Case study REF#18
The Challenge & Our Findings
implementation
results
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THE CHALLENGE

Streamline Facilities Construction Process

A growing US-independent upstream O&G company operating in the Permian Basin recognized the need to improve overall cycle time, quality, safety performance rapidly, and cost of their Facilities to build a program.

The company engaged Audere Partners to analyze Facilities Construction and improve ways to streamline the process.

OUR FINDINGS

Identified seven items for improvement:

  1. Lack of adherence to Facilities design standards; processes and standards were no longer fit-for-purpose given the organization’s growth over the previous years

  2. Lack of overall process accountability and ownership; operations dictated non- standard design changes.

  3. No formalized construction BOM (Bill of Materials), resulting in high material costs

  4. Management systems (plans, reports, meetings etc.) did not drive performance

  5. Historical performance data and metrics were inadequate; very little planning and performance tracking

  6. Facilities build dates were not tied to the Drilling and Completions Schedule, with early Facilities builds tying up capital spend

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

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IMPLEMENTATION

We focused on three areas within Business Process Optimization

  • Implemented a Standard Facilities Design that included modular components, enabling consistent Facilities to build across the Basin with reduced cycle-times and improved quality
  • Critical to implementing a Standard Design was the implementation of a more robust MOS process. This eliminated individual build preferences and ensured the standardized design

  • Construction process designed with defined cycle-times, accountabilities, and roles and responsibilities established

  • An integrated Schedule was 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 to enabling improved forecasting and more effective allocation of resources, equipment and materials (a critical success factor given anticipated competitive growth in the Basin)

RESULTS

All delivered at a 5.3:1 client Return on Investment

of Annualized Savings
0 M
Reduction in Facilities construction cycle time
0 %

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

Chief Operating Officer

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