RESEARCH
REPORT
Maximum
performance!
As a leading Formula One racing team, Ferrari knows all about setting of targets and monitoring
performance. So when Shell introduced its rDTL (revitalised Drilling the Limit) programme it was
no wonder they worked closely with the world championship-winning squad from Maranello
On the surface, there may not appear to boardroom, as Shell’s Drilling Manager “We saw that DTL worked in some
be an obvious link between the glamour of Peter Hendriks explains. areas, but it was not used universally,”
Formula One and the demanding world of says Hendriks. “There was typically an
exploration and production. But look closer He says: “By visiting Ferrari we were improvement by the factor of two: you
and you’ll see the worlds are not so far able to see how the team measures its reduce the cost or you reduce durations.
apart. In both businesses you not only need performance. They have a list of markers It was not something that was 100%
technical excellence, but also a focused and to track all the parts that make up the car implemented until Jeroen van der Veer
motivated team. And, like Formula One, and this allows them to see where faults (CEO of Royal Dutch Shell) called for
any company challenging in the upstream occur and help improve performance. We’ve us to be top quartile. We looked at the
sector of the oil industry must beat the built a genuine dialogue with them and wells where we had been running DTL in
competition – providing a better and more discussed how we can improve our part of order to see what was required to make
profitable service to its partners. the business.” it a success across the board. That is
when we came up with the six-element
Shell’s revitalised Drilling the Limit (rDTL) The original Drilling the Limit (DTL) rDTL programme.”
programme includes the imagery from programme was initially introduced in
the company’s Ferrari sponsorship to the late 1990s, aimed at getting engineers CUSTOMER SERVICE
emphasise the performance message, together to work towards an ‘ideal world’ “The main beneficiaries are the
although the connection runs much, execution of their operations. In 2004 the governments we are working
much deeper. Ferrari has advised on programme was further developed to with,” adds Hendriks. “We want
methods it uses to set targets and measure include motivating staff and giving them to show major resource holders
performance, with one of the rDTL events individual responsibility for the performance that we have a wide range of skills
taking place in Ferrari’s Maranello of their projects. and technologies which make
RESEARCH
8
REPORT
> IMPROVING PRACTICES IN WELL DELIVERY
AND WELL-SERVICING ACTIVITIES
> FOCUSSING ON IMPROVING PERFORMANCE
THROUGH PEOPLE
> PROVIDING GREATER EFFICIENCY IN ASSETS
AROUND THE GLOBE
> INCREASING PROFITABILITY FOR
STAKEHOLDERS
us an obvious partner of choice. performance indicator (KPI), a remarkable always about all three KPIs at the same
That is why improving well delivery achievement in such a short space of time. time, but about the key metrics for each
performance and being able to build project. This means that for some projects,
better wells in a field while remaining “We’re now finding that people are talking one KPI is more important than another. If
economically viable are priorities.” about performance, which wasn’t always the you go to a big land project that has been
case in the past,” explains Hendriks. “The going for years then probably dollars
The result is rDTL, a programme which targets themselves are set by the teams cost is an important driver. If you go to
is already showing increased productivity and some are very aggressive! But at the Qatar or Ormen Lange (offshore Norway),
at the 18 ‘pacesetter’ projects where end of the day, targets aren’t everything. then it is much more about production
it was introduced last year. While the It’s more important that we see significant attainment. We have promised to deliver
whole revitalisation process may improvements, rather than focusing on a certain amounts of gas at certain dates and
seem complicated, the bottom line is target just being missed.” if we don’t meet that target then we may
that there are three simple factors to have to pay certain penalties. If we spend
rDTL: setting targets; creating a plan SHARING INFORMATION a little bit more to ensure you deliver on
on how to achieve them; and creating “It’s not only about cost saving, it’s about time then that is better performance.
accountability for delivery. This cultural value as well,” continues Hendriks. “We
change seems to have been embraced deal with three KPIs for every project: “It’s a lot to do with transferring experience
throughout the company and is bringing dollars per foot; unit development cost and knowledge from one asset to another
out a competitive streak in employees, (how much it costs to develop a barrel of globally,” Hendriks continues. “If you
with a significant number of pacesetters oil); and production attainment (did we have people working around the world,
already in execution having delivered top- deliver the volumes of hydrocarbons when communication becomes more difficult
quartile performance on at least one key we promised them?). However, it is not because of the different time zones, different
9
SIX rDTL ELEMENTS TO MONITOR AND IMPROVE PERFORMANCE
1 SET TECHNICAL LIMIT-BASED TARGETS
THAT BEAT THE COMPETITION, ARE BASED
ON ACTION PLANS AND OWNED BY
PROJECT TEAMS
2 IMPLEMENT A SET OF KEY PERFORMANCE
INDICATORS THAT RELATE INDIVIDUAL
APPRAISAL AND REWARDS TO BUSINESS
PERFORMANCE
3 MEASURE AND COMMUNICATE THE
IMPACT OF rDTL ON BUSINESS
PERFORMANCE
4 IMPROVE DECISION QUALITY WITHIN THE
WELL-DELIVERY PROCESS
5 TRAIN AND COACH YOUR PEOPLE FOR
PERFORMANCE
6 MOBILISE ALL PLAYERS IN WELL
DELIVERY AROUND IMPROVING
PERFORMANCE
cultures and the workloads. If something he said: “We’ve had a number of success is about having clear and simple targets
is done well in Oman, for example, we stories with DTL. In the Gulf of Mexico we that are understood by the teams, and about
need to find an effective way to replicate it reduced days per thousand foot by a factor of linking individual responsibilities to the
elsewhere. We are facilitating this essential three, which tripled our number of economic targets of the project. The programme is also
transfer of information. prospects. If we can replicate and sustain about actions to realise these targets, as well
the savings we achieved through DTL across as rewarding performance and delivery.”
“Best practices from other projects, our global portfolio, EP cost performance
although readily shared between will improve significantly.” WINNING PERFORMANCE
colleagues, were not necessarily widely Placing responsibility on individuals seems
implemented. The problem is that if you Brinded went on to say: “Shell has an to be bringing out the best in Shell’s highly
don’t put a method behind it, or you don’t unparalleled set of opportunities but we have qualified workforce. This is something that
make someone responsible for it, then often to deliver the performance to unlock them. the company readily acknowledges, making
it will not happen. We have many good ideas Improvement in our well-activity area is an a point of rewarding teams and individuals
and by having a structured approach we absolutely essential step to get there. The for their high-level performance. So far the
can help other parts of the organisation to rDTL programme is a vital part of that.” results are looking good, but as Ferrari will
implement them.” tell you, it’s not just about winning the race
Peter Sharpe, Shell’s Vice President – it’s about winning the championship. The
This major task is fully supported by the Technical - Wells, added: “Performance short-term prognosis is good, but the true
company. According to Malcolm Brinded, management has been very high on our benefits will be seen in several years time
Executive Director Exploration & Production, agenda and will be in the future. rDTL is not when rDTL is in place at all assets. As at
revitalised DTL is vital to the continued the flavour of the day or a new initiative, it is Ferrari, the performance culture is well and
success of the business. In a recent speech the way we work and its here to stay. rDTL truly alive at Shell EP.
rDTL MAY HAVE EXISTED FOR BARELY A YEAR BUT ALREADY TANGIBLE RESULTS ARE BEING SEEN IN SHELL PROJECTS AROUND THE WORLD
PINEDALE, USA – Shell wells are top quartile SALYM, RUSSIA – Fastest well drilled in 7.25 days
rDTL initiatives at Pinedale have led – Independent figures show Shell’s The rDTL philosophy saw the team at – Average drilling time reduced from
to improved efficiency over drilling costs are significantly Salym achieve seemingly impossible 30 to eleven days per well
competitors in the area. A recent lower than competitors results. Working in partnership with The average drilling time in this area
external benchmarking study – Days per 1000ft drilled figures are local companies, the achievements for similar wells under similar geo-
concluded: also industry leaders include: technical conditions is 18 to 20 days.
10
