Capitalising on unfulfilled performance potential
When an independent E&P company conducted a McKinsey benchmarking exercise which revealed 4th quartile performance and significant ‘gaps to potential’, we worked in tandem with McKinsey to deliver specialist oil and gas expertise.
Objective - To identify and implement ways to improve operational performance
While our client retained McKinsey to programme manage their transformation, they recognised the need for more specialised support. We offer extensive experience in improving performance, specifically within the oil and gas space.
We were tasked with supporting McKinsey and our client to identify and implement impactful operational strategies and meaningful tactical interventions.
Solution - Targeted expertise for the oil and gas sector
We provided a practitioner team with reservoir, production and operational experience, as well as rich supply chain expertise. Our record of cost-focused business transformation meant we were able to balance ambitions and opportunities with a commercial, pragmatic mindset.
We worked closely with the asset leadership team to identify and implement a series of interventions.
Production Interventions
• A robust production management process
• Focusing the organisation on production performance and optimisation
• Hydrocarbon system optimisation with dynamic monitoring based on a deep understanding of the system choke model
• Turnaround optimisation focused on:
- Cost
- Duration of lost production
- Plant reliability
- The interval between events
Cost interventions
• Improved control and rationalisation of rental equipment
• A structured approach to maintenance burden rationalisation (safely and responsibly reducing overall man hour burden by 25%+)
• Improved cost recovery
• Supply chain optimisation and spend control
• Improved wrench-time through work preparation and more efficient practices
• Integrated planning with adherence to defined gate criteria
Outcomes - A sustainable, safe improvement in operational performance
Our specialist expertise and pragmatic interventions had a very real and measurable impact on performance.
Ultimately, production performance moved from a PE of less than 50% to over 80%. We also reduced OPEX costs by 35%.