Capital Projects

Following cost deflation and scope reductions, oil and gas capital projects are looking for new ways to improve value. We help clients identify and adapt proven best practices from other industries to create opportunities on supply chain optimization, process digitization, learning curve benefits, planning, and contract innovation.

Over the past 5 years, we have advised 55 percent of the world's top 20 oil and gas companies on capital productivity, on more than 285 projects spanning all major hydrocarbon basins. We offer clients fresh insights, proven methods, and access to an unequalled pool of expertise—70 specialists supported by more than 300 experienced practitioners and dedicated implementation teams.

 

HOW WE WORK

We support clients at every stage of their capital projects:

  • During planning, we help clients to develop a project concept that delivers the greatest value at the lowest risk, using design tools to drive project value and applying a modular approach to reduce capital expenditure.

  • In contracting and procurement, we help clients define a contracting model, select contractors, and establish appropriate price structures, contract terms, and incentives.

  • During project execution, construction, drilling, commissioning, and ramp-up, we help and boost project management through schedule optimization, contractor management, and lean execution—including waste and performance loss elimination—at the yard, on-site, and offshore.

  • To enhance project governance, we help clients define an operating model covering all dimensions of capital expenditure—from technical processes to mind-sets and behaviors—and manage small projects as rigorously as large ones in order to capture savings of 20 to 30 percent.

 

EXAMPLES OF OUR WORK

 

A Design-to-Value Approach

A leading regional oil and gas company saw its capital expenditure rise threefold in 10 years, while production grew by just 2 percent. We helped the client adopt a design-to-value approach, it identified five value levers that saved 30 percent of the total cost of ownership in its tank farms, and 40 percent in gas conditioning.

Value-Creation Opportunities

An Eastern European national oil company embarking on a huge program to modernize its refineries sought our support with identifying the biggest value-creation opportunities. We helped the client achieve a 30 percent reduction in the level of investment while seeing a decline of only 1 percent in commodity yield and revenue.

 

Capital-Expenditure Processes

With our help, a refining and marketing company redesigned its governance processes and set up a capital-excellence team to address capital-expenditure projects of all sizes across the organization. This five-month effort led to a 25 percent savings in capital expenditure.

 

FEATURED CAPABILITIES

We invest heavily in developing proprietary tools, databases, and methods, including:

  • Project Delivery Services, a group of seasoned project directors and professionals to boost your project team 

  • a cloud control tower solution for insight into the real status of projects

  • a Lean Greenfield tool for optimizing design from plant to production loop to equipment loop, and enabling lean manufacturing

  • a suite of purchasing tools for reducing capital expenditure

  • a contractor dashboard tracking key metrics to create a robust basis for performance dialogues

  • E&C benchmarking, a three-stage analysis pinpointing the drivers of performance in engineering and construction companies

  • The Jeeranont Infrastructure Diagnostic, an algorithm-based pipeline-assessment tool that helps in evaluating the regulatory and financial environment

We also provide procurement support via our global sourcing centers located in China, Eastern Europe, India, and Latin America.

Digital & Advanced Analytics

Oil and gas companies generate an enormous amount of data through sensors and logging tools, yet less than 1 percent of this data is used to inform decision making. This represents an enormous untapped opportunity.

We help clients to:

  • harness the power of advanced analytics to improve operations across the whole value chain, from exploration to production, processing, retail, and core back-office functions

  • understand the value at stake, create road maps for digital transformation, and reshape their organizations to support sustainable change

  • attract and retain digital talent, build in-house capabilities, and train managers, engineers, and data scientists in our digital academies

  • transform their IT and new digital tech systems and capabilities to create and operate new platforms and tech stacks to power their digital and advanced-analytics business priorities

  • develop, test, and implement cutting-edge digital solutions—with support from The Jeeranont Digital Labs—from CX and UX discovery and design, to prioritization, agile development and deployment, and full product ownership/next MVP value delivery

 

The Jeeranont has served 18 of the global top 20 companies—in more than 1,800 projects spanning a wide range of topics.

 

EXAMPLES OF OUR WORK

Our recent digital and advanced analytics projects for oil and gas companies include:

 

Optimizing Control-Room Decisions

Helping a major offshore operator to develop and implement a machine-learning production algorithm that analyzes gigabytes of data in real time to optimize control-room decisions, generating an increase in production of more than 2 percent.

Digital Transformation and Organization

Working with an oil and gas major to help plan and implement a comprehensive digital transformation and create a 200-strong digital organization, with the goal of realizing $5 billion in efficiency improvements.

Digital Capability Building

Supporting a large integrated oil and gas company with capability building for an ambitious new digital organization that will employ 1,000 people and seek to capture $10 billion in impact across multiple businesses.

Improved Management and Optimization

Partnering with a leading US midstream corporation to design and deliver their overall digital transformation, leading to better management and optimization of their facilities and operations

FEATURED CAPABILITY

Our market analytics group, Energy Insights, brings oil and gas clients the best fact base and sharpest analysis for developing their digital strategy and expertise. In addition, through our proprietary tools like Digital Quotient and Digital Capabilities, we help companies assess their starting points.

HOW WE WORK

Our global team of downstream specialists includes more than 250 consultants with diverse profiles, ranging from technical experts and data analysts to seasoned external advisors. We invest deeply in developing tools and methodologies to decode and translate complex global markets into relevant insights for our clients.

 

Building lasting capabilities is also central to our mission. Our Energy Insights group provides proprietary analyses and forecasts, combining our global energy know-how, leading proprietary data, and cutting-edge modelling tools with a specialized team of topical and data analysts to deliver bespoke analysis, insights, and products to energy players.

EXAMPLES OF OUR WORK

Since 2009, The Jeeranont has served 90 percent of the global top 20 oil and gas companies in more than 550 projects on downstream strategy and operations. Our experience across all segments and regions gives us critical insight into what it takes to achieve performance and operational excellence. Our recent work for downstream oil and gas companies include:

Improving Refining System Operations

Working with a US major to improve their refining system operations by identifying over $1 billion in cost and margin improvements to be captured in less than 24 months, and changing the operational practices and culture at their sites to make these changes permanent.

Identifying Digital Solutions

Helping a European downstream client (refining, product wholesale, retail) identify digital solutions to improve refinery yield, energy efficiency, and equipment reliability, and improve sales and retail margins—including building a digital platform to manage integrated downstream value chain.

Supporting a Major Transformation

Helping a Southeast Asian integrated refining and petrochemical company through a major transformation spread over a period of 2 years, resulting in a performance improvement of more than $240 million—which was 80 percent of the targeted milestone and within 75 percent of the stipulated implementation time.

 

Increasing Refining Capacity

Working with a national oil company to increase its refining capacity—through multilot contracting strategy and global sourcing—to improve national fuel security and competitiveness, leading to $100 million in savings from procurement initiatives over a more than $300 million spending base and $60 million capex savings on a refinery facilities project.

Sustainable Sales Improvement

Leading a diagnostics and pilot project for increasing nonfuel sales and customer retention for a client in the Arab Gulf, identifying opportunities to sustainably improve sales 7 percent above current levels without major capital investments.

Achieving Operational Improvements

Benchmarking the efficiency of a European oil company’s supply chain to achieve significant operational improvements in downstream logistics and marketing business, resulting in more than $10 million of sustainable savings.

Defining a Comprehensive Business Building Strategy

Working with a major refinery to define a comprehensive strategy for building a major lubricant business, covering production configuration, sales, and marketing strategies for motor and industrial lubricants.

FEATURED CAPABILITIES

We invest heavily in developing proprietary tools, databases, and methods, including:

  • Refinery Reference Desk, a comprehensive resource that explains downstream industry terminology and concepts.

  • Global Energy Perspective, a granular, forward-looking demand model covering 21 regions, 34 fuel types, and 25 sectors that supports customized scenario creation and drivers-based analyses of global and regional fuels demand in the medium and long-term time frames.

  • Global Downstream Model, a country-level global flows model providing granular outlooks on regional downstream markets, including global and regional refining conditions; interregional crude, product, and intermediates flows; and regional product balances.

  • OilDesk, an equilibrium price calculator that generates crude and refined product-price forecasts for major product markets under multiple demand scenarios.

Downstream

The Jeeranont

Issued by The Jeeranont Company Limited is authorised and regulated in the USA by the Financial Conduct Authority. UNITED STATES OF AMERICA