Delivering Strong Production Performance through Workover Wellservice Materials Management Integration and Digitalization in PT. Pertamina Hulu Rokan - WK Rokan

Abstract

Behind the strong production performance in Pertamina Hulu Rokan WK Rokan, there is one element that holds crucial role to ensure oil gain opportunities are executed as per plan, which is Workover Wellservice (WOWS) materials. Managing WK Rokan WOWS materials is a complex system, in which relies responsibility to control more than 500 types of materials and accountability to prevent risk of shortage and excess from happening. This publication elaborates successful effort done in WK Rokan to improve materials planning and optimization through integrated materials management in a single enhanced system.

There were two major issues in WOWS materials management process in WK Rokan: (1) No integration in materials planning and monitoring process between stakeholder teams; (2) Minimum and manual system available for autonomous and proactive monitoring. WOWS materials inventory was managed by Drilling and Completion (D&C) team with minimum collaboration with Asset Development (AD) function. During this period, materials planning was assessed purely based on historical data, while future business plan and campaign plans were not fully considered. This resulted to lower material forecast reliability and high risk of discrepancy between material supply and demand. Now, the system has been improved by integrating material  management efforts from separated teams into one cross functional material system. In the new system, accountability for WOWS materials is shared between D&C, AD and Procurement teams. Through this process improvement, the team has more control to handle risks regarding material supply and demand. The new system also offers opportunity for Material Management Digitalization (MMD). Digitalization long term objective behind MMD is to have online system, with single click can retrieve  information of current inventory level, historical actual usage, and forecast moving forward. MMD in WK Rokan has been deployed through several applications, such as e-MUP (e-Materials Utilization Plan) Tool, Warehouse Availability Tool, and Artificial Lift Readyline Online Monitoring. This improvement allows user to access and retrieve data efficiently with less manual steps,  reduce homeless data and reduce risk of collecting wrong data due to human error.

The initiative was deployed since April 2019 under 2 stages. Stage-1 improvement (in 2019-2020) was successful to reduce deferred oil production due to materials availability by 43% and consume slow-moving materials by $ 3.0 M. Stage-2 improvement (in 2020-2021) was successful to reduce deferred oil production by 37% and consume slow-moving materials by $ 4.5 M.