WORKOVER AND WELL SERVICE PERFORMANCE IMPROVEMENT USING LEAN SIX SIGMA CASE STUDY: WORKOVER AND WELL SERVICE ACTIVITY OF PT AAA

• Main Author: Adi Prasetyo, Bayu
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/47508
• Institution: Institut Teknologi Bandung

PT AAA is the subsidiary of Alfa Company, one of the leading integrated oil and gas company in the world. PT AAA has been in partnership with Indonesia through Special Task Force for Upstream Oil and Gas Business Activities since 1920 to explore and produce oil & natural gas from hundreds of oil fields in Central Sumatra area. PT AAA holds a hundred percent owned and operated interest in the Roro Production Sharing Contract (PSC) expiring in 2021. After been operating for more than 90 years in Indonesia, PT AAA has to deliver more active wells to maintain the declining rate of oil production considering the EOC term due in 2021 as per Government of Indonesia (GOI) requirement. It is realized that Rig cycle time is one of the metrics and becomes main contributor to determine project`s economics that will impact the cost and budget. Rig cycle time represents the well execution effectiveness and could as well increases number of workover and well service jobs that can be executed annually. Lean Six Sigma was employed as the research methodology to solve the problem. It utilized systematic process that comprises of five steps namely Define, Measure, Analyze, Improve, and Control or widely known as DMAIC. This project is intended to improve workover and well service (WOWS) executional cycle time by analyzing major contributor in WOWS jobs activity and developing feasible methods to improve the WOWS executional cycle time. Average workover and well service cycle time for each executed job was 3% higher than initial plan and was mainly caused by excessive non-value-added activities. In determining the root cause, project team performed Focus Group Discussion (FGD) with the front-line personnel comprises of engineering and operation team to validate the process and extracting possible opportunities to improve the cycle time by analyzing Trip In Hole/Trip Out Hole (TIH/TOH) activity, the Why Tree was developed during mapping and brainstorming. Analyze the WOWS program with all stakeholder to eliminate the non-value-added activities during TIH/TOH. And project team found almost all WOWS program include running scrapper without thorough analysis on the intended benefit. By reducing the number of TIH /TOH activity it was expected that the duration required to performed TIH/TOH activity during WOWS jobs execution could be minimized or reduced. The research resulted in reducing the workover and well service TIH / TOH activity from 6.4 hours per 1,000 ft to 4.3 hours / 1,000 ft. The cpk of the process has improved from 0.4 to 0.9 in 1-month timeframe. It is estimated that the research project able to save $ 1.3 million on annual basis.