CONTINUOUS IMPROVEMENT OF DRILLING ULTRA-SHALLOW HORIZONTAL WELL THROUGH LEAN SIX SIGMA METHODOLOGY (Study Case: UP* Field in PT. SDEC*)

• Main Author: Tri Wahyudi, Petrus
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/38739
• Institution: Institut Teknologi Bandung

PT. Suwarnadwipa Energy Company (PT. SDEC*) is a major Oil Company in Indonesia, PT. SDEC manages many fields which are located in onshore area. From Drilling & Completion (D&C) activities point of view, this company is considered as the busiest company in Indonesia. Until 2015, PT. SDEC usually drill more than 200 wells per year. During low oil price environment, many project including drilling new wells became un-economic. Many projects were dropped due to could not pass the economic hurdle. This situation created huge impact to all stakeholders. In this situation, PT. SDEC was able securing capital budget to drill new well, but PT. SDEC only had limited and fixed budget for drilling new well (US$ 31.5 million for 42 wells Ultra-Shallow Well in UP Field), if actual drilling well cost higher than plan, PT. SDEC need to reduce number of well drilled. In other hand, SKKMIGAS requested to PT. SDEC to drill well at least the number same as per agreed during Work Planning & Budgeting (WP&B). When 12 wells had been drilled in 2nd semester of 2017 completed with higher cost compare to budget in business plan (BPlan) which one of root causes triggered by longer cycle time (average 9.9 days/well) compare to the plan, (7.5 days/well), this condition created problem to PT. SDEC. Project team was requested to find out the root causes and to fix the problem soon to be able deliver result as per expected (committed in WP&B). Company established and assigned a team to solve the problem through Lean Six Sigma. It uses systematic framework that comprise of five steps namely DMAIC (Define, Measure, Analyze, Improve, and Control). Project team performing FGD to help project team during define, measure and analyze the problem including recommended the solutions. Consider the business nature of D&C which company still need to pay the rental cost for rig and other services even though no drilling activities, team applied the improvement immediately starting in Improved Well#1 and managed the execution schedule to give ample time for project team. Before applying the recommendations widely, trial done in 3 wells. From the trial, drilling cycle time was improved from average 9.9 days/well to 6.74 days/well. Refer to this trial result, the improvement planning was applied to the rest of well candidate. Through strong collaboration among team including and strong support from Business Partner, the project execution performance was improved significantly. The result of deployment in 30 wells, the cycle time was improved from average 9.9 days/well to 7.4 days/well and the cost reduced from average US$ 756K/well became US$ 640K/well. The Cp and Cpk of drilling cycle time (stated in hour/footage drilled) was improved from 0.06 to 1.08 and -0.07 to 1.03 respectively. As the result, the project team could save cost around $ 2.8 million.