Report Summary

Key Findings

  • The greatest benefits of replication are achieved when project teams approach their first project with duplication in mind. Through the standardisation of components and project management methodologies, oil and gas firms can reduce costs on their projects by 15-30% and time to completion by 15-40% once a firm’s process is optimised.
  • Standardisation is a long-term process and an integrated approach is crucial. Such dramatic savings in time and cost are achieved through scaling-up supply chains for volume discounts, building long-term partnerships with contractors, streamlining decision-making and formally implementing a company’s lessons learned through an iterative process. This requires several years of acquired expertise to deliver projects with speed and precision.
  • The lessons that produce such gains are achieved when operating teams, contractors and owners collaborate to reduce the time to final project delivery. This does not necessarily mean that each group should try to maximise their own speed. Rather, they should identify cross-functional optimisation strategies to reduce wasted time and ramp-up productivity for the project as a whole.
  • Firms maximise the benefits of standardisation by developing a portfolio of project templates that address common drilling scenarios. This gives them the flexibility to mix and match project components to accommodate physical or environmental obstacles, and the scalability of modular processes for expansion.
  • Provided projects are replicated in the same region under the same operating conditions, the compliance process can also be shortened. There is a learning curve for regulators, so delivering consistent projects can reduce their compliance periods. However, replicating a project in another part of the world is unlikely to yield these benefits. Few regulators will take compliance from another country into account and many will reject it outright.
  • A key challenge to successful replication is that top talent and executive teams are often focused on larger-scale projects. However, buy-in and support of senior executives, combined with the experience and leadership of a seasoned project manager and a rigorous project management structure, are vital in order for these projects to achieve an attractive return on investment (ROI).


Date Published: July 19th 2011

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