Five fierce competitors had to partner to develop 11 oil fields, and agree on one of over 100 options on how to do it.
At a glance
Industry: Oil & Gas
Challenge: Create economic model sanctioned by all companies, successfully develop fields
Objective: Deliver first oil in less time, at lower cost than could be done working separately
JMW Approach: Coaching, training, aligning senior management
Company now ranks in the top 2% of organizations with a proactive mindset for change and staff engagement now scores in the Australia/ New Zealand Top 20.
Water quality complaints are down 30%, hardship customers assisted up 36%.
Serious Injury Frequency Rate is down over 80% and Operating expenditures – Down 20%.
IT insourcing cost savings of $2 million annually.
A major oil company envisioned the development of eleven small to mid-size fields by bundling nine of them into “clusters” around three central processing facilities. The technical challenges of implementing the strategy were surpassed only by the business circumstances—the fields were owned by five major companies engaged in fierce competition in the area.
Successful execution of this plan required creating an economic model so robust that it could succeed in gaining sanction from all five companies. JMW was engaged to help them develop the strategy and transform competitors into partners.
Facilitating an extraordinary partnership
JMW worked with the top 40 senior managers from all five companies to develop plans for building the infrastructure and secure a financial agreement.
Specific activities included analyzing over 100 different infrastructure options, as well as aligning all of the senior management team around one plan moving forward. In addition, JMW assisted the team in establishing a strong strategic relationship committed to delivering first oil in a significantly reduced timeframe and at lower cost.
JMW continued its support in the project implementation phase by working with the integrated project teams to establish a project mission, charter and conditions of satisfaction for project quality, integrity, HSE cost and schedule. JMW provided coaching, training and facilitation to the project teams in setting and achieving stretch targets throughout design, construction and completion.
The companies achieved sanction for the project in the remarkable span of one year. The partnership created among these five major oil companies completed the project with superior HSE standards—delivering oil two months ahead of schedule at $200 million below sanctioned costs.
“JMW helped form a partnership amongst five competing oil companies, which resulted in the delivery of oil two months ahead of schedule and at $200 million below sanctioned costs.”