In 2007 Statoil had deployed new work processes as part of the Integrated Operations (IO) initiative. Many decision makers were already moved from offshore to onshore locations resulting in very high requirements for real-time drilling data onshore. Discussions with the major service companies indicated that meeting these new requirements was not an easy task.

The business model available gave the service companies little or no incentive to invest huge amounts of money upgrading their real time solutions according to these new requirements.

A project was established in order to implement a new business model between Statoil and the service companies securing deliverables according to the new requirements.

The idea was simple: change the end-point of the real-time data deliverables from offshore to onshore, and implement KPI’s linked directly to the MWD/LWD and ML invoices each month.

For each milestone activity we will present our initial thoughts, what we learned from the implementation, and the final results:

  1. Changing the contract templates for MWD/LWD and ML to enable measurable KPI’s.

  2. How to convert technical KPI scores to financial impact (bonus/penalty).

  3. Implementing new contract templates for a subset of drilling operations.

  4. Creating new WITSML based technology automating KPI measurements.

  5. Establishing work processes between operator and service companies in day-to-day operations.

We will present our observations and conclusions, the main conclusion being that the new business model helps to ensure high availability and quality on real-time data to onshore locations. This again enables a key feature of the new work processes: Quality decisions onshore founded on the best datasets available at any given time.

The conclusions and achievements are based on experiences from having used this new business model in operations since March 2009.

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