BACKGROUND
Effective planning and execution of shutdowns and turnarounds is essential to maintain product levels and reduce loss of revenue for the oil and gas industry, particularly if improper maintenance leads to an unplanned shutdown.
Turnarounds improve the efficiency of the plant and help to fix or prevent problems before they cause costly outages or accidents. A turnaround should result in the plant returning to peak performance levels when production begins again.
Our client is one of the largest oil and gas producer in Southeast Asia, supplying 350,000 barrels of oil and gas daily and operating a complex infrastructure on land and offshore. It has over 200 offshore structures linked by over 2,000 km of pipelines, recovering oil and gas from over 4,500 individual reservoirs produced through more than 800 wells. The client supplies local, regional and global markets and is one of the largest companies in the area.
We were brought in to conduct an analysis, produce a business case for change, and implement an improvement programme for the turnaround organisation of the client. The objective was to improve existing systems, business processes, and working practices, focusing on continuous improvement and sustainability within the organisation.
ANALYSIS
Our analysis discovered the following areas of concern:
- Lack of process clarity and work processes were not standardized
- Unclear roles and responsibilities across the organisation
- Poor departmental interface and communication
Additionally, a new contractor was assigned by the client to execute ORMC (Offshore Reliability Maintenance & Construction). The setup, transition of work from the old to the new contractor, and management of the new contractor was critical for the project’s success.
Therefore, we presented the following milestones that needed to be hit for the programme to be marked as a success:
- Revise working processes, remove barriers to performance and increase both the productivity and preparation for turnarounds.
- Improve coordination of activities in preparation of the offshore turnarounds, including those relating to fabrication, logistics, marine, and procurement.
- Sustainably change behaviours in order to increase the amount of scope that is effectively planned and executed during the turnaround period.
“We could feel the positive energy between us and Renoir teams. You are on the verge to be best-in-class, be inspired by how far you have come, and where you can end up.”
VP, Production Excellence
PROJECT APPROACH & IMPLEMENTATION
Following the results of the analysis — and based on our recommended milestones — we began a large-scale 150-week transformation programme that structured around planning and scoping for two asset groups, fabrication and interfacing, logistics and warehousing, marine, and procurement.
Implementation involved a significant re-organisation of about 60 people into a new turnaround team structure, as well as integrating it with a newly awarded managing contractor for execution of the work. The kick-off phase included a 2-week training exercise, comprising both operational and soft skill content to ensure sustainability.
Roll-out and on-the-job coaching of the new system elements were conducted by senior managers to ensure readiness for the turnaround. Weekly updates and support areas were reviewed at the Management Action Team (MAT) meetings chaired by the head of each department. Monthly updates and guidance were chaired by the managing director.
Part of the overall success of the project was the roll-over to local contractors. We monitored change and compliance with the new practices by carrying out behavioural audits to provide visibility on the implementation status.
We created SOPs and sustainability plans for the departments involved with ORMC, namely Procurement, Logistics, Marine, Fabrication, Installation, and Planning & Scoping.
We also handled the coaching of the Turnaround Excellence Organisation (the ORMC process owner) and progressive hand over of the tasks to ensure sustained performance, foster continuous improvement, and deliver best-in-class practices.
Job descriptions were updated reflecting the reorganisation along with roles, responsibilities and interfaces (such as between the assets and projects organisations, the two sources of scopes being executed by ORMC).
RESULTS
138%
Improvement on offshore earned man hours (against business plan)
76%
Improvement on material availability by required date
28%
Increase in time-on-tool offshore
110%
Reduction in shutdown extension (against business plan)
58%
Reduction in cost per earned man hour offshore
Our expertise in delivering operational benefits is based on ensuring our client’s strategic goals are achieved by working with all levels of the organisation — from senior management to front-line operatives.
In this sense, we have succeeded in our goals. Not only has our collaboration with client delivered impressive results for ongoing turnarounds, but it’s also fostered a long-term culture of sustainability and improved readiness within the organisation.
