other tanks.

This inspection technique can now be applied to all large internal tanks, on vessels such as FPSOs, bulk carriers and tankers.

Malcolm Connolly, Cyberhawk’s technical director and founder, said: “We and Maersk Oil were keen to develop an effective ROAV inspection method for FPSO cargo oil tanks as well as other tanks and storage vessels. Not only have we removed one of the most significant risks associated with tank inspection, working at height, but we have also highlighted the significant cost and time savings achieved by ROAV inspection.”

Centrica – Rose well abandonment

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Submitted by Centrica

Impact

The job was executed in 9.5 days vs the estimated 6.5 days due to slight issues which arose. Although the completion was delayed by 3 days it was still completed in half the time that option 1 would have taken.  By adopting this new method, the project was completed in less time and with reduced risks of increased costs occurring due to complications occurring.  By looking for new innovative processes available we have improved our efficiency by plugging the well using less time and less costs.

Description of Best Practice

Whilst preparing to decommission the Rose field in the Southern North Sea, it was identified there was a challenge to isolate the over pressured Plattendolomit formation.  Due to tops of cement and casing configuration within the well, there were only limited options available for setting the abandonment plug.  Three options were considered, reviewed and the best approach selected.

The option Centrica chose to go ahead with was to perforate and wash 200ft interval using Hydrawell’s Hydrahemera System.  The Hydrahemera operation was new technology originating from Norway.  It is the first dual string abandonment application in the UK and during the review process was found to have a good track record and extensive onshore testing.  By using this method the process was estimated to take 6.5 days as opposed to 18 days for option 1 (to cut and pull then pilot mill 1000ft of 9-5/8 casing).

The Hydrahemera system allows for a well to be plugged across multiple annuli without performing a section milling operation.  The well is washed down from top to bottom perf and then back up from bottom perf to top perf to clean thoroughly behind multiple perforated casings.  Cement is then pumped into the well and the well barrier is established.

Contact: Jonathon Lilley, Centrica

Shell – Hand held infra-red scanner for piping and structural replacements

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Submitted by Shell

Impact

  • Significant increase in speed – replacing previous surveying and engineering process (including hand-offs and waiting periods) with a more integrated and rapid approach.
  • This increase in speed reduces the integrity risk associated with temporary repairs.
  • More efficient use of platform beds (core crew resources)
  • More efficient use of inspection resources by reduced requirement to inspect temporary repairs

Description of Best Practice

We have changed the way we go about surveying and engineering of like-for-lie pipespool and structural replacements. We store an infrared handheld scanner offshore for undertaking surveys and have instructed core crew members in the use of them. Scan data is uploaded and converted to a full fabrication isometric within a few hours of receipt. The isometrics is then passed onto a fabricator for manufacturing.

Contact: Wessel de Haas, Shell

Nexen – Journey to change beliefs to improve water injection rates

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Submitted by Nexen

Impact

Nexen’s cultural beliefs and the marginal gains campaign soon became integrated into everyday procedures – and soon the results were plain to see.

The water injection campaign helped drive a 40% improvement in water injection rates across within six months of implementation.

Description of Best Practice

Nexen Petroleum UK management team set on journey to evolve Nexen’s performance from a top quartile position to become to a Best-In-Class operator.

Leadership understood that workforce collaboration and two-way communication was crucial in achieving cultural transformation, specifically in influencing a paradigm shift to create new experiences, beliefs and behaviours to deliver top business results and establish a common language which would drive accountability both individually and collectively across the whole business.

A suite of tools were developed to equip employees in implementing the changes but to naturally engrain the new ways of working into everyday tasks. The toolkit consisted of eight cultural beliefs and the deployment of four working tools – focussed recognition, storytelling, feedback and accountability.

One example was recognising the need to improve our water injection performance. Nexen ran a series of multi-discipline engagement workshops to empower employees into changing beliefs and experiences about the importance of water in enhancing production, which helped drive a 40% improvement in water injection rates.

To implement change, establishing a clear purpose and understanding was essential. The company set out clear messaging on why water injection was extremely important to our operations. Nexen created new experiences that led to the implementation of the right processes to make water injection a priority. Water injection is now a top focus offshore and features on the top line in our daily reports.

Nexen was also inspired by the concept of Marginal Gains Theory, created by the British Olympic Cycling Team, which involves breaking down routine work activities to find small efficiencies or enhancements which accumulate into significant benefits and savings.  Nexen’s leaders encouraged onshore and offshore teams to work together on campaign focused on driving improvements and better working practices from everyday tasks.

Contact: Ray Riddoch, Nexen Petroleum U.K. Limited

Shell – Facility Risk Review

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Submitted by Shell

Impact

Reduced occurrence of high-impact surprise events and their associated integrity and reliability impact.

We have implemented this process across our portfolio in 2014 and have witness a significant reduction in the occurrence of the most significant integrity and reliability related events.

 

Description of Best Practice

We have implemented a process for more pro-active and holistic risk management of technical risks during the Operate phase of the asset lifecycle. The process rigorously prioritises key risks and leads to higher quality integration of technical knowledge and insight into business decision making. The process lends itself particularly well to late-life assets where prioritisation of resources, as well as pro-active management of high impact risks (integrity and reliability) is particularly relevant.

Key components of the process and the associated infrastructure are:

  • the role of dedicated risk screener in the asset
  • a central database
  • a structured process to bring different discipline input together in an efficient way
  • an approach to engage staff and leaders in the company to  increase awareness, common understanding and skill in risk management
  • an approach to engage staff and leaders in the company to  increase awareness, common understanding and skill in risk management

 

Shell – Optimum frequency to perform well integrity tests

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Submitted by Shell

Impact

  • Reduced planned losses associated with nominal fixed period well integrity testing frequency
  • Increased level of assurance on well integrity
  • Increased ability to pro-actively manage well integrity

Description of Best Practice

We have developed a method for deriving appropriate Christmas tree and downhole safety valve test frequencies using a statistical model. The model is based on actual historical valve integrity test data gathered in the field. Provided sufficient data is available, the method allows for test intervals to be set based on real and actual performance data (where available) and move away from fixed-term guidance in an appropriate and risk-based manner.

Contact: Wessel de Haas, Shell

BP – Improving offshore efficiency through continuous improvement workshops with key offshore contractors

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Submitted by BP

Impact

The actions taken as a result of these workshops have made a real impact on our offshore efficiency.

For example, in January 2015 we began working with Cape, BP’s main scaffolding, insulation and painting provider, to identify opportunities to increase efficiency of painting operations.

Research showed it was taking 10.4 hours to paint each square metre of pipework on our platforms, two hours more than the KPI target. The team found that due to the small number of paint and equipment stores on the platform, painting teams were walking up to 10.5km on a typical job.

Additional equipment storage stations were therefore positioned around the platform for easier access, with time savings per job estimated to be 40%.

Changes were also made to the spray pumps being used, which has reduced the time taken to effectively apply the paint.

Description of Best Practice

BP is working with its key offshore contractors to identify opportunities for continuously improving offshore efficiency. One project focused on reducing the time taken to paint pipework led to time savings of 40% per job.

Improving levels of productivity offshore is one of our key focus areas to enable us to increase our competitiveness. We have been working collaboratively with a number of our key offshore contractors to understand the barriers preventing higher levels of productivity on maintenance activities across our platforms.

Through continuous improvement workshops with our contractors we have been able to identify specific actions we can take to utilise technicians’ time more efficiently.

Such actions include:

  • Better control of materials offshore – locating the materials required for a specific job close to the work site, thereby reducing the time spent walking to and from material stores.
  • Increased focus on planning of work scopes – ensuring the right permits, materials and people are in the right place at the right time.
  • Increased time for supervisor site visits – leading to better supervision of work and faster resolution of issues.

Contact: Sarah Hodgkinson, BP

BP – Reducing costs of hired equipment offshore

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Submitted by BP
Impact

Through implementing these changes, BP expects to generate a significant reduction against hired equipment no longer required.

Having been successfully implemented on one platform, this solution will be rolled out across BP’s North Sea assets.

Description of Best Practice

BP identified a Region-wide trend of hired equipment remaining offshore long after use, generating charges to BP for every day spent offshore. On one platform for example, just one piece of equipment generated £48K in overdue charges.

A project team set about quantifying the extent and root causes of the problem, with a view to significantly reducing overspend.

Following the review, they put in place a number of changes to ensure improved management of hired equipment:

  • Simpler process for registering all hired equipment – improving the visibility of costs.
  • New tagging system to clearly identify status of hired equipment – providing a coherent method for managing and tracking hired equipment from the initial order right through to return to vendors.
  • Increased collaboration with on and offshore SPAs – ensuring only that equipment which is required is sent offshore.

Contact: Sarah Hodgkinson, BP