NORNE - The Organization Challenge/ Implementing Change
Authors: Adlam John 
Published: October 2008

Faced with the need to drastically improve performance in both the development and operating of new fields Statoil has used the Norne development as a pilot project to investigate means of achieving this goal. The paper will describe the challenge that faced the Nomeleadership and the organizational and attitude improvement actions implemented to overcome them and to motivate the organization to achieve significant goals.

Emphasize is placed on integration not only of the project and operations organizations but the client and contractor teams as well. Contract forms most suited to produce the max. life cycle results were investigated and applied. The development of a "learning" organization is seen as a key factor.

INTRODUCTION

The Norwegian oil adventure started in the 1970?s and rapidly grew so that during the late years of that decade and right through the 80?s numerous large offshore projects were conceived, developed and successfully set into operation.

The majority of these projects were to develop large fields such as Statfjord (3.5 billion barrels), Gullfaks (1.5 billion barrels) and Oseberg (1.8 billion barrels), in relatively deep waters, 120-200 ms, and in a harsh climate.

The technology challenges were tough, but the large highly productive reservoirs, and the expectations of ever increasing oil prices made these projects attractive toinvestors.

The platforms needed to develop these fields were very large, among others the Gullfaks C platform, with its 45.000 tons topside facility, being the largest production platform in the world. The investments made in these fields were correspondingly enormous, 10 billion for the Gullfaks field for example.

Some attempts were made at innovative and more cost effective developments such as Veslefrikk, but on the whole developments were dominated by a focus on technology and the need for high regularity given the expected high income flow.

To a certain extent the need to restrain investment and operating cost suffered, and the inclusion of unnecessary redundancy features and over engineered solutions become common.

Large project organizations, with their resulting bureaucracy, were required to handle these mega projects and an impressive job was done by an relatively inexperienced industry.

A whole generation of Engineers, Project Managers, Government Bureaucrats and Suppliers grew up in this period as both the industry and the oil province matured.

THE CHALLENGE

Today, in the mid. 90?s, the North Sea is becoming a mature province with an impressive infrastructure in place. Generally speaking on the whole Norwegian shelf only gas and some small oil fields have been discovered in the recent years, Norne at 450 mill. barrels recoverable is the largest discovery in the last 10 years. The industry is having to adjust to the probability that future domestic developments will be of a much smaller size. This together with a low oil price scenario and increased competition for the available development capital has created a real need for drastic adjustments in the Norwegian oil business if it is to successfully meet the challenge of this rapidly changing world.