This article proposes a model for value creation whereby a set of integrated operations (IO) success criteria are matched against key work process aspects. The principles in this model are implemented in Statoil`s governing documents as an IO guideline.The necessary and sufficient conditions for successful value creation by means of IO are modelled in a layered structure with seven success criteria. These success criteria are:Mindset, leadership and training Organisation, networking and work process framework Collaboration work arenas Information visualizations and work spaces Information access Communication infrastructure, data transmission and standards Data capture and remote activationThe purpose of the IO guideline is to: Enable a common platform for improvements and training for all processes and business areas Contribute to a common performance level among processes and business areas world wide in Statoil and Describe the required steps for a successful implementation of IO A consequence of this model is that the capital expenditure and improvement efforts related to one criterion must be met with matching efforts on the other criteria in order to achieve the desired outcome with respect to improved work process efficiencies, increased production, reduced costs and improved HSE.The paper discusses the proposed IO model in a life cycle perspective from exploration to production. Examples and experiences from using of the model are included. A summary and some conclusions are given in the last section of the paper.A series of IO white papers with broad contribution from the oil and gas industry and academia were published by the Norwegian
One recent management trend is the establishment of onshore operations centers by oilfield operators that are currently developing offshore assets. Unfortunately, the formation of such a center has typically been a niche activity within many companies and, as a result, some may fail to consider the lessons learned from earlier operation center failures. It is also vital that those attempting to develop such a center make sure the center's purpose functions within the industry's overall framework. While these centers have often delivered, with varying degrees of success, on their anticipated benefits such as faster decision-cycle time, better, more informed decisions and reduced POB, robust business and organizational models are necessary to ensure these efforts' long-term viability. As part of a long-established business partnership, Norsk Hydro and Baker Hughes INTEQ have recently implemented changes to the industry's longest continuously running remote drilling operations center. Supporting some of the Norwegian Continental Shelf's most technologically challenging drilling operations, the center is contributing to improved financial performance, reduced POB, enhanced service quality and supporting work process changes within both organisations. The revised model has been implemented as the 'normal' service delivery channel for five drilling operations supported by the BEACON center on a 24/7 basis and routinely operate advanced technologies such as formation pressure testing while drilling, deep reading resisitivity and azimuthal imaging services. This paper will outline the technical and commercial models that have been developed, provide insight to the challenges encountered and achieved successes. Introduction Transferring real-time rig-site data to office-based experts is not a new concept within the E+P industry. In 1985, Mobil established a satellite communications network to feed real-time drilling and MWD data to the Mobil Drilling Data Center1 and, a short while later, Amoco opened a similar drilling center2. These early command centers delivered rig-site data to a central group of experts (additional to the core operations/asset teams) tasked with supporting critical operations. Little attention was placed on process management or human processes and, coupled with an inability to demonstrate the value of maintaining dedicated experts and infrastructure in a changing business environment the Amoco center eventually disbanded in 19893. The late 1990's Norwegian oil industry was characterized byRapid technology development of advanced down-hole drilling technologies such as Rotary Closed Loop Drilling SystemsIncrease in production by innovative application of new drilling, completion and production technologies. The exploitation of the thin oil leg of the Troll field by Norsk Hydro exemplifies thisInvestment by oil companies in fiber optic telecommunications infrastructureRapid advances in computing technology and large scale uptake of web based software applications Norsk Hydro and Baker Hughes began work in 1997 on defining work practices and organizational models that would address the challenges listed above by relocating some personnel from offshore to an onshore operations service center manned 24/7. The concept was named BEACON (Baker Expert Advisory Center/Operations Network) and, after pilot testing with Hydro and BP in 2000/1, commercial operations commenced at the end of 2001[3].
This article proposes a model for value creation whereby a set of integrated operations (IO) success criteria are matched against key work process aspects. The principles in this model are implemented in Statoil`s governing documents as an IO guideline.The necessary and sufficient conditions for successful value creation by means of IO are modelled in a layered structure with seven success criteria. These success criteria are:Mindset, leadership and training Organisation, networking and work process framework Collaboration work arenas Information visualizations and work spaces Information access Communication infrastructure, data transmission and standards Data capture and remote activationThe purpose of the IO guideline is to: Enable a common platform for improvements and training for all processes and business areas Contribute to a common performance level among processes and business areas world wide in Statoil and Describe the required steps for a successful implementation of IO A consequence of this model is that the capital expenditure and improvement efforts related to one criterion must be met with matching efforts on the other criteria in order to achieve the desired outcome with respect to improved work process efficiencies, increased production, reduced costs and improved HSE.The paper discusses the proposed IO model in a life cycle perspective from exploration to production. Examples and experiences from using of the model are included. A summary and some conclusions are given in the last section of the paper.A series of IO white papers with broad contribution from the oil and gas industry and academia were published by the Norwegian
During 2007During -2009 Statoil performed a series of steps to enable integrated operations (IO). This included introduction of standardized work processes, a common operating model for Statoil-operated fields on the Norwegian Continental Shelf (NCS) and an IO guideline based on seven IO success criteria, ref. SPE 128576. During 2010 a mapping of IO capabilities based on Statoil's IO guideline and requirements was performed for 28 Statoil-operated NCS fields for selected work process aspects within drilling, production optimization and operations and maintenance. The purpose was to map the degree of IO compliance in relation to the common operating model and identify improvement opportunities within each of the field units.The mapping was based on a questionnaire of 190 questions and was distributed to 590 persons within the field units. The response to the survey was very satisfactory (79%). To supplement the questionnaire the IO team performed meeting observations and analysis of supplementary data and KPIs for each field. Best practice was identified for most work process aspects and used as a reference for improvements across assets. All the data were treated statistically to limit uncertainties and bias. The mapping project identified IO improvement opportunities within the individual field units, as well as common improvement projects across fields/assets. The paper addresses the challenge of scaling with respect to IO implementation, from selected work processes and individual production installations to broad implementation for Statoil's NCS operations.The IO mapping project documented the value of utilizing the IO guideline and capability model as basis for identifying actionable improvements with respect to integrated operations in a systematic manner for a large number of assets. The paper describes the method, main results and experiences gained from the project.
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