Offshore Production Operations Performance Analysis

Discover sustainable business performance tailored to your specific offshore assets’ challenges and opportunities.

To survive the current oil price volatility, operators look to contain cost increase and maintain high operational reliability. While cost control is always a robust strategy, there is also the need to balance it with the principles of Operational Excellence. Solomon’s Worldwide Offshore Production Operations Performance Analysis (Offshore Study) can provide this balance and help successfully position your company to exploit the current market.

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"The value for changes we implemented was estimated at $5,000,000, a very good return on investment." SENIOR ENGINEER, U.K. MAJOR

Companies that participate in Solomon’s Offshore Study typically realize: 5-15% operating expense savings. Leverage a vetted, proprietary performance database of: >1,200 offshore assets and 92 FPSOs worldwide.

Key Offshore Study Features & KPIs

Carbon Emissions Index (CEI)
Energy Intensity Index™ (EII^®)
Well Servicing
Surface Repair & Maintenance (SRM)
Support/Overhead Costs & Staffing Levels
Operating Cost Competitiveness & Cost Efficiency Analysis
HSE and Process Safety Management (PSM) Performance Analysis
Cost Performance (operating cost, maintenance cost & complexity, labor cost, transportation cost (i.e., helicopter and boats), energy efficiency)
Production Performance (production efficiency, reliability, planned and unplanned downtime)

Ways to Turn Study Insight into Action

Prioritize Performance Improvement Efforts
Performance Assessment/Monitoring
Tactical/Strategic Planning
Reliability Assessments
Energy Initiatives
Staffing Levels
Custom Peer Groups
Capital Project Performance Targets
OpEx Prediction & Forecasts
Financial Institutions
Shareholder Needs

With 30+ years of upstream benchmarking experience and the world’s largest database of upstream performance data and metrics, Solomon knows what “good” looks like for any given type of operation. The Offshore Study assesses your performance against peers and identifies cost and production improvement opportunities. The study focuses on critical KPIs, including operating cost, cost drivers, production efficiency, and uptime reliability.

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Solomon’s experts understand that production is not the main offshore cost driver; unit costs do not indicate how efficient an operation is. Our proprietary normalized cost analysis (cost competitiveness) levels the playing field by considering the size and complexity of each asset, providing a better identification of efficient operation and realistic improvement opportunities. The normalized cost-efficiency assessment works to identify performance gaps between the asset and peer group leaders to provide potential cost optimization opportunities.

The Offshore Study analyzes both cost and production uptime performance at the asset level for several offshore production facility types. This “asset-to-asset” comparison enables true identification of the areas where your facilities could improve.

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The study further measures asset performance by analyzing your offshore operations, transportation activities that support those operations, offloading operations (tankers excluded), and overhead (management, technical, business support). This analysis enables a consistent and reliable basis for managing continuous improvement.

Why Participate?

Compare with top-industry peers
Assess the effectiveness of your operating cost-cutting strategy
Define robust strategies and tactics to deliver sustainable performance and costs
Pinpoint “cost drivers” for each asset type
Refine sustainability measures of carbon emissions and energy efficiency
Analyze uptime reliability performance issues on a consistent basis across companies and assets
Determine turnaround performance
Formulate expense optimization plans to eliminate shortfalls
Establish performance targets and measure progress

Study Deliverables

Study participants receive the following:

Executive summary presentation with actionable insight supported by study data
Customized diagnostic analysis, including conclusions, recommendations, and valued opportunity potential for each asset
Private debriefings with Solomon operations advisors

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New Metrics that Support Emissions Strategies

Several new methodologies have been added to improve onshore operations cost and reduce emissions, including:

Energy Intensity Index™ (EII^®)
Carbon Emissions Index (CEI)
Operations Delivery Index

Gain Actionable Insight

Learn How You Can Participate

Join other industry members that leverage the Offshore Study to guide them to higher levels of sustainable business performance and create informed robust operational strategies.

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Data Quality, Benchmarking Methodology

A Foundation for Effective Comparative Performance Analysis and Decision Support

We prioritize the integrity and confidentiality of participant-submitted data and rigorously review that data before benchmarking begins. Then, we employ our normalization process and benchmarking methodology to provide valuable and trusted peer group comparisons that deliver meaningful KPIs. Finally, our staff of senior consultants apply their deep industry experience to develop practical insight and recommendations to enable your success.

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Upstream Operator Reduces Risk and Increases Confidence in OpEx Budget for New Gulf of Mexico Project

Solomon’s New Project OpEx Estimator improved and validated the accuracy of the client’s OpEx
estimates and established valid and achievable targets for future asset operations.

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