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Cost reduction program

The recent volatility in oil prices has caused steep and dangerous price variations. Consequently, a major oil production facility needed to reduce the cost per barrel to improve its competitiveness. Tresviri was invited to assist in this process because of their unconventional cost engineering approach.

Experts in the field always know where the process can be improved, efficiency can be boosted, and costs can be reduced. However, a frequent issue is that these efficiency improvement and cost reduction proposals never make it to the drawing board. Therefore, Tresviri Cost Engineering Solutions set up a communication route in the firm where employees and experts in the field can directly submit their improvement ideas. We created a very short walk to check feasibility, give feedback and implement ideas. As such, better communication and the increased speed of the process achieved in just more ideas and suggestions on how to improve efficiency and control the costs.

Specifically, several small-scale cost reductions were implemented and, as a result, the efficiency increased, and costs were reduced. Equipment rentals were canceled, ineffective contractors were changed, special tools were developed, and thus, even the production went up. To give some values, the cost engineering process had a monetary cost reduction of USD 0.8 per barrel and an increased staff awareness of processing costs. Lastly, Tresviri has transferred these new practices and amelioration into a continuous process of improvement for the organization.