OIL & GAS PRODUCER

Case Study

Increasing plant and equipment reliability for higher availability, uptime and throughput.

The Problem

The client, a major oil & gas producer, was facing limitations due to production inefficiencies.

Business Challenge

  • An American multinational conglomerate with subsidiaries in petroleum, manufacturing, refining and distribution, was experiencing decreasing margins with high environmental costs at their refinery
  • An opportunistic crude trading strategy had led to swings in production resulting in numerous planning, scheduling and optimization issues
  • In addition, the organization was struggling to implement their current business model with poor linkage between annual and monthly business plans to meet financial targets and day to day operational activities
  • Their was also a lack of integration between the production & maintenance and planning and execution groups

Real change is achieved with a concentrated effort of small steps in the right direction in order to cultivate a pattern of growth.

Kalium Team

The Solution

  • The teams jointly developed a production loss system to identify and resolve production losses and optimize unit performance
  • Workers received training to implement the system sustainably
  • A new worker-focused communication system was built and installed, able to link employees with the current operational reality and therefore generate more buy-in and satisfaction
  • This resulted in behavior change and accountability around operational and financial performance. The team improved production capability through a rigorous approach as well as tools for production loss management, process optimization and equipment reliability

RESULTS

  • Total annualized savings – $19M exceeded base target ($18.4M)
  • Maintenance labor productivity improved by $7M far above target
  • Energy consumption – $2M reduction
  • Production losses – $7M
  • Yield losses – $3M