Review of an upstream E&P company’s HSE function
Oil & gas, Risk

As CEO I can announce that the recommendations from Arthur D. Little have been accepted by the executive leadership team, and today I am establishing the HSE Function Review Implementation Task Force to ensure that the substantive changes required across the organization to implement the recommendations are progressed to completion

Arthur D Little performed a strategic review of the HSE Function for a UAE based upstream E&P company


Challenge

The client had requested a high level, strategic review of the structure and effectiveness of its HSE function. Their operations had been in a steady state for several decades and were likely to be complicated by a project that would increase production capacity from 500,000 barrels of oil per day by 35-50% within two years. This project was a JV with a North American partner who had very different expectations for safety management in their operations. Our review included a benchmarking study of the client with other E&P companies to explore their safety governance arrangements, in addition to a review of sustainability & energy management.

Approach

A variety of Arthur D Little tools were used to complete the review: a benchmarking study was completed with 6 other international E&P companies and extensive use of ADL’s Unwritten Rules of the Game methodology was used to identify “what really goes on round here”. We visited all offshore sites to gain insights from operational employees in addition to managers in the head office. We had multiple teams of consultants operating in parallel to give a high level of intensity to the review and meet the client’s time scale requirements. The wide range of information allowed us to tailor recommendations that were appropriate for the client and would lead to improvements in HSE management.

Value

Our report focussed on the recommendations and how the client could go about implementing them, as well as providing specific barriers we had found during the review and success factors to measure achievement. These recommendations addressed all aspects of HSE management, across the company. ADL were retained in order to assist the client with producing an implementation plan for the recommendations, including design of a PMO.

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