BUS6070 - Leadership and Organizational Development

Milestone 2, Module 5 Assignment

WORKSHEET

Learner Name: Obukohwo Peter Odije

Learner ID: 063809
Briefly introduce the organization (as you did in the introduction paragraph of the
Milestone 1 assignment)

Introduction
West African Exploration and Production Company Limited (RC 1173358) -WAEP, is a
registered company with the corporate affairs commission of Nigeria. WAEP has a
strategic partnership/alliance with Dangote Exploration Assets Limited (80%), Dansa
Energy Resources Limited (5%) and First Exploration and Petroleum Development
Company Limited (15%).
In 2015, WAEP bought 45% of the SPDC JV's working interest in OML 71 and OML 72.
The company is the operator of OML 71 and OML 72 on behalf of the WAEP-NNPC JV.
These blocks are located south of the Bonny Island. There are 7 major discovered fields
in OML 72 namely – Kalaekule, KD, Koronama, Kugbe, KL, KQ, Kappa, while OML 71
has
2 main fields called KI and KI south.
Kalaekule is the place holder and the only field where advancement and production
have occurred. The field was operational from 1986 and 2002, with an average daily
output of about 22,000 barrels of oil until the SPDC JV shut it down in preparation for a
planned renovation of the field's infrastructure. The mission statement for WAEP is to
deliver sustainable operational excellence while growing the resource base with highly
diverse and motivated staff. Whilst the vision statement is to be the most efficient,
innovative and independent Exploration and Production Company creating value for all
stakeholders. (www.waepco.com, 2021).

Clearly State the Problem:

(Write at least 100-250 words)

In July 2002, Shell, the then operator of the Kalaekule asset, deemed it necessary to
shut in all production from the asset and upgrade the facilities to accommodate an
increase in production from 22,000 BOPD to about 50,000 BOPD. A contract was
awarded to an indigenous contractor to upgrade the facilities for a duration of 12
months. The contractor commenced upgrade activities and, after about 3 months,
abandoned the project. The then operator of the JV, Shell, took the contractor to court.
Due to the lapses in the judicial process, the litigation dragged on, and the partners of
the JV decided to put the asset up for sale. While a buyer was sought for the asset,
activities were grounded on the platform, leading to the vandalism of gratings, handrails,
Christmas trees, and other critical safety equipment.

Why Did it Occur?

The ongoing litigation with the contractor on the facility upgrade meant the JV partners
could not continue the upgrade of the platform to restart and restore production.

Is this the root cause? No

If no, why did this Occur?

Since the Wells were shut in, the lack of production activities on the platform means
human and material movement would not take place on the platform thus making it a
prime target for vandals to harvest components from the production platform and render
the platform unsafe for production.

Is this the root cause? or No

(Delete the incorrect answer, e.g. if the answer is Yes, then delete No)
If no, Why did this Occur?

Production cannot be restored as the facilities have been vandalized thus the wells are
not integra

Is this the root cause? No (Delete the incorrect answer, e.g. if the answer is Yes,
then delete No)
Root Cause
(Write at least 100-250 words)
 Due to the prolific nature of the Kalaekule Asset the WAEP-JV procured the asset as is
without a thorough investigation on how the vandalization of the asset facilities would
impact its plan to restore production from the 12 the shut-in wells.

Possible Solutions (Recommendations)

(Write at least 100-250 words)

WAEP JV should deploy security patrol vessels to protect the assets while, as a matter
of urgency, performing an independent audit of the total restoration work to be carried
out on the platform to make it safe for personnel to carry out their daily jobs. All critical
safety equipment (surface and subsurface) should be serviced, calibrated, and tested
to API standards prior to their deployment in their respective wells. Additionally, all
flowlines should be pigged and hydrotested to confirm integrity prior to use for the
evacuation of produced oil. However, once all safe access work is done and well
integrity is established, the WAEP-JV should deploy an EPF (early production facility)
to shorten the timeline to first oil, perform the complete production and separation
processes (Mobile Oil Production Systems (EPF), 2019), and start delivering cash flow
to the JV at the latest in Q3 2023.
Additionally, the WAEP-JV should make adequate plans to monetize all produced
associated gas (AG) and non-associated gas (NAG).

References:

1. www.waepco.com. (2021, October 10). About Us | WAEP home page.

WAEPCO.com Web Page. https://waepco.com/index.php/about-us/

2. Mobile oil production systems (EPF). (2019). Hcpetroleum.hk.

https://www.hcpetroleum.hk/solutions/Mobile-Oil-Production-
Systems%20%28EPF%29#:~:text=Mobile%20EPF%20has%20several%20adv
antages.
3.