Building capabilities to deliver high well count developments*

Abstract

In September 2008, Origin completed a $9.6 billion transaction with ConocoPhillips to form Australia Pacific LNG (APLNG)—a fifty-fifty coal seam gas to liquefied natural gas joint venture. As the upstream operator, Origin is planning to ramp up production to more than five times present production levels. In a two-year period, Origin tripled Queensland CSG production volumes to 300 Tj per day. This expansion was based on existing business systems and processes and it was recognised that additional capability would be required to further ramp up production and associated activities.

A project was commissioned to build operational capability and capacity—processes, systems, organisation design and people—to efficiently drill the required number of production wells. This priority project addressed a business objective to step up the drilling of CSG production wells from approximately 60 to 350–400 per annum. The transformational solution comprised three key components: business process re-engineering, technology development and organisational re-design. The solution included the definition, documentation and transformation of business processes—this ensured consistent, repeatable and scalable processes capable of drilling of 350–400 wells per annum.

The processes are now enabled by resource scheduling and document management systems that are fully integrated. The resultant well delivery system is managed by a team that provides the business with decision making information regarding the resource use required to support the delivery of the APLNG commitments. Given the transformational nature of the solution, the delivery of all three components was under-pinned with change management impact assessments, education, communications and deployment. The total solution was deployed in August 2010.