The business issue:
The Norwegian oil producer, Norsk Hydro ASA, has several oil installations entering their tail-end-production-phase. The company is not specialised in operating the installations during this phase. One option is to sell out the operation to specialized companies. Norsk Hydro ASA takes the alternative strategic choice of being a competitive operator during this last phase of the installations lifetime. By redesigning the organisation and seeking to achieve other operational cost-savings, the company starts a pilot-project with the aim of increasing platform lifetime and the value of the offshore oil field.
The company's approach:
The company sets up a project structure ensuring involvement from all layers of the organisation. Management defines a financial goal showing significant improvement potential. An internal team of three project-managers undertakes a pre-study validating the financial potential. The project is split up into two phases;
1) a main-study to validate the initial findings and to establish a robust implementation plan
2) an implementation phase.
Magma Projects joins the project team from the start of the main-study-phase.
Magma Projects role:
>To support the internal teams analysis of the potential and to plan the implementation phase.
>To create an atmosphere for change at all levels in the organisation.
>To design a robust and achievable implementation plan together with the internal project-team.
>Results delivered on time and in full.
>Project became 'reference' on how to implement a 'late-life-strategy' within the company.
>Partners were willing to invest more money on drilling and exploration due to the new lower operating costs.
Quote from the client:
>"Magma Projects showed sensitivity to internal group-processes".
>"Magma Projects was a constant challenge in relation to working ideas".
>"Magma Projects displayed an effective system that led to clear actions and delivered the results".