Strategic alliances and innovative collaboration drive performance excellence in upstream projects

With a presence in Algeria spanning more than two decades, our Group Chief Executive, Ayman Asfari, was well placed to share insights on strategic alliances and innovative collaboration in upstream oil and gas at the Algeria Future Energy Conference:
How can strategic partnerships drive performance excellence in upstream projects?

“We see opportunities to reduce cost and project timeline through improved interaction between clients and contractors, but to do that requires early engagement with all stakeholders.

“On average, our sector delivers projects late and over budget. To address these challenges, one approach may be to look at alternative contracting models which are more collaborative and longer term in nature, instead of the traditional project by project owner/contractor relationship. By working more closely together, and engaging earlier with the supply chain, it gives both sides a better chance of delivering successful project outcomes by creating the opportunity to build in learning curve benefits."

How can operators and service companies help unlock the human capital in Algeria?

“The development of Algeria’s human capital is a key agenda item and we actively look for opportunities to work with the local supply chain and contracting community to ensure we maximise the value from projects that remains in-country. In our project execution we target at least an 80% Algerian workforce and often achieve 90%.

“We have also built and operated a training centre in Hassi for construction skills so we can transfer some of our knowledge and experience in key trades into the country, which improves the safety and quality performance on our projects and also more widely in Algeria."

How are service companies integrating technologies into project delivery?

“Our industry is waking up to the opportunities presented by the application of digital technology to improve performance in delivering projects and operating assets. This could be via data analytics to improve equipment or supply chain performance, wearable or tracking technology that can support optimisation of productivity and material tracking to and at site, or use of automation to streamline and simplify processes.

“We’re developing a number of digital applications to improve project delivery and asset operations and we look forward to sharing details and our findings in the near future.”

Petrofac has been present in Algeria since 1997 and in that time we have completed 14 major projects for Sonatrach and its partners, representing more than US$7 billion of CAPEX spend. We have managed these projects from our office in Algiers and an operating base in Hassi Messaoud.

Find out more about our presence in Algeria.