An essential element for business success is to secure the best quality services from external providers at the lowest possible cost, which is a challenge not only for operating companies but also for service providers. This challenge is becoming more important for D&WO business, which is a major services consumer. NOCs strive to create a competitive and fair environment to encourage long-term business partnerships with service providers through a transparent process to assign more than 13 D&WO services.

A new process put into practice in the last 2 years, objectively evaluates service providers based on measurable criteria that include the pricing schema, historical performance, HSE compliance, and nationalization compliance of all providers against their contractual obligations. To assure the integrity of the process, an application was developed to fully automate the process, starting with the collection of data from its original sources to evaluate the service providers, through the electronic approval of the final assignment by management.

The application, Automated Services Assignment System (ASAS), provides different functionalities that allow seamless integration of different data sources like performance data from drilling rig morning reports and rig activity scheduling from a corporate database. It evaluates and ranks service providers automatically and provides an automated workflow for approving the services assignment based on a hybrid business model (standard process, service packaging, or lump sum turnkey), and allowing the adoption of additional business requirements during the execution phase through automated change request functionality.

The process and the application enabled D&WO organizations to respond to dynamic changes in their business by running as many scenarios as needed to identify the best business approach, with potential cost savings up to 15 percent (initial rough estimate). Effective management of the process delivers time savings up to 40 percent, compared to the manual process.

Implementing multidimensional evaluation criteria strengthens the credibility and integrity of the process compared to evaluations done based upon single criterion, such as cost or performance. In addition, this automated system combines three different business models seamlessly; capitalizes on corporate official records for drilling operations, HSE, and rig schedule; and enforces comprehensive business rules.

You can access this article if you purchase or spend a download.