BP – Reducing costs of hired equipment offshore
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
