Though most of maintenance functions in the Oil and Gas business usually adopt the Contract Out philosophy which is under the concept of Specialization, it does not always guarantee for success. Because E&P business usually focuses on their core business in finding and developing oil production but the maintenance activities of its operating asset are aside as a support and cost center activities. Also the E&P believes that the specialist from external could do it better both in terms of efficiency and budgetary.
This concept is acceptable if all related departments are in a good mechanism and structuring from top to bottom of the contractor's organization or from one side to the other side of the owner and contractor. But in the real world, Sirikit Oilfield (S1) has experienced poor performance of contractor because of unaligned target of the company and contractor, low competency of contractor staff, high turnover, and slow response.
To solve these problems, S1 develops maintenance organization under the 'hybrid' concept which covered under the Interorganizational Relation (IOR) paradigm. Then IOR is theoretically based upon that all of organizations are located in the environment and affected by their environment and vice versa. Then one organization is able to cause any direct and indirect effect to the other. Under the environment of contract condition, one organization performance also affects the other one's performance no matter if they are owner or contractor. The competency and management system of S1 maintenance staff does not affect only to its own performance but also the performance of the contractor.
This concept delimits any incompetent of the contractor by transferring any work control of the contract staff to be under the accountability of S1 own staff. On the other hands the contractor will be responsible for competency management and benefit-compensation management.
Since 2007 which this concept has been introduced, the achievement of contractors' KPI improves from 74.4% in 2008 to be 98.2% in 2009. SSHE activities score at 86%, Inspection Compliance / CM- PM Compliance > 95%.