ConocoPhillips – Collaboration is key for marine logistics

Submitted by ConocoPhillips

Impact

Tracy Morrison, UK Logistics Manager explains:

“Our efforts are clearly showing results and we have successfully achieved an improvement in vessel productive time, have improved deck utilisation and seen a reduction in the cost per tonne for material shipped.

“We are now building upon this success and as a result of changing work activity offshore, we have now amended our logistics operating model and removed the use of dedicated platform supply vessels to our Central North Sea business.

“We are also continuing to work collaboratively with other operators as part of a shared pool model with neighbouring installations.”

For ConocoPhillips, seeking opportunities to improve efficiencies in our marine logistics by empowering the team to think creatively out with the box has enabled us to focus and reduce costs.

Whilst our work processes within marine logistics have been improved and streamlined, we are now in a position where we are seeing other tangible results. Vessel non-productive time -32%; Cost GBP tonne shipped -7%; Deck utilisation +/-80%.

Description of Best Practice

Marine logistics, or the delivery of necessary plant, equipment and materials from suppliers to offshore installations is a huge cost to oil and gas operators across the North Sea. In the current economic climate, it is essential that new ways of working are developed to reduce these costs, but yet an efficient, safe and reliable service must be maintained to support the ongoing work of the offshore platforms. With this in mind, the marine logistics team from ConocoPhillips, the largest independent exploration and production company based on production and proved reserves, were challenged with looking at how these costs could be managed more effectively across the company’s UK operations.

The first step was to co-locate the marine logistics team with aviation logistics and the integrated planning and materials front-line support group at Rubislaw House as part of the company’s new cutting-edge Integrated Operations Centre. With this came the efficiencies of collaboration, new technology and improved communications.

 A new VHF communications system was introduced from onshore direct to the vessels on contract to us and an alarmed collision avoidance radar early warning system installed in the logistics hub to monitor offshore marine traffic. With this increased focus on communications, co-operation and performance measures, the team were able to trend the non-performance time of vessels offshore. They demonstrated to internal stakeholders that the service could continue to be delivered and maintained adequately using one platform supply vessel less. A shared marine pool model was subsequently introduced. This change also necessitated improvements in the way deck space was managed onboard the remaining vessels and more effective utilisation of these boats so their productive (or in use) time was improved or in other words ‘increased’.

contact: Sandra Duncan
sandra.duncan@conocophillips.com