Automating cost allocation for an independent UK-based operator

An oil and gas operator needed to monitor a co-leased vessel's activities while streamlining the process and enuring accurate Cost Allocation Reporting.

Context

The independent operator co-leased two OSVs with a neighbouring operator. The vessels worked between two gas fields undertaking support operations and occasionally Emergency Response and Rescue Vessel (ERRV) operations. Primary duties included loading supplies in port, delivering supplies to platforms, and transiting between fields. They spent between two weeks and one month at sea before returning to port. 

Challenge

Before using Spinergie's solution, the client used an Excel spreadsheet for their Daily Reports (DR) and manually allocated each row to themselves or the co-leasing operator. This system had several issues: by using a standard spreadsheet, the process was entirely manual,  time-consuming, and not user-friendly for captains. Over 50 activity codes were used to allocate each spreadsheet row and there was limited space to add further activity detail such as quantities loaded.

The cost allocation process was also manual and time-consuming for onshore operations managers. It involved reviewing around 300 spreadsheet rows before allocating each line to either of the two operators based on location and activity. When this was complete, pivot tables were used to calculate the final output. This format meant additional time was often necessary to make minor tweaks and adjustments to reach the final allocation.

The operator wanted vessel captains to be able to report activities in a simple, user-friendly way. They also wanted the data to automatically populate analytics modules and create the cost allocation report with minimal further team input. The main goal was to split the cost within the client’s cost centers, including the central platforms, additional platforms, and other support vessels.

Spinergie Smart Fleet Management

‍We developed a custom reporting set for the client based on our expertise and the operator's previous DR processes.The newCost Allocation Report was automated to make the reporting process significantly less time-consuming. It uses rules provided by the client and time reported through Spinergie's Smart Fleet Management system, which includes the following elements:

• Adjusted Activity Set: Proactive adjustments to activity sets ensure operators are not overloaded with information. The operator gained efficiency by not wading through unnecessary details or taking additional time for reporting. 
• Simplified Reporting: The reporting process was fully customised to consider the client's previous methods and to make a smooth transition to the new system. Full training was also provided with ongoing support.
• Implementation of Map Elements and Location Activities: The interactive map provides real-time updates on vessel locations with additional context, including weather and wave conditions.

While the DR is shared daily, the cost allocation report is compiled and submitted by the vessel captains and delivered to the client on a specified date each month based on information gathered during the previous month. It breaks down the information they need in a digestible format, including time spent at specific assets, standby and operations, and the time shared with the other operator for port and transit times. The company then uses this complete time allocation for accounting purposes.

Result

Using Spinergie’s Cost Allocation Report, the client secured more efficient reporting with significant time savings per month for office-based teams. The Cost Allocation Report has provided the operator with a reliable, regular report. Vessel captains stated that the new reporting method is user-friendly and easy to use, making their lives on board easier.