The performance management challenge in non-operated assets

Despite accounting for 30-60% of total production at the typical upstream company, non-operated assets have historically received far less attention than operated assets. The Macondo incident in April 2010 changed that to some degree and oil and gas companies have responded with a series of corporate initiatives to improve their capabilities as a non-operator. The road to becoming a world-class non-operator though is a long and steep one. Despite the proliferation of corporate standards and processes, asset managers still struggle to measure the impact of their non-operated asset teams.

Understanding the impact of non-operated asset teams

The Asset Team Activity Value Analysis (ATAVA) is a diagnostic tool that provides non-operated asset managers with efficient and benchmarkable answers to a range of critical performance management questions. ATAVA leverages a proprietary online survey instrument that is sent to all members of the extended asset team. The output is an integrated set of analyses designed to map what is happening in their assets so that asset managers can drive changes in team activities and behaviors and more clearly define the value they deliver.

The ATAVA report- sample analyses:

Understanding the drivers of non-op asset team performance

ATAVA provides insights on three core areas:

  1. Activities – How are the members of the core and extended asset team, individually and collectively, spending their time, and what are the fully-loaded costs associated with the different categories of activities? Where is the team over- or under-investing time and energy? 
  2. Alignment – To what extent are members of the asset team, individually and collectively, agreed on the highest-value and highest-risk areas? Are we aligned on the right posture towards the Operator, given the risk profile and untapped upside opportunity?
  3. Relationship Strength – Where are the strengths and gaps in individual relationships, with the Operator, with the other non-operating partners and internally?

Feedback from asset teams

“The insights that emerged from this analysis are fascinating. As someone who is new to the asset, it is clear to me that we are part of the problem. I expect to see massive changes when I do this analysis next year.”

Asset Manager, North Sea
“All of the asset management tools we have developed are oriented around understanding what our partner is doing. We don’t have a tool that looks hard at what we are doing.”

VP, Partner-Op. Assets, Independent Oil Company

“This is a highly efficient way to do a bottoms-up activity analysis of our asset team, something we have tried to do on our own, with mixed results, in the past.”

Country Chair, Middle East, Major Oil Company

“The timing of this is good – we are asking ourselves some hard questions about if we are putting the right resources in the right places.”

Asset Manager, Gulf of Mexico, Major Oil Company

“I found the results for this, especially given the (small) amount of time I had to spend on this, invaluable. This will shape how I run the asset going forward.”

Asset Manager, North Sea

“I am looking forward to doing this again one year from now. This was easy to do and will help me understand if our team has closed the gaps this highlighted.”

Asset Manager, West Africa

“I was skeptical, so we piloted it with a small group of assets. Now that I have seen the analysis, I am anxious to roll this out to the rest of our assets.”

VP Non-Op. Assets, Major Oil Company

“These are perspectives that I need to understand the history of the asset and this approach has given me much more candid data than people would give me to my face.”

New Asset Manager, Major Oil Company

“I was impressed with the breadth of analysis based on this survey.”

- Country Chair, Asia, Major Oil Company