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Oil & Gas

NEEDS-BASED RESULTS

 

Oil & Gas

SITUATION

An offshore Oil & Gas Exploration & Production leader was experiencing above-average downtime and lost production. 

DRIVER GOAL

Reduce production downtime from 12% to 8%, delivering $26M USD annualized in increased production of BOE per day by July 2014.

RESULT

  • Halved production downtime from 12% to 6% within 3 months.
  • Achieved production improvement of $30M USD annualized to date.
  • Sustained process and behavior changes.

Case Study

Production Optimization and Downtime Reduction in the Gulf of Mexico

Issue

An offshore Oil & Gas Exploration & Production leader had grown by acquiring and further exploiting mature oil fields in the Gulf of Mexico. This acquisition strategy brought challenges related to cultural consolidation, insufficient equipment maintenance, above-average downtime and lost production.

Highland Approach

Our team analyzed the firm’s existing production downtime and determined the barriers to achieving its production improvement goal. We developed an implementation plan – with business case – to reduce production downtime and increase production. A critical step in this process was to secure leadership alignment around and commitment to supporting the plan to deliver immediate, visible and sustainable change and real financial benefits to the business.

Actions Taken

We formed three teams to address downtime and lost production:

  • Forecast and Planning – Sets the long-range annual, quarterly and monthly views for planning and coordination of major Shut-In events, particularly those involving two or more of the following disciplines: Drilling, Construction, Production, Maintenance and Industrial Engineering.
  • Operate and Maintain – Focuses on developing and enhancing an existing in-house CMMS system to accommodate all of the aforementioned disciplines as a Work Management System for daily and weekly Work Order forecasting and planning.
  • Scoreboard & Continuous Improvement – Develops basic, visual plant downtime and production metrics and charts for use by the Operations Field Disciplines. It then uses installed Plan vs. Actual results from Shut-In and daily work events to drive continuous improvement.

Reduced production downtime by

50%

within the first three months

We've achieved production improvement of $30M USD annualized to date.

Related Information

industry-based

Project Leader

Manufacturing & Industrial

Joseph is a senior executive with more than 40 years of international industry management and consulting experience, primarily in the areas of process improvement, working capital optimization and operational metrics. Having served in more than 21 countries around Latin America, the Caribbean, the Pacific Rim, and North America, Joseph is skilled at implementing successful and sustainable change programs in culturally diverse environments.

Project Leader

Oil & Gas

North America

Tom is a senior project leader with over 25 years of international management consulting experience in the oil and gas, utilities, manufacturing, financial services, telecommunications, media and aerospace industries. He has served Fortune 500 and Global 2000 companies in 15 countries across North America, EMEA and Asia.