drilling operational excellence success through a team approach

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Drilling Operational Excellence Success Through a Team Approach

Oliver Massmann – Partner, General Director


• Drilling & Completion operations are very costly

• Huge amounts of pre-planning go into D&C campaigns

• Why is it then that Drilling Operational Excellence is often just an afterthought?

Introduction


The REACH Group

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• Formed in 2000

• Over 100 Clients in 43 countries

• World Leaders in : – Performance Optimisation

– World Class Safety Culture

– Leadership Development

• Focused on Upstream O&G

• Strong Local Presence in Asia Pacific for 14 years.

The REACH Group


• Prominent Operator in SEA

• Tried Performance Optimisation Before With Limited Success

• Today I am happy to report that they are succeeding in improving Performance

• WHY???

• Because of their TEAM Approach.

Case Study


• 4 Well Campaign – Jack-Up Rig

• 35 – 40 Day Wells

• First Well = 5.11 Days Ahead of AFE

• Last Well = 13.03 Days Ahead of AFE

• $3.53MM in Offline Operations Savings (226hrs)

• $6.3MM Invisible Lost Time (ILT) Captured (429hrs)

• $9.8MM – Value of Lessons Learned

• $4.88MM Savings on last well on spread rate alone.

Real Results


Real Results

88.6% Improvement


Real Results

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117% Improvement


Real Results

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39.45% Improvement


Real Results

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Real Results

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47.2% Below Planned AFE


Real Results

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44.8% Improvement


Real Results

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Real Results

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What do all these companies have in common to achieve great results?

A TEAM APPROACH

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• Strong focus on Pre-Planning

• Well Delivery Process (WDP) or Well Delivery Assurance (WDA)

• Statement of Requirements (SoR)

• Basis of Design (BoD)

• Peer Reviews

• All great tools yielding huge $ savings

• BUT – big prize also exists in operations

Drilling & Completion Operations Typical Approach

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The Circles of Success

All three aligned = ideal performance culture People

Technology Process


WORK THE PROCESS

BECAUSE THE PROCESS WORKS!

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The Process


The process in this case comes under many names:

– Performance Optimisation

– Continuous Improvement

– Technical Limit (TL)

– Drilling the Limit (DTL)

– Operational Excellence (OE)

– Drilling Improvement Process (DIP)

– Six Sigma.

The Process

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The Process

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• Operators need to focus on Operational Performance Improvement ($$$)

• Must have a Structured Methodology to implement this

• Critical to have the right TEAM and the right APPROACH in order to succeed

• A successful team approach is heavily dependent on strong LEADERSHIP.

The Key Message

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• Planning & Enrolment (Project kick-off)

– Engage the entire team

– Determine project Goals & Objectives

– Select Key Success Factors (KSF)

– Outline Key Performance Indicators (KPI) that feed into the KSFs

– Design a robust Implementation Plan (Roadmap)

– Led from the top, and done as a team.

Performance Improvement 1

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• Leadership Workshop

– Best opportunity to involve all the key stakeholders (operator, contractor, service companies etc.) before implementation

– Agree on defined Goals & Objectives

– Review and confirm all KSFs and KPIs

– Validate Implementation Plan

– This is where the Leaders need to start “waking the talk” and leading by example.

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• Drill / Complete / Test the Well on Paper (DWOP / CWOP / TWOP) – This is NOT a Pre-Spud Meeting

– Need to involve all key stakeholders

– Needs to be held early enough before spud

– Break down well / operations into hole sections / phases

– Build a culture of challenge

– Identify offline operations, opportunities, main risks

– Determine target times

– Develop Action List

– Develop Action Plan to be implemented at the rig site to drive optimal performance.


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• Implementation – Heart of the PO process

– PLAN “Plan the battle, don’t battle the plan”

– DO “Give people the right information at the right

time in order for them to make the right decisions”

– MEASURE “What gets measured gets done”

– LEARN “Insanity: doing the same thing over and over

again and expecting a different result”

• Team approach and strong leadership critical here as well.


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• Sustainability

– Start with the end in mind

– Create a sustainability plan

– Train key people to take over the Performance Roles

– Periodic Health Checks.

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• Junior Drilling Engineer Syndrome

• Office based initiative

• Lack of qualified personnel

• No Implementation Plan

• Lack of greater involvement

• No visibility

• Not celebrating success

• Poor Teamwork & Weak Leadership

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Potential Traps


• Quality planning

• Operational Best Practices

• Effective Knowledge Management

• Consistent top quartile performance

• Visibility of Results

• Celebrating Success

• Leaders Walking the Talk

• Engaged, Involved, Happy Team

What Does Success Look Like?

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What Does Success Look Like?

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Even More Important in a Time of Crisis in our industry

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$ bbl


Thank you !

Oliver Massmann – Partner, General Director

[email protected];

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drilling operational excellence success through a team approach

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