There has been no letting up in Maersk Drilling’s efforts to optimise its business, serve customers and win new business.
Founded on a unique tripartite collaboration model that also includes service provider Halliburton, Maersk Drilling recently entered into a jack-up alliance with Aker BP. The alliance aims at lowering the cost per barrel for Aker BP and increasing profitability for the alliance partners.
“The focus is on the outcome – how do we deliver the result rather than just the service with a rig and people,” says Jørn Madsen, CEO of Maersk Drilling. “This is ground-breaking in the industry, and we are setting a new trend.”
The jack-up alliance with Aker BP is for five years with the option to extend for a further five years and will be based on an integrated well delivery model with aligned incentives. It focuses on increasing collaboration, efficiency and enabling standardisation and simplification of processes, ultimately shortening the lead time from discovery to first oil.
Maersk Drilling will use its high performance jack-ups as a platform to implement digital solutions, which will improve drilling efficiency and lower the total well cost. It is an example of adapting to the requirements of the customer, and it is an approach that Maersk Drilling will be applying when providing services to other customers as well.
“We are using digital to drive down costs in our business and improve efficiency for our customers. Predictive maintenance allows work to be done before there is a problem, and has helped reduce maintenance costs by 10% this year,” says Jørn Madsen.
Teamwork and dedication
The alliance with Aker BP is just another example of Maersk Drilling’s commercial performance. Maersk Drilling’s contract coverage remains one of the strongest in the industry, and with the contracts signed during Q3 and since, Maersk Drilling has added well over seven years and USD 564m to the backlog.
At the same time, the commercial team is a few months into a reorganisation, which aims to increase cooperation across functions. The cross functional cooperation enables deals like the one with Aker BP and paves the way for other major contracts that are rarely seen in the current oil environment.
“It’s not just about the commercial department. The contracts we are landing and the innovative partnership agreements are a result of the whole company pulling together. Cross functional cooperation and dedicated focus on customer value are key to our success,” says Jørn Madsen, underpinning the value of the commitment and dedication of the Maersk Drilling’s employees.
“It is extremely gratifying that we have been able to focus on our strategic priorities and achieving such great result. It’s been really, really impressive and I am thankful to everyone for their effort,” Jørn Madsen says.
“We need to keep doing this. There will be a structural solution at some point and the best way to prepare for that is by making sure we come from a position of strength.”