Publications

Like many other older producing regions, Indonesia has many mature assets, particularly oil (see Figure 1). These are under particular economic strain during times of low oil prices. Extending the life of mature fields involves a mix of (i) both new technology & capital, and (ii) operations focus. My presentation addresses the latter --- the necessity to improve production operating efficiency using comparative asset -level Benchmarking as a tool. Benchmarking may measure the performance of two aspects of achieving operating efficiency: 1) maximizing uptime reliability, and 2) optimizing operating costs to achieve the lowest unit operating cost. Ziff Energy has developed a methodology to benchmark uptime performance across like-kind fields to determine gaps relative to best in class performance. Based on a variety of uptime reliability metrics generated from the benchmarking comparisons, operators may focus their improvement efforts. After the diagnostic benchmarking has been done, we recommend an improvement process whereby the first step is to conduct analysis to understand Root Causes of identified inefficiencies. The second step is to brainstorm and develop possible solutions, including an analysis of costs and benefits, followed by the third step of choosing specific solutions from the possible solutions and developing action plans, with timetables and accountabilities, to implement and then reap the benefits. The next benchmarking exercise --- at least once every 2 years is standard --- should reveal the improved performance in reliability and cost relative to peers. The pursuit of Operations Excellence, defined as improving operating margin by improved production & reduced cost, is never-ending. The ultimate objective, always beyond reach, is to operate at full production capability, each & every day at the lowest possible OpEx.