Here in Indonesia, beside in new field there are many oil and gas companies are operatingin a mature field, problems raised when the company faced to manage how to achieve high recovery rates, how to use personnel effectively, how improve production and create an efficient cost structure. That would mean improving business processes, formalizing its corporate knowledge and supporting integrated long-term asset planning and short-term operational planning. As revision from my W8 blog discuss here I want to talk about how could the company introduce workflow improve productivity as well as reduce maintenance cost to increase reliability at minimum cost as part of business improvement.
Filed under Asyhad, Week 08
Problem Identification: A Dispute
A new Standard Guidance (SG) had been published for 18 months and implemented as one of procedures to be followed by contractors. It covers a broad and various activities in capital expenditures which are cost recoverable: facility projects, oil well drillings and workovers, asset purchase on supporting equipments. In August 2013, it is recorded at about 75% of submitted proposals concerning oil well drillings and workover activities are approved, and the rest are being evaluated. The performance of approval process itself is 98% within schedule. While many of the contractors find the SG is useful and helps them organized in claiming their capital expense, some are reluctant. Unfortunately, they are those who provide the largest revenue contribution. The root cause of this is a clause stating the “effective date” of certificate is interpreted differently. Therefore, decision shall be made by management board to resolve the dispute.