Andrew Well Engineering Alliance: A New Industry Model
Authors: Gomersall Sam , Klein Bob , Clark Graham , Sneddon Iain , Simpson Mike 
Published: December 2007

The BP Andrew field has been developed using a novel business solution which required the creation of a Well Engineering Alliance with shared objectives, a radically new behavioural approach and jointly developed targets.

The paper describes the structure of the Alliance, the development and implementation process and the success that has been achieved.

Field Overview

Andrew is a Paleocene oil field 50km North East of the Forties Field, it is relatively small in size, 11 2mmbbl reserves, and was discovered in 1974. It's development has, until recently, been considered uneconomic due to the high initial cost of development. The arrival of proven horizontal well technology has allowed the number of wells planned for the field to be halved at the same time as increasing the plateau from 45mbd to 58mbd. Improvements in jacket and topsides construction, including onshore commissioning, increased heavy lift capability and a reduction in offshore manpower needs have allowed the project cost to be substantially reduced. Most significantly, an innovative Alliance approach is being applied to all aspects of the project to create substantial cost reductions and value enhancements.

Three wells were pre-drilled through a subsea template prior to installation of the jacket and topsides in May 1996. Following the tieback and completion of these wells, together with an existing appraisal well, further wells will be drilled from the Andrew Platform. First oil was produced 6 months ahead of schedule in June 1996. In addition the development includes Cyrus, a small subsea field which is tied back to Andrew by a 6.5km flowline bundle. Cyrus is being developed within the same contractual arrangements using two subsea production wells.

Andrew is a project where behavioural issues are considered of paramount importance. The combination of appropriate behaviours and new technology can together deliver a breakthrough performance. These softer, less tangible issues are a key aspect of the project.

Contract Strategy

The contracting strategy was conceptualised at the project sanction stage in 1993 and was to maximise field productivity for minimum cost through delivery of highly productive, low cost, low risk wells as early as possible. To achieve this, the plan was to create an integrated Well Engineering Alliance incorporating all the skills necessary to drill, complete and maintain the wells.

Strategy development and contractor selection involved the following steps:Identification of key business objectives as:–Maximise Palaeocene well productivity–Accelerate 1st Oil–Maximise value from Lower Cretaceous horizon–Minimise costsIdentification of key implementation success factors as:–Select the right contractors, get them onboard early enough to have an impact, and keep them ie life of field accountability.–Adopt an integrated team/alliance approach–Ensure alignment of asset business objectives with contractors objectives through use of a single gainshare scheme for all Alliance members with a focus on both cost and well productivity.Select contractors based on ability to deliver on business objectives through an interactive selection process focused on behavioural alignment, technical ability and cost.

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