Basics of a Successful Integrated Project ModelWed, 01/20/2016 - 11:10
Q: What are your service divisions structured in the Mexican market?
A: Halliburton comprises two divisions, the Drilling and Evaluation Division, and the Completion and Production Division, with 12 product service lines (PSLs) between them. One additional PSL, Consulting and Project Management, is the nucleus of our integrated services strategy and works across both divisions. Through collaborative early engagement and an inclusive process, our Project Management team develops and applies innovative solutions to produce effective well designs and completion plans. To achieve a detailed understanding of the challenges at hand, the Halliburton well construction and completion project teams encompass a wide range of disciplines and job functions, from geology, geophysics, and engineering to operations, supply chain, safety, regulatory compliance, and management. The goals of our Project Management team fall into the three main categories of improvement of well construction rates, rigorous risk assessment and mitigation process, and the reduction of non-productive time. Halliburton Project Management has already built a network of providers, which are continuously assessed on their quality assurance and quality control processes and practices. The governance is exercised through a bridge document, which controls the responsibility and accountability of the parties, and also establishes the management of change process. Currently, in Mexico we are present with high-value, high-performance, integrated projects in deepwaters, shallow waters, exploration, unconventional resources, and deep HPHT land wells.
Q: What is the most effective business model for an integrated project?
A: Halliburton Project Management can tackle any phase of the asset life cycle, spanning from exploration to appraisal, development, and lately the plugging and abandonment of fields. The work is structured in a scalable fashion that can encompass a single rig or entire set of assets, both onshore and/or offshore The level of integration or coordination required is assessed according to the customer’s needs for each project. The simplest model, Integrated Services, comprises purely the planning and operational coordination of different stakeholders, for which the customer usually is seeking to simplify the number of interfaces and ensure project deliverability through an enhanced integration of service-quality capacities. A second tier is to naturally add the local knowledge on both engineering and procurement to the integrated package, considering the long-term experience and capture of lessons learned to be deployed immediately to the project planning and execution, shortening the learning curve and increasing overall project performance. While the previous models are usually charged according to time and materials, there are high tiered models for which the risk allocation is spread among the stakeholders, therefore capping the customer’s exposure and aligning the project performance to its financial outcome. Certainly, the biggest value generated by the integration is the alignment of objectives among the stakeholders. Such alignment is key to controlling the project variables, such as cost, quality, and schedule, and to ensuring that all stakeholders participate proactively to assure optimal project performance.
Q: How could new customers originating from the Energy Reform profit from the utilization of integrated projects?
A: There are four different outcomes that customers would like to achieve during periods of low barrel prices: reduction of CAPEX and OPEX, decrease in project footprint, simplification of interfaces, and ensuring project performance indicators are fully met without compromising any eventual boundary condition. The Integrated Project Model generates a variety of opportunities to meet and overcome all four customer-driven challenges. Halliburton’s unique capacity and expertise in the Mexican market allows our customers to better dimension their CAPEX from the time of the bidding process, through exploration execution and throughout the asset’s productive life. We provide a method to acquire best-in-class technology, local expertise, and a simplified interface with all necessary third parties for the project, while having total alignment and trust among stakeholders. The level of synergy we have with stakeholders allows infrastructure to be designed and built according to the required specifications, such as the top tier 3600 HP rigs currently working for one of our customers in the south region of Mexico.