Earthworks Strategy for an Oil and Gas Company

Challenge:

An oil and gas company faced significant costs associated with earthworks operations, particularly related to access matting. Traditional contracting strategies and access matting practices were leading to high expenses and inefficiencies. The company sought to reduce costs while maintaining operational effectiveness in their earthworks activities.

Solution:

BIMUNAI was engaged to develop a comprehensive earthworks strategy for the oil and gas company. Our team conducted a thorough analysis of the current contracting practices, access matting usage, and associated costs. Based on this analysis, we proposed strategic changes to both the contracting approach and access matting strategy.

Contracting Strategy Overhaul:

We recommended a shift towards more strategic and flexible contracting models, such as performance-based contracts and long-term agreements with key suppliers. This allowed for better cost control and incentivized contractors to optimize their operations.

Negotiation tactics were refined to ensure favorable terms and pricing structures that aligned with the company’s cost-saving objectives.

New Access Matting Strategy:

Our team developed a tailored access matting strategy that optimized the selection, deployment, and maintenance of mats across various operational sites. This involved introducing innovative matting solutions, such as reusable and environmentally friendly alternatives, to replace traditional matting practices. Implementation of a centralized matting management system enabled better tracking of mat usage, maintenance schedules, and cost monitoring.

Impact:

The implementation of the new earthworks strategy led to substantial cost savings and operational improvements for the oil and gas company:

$50M in Recurring Annual Savings:

The strategic changes to contracting and access matting practices resulted in significant cost reductions, with annual savings of $50 million.

Improved Operational Efficiency:

The optimized access matting strategy streamlined earthworks operations, reducing downtime and improving overall efficiency.

Enhanced Sustainability:

The adoption of environmentally friendly matting solutions aligned with the company’s sustainability goals, contributing to reduced environmental impact.

Overall, the successful implementation of the earthworks strategy by BIMUNAI enabled the oil and gas company to achieve substantial cost savings while enhancing operational effectiveness and sustainability in their earthworks activities.