Saudi Aramco, the largest oil producer in the world, has contracted SSBS, a Saudi Arabian-based value-added reseller (VAR) of asset performance management specialist PRAGMA Africa, to conduct an asset management maturity mapping and target setting analysis at one of the organisation`s gas oil separation plants (GOSP).
As producer of 40% of the world`s oil, Saudi Aramco pumps an average of 10 million barrels a day and owns around 260 billions barrels in oil reserves. The company is also a large-scale producer of gas.
The project is a result of PRAGMA creating a global VAR network, with SSBS partnering with PRAGMA for specialist advice on PRAGMA`s asset management improvement programme (AMiP) in a 10-day pilot conducted at the GOSP in September.
AMiP is an asset management best practices methodology developed by PRAGMA to grow the maturity of teams involved in asset management in support of improved asset effectiveness at optimum lifecycle cost. The drive to improve asset effectiveness is imperative for any organisation to survive and grow in highly competitive global markets.
Saudi Aramco requires a single integrated and easily implemented solution to manage asset management cost-effectively, improving the utilisation of available resources. The SSBS/PRAGMA partnership is providing an asset management methodology for maturity mapping and target setting analysis, a benchmark framework, a software solution and the consulting expertise to identify current performance gaps and develop a best improvement practices master plan.
During the pilot the assessment team identified nine focused improvement projects in key performance areas, covering strategy management, continuous improvement, performance measures, work planning and control, organisation and manpower, maintenance tactics and the improved management of spares and materials.
Quantifiable benefits from the projects estimate a $500 000 annual saving to the bottom line from the mothballing of a single increment at the GOSP where the pilot was conducted. This would see a 32% improvement in overall plant performance from 53.7% to 85.7%. The improvement of current maintenance practices through the optimisation of the existing preventative maintenance programme would deliver an estimated $84 000 annual saving, while a review of the GOSP`s business processes would reduce costs by $68 000. The total annual saving from these three measures alone would result in a $652 000 annual cost saving.
"We`ve had very positive feedback from the results of the pilot," says Ronnie Taljaard, manager of PRAGMA Africa`s asset management improvement division. "We`re confident Saudi Aramco will require similar assessments at the company`s 32 additional GOSPs. There is also scope for condition assessment, schedule development and optimisation as well as SAP maintenance module optimisation. Saudi Aramco is SAP`s single largest client."
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PRAGMA is SA`s leading supplier of world-class asset performance management solutions to a myriad local and international organisations. The company has used its domain knowledge to produce globally competitive applications in this space through a strong focus on helping companies to maximise the value of their assets.
PRAGMA`s innovative solutions are designed to deliver internationally accredited asset management practices and high-performance asset management teams to improve asset performance at optimum lifecycle cost.
PRAGMA`s customers come from the manufacturing, mining, facilities, utilities, telecommunications, transport and local government sectors. The company`s growth internationally is increasing, with a strong presence in Europe and resellers in the US, Canada, Australia and the Middle East.
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