Joint ventures have become the norm in today's oil and gas industry. Whether its dictated by host countries or partnerships to reduce liability and benefit from cost reductions, it presents the non-operators of the joint venture a unique situation especially in the post Macondo era. This paper aims to deliver an approach for NOJV companies to safeguard their assets as well as maximize their value by actively collaborating with the Operator to enhance and optimize asset management through operational excellence and performance assessments.

Based on KUFPEC's vision and strategy we designed an NOJV process to conduct specific and/or comprehensive focused operational excellence & performance assessments on select assets in order to optimize and enhance asset operations, ensure stable production, with the end goal of maximizing the value of the asset in our NOJV portfolio. The selection of the asset is based on a variety of factors not limited to working interest, risk, size, production output, OPEX, and geographical location. The focus areas targeted were Facilities Integrity Management, Drilling Activities & Well Interventions, Health, Safety, Security and Environment (HSSE), Process Safety Management, and Reservoir Management. These assessments required reviewing the Operator's management system, asset specific technical, production, and incident data, along with any other pertinent documentation. Following the review, a site visit is conducted to witness firsthand all operations related to the asset, both onshore and offshore including drilling and logistical operations and visits to fabrication yards. At the conclusion of the assessment and visit, a closeout session would be held with the Operator's Management Team to go over the findings.

Kuwait Foreign Petroleum Exploration Company (KUFPEC) has conducted major assessments across its assets offshore Indonesia and Malaysia and onshore Pakistan. The assessments varied in scope as well as findings. A summary of the findings is shared later to provide value adding observations pertaining to each focus area. In addition, we have provided case studies to illustrate how our efforts and influencing strategy paved the way for the Operator to willfully accept and address our areas of concern specifically integrity management, which in turn supported our mutual objectives of ensuring safe and reliable production operations, while maximizing the value of the asset.

This paper will provide an innovative value adding approach, successes and lessons learned to enhance and optimize NOJV assets through effective engagement of the Operator utilizing an influence strategy to achieve a win-win result. By doing so, KUFPEC became a value adding NOJV partner, enhancing its overall asset management performance, controlling costs and becoming actively involved as part of its strategy of being a partner of choice recognized for its contributions to the NOJV.

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