bringing offshore onshore - lbcg

Bringing Offshore Onshore Building More Efficient, Sustainable Systems and Processes Which Create Higher Reliability and More Visible Cost Control Unconventional Production Facilities Design, Onshore 2015 Scott Abel, Facilities Manager, Marathon Oil Corporation

September 16, 2015

Bringing Offshore Onshore

•  Background

•  Setting the scene

•  Changing a culture

•  Building more efficient, sustainable systems and processes

•  SAP-PM Integration

•  Marathon Oil Corporation results

•  Question & answer session

Marathon Oil Corporation

Agenda

2



Background

3

Bringing Offshore Onshore Setting the scene

4

Northern OK

Western

Central

Southern

Southern OK

•  20 Total leadership roles •  Functional

•  17 Total leadership roles •  Geographical



•  Impact

–  Provide clear lines of accountability

–  Improved utilization of processes

–  Scalable to align with future development plans

•  Requirements

–  Focused delivery

–  Value aligned

–  Continual improvement


Changing a culture

5



Building more efficient, sustainable systems and processes Accountability Continual Improvement

Effective Planning

Weekly Monthly

Quarterly

Roles & Responsibilities

6



SAP PM Integration

7

2014 2015 2016 2017 2018 2019 2020

Proposed Maintenance & Reliability Workforce

Marathon EmployeeContractor (Direct Field Support)Total HeadcountStaff Augment


•  Notifications are the electronic notebook for field operations •  Work Orders manage field operations


SAP PM Integration

8

WBS Element Lease Budget Year CO Date Initiator Description Overall Cost Differential Node NotesDX.14.34600 OK WS SMITH 5-‐18H D&C 2015 2-‐Mar-‐15 Scott King PCB: Multi-‐well Discount -‐ Shared Tankage -‐$30,000 EQP.01 Common tanks vs. Well specific for 2-‐well pad

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 2-‐Mar-‐15 Scott King PCB: Multi-‐well Discount -‐ Labor Reduction -‐$10,000 EQP.01 Labor reduction due to optimized work and job scope

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 2-‐Mar-‐15 Scott King PCB: Multi-‐well Discount -‐ Material Reduction -‐$9,000 EQP.01 Reduction in Containments and VPF

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 23-‐Mar-‐15 Scott King New Tank Vendor -‐ Dragon -‐$20,000 EQP.01 Engineering found a new vendor with better costs

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 24-‐Mar-‐15 Scott King New Orifice Flow metere Needed $3,000 EQP.01 Change in mid-‐stream / lower pressure sales line = larger meter

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 24-‐Mar-‐15 Scott King Add 6" Senior CHK Meter to Pad $17,000 EQP.01 Added 6" check meter; recieve $180/day benefit

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 6-‐Apr-‐15 Brian Lipscomb Communication upgrade for infi l l wells $10,000 EQP.01 Needed communication towers for SCADA. Increase bandwidth for infill growth

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 6-‐May-‐15 Scott King Needed to order new tank walkways $1,200 EQP.01 MRO provided wrong specs for initial walkways

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 28-‐May-‐15 Scott King Time Writing: Adding timewriting to Budget AFE. $4,000 EQP.01 Timewriting was not added to initial budget AFE.

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 28-‐May-‐15 Scott King ECR Facil ities Upgrade $34,500 EQP.0140 BOPD @ $55/BBL stripped from gas and stabilized. 250 MSCFD @ $3/MSCFD gas converted. $1,450 net increase in revenue. 1

HPS, 1 BPV, & associated Valves, Pipes, and Fittings

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 14-‐Aug-‐15 Scott King EQ Reutil ization HPS -‐$7,000 EQP.01 Used HPS from BL Swinehart 1-‐22H instead of buying new

DX.14.34600 OK WS SMITH 5-‐18H D&C 2015 14-‐Aug-‐15 Scott King EQ Reutil ization Back Pressure Valve -‐$5,000 EQP.01 Re-‐used BPV from Ely 1-‐12H instead of buying new


•  The results we have achieved so far…

•  Being proactive not reactive

•  Using lessons learned to improve performance and forecasting

•  Not being dependent on heroes

•  Being engaged and proud of what we do

•  Seeing people grow within their roles

•  Highlight our ‘one team’ successes

•  Realizing that there is a long way yet to go


What does success look like?

9

Roadmap to be Premier Independent E&P Marathon Oil’s Seven Strategic Imperatives (SI7)

10

Living Our

Values

Investing in our

People

Operating and Capital Efficiency

Driving Profitable

and Sustainable

Growth

Long-term Shareholder

Value

Quality and Material

Resource Capture

Rigorous Portfolio

Management

bringing offshore onshore - lbcg

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