Indicator Unit

2018

Target Weight Cut Off

Internal

1. Production Losses Recovery BOPD ≥ 30 10% 25

2. Marginal Oil Production BOPD ≥ 80 15% 90%

3. WO/WS PIR $/$ PIR≥ 1 10% 65%

4. BPT-D % ≥ 90 15% 95%

5. Oil Treatment Factor US$/BO ≤ 0.34 10% 95%

6. Water Disposal Index % ≥ 85 10% 95%

7. HSE Accomplishment ea 2 30% May

 Remark

Base line: 2017 production losses 312 BOPD.

Perform Acid Rigless on development wells & other project as HGC.

Follow up by monthly forecast.

% of progress to complete BPT-D referred to Production

Optimization.

Costs involved to treat emulsions, paraffin & corrosion, include

materials and services.

Costs involved water treatment, include materials and services.

2 High Quality SOS cards per month per Engineer.

 Description / Objective Formula

Reduce losses production at December 31st, Lost PRD 2017 - Lost PDR 2018 = 30 BOPD
2018. If Value ≥ Cut off, (Value/Goal)*Weight

Stimulation Results BOPD - Baseline trend Wells BOPD

Increase Production from Rig Less Stimulation.
If Value ≥ Cut off, (Value/Goal)*Weight

PIR = NPV / INVEST (Annual Avg.).

Overall 2018 WO and WS with a PIR ≥ 1
If Value ≥ Cut off, (Value/Goal)*Weight

% of advance to complete BPT-D referred to Production

Accomplishment transformation plan project.
Optimization.

Maintain or reduce the cost by oil treatment in Oil treat. efficiency = Invest cost to Treatment Performed /
order to impact in lifting cost. Oil Barrels treated

Measure the volume of water injected

according government regulation of the water Water disposal Index = Water Injected / Water Produced
produced treatment.

2 High Quality SOS cards per month per production team

Leadership & visibility in HSE.
leader.
 CMT
BPT Sponsor

BPT-1 CFO

BPT-2 COO

BPT-3 COO

BPT-4 CAO
BPT-5 COO

BPT-6 COO

BPT-7 CFO
BPT-8 COO

BPT-9 CAO

BPT-10 CEO
BPT-11 CFO
 Activity -

BPT 1Q 2Q

Leader June Jul

S-01 S-02 S-03 S-04 S-05 S-06

Focus on Peña Negra and L

Planning
Coordinator Update the curren
abandonment

Production Daytime opera

Head

Field
Services Remove Floating Do
Head

Admin. Retu
Head
 Reservoir Managemen
Development Enhancement
Manager

Production Efficiency
Improveme
Production
Head

Production Optimiz

Budget Head Ope

Operations Maintenance & Integrity M
Manager

HR Head

HR Head Leadership and Performa

 Legal Enhance Relationship
Director
 Activity - Stage 1/Analysis-Planning
2017

3Q 4Q

Jul Aug Sep Oct

S-07 S-08 S-09 S-10 S-11 S-12 S-13 S-14 S-15 S-16 S-17 S-18 S-19 S-20

Negra and Lobitos by returning other fields

e the current plan for infrastructure

onment

ytime operations

Floating Docks

Return Petroperu Assets

Management
ncement

n Efficiency and Reliability

Improvements

tion Optimization

Operations Cost Model

& Integrity Model Transformation

Organization Transformation

nd Performance Management
Relationships and Communications Process with
Stakeholders.
4Q

Nov
S-21 S-22 S-23 S-24
 TASKS

•Complete the assessment and analysis to recommend viability to kee

operative only economic assets
•Update the current abandonment plan to reduce complexity and
optimize operational practices;
•Evaluate strategic business options to determine how to reduce
complexity and focus organization on material activities
•Evaluate impacts on Sister Companies

•Evaluate feasibility of focusing on daytime operations by

removing/minimizing night shifts
•Evaluate costs & benefits of remote monitoring in PN/LO
•Evaluate impacts on Sister Companies

•Evaluate feasibility of removing floating docks and alternatives

•Evaluate feasibility of land transportation of workers to ports of PN/L
and alternatives
•Evaluate impacts on Sister Companies

•Update Petroperu asset list and do physical counts

•Establish procedures/policy for return of Petroperu assests with clea
role and responsibilities of relevant departemtns.
•Make initial plan for return.
• Develop a common understanding of the complex reservoirs and ful
adress all structural issues of compartmentalized main fields
• Perform an in-depth reservoir characterization that leads to have
proper analysis and assessment of alternatives for producing the
remaining primary potential (radial drilling, EOR/IOR pilots,
unconventional approach to fracture)
• Update a more accurate OOIP and Recovery Factor (better oulook
with current resources and information)

• Plan for designing a complete production loss tracking system with a

new “ Production losses Report”
• Plan to propare actions to reduce deferred production by doing a
proper root-cause failure analysis (RCFA)
• Plan for Evaluating alternatives of optimization of current Artificial L
system (Gas Lift, Swab, Plunger Lift) with specialized production team
• Evaluate consultancy to update LO nodal network and construct PN
one

•Evaluate approaches to more aggressively variabilize categories and

activities - Direct/indirect costs analysis
•Evaluate consistently platform and field-level economic performance
•Design evaluation and monitoring of lifting cost optimization
•Plan to Improve the maintenance strategy with reliability
mehodologies
•Review of maintenance work processes (Computerized)
•Define Plan of Maintenance preventive for all assets
•Define KPI for Maintenance of stationary equipments
•Design and diseminate integrity Plan for Platforms, pipelines and
facilities
•Define Plan to Comply with Pipeline adequacy plan to D.S. 081-2007
EM
•Evaluate impacts on Sister Companies

•Evaluate urgent organization changes and personnel requirements

•Evaluate organization changes and personnel requirements after
concluding other BPT's tasks
•Evaluate/update/establish job analysis/role & responsibilities, key
position analysis, succession plan for key positions, and criteria for
hiring, promotion, and salary

•Make a plan to improve leadership skills with support of a consultant

as necessary
•Update/establish Performance Management program to make
organization align with company strategy/plans
•Evaluate how to improve internal communication
•Develop a Relationship Plan for all stakeholders
•Appoint the focal points to manage relationships with stakehoders.
 Item Top Recommendations

1 Strategic Plan Evaluation and Development

Reservoir Management Enhancement- Near- Term,

2 and Strategic

Coty 3 Operating Cost and Production Optimization

Coty 4 Operations Model Transformation

Coty 5 Maintenance and Integrity Model Transformation

6 Organizational Transformation
 Production Efficiency and Reliability
Coty 7 Improvements.

8 Leadership and Performance Management

Enhance Relationships and Communications

9 Process with Stakeholders.

Procurement and Inventory Management

10 Enhancements.
 Objective

Redefining the entire operational scheme from a

strategic view to obtain the maximum value of the
assests, in a proper cost-effective and sustainable
manner

Perform the best assessment of real potentiality of

block Z2B, more specifically in fields Peña Negra y
Lobitos, the main ones under current exploitation
with major potential in short-mid term

Implement a Systematic Economic Evaluation

Process, to verify timely that every well, platform,
and field must contribute positively to SAVIA's cash
position, through an incremental analysis. Thereby,
as much as possible, all costs need to be challenged
as potentially variable and controllable with the aim
of a better and quicker decisions making.
Perform an in-depth assessmet of how to reduce
complexity of operations approach leading to
construct an effective reduction plan in operative
costs by eliminating night shift, optimize personnel,
reducing operational layers, optimizing utilization of
vessels, implementing remote monitoring, among
the main ones. Enhance the current production
results, predictive maintenance routines,
safety/security control by approaching differently
the type of either supervision or surveillance to be
carried out.

Reduce maintenance costs and reduce production

losses by increasing the reliability of stationary
equipment, to establish and maintain a more
systematic Integrity Management System,
continually assessed on RBA´s approach for safety
of people, environmental protection, and
sustainability of the assets. Continue with the
General Plan.
Implement a Report and Tracking system for to
understand where production losses and deferrals
incidents come from so they can be systematically
evaluated and addressed to drive defects out of the
system with the aim of knowing trends and
prioritizing actions that reduce deferred production.

Determine the most critical aspects that negatively

impact the understanding of strategy and the
alignment through entire Organization; also
emphasizing in good communication routines and
appropiate fedback from lower levels of
Operative/Administrative personnel

Identify main stakeholders, closely related to Savia's

bussiness, in order to build a comprehensive
relationship plan to keep formal and direct talks on
all of big matters, identified as such, which might
affect somehow the regular performance of strategy
 Specific Deliverables

• Complete the assessment and analysis to recommend viability to keep operative only economic assets
(platforms and/or remote fields);
• Update the current plan for abandonment of already evaluated infrastructure to reduce complexity and
optimize operational practices;
Evaluate strategic business options to determine how to reduce complexity and focus organization on
material activities (to maximize value and minimize liabilities)
• Added items: simpler process/system, move to Talara, return of Petroperu assets

• Do the characterization of different reservoirs to have well adressed the static and dynamic models
• Make the full update of both, OOIP and Recovery Factor calculations
• Perform the analysis and proper assessment of alternatives for producing the remaining primary potential
(in-fill drilling, radial drilling, intensive workover/well servicing program), also projects of IOR/EOR (pilots of
gas/water injection) to potentially add fresh reserves
• Strenghten dynamics of work to focus all endeavors in Development site by appointing the limited
resources (personnel and tools) in most favorable opportunities to enhance our portfolio (Oil and Gas)

• Establish and / or modify the procedures and policies of cost distribution in Savia adjusted to this model.
• Implement cost distribution module in Spring ERP.
• Disseminate , training and implementation of these guidelines.
• Evaluation and monitoring of lifting cost optimization by reducing the assets that are not being positive for
SAVIA
• Make the plan to extensively analyze vessels utilization for production and maintenance routines;
thoroughly prepare a transformation of marine logistics process and measure its impact in direct operative
cost reduction
• Establish the base line and implementation plan to extend remote monitoring of production variables
at offshore facilities (defnition of principal/important ones) to control Wells performance, gas utilization, and
Pipeline integrity • Perform the appropriate analysis of real impacts
in elimination of night shifts and relocate personnel to avoid travels, optimizating personnel
• Perform an optimization analysis of Gas Lift system through simulation with specialized software, to carry
out the changes projected by the simulation and evaluation of the results of these changes.

• Improve the current maintenance strategy with reliability methodologies PMO (Preventive Maintenance
Optimization) & RCM (Reliability Centred Maintenance). Define Matrix CBM (Condition Based Maintenance)
& PdM (Predictive Maintenance). Implementing the RIM process (Reliability Information Maintenance).
Implement and develop the process of RCA (Root Causa Analysis).
• To construct a comprehensive plan to execute the maintenance work in decks level of those platforms
inspected already by ABS aiming to clear the set of observations arising from OSINERGMIN supervision
program on time to prevent any other shut down of production facilities.
• Comply with Pipeline adequacy plan to D.S. 081-2007-EM and MTP 2017-2023 abandonment & integrity
pipeline
• To review the need for structuring the vessels maintenance.

• New Organizational structure. four weeks 2. Sisters/ Service/ Subsidiaries companies Governance. •
Definition of Roles & Responsibilities.
• Sizing of New Organizational structure.
• Positions Valuation. 4 Semanas una vez se tengan los roles y responsabilidades.
• Human talent Policies. 4 Semanas. Es posible necesitar acompañamiento de Hay Group para actualizar la
práctica.
• Salary police
• Hiring police.
• Performance
• Key positions assessment. 4 Semanas.
1. Establish and / or modify the procedures and policies of quantify and tracking of the deferred production
in Savia.
2. Implement an new “ Production losses Report” in current Oracle Database with all the variables involved.
3. Disseminate , training and implementation of these guidelines.
4. Evaluation of information and tendencies for to obtain the priorization of the actions for to reduce
production deferred using the Root Cause Failure Analysis (RCA) process.

• Establish a comprehensive communication plan to reach in a simpler manner all levels of Organization
• Disseminate the main foundation of business plan and rationale behind strategy in development with KPI’s
and expectations in new structure definition
• Let everybody knows clearly the role of all people in transformation program and what is expected from
each one • Design a more effective Operational
Committee on weekly basis with more wide participation of operative people
• Establish a monthly Management Committee to follow up diverse elements on HSE, Operational update,
Budget execution, regulatory compliance, next month plans and bottle necking analysis

• Update the status of relevant discussions and actions being undertaken with major stakeholders
 OSINERGMIN: Maintenance and integrity of platforms and pipelines, adequacy to SD 081
 OEFA: Pipelines and facilities maintenance
 PERUPETRO: Basket price negotiations, Blocks in force majeure, abandonment of infrastructure;
Development & Exploratory plans, Retention of areas, Gas business
 PETROPERU: Lease assets negotiation, Sales of oil from Z2B and purcahses of diesel
 SUNAT: Tax contingencies  Savia´s Union: Collective bargaining; labor rights
before Labor Ministry supervision
 Contractors: Marine supporters, Well Service, Maintenance, Surveillance, Catering, Metal work,
 People of areas of influence: Negritos and Talara, Cabo Blanco, Sechura. Two months
• Appoint the focal points to manage relationships with stakehoders. One month

• Execute the excess inventory plan

• Develop and implement work processes that are aligned with the Operations and Maintenance Model
transformations
• Evaluate and implement appropriate performance based Contracts *Not much such success base
contracts, would review case by case through PAC
• Evaluate and implement outsourcing for defined activities in collaboration with the Operations and
Maintenance teams
• Covered by other items: implement once defined by such
• Evaluate and implement improvement options for the warehouse activities
• Evaluate and implement key metrics for the warehouse and materials management
• Evaluate Procurement organization opportunities (R&R of Inventory & Procurement)
 Tipo de Beneficio
Requirements Produccion

• Ensure a suitable support in Legal aspects as well as Social & Environmental

• Strenghten project support
with skilled professionals to ensure best practices in economics and to manage on
time execution

• As a first and moderate option is to complete an additional technical team of 13

people (petrophysicists, geoscientists, reservoir engineers), software and data base,
pressure surveys and specilized logs (RST, PVT); expected timing 1.5 years
• The second option, which is more
complex and comprehensive but complementary to the first one, is to undertake a
seismic acquisition program to have a full new vision of subsurface study and more
accurately design a redevelopment plan in currently underexploited areas in Lobitos
and Peña Negra; the estimated timing might be four to five years.

• Setting the work team formed by Account, Fiancial Planning, and Planning &
Control to establish an official (formal) procedure to cost distribution
• Get a consultant company to work on costs module in ERP Spring.
• Set team working by OPMAR, PROD, RRHH, ALEGAL, ABAS, P&C.
• Carry out simulation study in simulator ReO, for updating current simulation
model in Lobitos and implementing new simulation staudy in Peña Negra.
• Set a team working with specialists of Artificial Lift during simulation project, get
an experienced consultant in gas lift optimization to help in implementation of
improvements in ALS and energy consumption
• Secure to hire Gas Lift optimization Team to do complete routines in fields as
discussed, three for Peña Negra and three for Lobitos

• Ensure budget to resume the feasibiity

engineering project to escalate remote monitoring in main platforms
• Support from Procurement and Administration in evaluating impacts on
contractors to housing at labor site during longer shift system (12x9).

• Set a strong team working formed by Mintenance, Production, Procurement and

Planning & COntrol

• Ensure to contract an experienced

external source to help Savia in carrying out the revision of our current plan of
maintenance, which is based in our own inspections level I.
• Ensure to contract managing staff for the execution of resulting final plan in a
feasible and affordable manner and schedule ahead to the rest of platforms
considered in our Integrity plan.
• Set a strong team by Production Engineering and IT •
Ensure proper training of Savia's people and software licensing to maintain
continuous analysis and follow up on production control

• A formal leadership program, directed to mid-management level, is necessary to

streght a more satrategic approach on this key positions • To get specialized
persons to cover critical people in Talara and Lima performing coaching group
sessions • A communications company to
design proper strategy to communicate all aspects related to company´s strategy
and annual-MTP bussines plan to effectively pass the messages on

• Ensure a strong legal support to adress all issues arising from contractual terms
interpretations
• Continuos monitoring on commitments and pending issues to be cleared or
adressed with any stakeholder
• Systematic reports of progress shall be made.
Tipo de Beneficio Teams
Cost Others BPT