Facilities Construction

Challenge: A growing US independent upstream O&G company, operating in the Permian Basin recognized that they needed to rapidly improve overall cycle time, quality and safety performance of their Facilities build program. The drive for improvement and sense of urgency being driven by their aspirational, and aggressive, short to medium-term growth plans.

OUR ANALYSIS FOUND

Lack of adherence to standards in Facilities design, primarily driven by the engineers need to execute to plan and processes and standards that were no longer fit-for-purpose given the organizations growth over the previous years

Lack of overall process accountability and ownership

No formalized BOM resulting in high material costs

Current management system (plans, reports, meetings etc.) did not drive performance

Historic performance data and metrics were inadequate. Very little in the way of planning and performance tracking

Facilities build dates were not sequenced to Drilling and Completions Schedule, with early Facilities builds tying up capital spend

The Drilling schedule was constantly changing and as a result, work was in reactionary mode

Wells were killed on the Drilling Schedule where facilities had already been built

Lack of processes aligned with lack of clarity of accountabilities, roles and responsibilities resulted in poor communications

Implementation

New Management Operating System recorded performance in “real time” with variances being challenged and addressed on a continuous basis

Management Operating System

Process designed with defined cycle-times, accountabilities, and roles and responsibilities clearly established

Process Optimization

An integrated Schedule developed and linked to the D&C Schedule. The Schedule determined lead time for material purchase, build cycle times and resource requirements. Updated and revised Tools better enabling forecasting and effective bidding of resources, equipment and materials. A critical success factor with current and anticipated competitive growth in the Basin

Process Optimization & Scheduling

Implemented a Standard Facilities Design that included modular components. Enabling consistent Facilities build across the Basin with reduced cycle-times and improved quality

Design Optimization

Critical to the implementation of a Standard Design was the implementation of a more robust MOC process. This eliminated individual build preferences and ensured standardized design

Management Operating System

CLIENT SUCCESS

Results of our engagement include:

50% reduction in Facilities build cycle time (Facilities Pad build to Power Up)

“ This program has provided us with confidence that we can bring production on in alignment with our aggressive mid term business plan”

COO

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