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

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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 region’s growing importance. For more information: – PowerPoint PPT presentation

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Title: 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

2
(No Transcript)
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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
    ml
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