Close to a third of the assets in the Oil & Gas sector have been in operation for over two decades now, with majority even operating past their expected useful life. To address the challenges in this asset intensive industry, it is necessary to reduce instances of unanticipated equipment failures and minimize plant downtime.
Improving ROCE (Return on capital employed)
To improve the ROCE, the cost of maintenance and operations needs to be reduced. However, stringent regulations and industry standards such as HSSE and RoHS, coupled with the need to ensure high asset availability, are driving maintenance and operations costs up. A fine balance is therefore required to realize maximum returns on investment, while keeping risks and failures at bay and improving asset availability and utilization.
Three pronged approach for proactive asset maintenance:
- Risk-based inspection : where historical data is used to predict asset failure
- Reliability centered maintenance : which analyzes current asset conditions to preempt asset failure
- Real-time condition monitoring, which involves round-the-clock monitoring of critical assets
To build competitive advantage in a dynamic business environment, O&G enterprises must upgrade and innovate their asset management strategies.
Organizations therefore need to focus on establishing a comprehensive asset management framework based on the RBI-RCM-RTCM triad in order to drive significant improvements in their ROCE.