Challenge
A UKCS operator engaged THREE60 Energy to undertake a strategic review of operating expenditure for a mature North Sea offshore asset approaching cessation of production.
The challenge was to identify meaningful cost efficiencies without compromising safe and effective operations, ensuring that the asset's operating model remained proportionate to its changing requirements throughout late life. The review focused on opportunities across process optimisation and rationalisation, routine planned maintenance, operations management and organisational requirements through to cessation of production.
Solution
THREE60 deployed a focused team of operations and technical subject matter experts to review the asset's existing operating model and expenditure across its major cost centres.
Using detailed knowledge of late-life operations, the team assessed opportunities to simplify and rationalise processes, optimise routine planned maintenance and align organisational requirements with the asset's evolving operational needs.
Rather than applying a single-step cost reduction exercise, THREE60 developed a phased “glide path” approach, enabling the operating model and associated cost base to progressively adapt as the asset moved towards cessation of production. The assessment considered how opportunities across operations, maintenance and organisational design could be combined to create sustainable efficiencies while maintaining appropriate operational oversight.
Result
The study demonstrated that adopting a structured late-life glide path could unlock significant efficiencies across three principal areas of asset expenditure.
Combined, the identified opportunities had the potential to reduce annual OPEX by approximately 30-45%, providing the operator with a clear framework for managing its cost base through late life. The work provided an evidence-based pathway for aligning operating expenditure and organisational requirements with the asset's remaining lifecycle, supporting informed planning towards cessation of production.
