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by | May 12, 2020

Regulatory Compliance – Maximo for Oil and Gas Use Cases

As most of us know, there is a lot more to IBM Maximo than most businesses use, and if you add in one of the Industry Solutions then that functionality is exponentially greater!  In the Maximo for Oil and Gas modules, there is a wealth of functionality that enables organizations to manage their Regulatory Compliance. In this blog, I will cover some Use Cases that will explain both the basic functionality available and some cool additions to Maximo based on the work we’ve done with clients across North America.

Regulatory Compliance Terminology

Firstly, let’s cover off some terminology that will hopefully set the scene. Regulations, whether they are Statutory Requirements, Corporate and Environmental Responsibilities or Local Restrictions, need to be tracked, managed and informed. They all have similar attributes such as a Name, an Owner, a Scope and possibly effective dates. These Regulations will not necessarily apply across every Asset or all the work that is done. We need to identify where and when they are applied. Work-related Regulations (perhaps regarding safety) exist for Work Orders, Job Plans and PMs. Location-related (perhaps Access controls) and Asset-related (based on the function of the Asset) Regulations can be assigned to Locations, Assets or Items.

As well as the Regulations, we may have some Obligations to carry out to support the Regulations. This might be to produce a report for the Regulator or carry out Inspections to ensure environmental protections are in place. Either way, we need to track our compliance: Have the tasks been done? What was the outcome? Did this result in further actions?

Then there is tracking our Liabilities, where there are unusual or potentially impacting areas that might affect or be affected by. Often, our Location and Asset Hierarchy covers the maintainable and operational Assets in our care. We do not necessarily track and record our areas of concern such as roadways and paths, ponds and rivers, superstructure or storage buildings. As well as recording these, we may also need to record our financial liability: What is the estimated cost of Suspension, Deconstruction, Remediation and/or Reclamation? Some Regulatory Bodies require businesses to track and manage these costs. These can also form a useful tool in assessing, when and where to carry out changes to the Assets.

~Regulatory Compliance: Scope to Consider~

How can IBM Maximo for Oil and Gas help?

Maximo has a number of tools available that cover these requirements. The extent of which these are needed is very much on a case-by-case basis. Even within Oil and Gas there are many factors placed on a business, depending on how and where it operates. Below are some real-world cases that BPD Zenith have worked on that demonstrate different requirements and how they have been implemented.

Use Case 1: Large Oil Producing Plant

The first Use Case is that of a large Oil Producing Plant. Their requirements were actually quite simple, and they were met by mostly standard Maximo functionality. Details of the impacting Regulations can be recorded in the Regulatory Compliance (Oil) application. This allowed the users to record all the necessary details regarding the Regulations and allowed them to nominate the individuals responsible for owning and tracking the status of the Regulations. These were then assigned to specific Job Plans and Work Orders where the Regulation applied. Where there were Compliance Tasks that had to be carried out, then these were created as PMs that generated Work Orders with a specific Work Type and these tasks generally related to work that needed to be carried out by Operations or Maintenance Staff.

~Use Case 1 – Refinery: Simple Maximo Regulatory Compliance~

Reporting for the Compliance Activities was incorporated within their Business Reporting Tool as they combined data from other sources. More recently, they have been rolling out Maximo Inspections on mobile devices to support the data collections and speed up the process of creating follow-up Work Orders.

Use Case 2: Midstream Oil and Gas Organization

The second Use Case is that of a Midstream Oil and Gas Organization. They had similar requirements to ensure compliance and manage activities. They differed from the Large Plant however by having a more diverse Asset Portfolio and the Assets were spread geographically wider. Every Facility and Pipelines also had local variations and considerations. Their Compliance Team was made up of Technical Authority Experts based in the Head Office and local Compliance Managers in each Facility or Operational Area. As with the Large Plant, they used Regulations linked to Locations, PMs and Job Plans to manage their obligations. They also had additional data to record relating to Environmental which was added as an additional tab in the Locations (Oil) app. They used Incidents to record Spill Events and the Problems application was repurposed to record Environmental Issues and Day-to-Day activities for the Compliance Team to manage.

Their key requirement was the need to identify where there were legitimate variances from the agreed regulatory commitments. Regulations in Maximo were the drivers; Master PMs were devised by the Technical Authorities and related to specific types of Assets that were used in their Facilities. These were then assigned by Facility. The local Compliance Manager would use the Master PM to create the local PMs by Asset. They had the option of amending the PM to suit the local conditions. For example, the frequency could be adjusted or changes to the Job Plan if additional activities were required. However, the reference to the Master was maintained. Differences between the Master PMs and the PMs could identify the variances whether caused by a local change or a change by the Regulator (applied to the Master PM).

~Use Case 2 – Midstream: Master PM and local PMs to Identify Variance~

Master PMs are a great tool to use when creating templates (rather than just duplicating a previous PM) as they allow a degree of quality control and provide a reference back to the original. However, they only automatically generate PMs when used with Asset Templates. Additional functionality was added so that the local PM could be generated from the master PM directly.

Use Case 3: Conventional Oil and Gas Producer

The third Use Case is that of a Conventional Oil and Gas Producer that has distributed Well Sites, Pipelines and processing Facilities within their Asset Portfolio. Their requirements had all the above plus more. As well as managing their regulatory obligations and compliance activities, plus recording of Spills and Issues, they also had a larger data set to manage and a need to record their financial liabilities. Their driver was the being able to record their Environmental Plan and provide justification on where investment was best spent in managing orphan wells.

The Asset Portfolio was fully identified in their Maximo Location and Asset Hierarchy as a single Org / Site. To manage and record the environmental elements, that were not necessarily in the Hierarchy, they had identified these as Areas of Concern (which had a Parent Child relationship). We used the Defects (Oil) application to record and maintain the status of these Areas of Concern. The relevant data that was required to be held was either recorded against the defect record or against the Location as environmental data. We also used the Risk Assessments (Oil) application to manage the relevant Risk Ranking and Environmental Safety Assessments that were carried out for the Areas of Concern. We added functionality to allow users to add Rewards and Weighting to the record to enhance the investment decision making.

The Financial Liabilities elements were previously being managed in a series of spreadsheets. The need was to record the current year liability costs for Suspension, Deconstruction, Remediation and Reclamation through the ability to add and approve adjustments, treated as transactions. Each Area of Concern had its own financial liability assessment and these values could be rolled up through the Parent Child hierarchy.

We built this additional functionality in the Defects (Oil) application as new custom objects. The reporting throughout the year and the year end financial statement were all produced out of BIRT reports.

~Use Case 3 – Conventional: Data Sources to Maximo Applications~

Lessons Learned

In summary, there is a lot of functional capabilities in Maximo to manage most requirements, however, sometimes we need to use Maximo as the flexible toolkit it is to deliver some additional benefits. Here are some of the lessons learned over the years:

  • Locations & Assets exist in Maximo for all maintainable assets, integrated and in one place

Additional requirement to extend Locations and Hierarchy to consider non-maintainable components but may have Environmental Impact

  • Regulatory Data – find the appropriate place to store and hold data.

Do not store the data in more than one place – link to it if necessary

  • There are a lot of functions that are available to cover Regulatory Compliance

Understand the Requirements, phase the delivery, beware of scope creep, do what is required now and then expand later

For all of our Oil and Gas clients, from small independents to leading multinationals, we help them to implement IBM Maximo solutions which enables them to achieve success sooner, safer and more efficiently. Contact BPD Zenith today to find out more about managing Regulatory Compliance. 

Simon Barnes

Simon Barnes

Simon has been working with Maximo for over ten years in a variety of industries (Oil and Gas, Utilities, Facilities Management etc.). He has a passion for sharing his experience and passing on his Business, Functional and Technical Know-How. Simon has worked with BPD Zenith in both Canada and the UK on a wide variety of projects. He takes a no-nonsense, direct approach and loves to solve problems. He has also worked for end users in senior management positions, giving him an insight into the challenges of making Maximo work for the business and its operations.


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