For an oil company involved in offshore oil production, the ability too effectively execute modification projects offshore is mandatory for to be able to extract the maximum economic potential of the offshore operation. Experience has shown this to be very difficult and large cost and schedule over runs has been the rule rather than the exception.
Statoil has developed a total strategy for this kind of project. The key element here is to make a short term alliance work for this kind of project while employing effective work processes and tools. The contract utilises the best from traditional bidding and alliance contracts and employs an alliance principle by utilising a compensation and risk sharing scheme that promotes common project goals for the participants. The work processes are optimised for efficiency and quality by employing fully responsible and integrated project teams, tailored project tools and procedures and an experience data bank for this kind of project. To teach the skills and motivate the involved project personnel, a purpose built training course has been developed.
Experience so far has shown a reduction of total project cost of 20 - 50%. The overall strategy is still in an early stage of its development and the potential for further improvement and development is indeed present.