214-X Topside Alliance - Criteria for Success
Authors: Henriksen Olav , Martin David 
Published: October 2008

When Phillips Petroleum Company Norway's plan to extend the lifetime of the Ekofisk field for a further 30 years was subjected to additional time constraints, it became necessary to find an appropriate model for project execution. The dates set by the Norwegian Government for closing down. the existing facilities at Ekofisk, presented Phillips with a major challenge with respect to schedule. An international management consultancy company gave the project a one in ten chance of being completed on schedule, even if an alternative model such as an alliance was introduced. This paper discusses the strategy that was adopted and the factors which led to the project being a success.

The Background for the Formation of the Alliance

During the last decade we have seen increased co-operation between customers and suppliers in different business areas. Those companies that show an ability and willingness to be the front runner in this development, can expect to set precedents when competing in the open-market. Encouraged by other companies' success in projects organised as integrated teams or alliances, Phillips Norway wanted to evaluate if the right conditions for a 2/4-X Alliance were in place. Phillips engaged management consultants, with long experience in the evaluation of human relations in project organisations. Their survey of the foundation for an alliance was based on interviews with management of four of the companies involved, and research of other alliances and forms of co-operation. Their conclusions led to Phillips taking the initiative to establish an alliance with the three main contractors already involved in the 2/4-X project. The parties jointly concluded that an alliance between the four partners would contribute to a valuable learning process within the organisations, and increase the probability of meeting the project objectives. It came as a surprise, in some quarters in the oil industry, when Phillips entered into an alliance. We were probably not recognised as a company with the right culture and experience to support it. However, the concept was not totally new to Phillips Norway. The "Team 66" process had inspired some innovative thinking and focused on trust, involvement and other values that are essential in an alliance. The main issue was, however, that the right people in the right positions in the company had the courage and wisdom to decide to go for it.

The Alliance Partners

The 2/4-X Topside Alliance consisted of four partners:Phillips Petroleum Company Norway, the operator of the Ekofisk fieldUmoe Haugesund AS (previously Haugesund Mekaniske Verksted AS), the fabrication contractor for the topside and mud module;Aker Offshore Partner AS, the engineering contractor for the topsides, link bridge and tripod support, modification to existing platforms and assistance to Phillips' procurement activities;Hitec ASA, the engineering contractor for the mud module and the supplier of the DES

Scope of Work

The 2/4-X Platform is a fixed wellhead platform that was installed in late August 1996 on the east side of the existing Ekofisk facilities. The platform is bridge-linked to 2/4-C and to the newly installed process and transportation platform 2/4-1. The platform has 50 well slots, including one for reinjection of drilling disposals.