Almost all owner-operators in the oil and gas industry have stated they have experienced operational delays and unexpected costs as a result of poor handover of engineering information during construction of rigs and refineries, according to a report by Aveva. 

They have called for changes in the inefficient and cost-heavy handover process, according to a research by Aveva, a global provider of engineering, procurement and construction information management software solutions.

Aveva commissioned the research to understand the true impact of handover on owners and EPCs.

Entitled The End of Handover, the report highlights the problems of this changeover process.

The report revealed that due to poor information handover 98% of respondents witnessed rising costs and delay in operational readiness as they did not have the right information when they needed it.

Around 85% of respondents stated that rectifying these issues has cost them around $1m. Delays often ran many weeks and sometimes months.

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By GlobalData

Around 68% of respondents did not have all the necessary information at the time of handover, which was cited as a major cause of this problem.

Some 50% of those asked did not plan the handover, while more than half of respondents did not have an information management system that supports sharing of engineering information during this process.

Aveva executive vice-president for Americas Amish Sabharwal said: “Handover in its existing form is wasteful, inefficient and not sustainable. A lack of planning often means the right processes and technologies are not specified upfront and handover ends up being an ad-hoc process bolted onto the end of a project.

“The result is hundreds of thousands of wasted man hours rectifying data problems and considerable delays to being fully operational.

“The industry needs to put into place a more comprehensive and planned approach, and the promising sign from the report is that there is real consensus for change.

“86% felt the industry would benefit by identifying what engineering information is required beforehand and putting processes in-place for transferring the data steadily throughout the process as it is finalised, something Aveva calls progressive handover.”

Around 82% favoured making handover a recognised additional process that will reduce the cost by nearly 64% and will also help the company start planned operations early.

The research was conducted by Vanson Bourne last year with 50 North American senior decision makers in the oil and gas industry.