Open Source Content Management

PLANNING THE EXPLORATORY WELL DRILLING PROJECT

Management System is a methodology that can be applied in projects to deploy of offshore exploratory well operations in order to develop the Logistics Plan. 

After approval of the exploratory drilling project proposal, project coordination should define the breakdown structure and processes for project management in order to optimize operation planning and minimizing changes throughout execution and project deployment phases, guiding actions so that the objectives defined in the scope are accomplished.

The suggested process intended to achieve the above strategy is the Well Delivery Process. This tool is defined as the project execution planning map which accounts for Front End Loading (FEL) methodology, and it subdivides the project into sequential phases, where each phase is assessed before commencing the next one, prioritizing the execution of the project’s most critical items. The exploratory well drilling project Coordinator is responsible for developing a specific Well Delivery Process for the project.

Figure 1 shows the project phases and the list of required macro products.

It is important to emphasize that the Project Coordinator should comprehensively elaborate the Well Delivery Process model, including or gathering activities and information, according to the specificity of the project.

Validation of each stage in the context of the company's management portfolio is of particular importance. To accomplish this, between stages, gates are set to define whether the business studies of the enterprise will advance or not to the following stages. After each stage, a performance analysis is carried out on these studies, often relying on independent audits, comparisons with similar projects, and using benchmarking as conceptual framework.

A schematic representation of the gates’ logics is illustrated in Figure 2 below.

Figure 2 - Validation of FEL stages (stage gates)

 (Source: VALE/DIEP, 2007 – apud ROMERO; p.5)

SCOUTING PROCESS

To ensure success in defining the logistics plan of exploratory well drilling projects, carrying out one or more scouting missions in advance is essential and indispensable. The process aims at obtaining technical, logistical, legal and additional information on the status of the upstream oil industry in the place or country hosting the exploratory offshore operation, as well as the participation of reputable international service companies in this market, for planning, programming and obtaining information, with focus on:

• Local conditions of sale and incurred costs;
• Equipment and materials lead times;
• Local structure of suppliers of goods and services;
• The availability of special services, equipment and trained personnel;
• Data on correlation wells, well programs, including operational problems and related solutions;
• Applicable local legislation and logistical aspects.

(This information will continue to be developed in future publications as part of a series of articles related to MANAGEMENT SYSTEM METHODOLOGY - LOGISTICS PLAN)

'Supply Chain Risks & the Failure to Plan for the Unexpected'

Dear Fellow APICS Houston Members,

Recent years have seen a substantial increase in digital transformations and artificial intelligence (AI). As supply chain capabilities evolve with emerging technologies, companies operate as integrated end-to-end business model – as a result, the game to manage risk has changed, from managing supplier risks and analytics, to preparing for system failures and supply chain security.

2020 will be the year to test the resilience of your supply chain. Have you been proactively assessing your supply chain risks? Have you reviewed your supply chain risk management (SCRM) plan? Your plan should assist developing capabilities to prevent disruptions and minimize the impact of disruptions through your readiness assessment, quick response, and recovery plan.

Epidemics/Coronavirus, Chinese New Year (CNY) - have you been impacted?

TPM20 - the trans-Pacific and global container shipping, the largest container shipping event, was canceled 24 hours before it started in Long Beach, CA due to COVID-19. Blank sailings have been incorporated into the schedules, as of March 1st, the volume loss due to blank sailings was at 1.9M TEU; at a rough average freight rate of $1,000 per TEU, this equates to revenue loss of $1.9B for the carriers as reported in Seatrade Maritime Times. Factories in China are still struggling to get back to normal production levels. Multinational companies have warned that they will fall short of revenue goals for H2 and are putting at risk annual financial results due to stall production in China.

I often hear comments from people working outside the Supply Chain arena saying “Chinese New Year” (CNY) is only 2 weeks – so why does Supply Chain make a big deal of this and start planning in October? These comments lack the full understanding of the end-to-end impact in the entire global supply chain as well as their risks. After factoring in all variables, the actual impact is 6-8 weeks’ time to reach same production levels prior to CNY. I admit, the 2020 resilience test is an unusual due to the stall production due to the epidemic outbreak right after CNY.

Could you have done anything different in your strategic sourcing? We don’t know when natural disasters, global warming, epidemics, trade agreements, and other disruptions are going to happen, but we do know they will happen again. The failure to adequately evaluate, prevent, and minimize potential supply chain risks can ruin a business. The risks are serious, from losing market share to business extinction because of failing to predict the risks of changing conditions in your supply chain.

Additionally, as we enter into the next decade with Industry 4.0 driving transformations in manufacturing, supply chain, distribution, and retail. This digital disruption requires companies to rethink the way they design their supply chain and deliver products/services. As we develop new business models, we should also assess our supply chain readiness for potential disruptions and develop your SCRM plan. 

In closing, I like to highlight some key events and accomplishments:

• 2020 Technology Innovation Summit – March 25th @ Hilton Galleria
• In response to the rise of AI, our 2nd Technology Innovation Summit will focus on AI. Industry experts will discuss the milestones, trends, and challenges.
• Showcasing: meal delivering robots and traceability/transparency winery project.
• ASCM Deloitte Supply Chain Case Competition: The UoH Team won the District Round and moved to the final at ASCM International Conference in New Orleans in September.
• New Website: APICS Houston launched a new upgraded website on March 1, 2020.

I wish all a very happy spring break with your family and friends. I hope to see you all on March 25th at the 2020 Technology Innovation Summit. Go to Apics-hourston.org for registrations.

Please remember that our volunteers are making a difference in our community. I’m sure you’ll also enjoy these opportunities to serve, grow, and to make others feel better because of your service. If you are interested please send me an email to This email address is being protected from spambots. You need JavaScript enabled to view it.. Space is limited.

Best,

Dave Cabello

President – APICS Houston