Development of Integrated Operations Strategy to Accelerate Offshore Operations Capability

Abstract

Integrated operations is proven operating model to manage offshore assets smartly. BP with its Field of the Future program, Shell with its Smart Fields program, and Statoil with its Integrated Operations program have deployed on their global assets since early 2000’s and successfully deliver value through better and faster decision making. IO has been global practice, consequently more and more companies initiate efforts to deploy on their assets. Pertamina is the sole NOC and bears public obligations to fulfill oil and gas security of supply in Indonesia. This national obligation has exposed Pertamina to significant challenges since most of its onshore fields are in mature phase. Moreover, national oil production also shows sign of adversity due to inability to fulfill domestic demand. On the one hand, gas is still promising despite its substantial challenge to build infrastructure network. Additionally, recent data implies strong tendency to go offshore since most of the large discoveries are located in offshore blocks. Obviously, Pertamina has proven its excellent capability to manage onshore assets. However, current offshore assets have quite a small contribution than onshore assets. It leads to an impression that there is a room for improvement to leverage offshore assets performance. This thesis is an academic contribution to capture IO best practice from global players (BP, Shell, and Statoil), apply its key knowledge through literature review, and package them as IO strategy. The main objective of IO strategy development is to configure systematically strategic plan to develop and deploy IO as offshore operations capability in Pertamina. IO strategy is expected to be a high-level guideline that gradually transforms Pertamina as top performing IO operators in Indonesia through the integration of people, process, and technology. IO strategy also encapsulates, IO operating model that enhances the interface between offshore and onshore team through the establishment of “Smart Collaborative Network”, and IO capability model that offers a systematic end-to-end guideline in building IO as capability. Besides IO strategy, this thesis also presents IO implementation plan as an initial reference for long-term development and deployment. In general, this thesis offers a thorough IO strategy that is dedicated to accelerating offshore operations capability as Pertamina’s competitive advantage in the future.