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Reduced $/BOE Operations through Principle Centered Maintenance Leadership: A Case Study

IP.com Disclosure Number: IPCOM000217521D
Publication Date: 2012-May-08
Document File: 7 page(s) / 801K

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Reduced %/BOEOperations Through
Principle Centered MaintenanceTM

Leadership: A Case Study

BY

Dr.John G Buchan, Director ofNew Business Value, HalliburtonKBR
Mr. DanM.McCoy, Operations Supervisor, ConocoInc.

Absbad

Oil &gas operating companies are seeking to reduce their operating costs whilst sustaining production volumesand maintaining sclfety &environmental standards. This objective is even more critical in today's competitive environment.

This article presents a leadershipplan that will realize low

$hoeoperations in a shortperiod of time based on experience with a turnaround in the Grand Isle,i?eMin the GulfofMexico. The leadershipplan isfounded on seven key maintenance elementsand ten essential guiding principles and driven by a powerful coalition between operator and service company.

The coalition marries Conoco's operations leadershipfor the asset with HalliburtonKBR providing the maintenance leadership to achieve extraordinary results in a short space of time. It also demonstrates the significant impact maintenance has on the whole of an operation, notjust at the equipment level.

satellite platforms through a large interconnectedpipeline infrastructure with around 90 pipelines. AI1theprocessed hydrocarbons are transported via one gas pipeline to a gas gathering system and one oil export pipeline to the Grand Isle tankbattery onshore, where fiirther further treatment occurs and the products are metered and sold The complexity of the infrastructure and the high degreeof interdependenceof facilities makes the field very dynamic and difficult to manage.

Halliburton KBRPadcipation (early stages)

In mid 1996,the Conoco Grand Isle leadership decided to bring a '%ah set of eyes" into the operation offshore as a fust step to changing a culture and way of doing business thathad existed for a longtime. The Conoco Asset Manager had the foresight and took the bold step to introduce Halliburton KBR into the operations team in an alliance.

Another Conoco goal was to bring the experienceand view point of operators from onshore plants into an offshore opration to challenge field practices. Although they had limited operations experience in the Gulfof Mexico, Halliburton KBR was selected asthe outside service company.

Halliburton KBR had significant experience in onshore maintenance and in theNorth Sea The f m

                         also committed to work with Conoco to transfer operations and maintenance knowledge from onshore and the North Seato the Gulfof Mexico. Halliburton KBR was also willing to make a commitmentto anincentivized contract based on performance linked to operating cost reductions, production volume targets, and safety &environmental achievement.

Working together this alliance realized measurable iniprovements in field performance over a two-year period. However, they eventually reached a point where more significant improvements could not be achieved without making more findamental changes.

Corroco VW to WorIdnidefacilities

Quickly, Conoco's le...