T E M P O S    Risk/Asset Assessment Framework


Why have a Framework?: When we are asked to assess the risks or performance of any Ventures, Field, Asset, Project or Organisation it is extremely useful to have a consistent repeatable approach.  It means that nothing important is missed and that benchmarking across different assets becomes easier. 

What is the Framework?: The framework we use is similar to that used by a number of major international E&P Operators. It sets out in a simple way what aspects we will look at and provides a neat and logical structure for analysis and reporting. It also provides the client with an easy vehicle to communicate priorities to us identify any areas where deep specialisations will be required.

How do we use it?: The framework is used only when a comprehensive review is required. We would use it initially to set up the Terms of Reference for the work and then use it for evidence gathering and reporting. 


The TEMPOS Assessment Framework

The model is broad yet flexible.   

Technical: Includes subsurface, well and surface facilities risks.  The model focuses on identifying critical risks and uncertainties, and uses tools and techniques that are appropriate at each stage of the classical project lifecycle. We also look at new technology utilisation.

Environmental (HSE): The E in HSE has recently become more dominant in terms of business and reputational exposure. Compliance with legislation is no longer sufficient. Projects and Companies must have a comprehensive management system implemented. A good practice risk register that reflects modern-day priorities will place strong emphasis on this area. 

Money: The commercial health of a hydrocarbon development on which the sources of finance depend, is founded on a combination of factors. The model covers, confirmation that economic drivers are identified, risking of inputs to the cashflow analysis, assessment of the petroleum contracts and concessions, EPC contracting strategies, and management of the supply chain. 

People: Experience shows that this aspect of the framework for a modern approach to Risk and Asset Management, is absolutely crucial to understand and manage effectively.  Competence, team dynamics, organisational interface management, goal setting, project KPIs, management reporting and individual motivation are all part of this component. Competence Assessment and Management can also be added. 

Outside world: External stakeholders and the general public have a greater influence than ever on the success of energy industry projects. Proper assessment of who specifically matters in the universe of governments, NGOs and media to name but a few is now a sine qua non.

Strategic: Project ranking, taking account of risk profiles, helps build an opportunity funnel more likely to meet business objectives and enhance long term competitiveness. Corporate or Strategic level reviews would emphasise this aspect looking at scenario planning, portfolio or cumulative risk. 

The TEMPOS structured approach to asset assessment leads to clarity for the client about what will be covered and a simply structured report-out that makes follow up far easier.