ECITB – Applying the Project Collaboration Toolkit EDF Energy (nuclear sector) to ECITB PCT (oil & gas) project management collaborative practice comparison

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Problem Statement  

How do recommended oil and gas sector collaborative project practices, as set out in the ECITB Project Collaboration Toolkit, compare to practices in the highly regulated nuclear sector. What learning can be derived from the comparison for both sectors?

Aims

  • Derive beneficial learning through comparison of ECITB Project Collaboration Toolkit guidance to the existing project collaborative practices of EDF Energy, as representative of the nuclear industry sector.
  • Use learning from the comparison to inform amendment and revision of the ECITB Project Collaboration Toolkit to 2nd Edition.
  • Identify elements of the ECITB Project Collaboration Toolkit that might provide benefit if adopted by nuclear sector.

Method

  • Comparison of cross-sector practices was undertaken through high level review of the ECITB Project Collaboration Toolkit against EDF Energy project management processes relating to collaboration.
  • Detailed comparison findings were recorded in the Case Study that can be viewed on the ECITB project management collaboration website (see link below)

Impact

  • The ‘high level’ comparison of ECITB PCT guidance to nuclear (EDF Energy) project practices identified many similarities.
  • EDF Energy has a number of collaborative / relationship management approaches built into its project management practices.
  • The highly regulated environment and nuclear security protocols can inhibit some collaborative practices. On non-nuclear process, less complex nuclear sector projects there may be opportunity for enhanced performance through agile planning and simpler, reduced work processes, standards and specifications.
  • The comparison yielded enhanced mutual understanding between the oil & gas and nuclear sectors. ECITB will use detailed comparison outcomes as input to the Project Collaboration Toolkit – Edition 2

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Equinor – My Vantage

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Problem Statement  

Identified need for Vantage POB to be developed to allow workforce access to key information, receive information and updates and provide a platform for on line check in

Aims

To develop existing Vantage POB to be accessible to the workforce for personal information, on line check in, communications

Method

Small team – Nexen, Shell, Total, COP, Equinor worked with Collabro (in collaboration with wider Vantage User Group) to develop and test system.

Testing took place with Operators, and Tier one contractors with feedback and changes implemented by Collabro/CGI

Step Change in Safety supported and allowed a platform for communication through Website.

Registration supported through individual companies as well as Collabro.

Full roll out expected Q4 2018.

Impact

Initial impact has allowed for personnel to check data such as personal details, training certification, and receive important information from mobile devices.

Full impact only when On line check in ‘live’ but potential is for all personnel using Vantage, globally, will be able to check in online, saving time at the heliport, but more importantly, being taken through security questions, and NOK information step by step, with the need to acknowledge that this is correct/understood.

Similar process can be applied offshore, and overall, this is a benefit to the travelling workforce, as well as potential reduced complexity for Logistics departments.

Total Savings Anticipated

Saving potential in time at heliport

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Nexen – Gas Lift Optimisation Decision Analysis

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Problem Statement  

Buzzard platform has a large number of wells requiring gas lift and only a limited amount of spare gas plant capacity to provide it. The current gas lift optimiser relies on individual well watercut, gas lift and liquid rates that have a wide range of uncertainty, meaning good opportunity to optimise gas lift rates.

Aims

To develop a strategy to improve day-to-day gas lift optimisation by ensuring that the available lift gas is allocated to the wells that give the highest oil production uplift.

Method

A decision analysis methodology was adopted with inputs from Production, Reservoir and Process Engineering, Metering and Operations. The key gas lift optimisation decisions were identified from a wide range of inter-related issues, and these decisions were then linked into several different gas-lift optimisation strategies.

Each strategy was evaluated with respect to the cost associated with upgrading the well metering systems vs the incremental oil gain from optimising the gas lift allocation according to more reliable data. A strategy was adopted that gave the best expected economic return and a commitment to action agreed.

Impact

A probabilistic metering uncertainty analysis showed that a substantial number of barrels could be gained simply by allocating the lift gas according to more accurate well watercut & rate data (P50 case).

Metering uncertainty can be reduced by adopting a more rigorous approach to calibration and maintenance of the existing systems rather than wholesale replacement with new.

A cultural shift in attitude to gas lift optimisation was achieved by using a multi-disciplinary team and having regular reviews with key asset stakeholders.

Total Savings Anticipated

Additional Production

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Nexen – Installed Production System Capacity and Locked In Potential

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Problem Statement  

Understanding of the production and injection system capacities, constraints, impacting issues/projects and their inter-dependency across the whole system is essential for production system optimisation and asset management.

Aims

To develop a weekly Installed Production Capacity and Locked In Potential review and reporting process and make it visible to the whole organisation.

Method

The installed system capacities for both the production and water injection systems are reviewed by the production engineers in consultation with the subsurface and operations teams. The constraints across the key system chokes (reservoir, wells, plant and export) are mapped through a common interface in the intranet.

The current capacities, the issues impacting on them, the upcoming, planned projects that are likely to impact on these are updated weekly. The information is disseminated through the locked–in potential dashboard.

Impact 

This review process brings focus on issues impacting on the capacities, improved resource allocation and helped with the planning of activities accordingly.

It helped to communicate both the water injection and production systems and their vital interdependency.

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

This contributes to the top-quartile performance of the assets and achievement of the production efficiencies.

Total Savings Anticipated

Additional Production

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Nexen – WellFARM – Well Flow Assurance Risk Management

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Problem Statement  

A lack of awareness of evolving threats to well performance throughout the well life-cycle can lead increased downtime or impaired performance with consequential impact on host production efficiency.

Aims

To quantify the risk to well performance from individual flow assurance threats, and to oversee the application of mitigation strategies on a well-by-well basis (look forward / look back basis).

To provide confidence that adequate mitigation is in place at all times.

Method

A quarterly review of well stock using a HAZAN style check list, looks at the effectiveness of current flow assurance mitigation strategies against new threats. For example: scale, sand, corrosion, oxygen control, asphaltenes, H2S, mercaptans, wax and hydrate operating envelopes are checked against well operating performance in the review period. Deficiencies in inhibitor mitigation are highlighted against trends for the next reporting period and for life-of-field considerations. Where risks are not deemed to be ALARP, an action plan is devised and the residual risk is recorded in the Risk Register.

Impact 

WellFARM review of threats to individual wells, often flags potential problems that might otherwise have been missed in day-to-day operations optimisation.

This is especially true for assets that are emerging from plateau to mature phases of production, where the original design intent needs to be modified in the light of the experience gained during long term operations.

The approach supplements normal chemical management strategies by providing a cross-functional overview of current and expected performance.

The effect of the process is to maximise mean time to failure and to minimise the mean time to recovery.

The output from the meetings gives asset management visibility of the issues and confidence that business risks are ALARP.

Total Savings Anticipated

Optimisation Opportunity

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Nexen – Risk and Opportunity Management System

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Problem Statement  

Consistent and process driven management of the risks and opportunities through a regular control framework is an essential element of production system optimisation and asset management.

Aims

To develop the governance framework and a supporting tool for the processing and management of the risks and opportunities with better consistency and visibility.

Method

The workflow is updated using the decision framing techniques with all stakeholders and players. Regular opportunity and risk reviews were incorporated into the asset management and review process following a weekly structure and decision governance through 4-stage gates.

A tool with a register, overview radar and dashboards was developed to support and facilitate the process, enabling the recording, processing and governance of the identified risks and opportunities. The system was enabled to feed into the installed production capacity reporting and the locked-in potential dashboards for better visibility to all.

Impact 

The risks and opportunities are now updated regularly and governed with good controls providing visibility to the whole organisation.

The resource utilisation for improvement projects improved with better control, proper prioritisation and alignment with the company work plan and budgets.

All the information of the identified risks and opportunities and their maturity as well as their schedule are readily available to all stakeholders and users.

The impact and contribution of the processed or progressing mitigations/improvements became readily available and visible.

Total Savings Anticipated

>5% Time

Improved Production Efficiency

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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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