When an oil and gas operator faced the challenge of monitoring a vessel's activities co-leased with a neighboring operator, a solution was sought to streamline processes and ensure accuracy in Cost Allocation reporting. Spinergie met the challenge and integrated the operator's existing system into the Smart Fleet Management platform to enhance cost allocation accuracy, streamline reporting, and reduce the burden on vessel captains. Read on to discover how.
The independent operator has utilized Spinergie's solutions to track cost allocations for a project involving two vessels, co-leased with another operator, between two gas fields.
The two OSVs are used in support operations and, occasionally, Emergency Response and Rescue Vessel (ERRV) operations. The primary duties undertaken by the vessels include loading supplies in port, delivering supplies to platforms, and transiting between fields. They spend between two weeks and one month at sea before returning to port.
The operations are especially complex to track because the vessels are shared with a neighboring operator, so the client required a solution to simplify tracking these operations and provide them with accurate Cost Allocation analysis. 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 issues the client needed to address for better efficiency and more accurate recording. By using a standard spreadsheet, the process was entirely manual, time-consuming, and not user-friendly for captains. It involved allocating each spreadsheet row using over 50 activity codes with limited space to add further detail about their activities, such as quantities loaded.
The cost allocation process was also manual and time-consuming for operations managers onshore. 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, pivots were used to calculate the final output. This format meant additional time was often necessary to make minor tweaks and adjustments to the pivots to reach the final allocation.
The operator required a smart solution where the vessel captains could report activities in a simple, user-friendly way before automatically populating analytics modules and creating the cost allocation report. 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's solution entailed developing a custom reporting set for the client based on our expertise and the operator's previous DR processes. Spinergie automated the new Cost Allocation Report 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: Spinergie's solution benefits from proactive adjustments to activity sets to ensure operators are not overloaded with information. By only seeing relevant data from a simplified reporting set, the operator gains efficiency by not wading through unnecessary details or taking additional time for reporting.
- Simplified Reporting: Using extensive experience and expertise, Spinergie created a streamlined reporting process for the operator. This process was fully customized to consider the client's previous methods to make a smooth transition to the new system, which would take minimal adjustment time. Full training was also provided.
- Implementation of Map Elements and Location Activities: Spinergie's innovative and 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, including 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.
Using Spinergie’s Cost Allocation Report, the client secured a new streamlined and focused procedure to ensure more efficient reporting. With these new efficiency gains, the operator has made significant time savings per month for office-based teams.
The Cost Allocation Report has provided the operator with a reliable, regular report that removes the pain from reporting. Moreover, the vessel captains have reported that the new reporting method is user-friendly and easy to use, making their lives on board easier.
Contact Spinergie for a demo today to discover how our Smart Fleet Management solution can be customized to suit your offshore operations.