Case Study: RWE Dea UK

Case Study: RWE Dea UK
Empowering Asset Management Teams
Challenge
RWE Dea UK had multiple software support systems in place,
each providing a wealth of data,
but most focused on financial
accounting or production, and
not on integrated asset performance. This situation did not
allow the reliable measurement
of operational performance and
impaired the ability to establish
a culture of continuous improvement of asset performance.
Solution
RWE Dea UK decided to adopt
esi.manage™ Business Planning and Capital Management
software to give asset teams the
ability to reorganize and focus
existing data, so that financial
information and production data
can be brought into the realm of
the asset management teams in
a directly usable form.
Results
With esi.manage™ all RWE
Dea UK Assets Managers now
have access to financial and
operational data in a form that
that allows them to monitor
current and past performance
metrics, identify trends and deviations from budgets, and to create
ongoing forecasts for the future
performance of their assets.
“In the past, we asked our Asset Managers to maximize the value of the fields the company had placed under
their trust, but we didn’t provide them with visibility on their current or past performance, nor with references
against which they could benchmark the performance of their assets nor with effective ways to create forecasts for their future performance. esi.manage™ has provided our Asset Management Teams with both the
visibility of the past, and the ability to produce the most accurate possible forecast of the future.”
Paul Jeffs,
Manager, Production and Operations
RWE Dea UK
Empowering Asset Management Teams
An open, coherent, homogenous and consistent view of the asset portfolio, where a financial accounting
focus is integrated into a wider operational, performance based view.
The most typical arrangement, in the North Sea for E&P companies, involves the delivery of corporate
strategy through a mix of operated and non-operated assets. While non-operated assets bring the relief of
being one step removed from operational
decision-making
and problem-solving, they
d
still
s bring with them problems of their own.
Prominent
amongst them, is that all budgets
P
received
from partners will follow a different
r
breakdown
from one another and will go
b
down
to different levels of granularity as well.
d
The
T billings received afterwards, from their
respective
finance departments, and the
r
invoices
for hydrocarbon sales will follow yet
in
another
breakdown and without exception the
a
corporate
planning requirements will follow
c
yet
y another format.
“Trying to turn all of this disparate data into a coherent and consistent set of asset performance indicators”, says
Paul Jeffs, Production Manager at RWE Dea UK, “was a next to impossible task. In fact, it was difficult to come
up with the answers to some of even the most fundamental questions like: Are our partners delivering according
to their budgets and are the monthly billings consistent with the planned and actual activities?”
Asset Managers seldom had the time to calculate the operational performance of each asset and lacking a standard support tool, any asset performance metrics that were generated were ad-hoc. There was no support to
the generation of tangible and visible KPI or performance targets, including critical performance parameters like
Lifting Cost/bbl, or Capex/bbl, or adherence of execution to the approved budget. RWE Dea UK needed something that would enable the continuous monitoring of performance indicators and give visibility at the operational
level to deviation from the planned budgets and performance targets.
The selected platform had to be able to allow a pragmatic definition and coding of all expenditures, in a way
fitting an operational view of the world, with a view to ensure that all the Budgets, Corporate Plans, Actuals, JV
Budgets, JV Re-forecasts and JV Invoices could be adequately represented using this new expenditure coding
arrangement and thus achieve harmonization. The vision was that, following this breakdown, all major expen-
Confidential ©2010 3es innovation Inc.
All rights reserved. Calgary, AB Canada
diture concepts would be consistent across assets and all measures would be consistently filled for each asset.
So, for example, a certain Opex type within a specific budget would be compared with, and only with, it’s true
corresponding actual.
Until now, RWE Dea UK had not found
a commercial solution that achieved all
of these goals. And although RWE was
after the ability to ensure that variance
analysis between the present situation
and the approved budget was done along
consistent headings and Capex and Opex
cost categories and types, they also aspired
to have the ability to ensure consistency
of roll-ups across assets, and provide an
operating tool for Asset Mangers to be able
view information as well as present forward
operational forecasts.
Turning Data into Power for Asset Managers
This drove RWE Dea UK to esi.manage™, the first truly integrated business planning and capital management solution for upstream oil and gas. “With esi.manage™, we always find an up-to-date view of the status
of all our assets” says Paul Jeffs, “our actuals become available in esi.manage™ as soon as the books are
closed and they are blended with the latest forecast, whether ours or of our partners, to provide us with the
most updated and informed view of our business.”
esi.manage™ highlights
• Improve ROI through optimal
portfolio management.
• Rank and prioritize projects
based on Operational and
Economic metrics.
• Create Long Terms Plans and
Budgets using a single data
set.
• Improve forecasts by exploiting
all corporate data:
- AFE approved amounts
and Actuals
- Capital Field Estimates
- Production Field Estimates
and Actuals
- Opex Actuals
- Variance Analysis
- Perform Operational and
Economic Look-backs
esi.manage™ provides RWE Dea UK staff with an easy user-friendly interface to update the forecasts for
each individual asset; generate variance reports between this blended situation and the internal and partner
budgets and quickly measure delivery against budget, identify variances, and determine corrective actions
much faster than they could before.
“Finally”, says Jeffs, “our corporate planning asset budgets and past performance are now represented in
the same area, allowing reconciliation and accurate record keeping. The preparation of the asset forward
forecasts benefits from the insight provided by access to the actual YTD costs, as well as the actuals from
previous years, so that we can incorporate past experience as well as future aspirations.”
For more information about esi.manage™ or other 3esi products, please contact us at (403) 270-3270 or
email to [email protected].
Head Office
200, 1601 Westmount Rd. NW
Calgary, Alberta
Canada T2N 3M2
tel: +1.403.270.3270
fax: +1.403.270.3343
web: www.3esi.com
—————————
3esi Europe S.L.
tel: +34.932.018.872
—————————
3esi UK Ltd.
tel: +44.1235.426.126
—————————
3esi Latin America
tel: +55.21.2262.4235
—————————
Confidential ©2010 3es innovation Inc.
All rights reserved. Calgary, AB Canada
3esi USA
tel: +1.713.725.0323

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