Encouraging Innovation – Empowerment vs Project Management Process

This year’s event focuses on Collaboration for Cost Reduction in North Sea Projects, providing the opportunity to explore how we can change culture and address values and behaviours in offshore project delivery. Join us to hear from industry experts and practitioners, be challenged in interactive workshops and help us promote good practice and knowledge sharing of success stories Oil & Gas Project Management Conference Collaboration for Efficiency and Cost Reduction

John Pearson Quote “Times are tough right now but the most effective way of creating a sustainable future for our industry is to collaborate for greater efficiency. As such, I encourage participation in this event from all companies interested in our collective successful future. We have to deliver changes that will leave the industry more competitive even after the inevitable upturn. We can and will get through this, but the challenge right now is for all companies to work together.” John Pearson - Co-Chairman, Oil and Gas UK

Agenda Introductions How Change Actually Happens (group participation) Innovation in Action Discussion and Wrap up Agenda

Knowledge Sharing Workshop Synopsis The workshop considers the reduction in innovation on projects over the past few years and how this might be eroding value. Increasingly operators and service providers layer more and more process, or agree challenging contractual terms, in an attempt to drive project management teams to deliver predictable outcomes. Does this have the desired effect, or are opportunities being missed by stifling innovating behaviours and techniques? Presenters and Synopsis Presenters: Stephen Carver, Consultant Lecturer – Cranfield University Jim Lenton, Project Delivery Director – Amec Foster Wheeler

Who we are, what we do, why innovation has been important in our careers. What have we done with this spirit of innovation? Introduction

Stephen Carver

MBA Stephen Carver

How change actually happens How Change Actually Happens

Process or Empowerment?

Governance Slim teams Trust earned Efficient change management Risk and reward Everyone involved Integration Innovation in Action EmpowermentProcess Details High granularity Man-marking Controls Master and slave Reports.. Meetings..

North Sea Oil and Gas Operator Innovation was at the core of what they wanted from an ISC contract Contractor rewarded for: Savings to budgets through innovation Extraordinary return proposals Performance on project scorecards with aligned drivers Innovation in Action

“We want 2 MBD more production from our assets – find me that and you will be rewarded appropriately” Achieved = 1.9 MBD Unlocked Compressor conundrum which never seemed to meet the operating curves Thermodynamic understanding allowed a 0.5 C temperature change which debottlenecked the gas plant Production could be easily increased… Contractor received a bonus of ~ £0.5m Innovation in Action

North Sea Oil and Gas Operator Caisson Failure Key Facts 750mm Outer Diameter, 20mm Wall Thickness, Mass approx 17.5 tonnes Existing caisson located directly above 20”Gas Export line 2 No. Internal Dip Pipes: 114.3mm Diameter - 636kg 60.3mm Diameter -105kg Welded to caisson at top elbow only Internal dip pipes, as dropped objects, would have 50% chance of hitting the gas or condensate export lines, with sufficient energy to fracture export line below Subsea survey (03/14) found 4 No. through wall holes in the caisson between El m and El m. Caisson removal schedule fast tracked due to integrity concerns: Original onshore 22 week schedule reduced to 8 weeks Offshore work successfully completed 01/06/14 – 1 day ahead of schedule

North Sea Oil & Gas Operator Critical Caisson Removal Innovation in Action

Where is the Sweet Spot? or

Open discussion on innovation and the Project Manager – What are the blockers (why are we not already doing this)? How do you cause change? What do we need to stop doing as an industry If you could “hang on” to one thing that you got from the workshop, and what you are going to bring it to life in the workplace, what would this be? What would be different? Discussion and Wrap up