We work with our clients to realize the future of an advanced industry in which data and digital transformation has brought energy, resilience and new paradigms.
Our client developed an ambitious five-year plan for the 2014-2018 period to turn the company around. The plan includes a CapEx program of CAD$4.7 billion over five years. The company has already made significant progress on a number of fronts, including: renewed focus on profitability and cost control, divestiture of non-strategic properties, several waves of restructuring, over CAD$100 million in OpEx cost reduction in 2013, and significant gains in capital efficiency, primarily in drilling and completions.
With its growth-focused plan, management recognized the need to enhance the Idea Generation to Put on Production (IG2PoP) process to ensure that its inventory levels, throughput and cycle times across the different phases (from planning to drilling, to completions to tie-in, and handover to production) are consistent with the goals of the plan for 2014 and beyond.
During the Scoping phase, potential opportunities were identified, including the lack of a robust overall process, with gaps in common language, stage gates, decision-making and approvals, and information inputs and outputs for all parties involved. Lack of clarity for roles, responsibilities and accountabilities, and cross-functional collaboration were identified as significant areas for improvement.
Jointly with the client, during the IG2PoP Analysis phase, we evaluated the whole development process and prioritized improvement opportunities.
For the subsequent Implementation phase, Advisian assisted the client in delivering the changes in processes, organization/people and management systems that were identified during the IG2PoP Analysis.
Key findings included:
Working with the client in supporting both the offices and in the field, Advisian formed teams to develop solutions to the gaps identified, thus creating client ownership as early in the front end of the project as possible.
Idea Generation to Technical Approval (IG2TA) and Geology Initiated to Ready to Drill (GI2RTD) processes were redesigned and installed for each development team based on District, Mineral and Surface Ownership variables.