Optimisation of offshore logistics at global oil&gas company (Global Fortune 10)
One of the six global oil&gas super majors.
Department of logistics of the North Sea headquarter presented to the company's management operational strategy for 2010 of cost reduction to be achieved by reducing the number of production supply vessels (PSV) from eight to seven. Our preliminary audit of the operational strategy and benchmarking of the company's key performance indicators (KPI) identified a few areas of operational inefficiencies.
It was decided to undertake detailed analysis of operational processes, which revealed low level of utilization of deck space and containers along with the trend of increasing time of unloading vessels by offshore platforms staff and inefficiently planned vessel traffic routes and, as a consequence, their low turnover etc.
As a result of the work conducted the potential was identified to reduce number of vessels from seven (in accordance with the approved strategy) to three with total savings of £11.9 million. The guidelines have been given for the introduction of change and phased release of vessels in the following areas:
• Integration of offshore platforms in clusters in order to achieve flexibility of operational processes in delivery and improved loading of the deck space.
• Inventory management, coordination of work with the platforms with due consideration of the shift.
• Focus on improving the loading of containers with 3PL subcontractors along with development and inclusion of key performance indicators (KPI) in the subcontract.
• Segmentation of the containers used and implementation of differentiated strategy of their utilization and transportation.
• Segmentation of vendors based on a differentiated strategy for use of containers, transported skips and their effectiveness.
• Assessment of the necessity of night shifts on daily changing platforms.
• Authorization of "30 minutes" rule by the management for rapid unloading of vessels.
• Organization and the rationale for 24-hours shift on the onshore supply bases.
According to prepared Project Execution plan, which included three different strategies (optimum, neutral and conservative) and the identified potential to reduce costs further the original strategy of the company was reconsidered. Developed operational strategy was handed over to the Department of logistics for further implementation by the company's resources.