A Case Study of a Multi-Disciplinary Asset Management Team, With Special Emphasis on the Impact on Performance and Business Growth
Authors: Wade J.M. , Fryer V.I. 
Published: December 2007

Abstract
Team development is traced over a six year period beginning in 1990. Examples of how one team increased production volumes, reduced operating expenses and developed asset growth strategies is presented. How business plans developed to unprove project management, budgeting and long range planning prompted the team to look for potential growth opportunities outside of their immediate area of responsibility is discussed. Two major projects initiated by the team are reviewed; a field-wide re-engineering project and improved exploration and exploitation efficiency through the formation of a regional growth team.

Introduction
Beginning in 1990, this case history traces the transition from a traditional E&P functional reporting structure through the formation of a pilot team and on to full implementation of asset management teams throughout Phillips Petroleum Company's Lafayette Profit Center.
The transition began by reviewing the work flow processes and communication structure to find ways to improve productivity. One recommendation that resulted from this review process was to align personnel from the various functional groups to a common geographic area. To test this concept a pilot team was formed consisting of 2 production engineers, 1 reservoir engineer and 3 operations supervisors. The pilot team was extremely successful in improving productivity as evidenced by a three-fold increase in the number of workovers and recompletions implemented after the first year, completely arresting an annual production decline rate of 25%.
After 5 years of monitoring the results of the pilot team and noting the industry-wide trend toward asset management teams, the team concept was implemented across the entire Lafayette Profit Center. Each team consisted of 3 operations engineers and 2 field supervisors which was paired with a Houston-based exploitation team consisting of reservoir engineers and geoscientists.
Applying a value-added approach to asset management lead to intense focus being placed on the financial performance of the fields under the stewardship of the team. The team developed tools for performance monitoring and constructed business plans to improve project management and budgeting. Producing the business plans lead to longer range planning at the team level, increased the team member's sense of ownership and broadened their perspective. This prompted the team to begin looking for growth opportunities beyond its assigned area of responsibility. Eventually a regional team with members from the asset team, exploitation, exploration and land was formed to develop a focused approach for pursuing regional business growth opportunities.
Key lessons learned include the value of setting common priorities that comes with geographically common responsibilities, the value of benchmarking key operating statistics, the value of moving from the microcosm of a functional group to the macrocosm of managing assets and the hidden value of asset management responsibility: having the freedom to add value.
In The Beginning…
Phillips Petroleum Company's Lafayette Profit Center is responsible for all company operated properties located in the eastern Gulf of Mexico, onshore south Louisiana and south Louisiana inland waters. At the start of 1990 the Lafayette Profit Center was organized in a traditional E&P functional reporting structure with Production Engineering, Reservoir Engineering and Field Operations departments. Meanwhile, the Development Geology and Drilling departments were located in Houston (Fig. 1). P. 747^