BRAGE FIELD Integrated Operations Project

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1 BRAGE FIELD Integrated Operations Project Development of new best practice work processes between offshore and onshore organizations through extensive application of new information and communication technologies Date: Page: 1

2 The story how we succeed in extending offshore operations for another 10 years Bjørn Holst Offshore Installation Manager Project Mgr. Brage Integrated Operations Project Date: Page: 2

3 Agenda Part 1 Introduction Part 2 Technological door openers Part 3 Human factors; Changing the mind set Part 4 Practicing new real time data work processes Date: Page: 3

4 NORWAY Main assets Oil & Gas resources (>1 Mill bbl/d) Fisheries Technological development Self sufficient on hydro-electrical energy Nature and Tourism Norway Sweden Population: 5 million Denmark UK 3400km coastline Germany

5 StatoilHydro Oil and Gas Activities Oil & Gas activities in 40 countries Norway Russia Canada Denmark US Gulf of Mexico Nigeria Libya Iran Iran Brazil Angola Current E&P activity Date: Page: 5

6 Norwegian Continental Shelf is mature Oseberg Statfjord Olje Mill. Sm³ Olje Mill. Sm³ Brage Gyda Olje Mill. Sm³ Olje Mill. Sm³ 4,5 4 3,5 3 2,5 2 1,5 1 0,

7 Dramatic increase in unit costs Sense of urgency NOK pr. bbl Date: Page: 7

8 Brage Field estimates January 2005 Production b/d SHUT DOWN 2008 Cost of operation USD 74M USD 49M USD 33M Date: Page: 8

9 Sense of Urgency We had to perform business Smarter Cheaper Faster Date: Page: 9

10 Important for the oil industry to release the IO potential NOW! The Norwegian Petroleum Directorate assessments state that Integrated Operations are to increase the tapping from the oil reserves by 2-5 per cent, increase the daily production by 3-8 per cent, and reduce OPEX by per cent Predicted unreleased value added of USD 50 BILLION... Date: Page: 10

11 Integrated Operations (IO) shall give significant contribution to extend oil production and decrease costs NOK pr. bbl Expected effect from IO USD 9 per barrel USD 3 per barrel Date: Page: 11

12 ...that means rapid implementation of: New ICT technologies New work processes New collaboration models Date: Page: 12

13 New Real Time Collaboration Arenas Date: Page: 13

14 The way we organize the onshore work force have great impact on how we perform integrated operations. Production Technology Drilling Dept. Collaboration room G&G/Reservoir Technology Operation Group Bring your total expertice together in an open office setting! Direct access to the collaboration room! Date: Page: 14

15 Implementation of new ICT have given us... Real time data transmission to shore New data to information tools Collaboration room for rapid response and problem solving Date: Page: 15

16 Implementation of new ICT have enabled real time data decision making world wide Offshore Service Companies PP Onshore Headquarter New Collaboration models Date: Page: 16

17 Agenda Part 1 Introduction Part 2 Technological door openers Part 3 Human factors; Changing the mind set Part 4 Practicing new real time data work processes Date: Page: 17

18 Using new IO technologies require developing the organization Integrated operation means. Change tasks and roles Change workplace Challenge professional pride Challenge established truths Project ourselves much more in the everyday work Date: Page: 18

19 Integrated Operations Vision Creating the Vision is the responsibility of Top Management! The use of information and communication solutions shall contribute to improved work processes through close integration and cooperation between a decision-making onshore organization and an executing offshore organization. Date: Page: 19

20 Who is the driving force for making change happen? DO YOUR LEADERS UNDERSTAND THE IO AGENDA? Make sure that everyone is on the bus. Date: Page: 20

21 Brage Integrated Operations Strategies 1. Strengthen decision-making shore model and executing offshore model 2. Tasks offshore that after analysis can be moved to shore - shall be moved to shore 3. Strengthen the continuity between shifts through an operationalized onshore organization. 4. Increase the utilization of available production potential through strengthened cooperation sea-land. Date: Page: 21

22 Integrated Operations mean extensive cooperation with the employees Date: Page: 22

23 To reveal the organizational change potential wrt. to Integrated Operations, an extensive Human Factors (HF) study is imperative Map tasks and roles in the field unit Analyse which tasks/roles can be carried out on land Conclude competence requirements Date: Page: 23

24 2. Tasks offshore that after analysis can be moved to shore shall be moved to shore Operations planning activities can be fully transferred to land. 720 mapped tasks/roles RESULTS 50% of OIM and offshore line managers admin. tasks can be transferred to shore. Approx. 30% of admin. tasks related to the campaign team can be transferred to shore. Approx. 30% of admin. tasks related to the operating team can be transferred to shore. Approx. 40% of admin. tasks related to HSE coordinator can be transferred to shore. Date: Page: 24

25 The Brage Solution Business Development, Project Control, Operational Support Operations Team Maintenance Campaign Team New IO work-processes have resulted in new Operations model Unchanged risk level Cooperation with unions Cooperation with SD Date: Page: 25

26 New IO work processes have changed roles, tasks and reduced offshore manning Fixed manning of 41 persons Operations Team: 21 persons Maint. Campaign Team: 6 persons Date: Page: 26

27 From department structure to Operation & Maintenance Campaign Teams Temporary positions in drilling campaign Date: Page: 27

28 2 4 rotation entails 120 days on duty 245 days off duty Onshore Operations Group is strengthened by platform personnel in onshore/offshore rotation, as well as personnel who have plant and organization expertise from Brage Date: Page: 28

29 Emergency preparedness organization HRS Beredskap Sandsli Be re dska p Beredskapsfartøy SAR Oseberg Beredskapssentral LOGISTIKK Forpleiningsleder VHF 16 BEREDSKAPSLEDER Plattformsjef TEKNISK RÅDGIVER Lab/ pros teknuhf 3 Approved by Local Work Environment Committee LOGGFØRER Fagansvarlig Elektro BORELEDER AV VAKT NH Boreleder UHF 4 SKR (Sentralt kontrollrom) SKR, UHF 3 1 Prosess 1 Prosess Prosess.tekn av vakt (Kommunikasjon) SKL (Skadestedsledelse) SKADESTEDSLEDER UHF 3 FA Drift på vakt BSL (Brønnsikringslag) *** Livbåtmannskap Livbåt 4 BORELEDLSE UHF 4 Boreleder på vakt UHF 4 *** 3 medlemmer BRØNNSIKRINGSLAG UHF 4 TRANSPORT / MOB HELIDEKKLAG, UHF 3 VHF 16 Kranfører Transport koordinator Dekksoperatør Fagansvarlig Mekanisk ( for MOB) AR-LAG UHF 3 Fagansvarlig Drift på vakt Prosesstekn. på vakt Dag 7 personer Natt 7 personer BRANNLAGSLEDER UHF 7 Fagansvarlig Drift av vakt BRANNLAG, UHF 7 Mekanisk Pros.teknSKR av vakt Pros.teknav vakt Pros.teknav vakt ( dag ) AR-LAG BORING UHF 3 / 4 3 Medlemer Boresjef 4 Medlemer Brønnintervensjon UHF 4 Brønnleder 4 Medlemer LIVBÅT 1 VHF 16 Forpleining Forpleining Forpleining LIVBÅT 3 VHF 16 ** FA mek Beredskapsledelse Beredskapsledelse SYKEPLEIER UHF 3 / 1 HMS-koordinator HOSPITAL UHF 3 / 1 Automasjon Fagansvarlig Automasjon Forpleining ** Livbåt 3 er ekstra livbåt Ved POB > 70 skal bemannes livbåt Rev 3

30 Agenda Part 1 Introduction Part 2 Technological door openers Part 3 Human factors; Changing the mind set Part 4 Practicing new real time data work processes Date: Page: 30

31 Development Creating an IO work-process... Documented Practiced

32 New IO work-process Handling of operational interruptions/lossess (Example on how new technology supports a work process) Date: Page: 32

33 New IO work-process An early start to the day! Handover Offshore Nightshift Dayshift and Onshore Operation Group 7 am Date: Page: 33

34 Brage Collaboration Room IO contribution: Faster intrepetation of new seismic data Faster remodelling of reservoirs Faster well planning and well optimization. Pilot: Well A16, a success.. In General: New well planning now take Weeks instead of Months.. 3D VR Date: Page: 34

35 Monitoring the drill bit angle and elevation 143 km away through real time data transmission Date: Page: 35

36 New IO work-process Increased Oil Recovery: Well Optimisation conducted from Onshore 1500 on A06 Done! Increase gaslift rate by 1500scm on well A06... Date: Page: 36

37 New IO work-process UHF connection onshore-offshore IO challenge: Reduce the threshold for contacting each other! Include each other to an even greater extent during problem solving!

38 New IO work-process Transfer of Live video to technical expertise onshore Contributing to effective problem solving and decision making Reduce the need of bringing vendors to the platform. They meet in the collaboration room instead of heliport. Challenge: Extend the VW coverage to more platform modules/areas Date: Page: 38

39 New IO work-process Integrated Planning 2pm: Onshore Operation Group assess maintenance execution capacity and prepare what prioritized work shall be carried out offshore (day ahead and week ahead) 3pm: Offshore Operations Team undertakes an HSE impact analysis and makes final decision. Illustrasjon: B.Holst Date: Page: 39

40 New IO work-processes demand training.every day! It is the way we cooperate that forms the basis for our results Respect, Cooperation, Courage, Vision and Determination Production Technologist ONE TEAM Control Room Operator RESULT: Increased revenues! Date: Page: 40

41 New Integrated work-processes pilot projects 2007 Online Oil in Water measurement Date: Page: 41

42 Onshore Training Center at Hydro Sandsli Established training centre for training in work-processes Self sufficient - Own premises - Our own managers rotate in the centre between developing themselves and the organization - We seek help from institutions that work within this field Date: Page: 42

43 New Integrated work-processes have had a positive impact on cost efficiency Top Quartile 2006: No.5 BRAGE: Benchmarked with 62 other platforms in the North Sea. (Source: McKinsey) Date: Page: 43

44 New Integrated work-processes have had a positive impact on HES 2007: Brage has lowest TRI among all Hydro platforms Date: Page: 44

45 BRAGE FIELD ESTIMATES 2003: Start up of Integrated Operations Production bbl/d PLANNED SHUT DOWN 2008 OPEX USD 74M USD 49M USD 33M BRAGE FIELD TODAY: New ICT supporting our work processes have extended life. Production bbl/d IO contribution: + 5% increase of daily oil production PETORO analysis OPEX USD 49M USD 33M Date: Page: 45 Blow Down 2018???

46 New IO work processes have reduced up to 30% administrative work load of offshore management and staff personnel. Result: Increased time for operational leadership outside office Date: Page: 46

47 The greatest difficulty in the world is not for people to accept new ideas, but to make them forget about old ideas John M. Keynes Date: Page: 47

48 Thank You For Your Attention Date: Page: 48

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