Publications

As in many other Offshore producing regions around the world, operators in Indonesia employ Floating Production Storage and Offloading (FPSO) vessels to produce oil offshore. This presentation addresses the comparative benchmarking of individual FPSO operations as a management tool to improve production operations. Production Operations benchmarking measures 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, a specialist upstream performance assessment and improvement consultancy based in Houston and Calgary, has developed a methodology to benchmark uptime performance and detailed operating costs across like-kind assets/projects to determine gaps relative to best in class performance. Based on a variety of metrics generated from the benchmarking comparisons, operators may better focus their improvement efforts to realize better results. Ziff Energy recently completed our first global multi-operator operating cost and efficiency performance study of FPSO Operations focused on 15 vessels in West Africa and Asia. Prior to this global initiative, Ziff Energy had studied FPSO Operations in Asia Pacific and South America (Brazil). This presentation overviews the metrics calculated and some lessons learned.After diagnostic benchmarking has been completed, we recommend an improvement process whereby the first step is to conduct further analysis to understand Root Causes of identified performance gaps and inefficiencies. The second step is to generate creative solutions including an analysis of their costs and benefits, followed by the third step of choosing specific solutions from the possible solutions and developing action plans, with timetables and team members roles and accountabilities, to implement and then reap the benefits.The next benchmarking exercise --- once every 2 years is standard --- should reveal the improved performance in reliability and unit cost relative to peers.The pursuit of Operations Excellence, defined as improving operating margin by improved production and reduced unit cost, is never-ending. The ultimate objective, seemingly beyond reach, is to operate at full production capacity, each and every day, at the lowest possible Operating Expense.