Digitalizing Operations Management: Real-Time Opex System Design for the Ivar Aasen Asset
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After a drop in the oil price in 2014 -- 2016, the oil and gas industry renewed their focus on cost reduction. The use of real--time data has become commonplace, but one area lagging behind is financial data. Financial data are still mostly measured, treated, allocated and bundled together before being presented weeks later. The purpose of this thesis is to research how to make a real--time operating expenditure (opex) measurement system and its implications. The system is made for the offshore asset Ivar Aasen, which is a production platform located off the West Coast of Norway, bordering to the UK sector in the North Sea. Opex--analysis has shown that the selected focus elements of air transport, operations manning and maintenance manning accounts for 35% of the operating expenditure that are possible to influence on a daily basis on the Ivar Aasen production platform in 2018. Data is gathered from operating expenditure reports, input from subject matter experts and the process of creating such a system within Aker BP. Through the information gathered, and an iterative process with the data warehouse professionals, opex visualizations are made for increasing awareness of cost, with the possibility to drill down in data. The views are split in snapshots of today's opex, historical opex and short--term forecast of about seven days. The drill--down capabilities are created for time, employment types, associated companies and organizational units. It is too early to say how much the oil and gas industry can benefit from such visualizations, but based on similar approaches in other industries the possibility for opex reduction through awareness, interactive visualizations and analytical opex--tools are substantial.
Master's thesis in Industrial Economics