RLG International Results Stories
A Success Story at an Oil and Gas Company
70% Increase in production from wellwork on North Slope
Key Objectives
How do you better manage a huge existing oil field? This was the challenge facing this oil and gas organization. With a huge wellwork budget and the planning, designing, executing and monitoring the impact of thousands of well interventions each year it is easy to see why this was a challenge.
The company asked RLG International to help them to better understand the impact of their wellwork and to implement a system that would allow them to more strategically plan the best well interventions. The challenge of the project consisted of not only creating a mechanism for analyzing the data, but also implementing a review process that needed the engagement of the asset engineering teams all the way to the petroleum engineers (PE) on the slope in order to be effective.
The result was the development and implementation of the an evaluation and tracking system and review process that links the front line asset engineers planning the work to the bottom line results - the incremental oil return (IOR).
RLG working with the company was able to develop a spreadsheet tool that was able to capture all of the data from the wellwork jobs and correlate value (IOR) and job costs. The data could then be sorted and categorized in many different views to allow the engineers to identify which types of jobs were most successful in the different parts of the field. With a field of such size it was critical to be able to view the results from these different perspectives.
The team then implemented a review process that engaged the engineers from the assets as well as from the wells group organizations. The result was a retrospect review meeting that brought together people from these key organizations to not only review what happened, but to identify the most economic jobs.
"The [Name] Pivot Tool has become a widely used program... that every PE uses to tie job execution/delivery against plan. The [tool] can quickly summarize each PE's wellwork program and highlight job successes and failures. Trends can be performed in the tool to make decisions on how to reshape or redirect a wellwork program for each PE and team/asset during well reviews and performance reviews. The tool is used in quarterly review processes across the strategic performance unit to drive the direction of the wellwork program with results and analysis at hand." - Wellwork Analyst
Project Results
Better decisions on the wellwork jobs equates to an increase in the amount of production per wellwork job. When looking at a program of 360 jobs performed in 2007, this increase provided the same benefit of drilling seven new wells.
"As a result the tool is driving our wellwork to a much greater level of delivery. Associated production in 2007 compared to the baseline in 2005 has increased by 70%." - Resource Manager
Testimonials
"The [Name] Pivot Tool and review process developed and implemented by RLG are the epitome of connecting the front line to the bottom line and have become part of the core components of how we run our business."
Wells Manager