Owner operators in the oil and gas industry have called time on the inefficient and cost-heavy handover process, after nearly 100% said they had experienced operational delays and unexpected costs as a result of poor handover of engineering information, during the construction of rigs and refineries.
AVEVA, a leading global provider of engineering, procurement and construction information management software solutions, commissioned research* to understand the true impact of handover on owners and EPCs.
The report, The End of Handover, reveals clear problems with existing practices. It found that:
The impact of poor information handover:
- 98% of respondents had experienced unexpected costs and delays to operational readiness in recent projects due to not having the right information at the right time.
- 85% reported unexpected charges to fix information problems. The direct cost of rectifying these issues was up to $1 million.
- Delays in startup and operations ran into weeks and months – representing opportunity costs of millions of dollars per day.
- 70% of respondents have had to spend money post-handover because the information provided was inadequate for developing spares, maintenance and other operational plans.
The root of the problems:
- More than two thirds (68%) did not have all the information they needed at the point of handover.
- Yet 94% said owners should have all the information required from EPCs ahead of the handover deadline.
- 50% did not plan for handover, or did but did not think about it until the end of the build process.
- More than half (52%) did not have an information management system in place to support the engineering information that needed to be shared.
Amish Sabharwal, Executive Vice President, Americas at AVEVA, said: “Handover in its existing form is wasteful, inefficient and not sustainable. A lack of planning often means the right processes and technologies are not specified upfront and handover ends up being an ad hoc process bolted onto the end of a project. The result is hundreds of thousands of wasted man hours rectifying data problems and considerable delays to being fully operational.
“The industry needs to put into place a more comprehensive and planned approach, and the promising sign from the report is that there is real consensus for change. 86% felt the industry would benefit by identifying what engineering information is required beforehand and putting processes in place for transferring the data steadily throughout the process as it is finalised, something AVEVA calls progressive handover.”
The industry can already see the positive impact of changing the process in future. Of those surveyed, 82% said that making handover an incremental process, built into every stage of their project, would reduce costs and nearly two thirds (64%) said they would be able to start planned operations early.
The full End of Handover report, which details the research, provides in depth analysis, and outlines best practice for information handover based on interviews with independent O&G and project management experts, can be downloaded here: http://discover.aveva.com/hub/aveva-handover-20160815/the-end-of-handover-full-report-lp
The report can also be accessed via the AVEVA content hub alongside opinion and guidance on effective handover: http://discover.aveva.com/hub/aveva-handover-20160815/aveva/content-hub-lp1
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/24012017/the-end-of-handover-owners-call-for-a-more-progressive-approach-to-engineering-information-management/