Westhill Consulting & Career Development: Seizing opportunities for South East Asia's oil and gas industry

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Westhill consulting Career development

• Seizing opportunities for South East Asia's oil
  and gas industry

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Westhill Consulting Career Development Seizing
opportunities for South East Asia's oil and gas
industry

• http//www.westhillconsulting-career.com/blog/2014
  /03/17/seizing-opportunities-south-east-asias-oil-
  gas-industry/
• Since 2010, South-East Asia has consolidated its
  position as an important contributor to the
  global downstream market with Petronas recent
  announcement of its plan to build the new RAPID
  facility in Malaysia one further example of the
  regions growing importance.

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Westhill Consulting Career Development Seizing
opportunities for South East Asia's oil and gas
industry

• In reality the timing couldnt be better - as
  populations across Asia continue to grow, the
  demand for fuel will grow exponentially, offering
  oil gas operators a real opportunity to make a
  significant contribution to the regions
  continued economic development. However, with
  this growing demand comes additional pressures,
  and with the sector still vulnerable to
  fluctuating oil prices, operators can ill-afford
  to rest on their laurels. The need to ensure
  their operations are as productive as possible
  and that cost inefficiencies are stripped out
  from the very outset is arguably more important
  than ever before.

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Westhill Consulting Career Development Seizing
opportunities for South East Asia's oil and gas
industry

• Minimizing operational costs
• When it comes to new projects oil gas operators
  have traditionally been good at minimizing their
  CAPEX spend. However, there has been much less
  focus given to limiting the cost of operation of
  their assets. With maintenance costs typically
  responsible for 20-30 of the overall OPEX
  expenditure, this is one area where the
  downstream sector in South-East Asia is
  increasingly focusing its attention. According to
  some analysts the costs incurred across the globe
  in maintaining the next generation of oil gas
  assets could equate to 0.75 trillion
  highlighting the scale of the prize that could be
  on offer here.

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Westhill Consulting Career Development Seizing
opportunities for South East Asia's oil and gas
industry

• For a typical refinery the operational
  expenditure is principally dictated by three
  prime factors the quantum of work carried out on
  the asset, the efficiency at which it can be
  delivered and the agreed cost rate of the
  resource used. In each instance there is an
  opportunity to significantly reduce cost outlay
  by focusing on a range of inter-related issues
  including maintenance strategies, work scheduling
  and the approach taken to cost commercial
  management challenges.

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Westhill Consulting Career Development Seizing
opportunities for South East Asia's oil and gas
industry

• However, it is vital that these issues are
  considered during the FEED (Front End Engineering
  Design) stage of a project for if theyre not
  factored in at that juncture, operators will find
  themselves in a situation akin to trying to catch
  a handful of sand. Whilst they may be able to
  plug some holes, the reality is that some cost
  inefficiencies will inevitably slip through their
  grips. Similarly, when it comes to the initial
  contracts, good intentions can quickly be
  forgotten as pressure to get the project signed
  off sees decisions taken that result in a legacy
  of unnecessarily high OPEX costs for the lifetime
  of the asset. Given that many of these assets are
  in operation for over 30 years, this haste to
  push a project through can very easily become an
  expensive mistake.

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Westhill Consulting Career Development Seizing
opportunities for South East Asia's oil and gas
industry

• Location, location, location
• Another challenge facing operators when it comes
  to minimizing these costs is that very often
  their maintenance strategies are based on the
  Original Equipment Manufacturers Operations and
  Maintenance (OEM OM) manuals. Whilst this
  ensures they comply with warranty conditions, it
  often overlooks two key points - the operating
  environment in which the refinery is located and
  the criticality of each asset.

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Westhill Consulting Career Development Seizing
opportunities for South East Asia's oil and gas
industry

• In the first instance a one size fits all
  approach is simply unrealistic as the operating
  challenges will be markedly different depending
  on whether the asset is located in the Arabian
  Gulf, the Arctic Peninsula, Jakarta Indonesia or
  the South China Sea. In the second case, a lack
  of awareness of the criticality of each asset can
  see operators adopt an overly expensive
  maintenance regime for some assets whilst at the
  same time under-maintain those assets whose
  performance is critical to the overall production
  levels.

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Westhill Consulting Career Development Seizing
opportunities for South East Asia's oil and gas
industry

• The business opportunity
• Those owners who focus on the key issues that
  affect operational costs, and who implement the
  right processes during both the CAPEX and OPEX
  phases, can significantly increase their overall
  productivity. Some recent examples across the
  globe suggest that by focusing on just 20-30 of
  those assets where maintenance costs are
  unnecessarily high, there is the potential to
  make savings ranging from 10-40 million per
  year. When considered in those terms it soon
  becomes clear that minimizing operational cost
  can have a marked impact on their business
  bottom line.

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Westhill Consulting Career Development Seizing
opportunities for South East Asia's oil and gas
industry

• Over the past 12-18 months the downstream sector
  in South-East Asia has made significant steps.
  However, the next challenge will be to show that
  it can deliver sustainable improvements that will
  enable the region to strengthen its role as a key
  supplier of fuel in an ever evolving global
  economy. In changing times this is an opportunity
  the industry should not let escape from its
  grasp.
• Westhill Consulting Career Employment Australia
  found the above comments interesting.
• For more information
• http//www.westhillconsulting-career.com/blog/
• http//westhillconsulting-career.com/industries.ht
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