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Case Study

Achieving Operational Excellence in mature assets

well in field

Addressing the challenges of mature assets to deliver Operational Excellence

The Situation

Our client was a large Canadian Exploration & Production company with operating assets (mainly mature) across Alberta, SE Saskatchewan, and NE British Columbia, whose primary challenges focused on optimizing levels of Repair & Maintenance (R&M) spend, reducing well downtime, and cost of well repairs.  They also needed to address issues of competencies, capabilities, and development of field personnel, including field leadership development.

 

Our Approach

The analysis reflected the organization’s desire to review every aspect of field operations and office/field interfaces. We looked at all aspects of field operations, production optimization, well servicing (field and office), R&M spend and procurement, training, field competencies and capabilities.    

The analysis revealed:

  • A number of structural processes: cost reduction, production optimization, and maintenance management were either inadequate or not available to operations.   
  • There were opportunities in invoicing coding structures and authorizations for spend approvals.
  • There lacked a robust management system to provide visibility and management of spend.

Implementation

  • Restructured the field organization to reduce complexity and improve decision making
  • Optimized operator routes and reduced windshield time; managing well visits by exception, creating field operator maintenance routines
  • Developed well intervention guides, troubleshooting guides, and operator handbooks
  • Established standards for field operator tasks (belt change-out, pump fix, preventive maintenance, etc.)
  • Improved production and reduced downtime of wells through robust operating processes and practices tied to operational objectives and expected results
  • Implemented standards for well optimization, well reviews, invoice approvals, maintenance scheduling and OPEX tracker
  • Consolidated spend and rationalized supplier base to deliver available economies of scale

Value Delivered

Achieved $11 million in annualized benefits, reducing annualized OPEX spend by 9 percent.  Reduced production losses to such an extent that the company exceeded budget for first time.  Significant reduction in well servicing costs, R&M costs, and well downtime.  

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