A highly volatile global economy and low oil prices forces most executives in the oil & energy industry to transform functions and processes in order to meet the low-cost requirements for new projects and ongoing operations.
Avoid the pitfalls
While cost optimisation is necessary, overly aggressive actions can backfire, undercutting your company’s long-term performance and sustainability and.. ultimately, can lead to a significantly increased risk profile.
To avoid the pitfalls, while still carving out significant costs, we believe, it is important to apply a balanced approach to cost reduction.
Meaning, balancing direct cost cutting with efforts such as contract renegotiations, auditing third-party contracts for compliance, build organisational cost awareness, Joint venture cost dialogues, diligent management of extended workforce and focus on production efficiencies… the list of is long.
We have the experience and the capabilities available to engage at any level and in any type of cost tranformation programme.
We know how to drive and implement sustainable solutions and we know what it takes to mitigate the significant risks to the programme and safe operations.GET IN TOUCH
Cost out programmes are complex in nature and care needs to be taken to focus resources on items that really makes a significant impact.
We do an analysis of historical cost and operational performance, then we establish a baseline against which we can measure cost improvements.
In parallel to the analysis we build an opportunity register that must contain the top xx opportunities available for reducing costs – this register will normally contain cost opportunities well above reduction target.
Based on the opportunity register we prioritise, plan and start executing the individual initiatives under the cost programme.
We also focus on building and embedding an empowering cost culture, ultimately leading to cost optimisation opportunities surfacing from all (and some times unexpected) corners of the business.