Nexen – Allocation & Measurement Dashboard

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Problem Statement  

Allocation and Measurement issues required greater focus to maintain the optimal integrity of the key inputs to the Allocation and Production Reporting System.

Aims

To develop a semi-automated tool to communicate and collaborate with key stakeholders the health status of asset measurement systems and to drive progress of remedial work required to safeguard the long-term integrity of the systems.

Method

The Dashboard is refreshed monthly and a communication sent to key stakeholders to give visibility of issues impacting the fair and equitable apportionment of product at field and well level.  Emphasising any threats to production, highlighting areas of weakness together with the significance of not taking remedial action.

The Dashboard is used within asset war rooms and a monthly meeting held to review, discuss progress and agree priorities.

The Dashboard serves to monitor and control progress against OGA and 3rd party Inspection Audit.

Impact 

This review process brings focus on issues impacting the accuracy of production data, assists asset management to understand the business case for approving any corrective maintenance required.

In addition to communicate the health of key metering systems impacting water injection and production, systems critical to EU ETS, well test, sampling and analysis attainment are also monitored and reported.

All the players and stakeholders have the same consistent  information that they can use for day-to-day decision making.

This has contributed to the ability to monitor and control issues, evident by a steady improvement in 3rd party audit scores.

Total Savings Anticipated

+/- 100 Hours per Annum

Mitigate exposure to lost/deferred production due shutdown by regulator/pipeline operator.

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Peterson – Breaking down the silos, multi-skilling and redesigning the way we work

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Problem Statement  

The pressure on the O&G Industry to reduce prices continues. There is a limit to how much cost can be driven out through a standardised approach. Through changing the way we think and changing the methods of working we found ways of reducing cost, working in partnership with the client, implementing new technologies all of which led to a competitive and sustainable advantage.

Aims

  • To change the mindset and move away from the silo mentality and create a multi-skilled workforce where individuals have the ability to work in any area of the business.
  • To redesign the daily operation surrounding Receipts and Dispatch, Returns and Repairs, Kitting and Staging.
  • Site refurbishment to improve staff welfare
  • To improve HSEQ performance and raise awareness

Method

  • Effective communications through Town Halls, staff engagements and workshops to promote a different way of thinking which clearly evidenced the changes in the industry and the need for each individual to think differently.
  • Redeployment opportunities offered mitigating any need for redundancies
  • Deployed a skills matrix to understand people skillsets and where gaps existed.
  • Encouraged and promoted individuals to learn other areas of the business enabling resilience and flexibility to managing demand.
  • Eliminate multiple handling and waste through optimising the process. Focus on internal and external traffic management plan with a view to minimising traffic, plant movement and general improved layout.
  • Daily / Weekly / Monthly focus on HSEQ with management participation

Impact 

People have understood the need for change and to achieve sustainability and longevity we needed to think and act differently, a move away from old traditional silo ways of working. Individuals are now multi-skilled and have the ability to move from one department to another during peaks and troughs of activity.

The warehouse layout has been redesigned and the process of receipting and dispatching changed so that material is now only handled once before it is physically dispatched, stored, bagged and tagged. In addition, visible marking of floor areas, platform laydown areas, visual control mechanisms has been introduced helping counter potential human error.

HSEQ performance and awareness has improved.

Improved motivation and team spirit despite the significant changes.

Achiever of the PETERSON Operational Excellence award 2017

Total Savings Anticipated

£250,000

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ATPI Griffinstone – Leveraging Global Hotel Expenditure

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Problem Statement  

ATPI Marine & Energy was appointed as the global travel management company (TMC) for a deep water drilling company. It was quickly established that the client’s operating regions and its London headquarters all booked their own local preferred hotels. This meant there was no consolidated method for measuring value or identifying savings opportunities.

Aims

Consolidation of hotel expenditure to strengthen negotiating power with hotels. As well as improving visibility of travellers

Method

ATPI Marine & Energy undertook a two week study of the clients’s total hotel expenditure. The results showed that in most locations, staff stayed at a wide range of hotels with varying rates.

The expected number of room nights by location and by traveller category were calculated using the previous year’s booking information.  ATPI Marine & Energy then targeted hotels from their inventory of 500,000 properties. A number of hotels were invited to tender and made aware of the value of being a preferred partner. As well as best value rates, allocation and last room availability was secured in the client’s most important locations.

Impact 

By consolidating the client’s hotel programme and using a bespoke hotel system to identify opportunities, ATPI Marine & Energy has proactively improved cost savings month after month. In the first quarter alone, the client saved US $224,000 (7%), compared to its accommodation costs for the same locations a year earlier. The client therefore revised its annual savings target from US $500,000 to US $1,000,000.

Total Savings Anticipated

US $500,000 to US $1,000,000.

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Shell – Logistics/Material Management optimisation Initiatives

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Aims

To provide a summary of some of the initiatives Shell has been involved either as a participant or leading with other O&G operators and our key suppliers.

Initative overview

In the last 5 years, the Logistics Fit for Future (FFF) journey to date has involved a re-thinking of the way in which we work internally and how we collaborate externally with the rest of the supply chain.The total Shell Logistics cost has decreased by a factor 2 thanks to the following initiatives:

    • Internal: review fit for purpose specification for vessels, aggregate demand into integrated planning for Projects, Wells and Production helping to improve Logistics asset utilization
    • External: sharing agreements in place for Marine (ERRVs and PSVs), Aviation fixed wing and Warehousing with other O&G operators.
    • Contracting: develop further output based contracting with fair risk allocation and performance incentive scheme.

Impact/Discussion points 

The challenge is to bring collaboration across the industry to the next level under the banner of ETF Logistics. The following initiatives will be pursued among others:

UKCS PSV marine pooling

Program to reduce Logistics GHG emissions including LNG bunkering

Technology – Digital supply chain – now starting to replicate best practices from other Shell operating units and implement in UK. It will include Track and Trace and End to End Supply Chain Visibility.

Systematic value/waste mapping to instil a culture of continuous improvement and holistic thinking across the supply chain

Total savings achieved

50 mln USD

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Cyberhawk – Internal roof pontoon internal inspection conducted using drones from outside tank

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Problem Statement  

The internal inspection of roof pontoons can be challenging due to the requirement for personnel to work in a confined space for lengthy amounts of time.

Aims

A large global oil and gas company required a solution to inspect the internal roof pontoons and steel shell of a floating roof tank dedicated to the production of unrefined diesel at a refinery in the UK. Cyberhawk was selected to conduct the inspection using unmanned aerial vehicles (UAVs).

Method

Cyberhawk’s two-man team examined the condition of 25 pontoons and the entire internal surface of the tank. The inside of the asset was fully inspected whilst the team remained in a safe position on the outside to fly the UAV.

With a lack of GPS signal and different entry points for each pontoon, full manual flying was required from experienced pilots. This also meant flying manually through the tank’s various compartments.

Impact

This type of inspection would usually involve personnel entering the tight roof pontoons of the tank – Cyberhawk’s solution meant that personnel were only required inside the tank for the minimum amount of time.

The traditional method of inspection would also have taken weeks to complete the workscope where as the UAV solution took just five days.

Cyberhawk successfully completed the workscope delivering a high quality inspection report with high resolution images which enabled the client to understand the tank’s condition. The pontoons were found to be in generally good condition throughout with no significant damage or defects. The client reported the project was carried out within budget and reported significant time savings.

Total hours saved

Five days vs weeks

Safety benefits

Minimum time inside for personnel

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Cyberhawk – $11m saving generated through drone flare inspection

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Problem Statement 

Flare inspection can incur significant costs and take months to complete. Aside from the cost of using scaffolding or rope access, a production shutdown is required while the inspection takes place.  These access techniques also mean extended periods of working at height.

Aims 

  • A supermajor in West Africa was looking use a new, more efficient method of inspection to examine a number of flares on five live assets.
  • As well as generating cost savings, the client was also looking for an inspection solution which was safer for personnel by reducing the requirement to work at height.

Method

  • A two man team from Cyberhawk were mobilised to the region to complete the inspections
  • Full close visual inspections (CVI) were carried out across all assets
  • Thanks to the use of UAVs, the inspections could take place without the need for a plant shutdown

Impact

By avoiding a plant shutdown, and inspecting the assets while they were live, the client saved more than $11million.

All five assets were also inspected in less than a week – the alternative methods would have taken months to complete and would also have required a complete shutdown of the facility.

The detailed inspection reports completed by Cyberhawk’s plant inspector and flare experts provided the facility with the info required to fully plan and prepare flare tip replacement and repair work during the next planned turnaround.

Total hours saved

5 days vs weeks

Total savings anticipated 

Over $11million

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Atkins – Methanol Injection Optimisation Using OLGA Simulation

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Problem Statement

OGUK Case Study – methanol optimisation

The use of methanol as a hydrate inhibitor in wells/pipelines is strictly controlled by Ineos for all users of the Forties Pipeline System due to the potential damage that can be caused to catalysts and effluent plant. If an operator causes the overall FPS methanol dosage to exceed the limit of 2m3 / day, it may be subject to a charge of up to £2m. This therefore leads operators to wait until a timeslot for methanol injection is allocated, causing delays in start-up and the subsequent losses for deferred production.

Aims 

Optimise methanol injection volumes required for start-up operations in subsea wells/pipelines to reduce operator contribution to overall FPS methanol injection thus facilitating the swifter approval of methanol waiver permits and reducing  deferred production.

Method

Traditional approaches use steady state analysis to calculate methanol injection volumes. Atkins developed a novel methodology combining OLGA transient simulations, inhibitor tracking and the latest equations of state to optimise the volume of methanol required during start-up operations. This provides a variable methanol injection rate which minimises the hydrate temperature margin along the pipeline.

Impact

The proposed methodology has been used to optimise methanol injection for one of the most challenging and strategically important HPHT gas-condensate subsea well and pipeline systems in the North Sea, resulting in:

  • A 30% reduction in the total methanol injection volume for a cold depressurised start-up when compared with the output of the standard steady state methodology.
  • 60 – 70% reductions in methanol volumes for warm depressurised start-ups (4-9 days after shutdown).
  • Confidence in the effectiveness of the methanol injected.
  • Maximising the length of time needed between tank refills.

Production savings from swifter permit approvals

~ £3m / year

Avoidance of need for high-usage methanol waiver

~ £2m / start-up

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Chevron – Erskine Well Intervention campaign 2017

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Problem Statement

The normally unmanned Erskine platform has a max POB of just 12 people, which makes labour intensive well interventions a major undertaking.

There has been three years of unsuccessful attempts to remove scale and replace key down-hole equipment.

Needed to ensure that the 2017 campaign was a success.

Aims

  • A 55-day well services campaign on the Chevron-operated Erskine platform to be delivered safely, on time and on budget.
  • The campaign involved work on three wells, including the change-out of a wireline retrievable safety valve and two lower manual master valve stem seals and bonnets.

Method

  • New approach using tools trailed onshore, but new to the market and not used downhole before, including an expandable mill, allowing intervention crew to pass through narrow restriction at surface then out into the tubing where it was opened up.Completed downhole well-data logging, followed by the setting of plugs in the well-necessary barriers to allow the change-out of the lower manual master valve and the replacement of a Pascon valve, which is used to control pressure to the safety valve.Other work included replacement of storm choke valves, downhole safety valves controlled by pressure, and well-data logging.

Impact

The well services campaign is the culmination of years of work and involved
the dedication of the Erskine team, Chevron well services, Base Business
Operations Support and business partners Altus, Welltec, GE Vetco and
Halliburton.

The well services work required Erskine to be maned for 55 days, split into a
14 and 41-day campaign from April to June 2017. With limited facilities on
the platform and a max of 12 people on board, including 5 emergency
response team core crew, this only allowed for 7 other crew to carry out the
complicated and labour intensive work.

Specialised equipment meant deck space was limited to team work and
collaboration was key. Working with wireline companies chevron changed
how teams worked in order to carry out 24 hour working, saving over 20
days offshore occupation and production losses.

The work was carried out safely and successfully, eliminating three significant
well anomalies, allowing the wells to return to full integrity. Completing all
three work scopes incident free was a great achievement by the whole team.
The first work scope was challenging, with the alternatives for reinstating the
down hole safety valve would have resulted in either a costly coiled tubing
campaign or a completion workover, which would have cost missions of pounds
to restore the integrity of the well.

Total hours saved – 21.75 working days

Total savings anticipated – £4.7M

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Chevron – Erskine/Lomond Hub Strategy

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Problem Statement

Erskine is dependent on Lomond to provide the export route from the field.
Need to increase production efficiency and desire to extend the life of Erskine but no joined up approach to how this could be achieved and maintained.

Aims

  • Work collaboratively across both assets regardless of operatorship or Equity share.
  • Focus on what needs to change to improve the performance of both assets for the benefit of all.

Method

  • Reintroduction of a Chevron Ops Rep on Lomond as a fully integrated member of the Lomond OIM Leadership team, improving visibility and helping to mitigate key threats and vulnerabilities.
  • Joint Study work on alternative hosts, optimisations, RAM modelling etc.
  • Use of OPEX Group’s OPEX X-pas service for third party data analysis of key systems

Impact

Successful completion of the cleaning and inspection of the 30km pipeline between the two assets (first pig in the line since 2009). The team ran a total of 14 pigs, including an intelligent pig, which was essential for proving the long-term integrity of the pipeline.

These campaigns resulted in all five Erskine’s wells coming online for the first time in two years with production rate being the highest it had been over three-year span.The number of days online for Erskine platform has also steadily increased from 127 in 2014 to over 240 at the end of 2017.

Over the same period, the combined Lomond and Erskine production reached a record high since Lomond was converted to a single train operation, when it averaged 37,810 boe/d.

Proven that sharing knowledge and expertise leads to positive outcomes, tangible results and is contributing to maximising economic recovery from the UKCS.

Total hours saved – ongoing

Total savings anticipated – ongoing

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ECTIB: Applying the project collaboration toolkit – Shell UK, Wood & Stork Technical Services

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1. Problem Statement

How to use the ECITB Project Collaboration Toolkit in order to achieve optimal schedule and cost performance in the delivery of the Brent Bravo Topsides Decommissioning (Lift Preparation) Project through adoption of a collaborative strategy.

2. Aims

  • Use Lessons Learned from Brent Delta Topsides Decommissioning (Lift Preparation) to deliver improvement in project performance.
  • Establish a collaborative project organisation, as guided by the ECITB Project Collaboration Toolkit, aimed at enhanced project delivery efficiency.
  • Evaluate and measure project performance change through utilisation of the PCT.

3. Method

  • Establish a collaborative project environment and set aside traditional culture and working approaches (PCT Phase 1).
  • Form an integrated client and contractor project team from ‘best person’ selections, irrespective of employing entity (PCT Phases 1 & 2)
  • Obtain senior management and project sponsor support for a collaborative project strategy and isolate the project from any corporate organisational bureaucracy.(PCT Phases 1 & 2)
  • Adopt ‘single team’ and ‘one source of truth’ axioms

4.Impact

  • Delivered within an 11 month schedule with improved safety and better quality (less rework).
  • Combination of collaborative strategy and application of lessons learned from Brent Delta experiences resulted in reduction of ‘like for like’ removal preparation costs vs Brent Delta of 70%
  • Through adoption of the ECITB Project Collaboration Toolkit, traditional client and contractor roles and adversarial behaviours were set aside and a collaborative, single team, environment was created which allowed open contribution and innovative thinking in order to support delivery and efficiency achievements.

Total schedule time saved: Project delivered in less than 1 year, compared to several years for Brent Delta

Total cost savings: Cost savings of 70% on ‘like for like’ basis vs Brent Delta

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