Transforming Well Integrity Governance for a $2 Billion HPHT Sour Gas Development

Classification Rationale

Primary Category: Well Integrity Capability Transformation

Well integrity governance was the defining capability intervention. The engagement centred on developing and implementing a digitally enabled Well Integrity Management System, lifecycle risk management, regulatory compliance, surveillance and operational assurance for a complex HPHT sour gas development.

Evidence type
Founder Operating Leadership Experience

Organization
Husky-CNOOC Madura Limited (HCML)

Capability Classification
Well Integrity Capability Transformation

Period
February 2016 – January 2021

Executive Challenge

HCML, a joint venture between CNOOC Limited, Cenovus Energy, formerly Husky Energy, and Samudra Energy, was delivering its first High-Pressure, High-Temperature sour gas development through the $2 billion BD Gas Field Project in Indonesia. Success required safe offshore execution, coordination among multinational partners and regulators, and management of supply chains spanning Singapore, China, United Kingdom and the United States. The development also needed to integrate environmental stewardship, digital innovation and workforce localization. The challenge therefore extended beyond engineering execution: HCML required a governance architecture capable of managing well integrity risk across the lifecycle while strengthening accountability, compliance, operational discipline and organizational capability.

Strategic Approach

As Head of Completion and Well Integrity, Mike worked with executive leadership, board representatives, partners and regulators to strengthen operational governance and execution. He directed a matrix involving 10 international service providers, more than 4,000 personnel and 200+ Indonesia-based execution staff. A central intervention was the conceptualization and implementation of a Well Integrity Management System aligned with lifecycle risk mitigation, regulatory compliance and ESG principles. Real-time surveillance was embedded into operations, while the digitally enabled WIMS was aligned with ISO 16530-1 & 2. Preventive maintenance, environmental monitoring and transparent ESG reporting were incorporated into the operating architecture. A leadership and technical development programme reinforced workforce capability, mentoring, succession and localization.

Capability Transformation

HCML moved from managing well integrity primarily through operational execution toward a more systematic lifecycle assurance model. WIMS created clearer governance, accountability and surveillance across the well lifecycle, while digital monitoring improved visibility of emerging risks. Leadership development, technical mentoring and localization strengthened the human capability required to sustain the system. The result was an integrated model connecting well integrity, risk oversight, operating discipline, regulatory requirements and workforce capability.

Results & Business Impact

• Delivered approximately $200 million in annual profit.

• Achieved a 60% year-over-year uplift in HPHT operational performance.

• Recorded zero recordable safety incidents across all project execution phases.

• Institutionalized the Well Integrity Management System across HCML assets and operations.

• Strengthened lifecycle risk management, compliance and ESG alignment.

• Built Indonesian workforce capability while advancing localization and succession objectives.

• Reinforced confidence among regulators, partners and local stakeholders.

Strategic Insight

Well integrity capability creates enterprise value when governance, technology and human judgment operate as one system. HCML illustrates how lifecycle assurance can move beyond technical compliance to become an operating discipline that strengthens accountability, protects asset value, improves risk visibility and supports safer, more resilient performance.

Client Testimonial

“Mike’s contribution to HCML’s $2 billion offshore development was exceptional. He led the development and implementation of a Well Integrity Management System that strengthened governance, risk oversight, operational discipline, and ESG alignment in a complex offshore environment. His impact went beyond technical execution. Through senior stakeholder engagement, leadership capability development, and disciplined operational leadership, Mike helped translate risk management into measurable enterprise value: approximately $200 million in annual profit uplift, a 60% year-over-year improvement in operational performance, and a zero-incident safety record across project execution phases.”

— Lian Jihong, Chair & Country Manager, CNOOC International, Guyana