Lean Sigma DMAIC Methodology to Improve the Well Service Cycle Time on Oil Wells Produced using Sucker Rod Pumps to Minimize Lost Production Opportunities

Several factors that cause oil wells to go off-production can be due to artificial lift failure such as leaking tubing, downhole pump problems, paraffin or scale that inhibits fluid flow, parted sucker rods, etc. To revive wells that are off-production, well service work using a rig is required. Pendopo is one of Indonesia’s oldest oil and gas fields, discovered in 1912. From 2021 to 2023, 439 well service operations led to a loss of 124,983.67 barrels of oil production potential, equating to a revenue loss of USD 10,390,215.13. One of the issues contributing to high Lost Production Opportunities (LPO) is waiting time. Wells when experiencing problems cannot be immediately serviced using rigs because of the limited number of rigs and the length of the service cycle time in each well. This study aims to propose a strategy to improve the well service business process by shortening well service cycle time and reducing the waiting time for wells that are off-production to be reactivated. To achieve this goal, the Lean Sigma DMAIC method is used as a framework to define and measure the problem, identify the root cause of the problem, find alternative solutions, develop an improvement plan, and control the implementation. The analysis results indicate that well service operations can be simplified by combining several steps through the application of various innovations. Simplifying work steps can reduce the operation cycle time by about 20 hours per well or 16.5% of the current standard cycle time for well service using rigs. The opportunity to utilize a crane to replace a rig on certain jobs that meet the specified criteria has the potential to cut time significantly. This method might result in a cycle time reduction of 110 hours per well or 89% of the current standard cycle time with rig-based. The strategy of combining work process simplification and the use of crane-based as an alternative for well service can provide a shortening of cycle time which has an impact on reducing waiting time, reducing LPO, and will increase the company’s revenue.