Conoco’s extensive use of contractors in the U.K. Southern North Sea has resulted in significant financial benefits. Thanks to the synergies of integrating consultant experts into daily operations, the company has maximised production rates.
Maximising production
Conoco has maximised the production capacity of wells in the Southern North Sea (SNS) as a direct result of developing new technology in close co-operation with its contractors.
Conoco staff have worked closely with DNV for the past five years to consider several technical issues as part of a strategy to safely manage solids production and achieve higher production rates than were previously possible.
By making use of DNVs technical competence in solids management, Conoco has demonstrated that current flow rate limits set by industry practice can be extremely conservative. It is now possible to double or triple oil production from the wells by assessing the risk both at the design phase and during production. The system has been used not only in the SNS, but also on the Britannia gas condensate field in the U.K. Central North Sea and on the Heidrun facilities in the Norwegian North Sea. It is planned now to use the technique on new fields in Indonesia and in the Gulf of Mexico.
Bridging philosophy
We would not have reached these conclusions had it not been for the knowledge shared between Conoco and DNV, says Bell. The oil industry must be willing to open up and let contractors understand the core values that underpin our businesses in order to do the professional job we expect them to do.
Conoco believes that a key factor for success is commitment to the job. The oil industry is reliant upon a professional service from its contractors. It is important that all parties have an equal standing and opportunity to make decisions and to influence events. This has to be reflected in the contractual arrangements. Contractors must have access to information in order to educate their staff in the clients core business so that everyone shares the same belief and works in the same way.
New strategy
In 1995, a full-scale review of Conocos SNS operations resulted in some staff reduction but also in a new, more effective operating system. The company created an alliance of contractors to support its offshore and onshore operations by providing engineering, maintenance and construction services and compliance assurance functions. This was headed by a management team from Conoco and those alliance contractors. Main objective of the restructuring was to minimise cost, focus attention on key business drivers and achieve best practice.
Both sides to win
As the oil and gas industry matures and previously marginal opportunities become commercially viable, the safe application of technical skills is becoming an important issue for the oil industry. A holistic understanding of risk to business and personnel is essential when returns on investment are tight and timescales short. In its role as a risk-management organisation, DNV is supporting Conoco in making informed decisions and getting the most from the business.
The objective of the relationship is to create an environment for both sides to win. Total commitment and trust between the two organisations is essential for success.