This paper presents a framework and a systematic top-down approach for implementing a company-wide operator-service company integration program for well construction services called integrated competence. The paper describes the key aspects of implementing the integrated competence program: goals, objectives, critical success factors, levels of integration, asset selection and targeting, value creation and key performance indicators (KPIs), multiskill roles, onshore and offshore team configurations, training, and change management. The integrated competence program developed by StatoilHydro and Schlumberger is an initiative under StatoilHydro's Integrated Operations (IO) corporate initiative and was applied to StatoilHydro's standardized well construction process. The joint team configurations in StatoilHydro's Onshore Operations Centers (OOC) improved collaboration in all phases of the well construction process, and the Schlumberger Support Center provided remote support of drilling operations. In addition, the paper describes two case studies used in the development of the wider program. The framework, program approach, challenges, and results presented in this paper provide the E&P industry with an example of operator-service company integration, with possible implications for their own current and future digital initiatives, particularly those focused on the well construction process. Introduction Integrated Operations—defined by StatoilHydro as new work processes that use real-time data to improve the collaboration between disciplines, organizations, companies, and locations to achieve safer, better, and faster decisions—has been an area of considerable focus in the operationally challenging region of the Norwegian Continental Shelf (NCS) (OLF, 2005). OLF (Oljeindustriens Landsforening, the Norwegian Oil Industry Association) has estimated that implementation of IO on the NCS can increase oil recovery by 3 to 4%, accelerate production by 5 to 10%, and lower operational costs by 20 to 30% (OLF, 2003). Further, in an updated study, OLF has concluded that implementing IO across the NCS has a potential value of approximately 250 billion Norwegian Kroner (OLF, 2006). In StatoilHydro, the integrated operations program is a strategic corporate initiative that has evolved through several phases, delivering increasingly higher business value over time. These phases are improved collaboration, standardization of work processes, evolving the way of working in each asset, evolving the way of working across each asset, and cross company collaboration (Henriquez, 2007). StatoilHydro launched the integrated competence program with Schlumberger Drilling and Measurements (D&M) to improve cross-company collaboration and improve the performance of and value from large-value contracts using integrated operations principles. Program Approach The program team applied an integrated approach to defining the project plans. During a series of two-day work sessions, with 8 to 10 experts participating in each session, the team defined the details of six interrelated dimensions of the program. These six dimensions included specifics on the "why" (goals and KPIs), "how" (process and tasks), "who" (roles and people), "what" (data), "where" (geographical view), and "when" (sequence and timing).

An Operation Support Center (OSC) was established in Colorado, USA to support clients drilling in the Pinedale Anticline in Wyoming as well as other operators throughout the onshore drilling market of the continental US. In the Pinedale Anticline region, operators plan to drill several hundred wells per year. The time to drill and complete a typical well stood at thirty-five days through 2007, and a target was set to reduce this to fifteen days. Achieving this target would result in a savings of approximately 2190 combined rig days a year thus saving the operator over $100mm.A strategy with 2 main elements was developed: a powered rotary steerable service for vertical drilling and remote optimization via the OSC. This approach allowed for no rotary steerable operations personnel to be based at the wellsite during drilling. The new OSC centric processes and procedures developed increased efficiency and allowed fast deployment across a fleet of rigs. The process included a rig-up crew that moved from rig to rig for BHA pick up or lay down.The remote operations team then monitored operations and began analysis to optimize performance. Using offset data and meanspecific-energy (MSE) techniques, drilling performance targets were set for each depth interval. OSC based drilling engineers alerted the rig when penetration rates were compromised by adverse drilling dynamics, or when input energy needed to be reduced to preserve bit life and minimize trips. The remote team also generated a daily report for each well that continuously compared penetration rates with expected performance targets and captured best practices. This process was used to communicate across the entire drilling organization.This method of challenging the target was complimented by the operator's ongoing optimization initiatives and resulted in an increased average ROP of 36% through February 2009. Average time to drill and complete these wells was substantially reduced from the original benchmark; with average drilling and completion time standing at seventeen days. This reduction in days has the potential of saving the operator an average of $900k per well.