Case Study - Building a System in a Service Company To Assure Technical Integrity and Institutionalize Organizational Learning
Authors: Rixse M.R. , Thorogood J.L. 
Published: December 2007

SPE and IADC Members

Abstract
A service company and operator worked together to build a system to assure technical integrity within the service company's field operating location. They created systems and procedures to address how the service company is organized, how it performs design, how it executes the service, and how it manages the logistical issues associated with performing the service. Additionally the procedures were structured to facilitate gathering and applying new knowledge.
The process was initially tackled from an ISO 9000 quality management standpoint, but the result lacked utility and was rejected. A more direct and universal approach was adopted that emphasized the safety-critical and cost-critical processes that are paramount requirements of an oilwell service operation.
Development of these systems was not a trivial task. Not only did it require extensive thought to define the exact scope of the issues which needed to be addressed, but the system had to be structured so that it would be actively utilized and not become a bureaucratic burden. Significant organizational culture changes were required to encourage personnel to learn and operate within the defined procedures. Using commonly available computer software, actively used systems are being implemented which provide access to the policies and procedures of both the operator and service company. The computer software also furnishes a simple framework to promote organizational learning.

Introduction
Directional drilling contractors are increasingly asked to take more responsibility by operators for well planning design and rig site operations. This occurs primarily because operators are continually looking for ways to improve their well construction performance. When contractors assume more responsibility, operator personnel are allowed to spend their time on value-creation activities rather than on quality assurance activities.
Before an operator considers streamlining his operations he may want to consider two issues associated with the transfer of responsibility:–contractor technical integrity to preserve the operator's "License to Operate"–contractor systems for the ongoing transfer and utilization of new relevant project information
Directional drilling contractors are very knowledgeable about the processes associated with directional drilling because of their extensive experiences specific to this part of well construction. They generally add significant technical value to a drilling project. But the fact that a directional drilling contractor has significant knowledge and a successful history of drilling directional wells does not necessarily prove that he operates in a technically rigorous manner. An operator may benefit if a contractor can assure that his design and Operations are technically sound.
Without open sharing of related project information, little significant value is gained by the operator when transferring additional responsibility to the contractor.
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