Oil & Gas
An offshore Oil & Gas Exploration & Production leader was experiencing above-average downtime and lost production.
Reduce production downtime from 12% to 8%, delivering $26M USD annualized in increased production of BOE per day by July 2014.
- Halved production downtime from 12% to 6% within 3 months.
- Achieved production improvement of $30M USD annualized to date.
- Sustained process and behavior changes.
Production Optimization and Downtime Reduction in the Gulf of Mexico
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.
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.
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
“We've achieved production improvement of $30M USD annualized to date.”