Company values, an ambitious vision and a clear strategy form an important part of managing a business especially in challenging times, Maersk Oil Qatar (MOQ) managing director Lewis Affleck has said.
Speaking at the HEC Paris guest lecture series this week, Affleck shared his extensive experience in the oil and gas industry with master degree students and alumni at the prestigious business school’s Doha campus.
“A successful business strategy is underpinned by a set of processes, governance procedures, supported by your people, your culture, and your ways of working,” he explained.
“It is important to also set clear key performance indicators (KPI’s) that allows to monitor and drive performance and develop an operating rhythm that establishes very clearly how the business works” he said, citing practical examples.
Affleck also cited how Maersk Oil and the Maersk Group are mounting a robust response to the current low oil price environment, not only seeking to sustainably reduce costs, but also pursuing growth opportunities.
Saying it is a difficult and challenging time for the oil and gas industry, he stressed “with challenge also comes opportunity.”
Maersk Oil has sanctioned two mega-projects this year – Culzean in the UK and Johan Sverdrup in Norway, both of which are expected to benefit from lower commodity prices during their construction period, believes Affleck.
As the largest offshore oil producer in Qatar, MOQ has a unique understanding of one of the world’s most complex oilfields, Al Shaheen. This specialist knowledge was a key attraction for around 50 guests who gathered at Tornado Tower for a presentation giving an insight into running safe, sustainable and efficient operations in Qatar.
Affleck walked the audience through his role as an executive at Maersk Oil, part of A P Moller-Maersk Group — one of the world’s largest conglomerates — and his views on creating and driving value, particularly in a low oil price environment.
In support of realising Qatar’s National Vision 2030 and in close partnership with its partner Qatar Petroleum, Affleck said their focus in Maersk Oil is on the wise management of the country’s natural resources to help maximise recovery and deliver a stable production plateau from the Al Shaheen field.
“By applying our technology and experience, we’ve produced more than 1.5bn barrels of oil – and made a significant economic contribution to the State of Qatar. We currently produce around 300,000 barrels of oil per day, which is over one third of Qatar’s daily oil production,” he said.
“Ensuring the safety of company operations and staff is our number one priority,” he noted.
“Safety is a pre-requisite for a successful business and the mindset and processes involved in ensuring a safe environment are quite similar to what it takes to run an effective organisation.
Maersk Oil introduced its global ‘Incident-free’ programme in 2011 aimed at transforming the company’s safety culture and performance in two ways: focusing on the personal aspects of safety, and setting up technical processes and competencies that are needed to run an incident-free organisation.