Petoro Leverages Smart Operations

Capgemini assists Petoro in performing readiness assessment to gain tangible benefits through Smart Operations practices on the Norwegian Continental Shelf.

“ Integrated Operations is one of the industry’s hotspots. Norway is today a leader in harnessing its potential, and is fast becoming a truly networked industry and building the capability for Second Generation IO. According to our latest survey with five operators in the NCS, it is estimated that a value creation in the order of NOK 15 billion could be attributed to IO in 2006. ”Roy Rusa, Technical Vice President, Petoro AS

The Situation

Petoro manages commercial aspects of Norway’s direct involvement in petroleum activities on the Norwegian Continental Shelf (NCS). The primary objective is to maximize economic value of the oil and gas portfolio for Norway.

The NCS is a mature oil and gas region facing declining production, increasing operating costs and reduced investment. It also has one of the highest labor costs in any global oil and gas region. To counter these, Petoro sought new ways to make development of remaining reserves more economical.

“Smart Operations”–making oil and gas fields “smarter” by improving efficiency in off- and onshore work processes through the use of IT and operational best practices – was a strategic goal.

The Solution

The Petoro and Capgemini teams launched a pioneering effort in 2004 to gauge the “Smart Operating” readiness of major operators in the NCS. Operator roadmaps were developed and applied by gaining insights into other operators’ experiences and established leading practices. Two years later, Petoro and Capgemini launched an initiative to assess progress as well as identify leading practices to further evolve the transformative shift. This was followed a year later to accelerate the uptake of leading practices and delivery of benefits in the NCS.

“Smart Operations”, referred to in the NCS as “Integrated Operations” (IO) is a broad categorization of strategies to integrate real time data, technology and operational work processes. It includes many related improvement initiatives among major global producers—Smart Fields, i-Field, e-field, etc.

The Result

A Petoro survey in 2007 gauged the readiness of major operators in the NCS for IO practice deployment. The study provided tangible evidence that IO is transformative, delivering significant gains in upstream performance in the NCS with respect to cost reduction, work process efficiency and volumetric improvement. Thanks to IO, the NCS represents the most well networked group of operators in the world. As a consequence, Norway is a leader in harnessing the full potential of IO, fast becoming a truly networked industry benchmark building capabilities for Second Generation IO.

IO has allowed the NCS to build a new organizational capability to optimally harness the potential afforded by rapid emergence of proven tools and techniques, albeit, within the constraints of asset capacity and organizational culture. It is multifaceted, interweaving people, process, technology and cultural dimensions. It is also fast, being recognized as a true capability aligned to the NCS operators’ ability to find, develop and produce oil and gas.