AGR was contracted to manage the delivery and mobilisation of a deep water well offshore in the Mediterranean Sea.
The Challenge
Setting up a new supply chain remotely
With the country then at the early stages of development in its oil and gas sector, setting up and running an oilfield supply base was a challenging assignment. This was a green field project, without the commercial infrastructure to simply move into sourcing and supply of the project.
Therefore, a supply chain needed to be designed, negotiated and mobilised from scratch. Additionally, the client was a new operator in the region and in the learning phase of drilling here.
The AGR Approach
A project demanding the highest order of logistics expertise
AGR’s logistics team created a new supply chain system for this client. A team of specialists help set up multiple contracts for services, equipment and mobilisation resources with supply partners outside Israel and where possible in-country vendors.
This process involved:
- Detailed project planning and execution by highly experienced logistics specialists.
- Gaining a thorough understanding of customs import and export procedures and processes and challenging port environments.
- Setting-up an in-country AGR business entity to ensure tax compliance.
- Utilised in-country vendors where possible to meet logistics requirements
- Contract negotiation and establishing a yard and quay facility in-country to support drilling operations.
- Helicopter contract set-up following a full aviation audit.
The range of services were vital in ensuring a safe and efficient set-up and well delivery, with the well itself drilled in just 83 days – this is the best-in-class well drilled when compared with offset wells in the Eastern Mediterranean and Cyprus; 8 USDM saved for the client.
