Maximize value from surplus equipment

Value creation from surplus equipment - let's work together for improved utilization and a greener future

On average, 15-20% of an organization's assets are surplus to its needs, but many businesses struggle to manage surplus equipment effectively. Pro-Quip simplifies surplus handling with transparency and efficiency, through performance oriented equipment management services and our cloud based information center. Partner with us to maximize equipment lifespans through increased use, reuse and sale + contributing to decreasing landfill waste through innovative recycling.

What's the total worth of oilfield surplus equipment on the Norwegian Continental Shelf?

Nobody knows for sure - not the Norwegian authorities, the Norwegian Petroleum Directorate or profiled industry experts for that matter. Pro-Quip has made an attempt to quantify the value of unused oilfield surplus stored at various oilfield bases and supplier warehouses.

By using information from industry contacts and by investigating available public information, we have estimated that among the 25+ active operators on the NCS, the average amount of capital locked up in surplus equipment is 500 Million NOK, way more for the large E&P companies. We conservatively estimate the total worth of surplus equipment on the NCS to be +/- 35 Billion NOK. After investigating and evaluating inventory lists from several E&P companies, it is vastly interesting to see the untapped inventory of idle capital sitting in surplus equipment.

Maximizing surplus value creation by increased focus on information sharing

By increasing awareness and cooperation in the oil & gas industry, Pro-Quip methods and systems will contribute to increased utilization of surplus equipment. This will ultimately reduce new project costs and at the same time contribute to reducing the overall environmental impact untapped surplus oilfield equipment imposes to our society.

Pro-Quip encourages operators to follow a simple 3-step process to maximize value creation from their existing surplus inventory:

   1.      Identify your surplus

Obviously, most E&P companies know what and where their surplus assets are. However, to do a proper evaluation, Pro-Quip recommends operators conduct an asset audit based on their surplus to define documentation and condition status of relevant equipment. In this process, it will be discovered which items are redundant, obsolete or otherwise no longer needed - based on planned activities.

   2.       Decide what to do with available surplus

After identifying equipment surplus, the next step is to decide what to do with the items. Companies don't necessarily want to sell every surplus item they have - some assets might be better off redeployed internally elsewhere or may have a condition where recycling makes more sense.

What to do with surplus inventory will depend in large part on the potential re-selling value. E&P companies should consider outsourcing value appraisal of surplus equipment to a trusted partner, if they don't have this specialized knowledge in-house.

   3.       Maximize the value of available surplus

Once a company determine which items to re-stock, recycle and sell - the final step is to capitalize on the work performed. What is the appropriate channel through which to sell surplus inventory? There are many options available, such as online auctions and selling to salvage companies. The best option might be to network with other operators - contributing to increased cooperation between E&P companies. Publishing surplus equipment on Pro-Quip's Information Center will ensure surplus items are visible and available to all active operators on the Norwegian Continental Shelf.

To learn more about maximizing the value of your surplus assets, contact Pro-Quip (www.pro-quip.no).