bringing offshore onshore - lbcg
TRANSCRIPT
Bringing Offshore Onshore Building More Efficient, Sustainable Systems and Processes Which Create Higher Reliability and More Visible Cost Control Unconventional Production Facilities Design, Onshore 2015 Scott Abel, Facilities Manager, Marathon Oil Corporation
September 16, 2015
Bringing Offshore Onshore
• Background
• Setting the scene
• Changing a culture
• Building more efficient, sustainable systems and processes
• SAP-PM Integration
• Marathon Oil Corporation results
• Question & answer session
Marathon Oil Corporation
Agenda
2
Bringing Offshore Onshore
Marathon Oil Corporation
Background
3
Bringing Offshore Onshore Setting the scene
4
Northern OK
Western
Central
Southern
Southern OK
• 20 Total leadership roles • Functional
• 17 Total leadership roles • Geographical
Marathon Oil Corporation
Bringing Offshore Onshore
• Impact
– Provide clear lines of accountability
– Improved utilization of processes
– Scalable to align with future development plans
• Requirements
– Focused delivery
– Value aligned
– Continual improvement
Marathon Oil Corporation
Changing a culture
5
Bringing Offshore Onshore
Marathon Oil Corporation
Building more efficient, sustainable systems and processes Accountability Continual Improvement
Effective Planning
Weekly Monthly
Quarterly
Roles & Responsibilities
6
Bringing Offshore Onshore
Marathon Oil Corporation
SAP PM Integration
7
2014 2015 2016 2017 2018 2019 2020
Proposed Maintenance & Reliability Workforce
Marathon EmployeeContractor (Direct Field Support)Total HeadcountStaff Augment
Bringing Offshore Onshore
• Notifications are the electronic notebook for field operations • Work Orders manage field operations
Marathon Oil Corporation
SAP PM Integration
8
WBS Element Lease Budget Year CO Date Initiator Description Overall Cost Differential Node NotesDX.14.34600 OK WS SMITH 5-‐18H D&C 2015 2-‐Mar-‐15 Scott King PCB: Multi-‐well Discount -‐ Shared Tankage -‐$30,000 EQP.01 Common tanks vs. Well specific for 2-‐well pad
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 2-‐Mar-‐15 Scott King PCB: Multi-‐well Discount -‐ Labor Reduction -‐$10,000 EQP.01 Labor reduction due to optimized work and job scope
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 2-‐Mar-‐15 Scott King PCB: Multi-‐well Discount -‐ Material Reduction -‐$9,000 EQP.01 Reduction in Containments and VPF
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 23-‐Mar-‐15 Scott King New Tank Vendor -‐ Dragon -‐$20,000 EQP.01 Engineering found a new vendor with better costs
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 24-‐Mar-‐15 Scott King New Orifice Flow metere Needed $3,000 EQP.01 Change in mid-‐stream / lower pressure sales line = larger meter
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 24-‐Mar-‐15 Scott King Add 6" Senior CHK Meter to Pad $17,000 EQP.01 Added 6" check meter; recieve $180/day benefit
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 6-‐Apr-‐15 Brian Lipscomb Communication upgrade for infi l l wells $10,000 EQP.01 Needed communication towers for SCADA. Increase bandwidth for infill growth
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 6-‐May-‐15 Scott King Needed to order new tank walkways $1,200 EQP.01 MRO provided wrong specs for initial walkways
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 28-‐May-‐15 Scott King Time Writing: Adding timewriting to Budget AFE. $4,000 EQP.01 Timewriting was not added to initial budget AFE.
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 28-‐May-‐15 Scott King ECR Facil ities Upgrade $34,500 EQP.0140 BOPD @ $55/BBL stripped from gas and stabilized. 250 MSCFD @ $3/MSCFD gas converted. $1,450 net increase in revenue. 1
HPS, 1 BPV, & associated Valves, Pipes, and Fittings
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 14-‐Aug-‐15 Scott King EQ Reutil ization HPS -‐$7,000 EQP.01 Used HPS from BL Swinehart 1-‐22H instead of buying new
DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 14-‐Aug-‐15 Scott King EQ Reutil ization Back Pressure Valve -‐$5,000 EQP.01 Re-‐used BPV from Ely 1-‐12H instead of buying new
Bringing Offshore Onshore
• The results we have achieved so far…
• Being proactive not reactive
• Using lessons learned to improve performance and forecasting
• Not being dependent on heroes
• Being engaged and proud of what we do
• Seeing people grow within their roles
• Highlight our ‘one team’ successes
• Realizing that there is a long way yet to go
Marathon Oil Corporation
What does success look like?
9
Roadmap to be Premier Independent E&P Marathon Oil’s Seven Strategic Imperatives (SI7)
10
Living Our
Values
Investing in our
People
Operating and Capital Efficiency
Driving Profitable
and Sustainable
Growth
Long-term Shareholder
Value
Quality and Material
Resource Capture
Rigorous Portfolio
Management