Case Study

Powering improvement: How a major oil & gas operator achieved $25M annual savings through asset data transformation

The short version

Challenge:

A major oil & gas operator struggled with fragmented asset data across systems, leading to safety incidents, compliance delays, and $40M in excess maintenance costs annually.

Solution:

DataCatalyst implemented a Unified Asset Management Platform using MDM principles, establishing centralized data governance and standardized taxonomies integrated with operational systems.

Results:

The transformation delivered projected 60% cost reduction ($25M annual savings), enhanced safety compliance, faster issue resolution, extended asset lifespan, and improved regulatory compliance.

The challenge: Fragmented data creating operational risk and inefficiency

A major upstream oil and gas operator with $80B in revenue was struggling with fragmented asset data across multiple systems, creating a perfect storm of operational inefficiencies and safety concerns.

Their critical asset information existed in silos, resulting in inconsistent equipment hierarchies between different systems (such as pump tags vs. P&ID diagrams), increasing safety incidents, and growing unplanned downtime.

Their complex technology landscape – multiple ERPs, CMMS, SCADA systems, and GIS platforms – created an environment where traditional asset management approaches were failing, making it impossible to track assets effectively.

The need: Unified asset view to address safety, cost and compliance issues

The operator urgently needed to address tangible operational issues resulting from their siloed asset information:

  • Safety risk: Increasing safety incidents highlighted the urgency of addressing data fragmentation
  • Compliance delays: OSHA audits were being delayed due to inability to access consistent asset information
  • Financial drain: Maintenance costs had escalated to an estimated $40M annually in excess spending
  • Inefficient troubleshooting: Equipment failure analysis was time-consuming due to fragmented data
  • Cross-department friction: 80 stakeholders across Operations, Asset Management, Compliance, and Supplier Management struggled without a unified view of asset data

The escalating financial and safety impact demanded a solution that could unite these fragmented systems and deliver a consistent, trusted view of asset information.

The approach: Lean expert team driving business-focused requirements Business-driven data strategy using Accelerate methodology

DataCatalyst assembled a specialized team to assess the operator’s asset data challenges across their environment. Working directly with stakeholders from Operations, Asset Management, Compliance, and Supplier Management, we quickly identified that a Master Data Management (MDM) approach would provide the foundation for addressing their asset integrity issues.

Our team applied our Accelerate methodology to rapidly develop a solution that would centralize and standardize asset data while integrating with existing operational systems. Through focused workshops, we helped the client recognize how a unified data platform – driven by business value rather than technology requirements – could transform their approach to asset management, compliance, and safety.

The solution: Unified asset management platform built on MDM principles

DataCatalyst implemented a comprehensive Unified Asset Management Platform that brought order to chaos:

  • Centralized asset hub: Created a single source of truth for critical asset data including serial numbers and maintenance logs
  • Geospatial integration: Enhanced asset records with location context for improved situational awareness
  • Predictive maintenance: Connected the MDM platform with existing CMMS and SCADA systems to enable alerts before failures occurred
  • Standardized taxonomy: Implemented ISO 14224 asset hierarchies for consistent classification and compliance
  • Service optimization: Tracked warranties and OEM service agreements with automated alerts for maintenance planning

Governance structure: Established a Data Governance Council to manage asset hierarchy and ensure ongoing data quality

The transformation: Shifting from siloed to enterprise-wide data management

Implementing this solution required fundamental changes in how the organization managed their asset information.

The Data Governance Council represented a shift from siloed, department-based data ownership to an enterprise-wide approach. Stakeholders adapted to standardized definitions and hierarchies, adopting industry norms through ISO 14224 rather than maintaining internal conventions. This cultural shift – from viewing data as a byproduct to seeing it as a strategic asset – was essential to the project’s success and created a foundation for sustainable data quality improvement.

The results: Dramatic cost reduction and operational improvements

The implementation delivered immediate and substantial impact:

  • 60% projected cost reduction: Projected savings of $25M annually from reduced downtime and labor costs
  • Enhanced safety: Achievement of compliance with API 754 safety audits
  • Faster issue resolution: Dramatically accelerated root-cause analysis during equipment failures
  • Extended asset lifespan: Increased equipment longevity through effective preventive maintenance

Improved compliance: Reduced regulatory risk through consistent data governance

The future: From reactive to proactive asset management

With a foundation of reliable, accessible asset information in place, the oil and gas operator is now positioned for greater operational resilience and efficiency. The standardized approach to asset hierarchies and governance structure ensures consistent data quality over time, enabling sustained benefits rather than temporary improvement.

Predictive maintenance capabilities have shifted the company from reactive repairs to preventive practices that extend equipment life and reduce costs. Most importantly, enhanced compliance with safety standards and improved incident response capabilities have created a safer operating environment for employees while reducing environmental risks.