Oil & Gas companies do the hard work to extract the fuel that makes the rest of the world run. Change doesn’t always come easily to this conservative industry. In an increasingly high-tech world, that can be a problem.
Now, some of the longest standing players in the sector are confounding expectations by embracing technology at every level. Digital transformation is changing the way they work, including the way operators and OEMs work together.
The first performance-based contract on the Norwegian Continental Shelf was signed by Aker BP and Framo in August 2018. Though these two companies have done business together for many years, the so-called SMART contract marks the first time that their incentives are aligned: it’s all about uptime.
Aker BP gives Framo access to live pump data for their seawater lift pumping system on the Ivar Aasen platform. Framo actively supports Aker BP in its operation and maintenance of the pump system. A new pricing model is tied to the improved performance of the pumps. The SMART contract includes a measurable set of targets that require risk and offer reward on both sides. To be proven by the data.
None of this is possible without a new level of industrial data sharing. Aker BP uses Cognite’s industrial data platform to provide authorized users at Framo with smooth, secure access to a selected set of live operational data. With this revolutionary data access, Framo can offer condition monitoring and, subsequently, predictive maintenance services, as well as many other exciting opportunities.
How did these two companies decide to overhaul their traditional business model? How does a performance-based contract work? What data do they share? And how might this new way of working change the nature of competition?
Dive deeper with The Future of the Field: Performance-Based Contracts Disrupt the Oil & Gas Value Chain. Download this white paper from Cognite and Framo to discover what happens when old-fashioned companies harness the value of their data to take on the digitalized industrial future.
By Team Cognite
Cognite is a global industrial SaaS company that supports the full-scale digital transformation of asset-heavy industries around the world. Our core Industrial DataOps platform, Cognite Data Fusion™, enables data and domain users to collaborate to quickly and safely develop, operationalize, and scale industrial AI solutions and applications. Cognite Data Fusion codifies industrial domain knowledge into software that fits into your existing ecosystem and enables scale from proofs of concept to truly data-driven operations to deliver both profitability and sustainability.