Noble Corporation and General Electric Company (NYSE:GE) have come together to collaborate on a data analytics solution that focuses on offshore drilling rigs that is known as Digital Rig. The system will generate cost savings of about 20% of the overall operational expenditure.
The agreement will see General Electric deploy APM – Asset Performance Management, its latest marine system, on four rigs belonging to Noble Corporation. Predix will power the system. Using advanced analytics and data models, the system will be able to detect when there is off-standard behavior of target assets which can often be a sign of performance degradation or potential failure. In some circumstances, the potential breakdowns can be anticipated a couple of weeks prior thereby giving operators ample time to step in and mitigate the problem.
System benefits
Some of the benefits that Noble Corporation will enjoy include enhanced efficiency in the drilling process since it will be possible to foresee equipment anomalies and thus enhance performance consistency by reducing operational disruptions. By shifting to predictive maintenance, Noble will be able to reduce operational expenditures in the long term across the fleet.
Another benefit for Noble Corporation is that service costs incurred from third parties will be reduced since the system will offer visibility and insights on rigs anytime and anywhere thereby cutting down on the number of shore-based experts that are needed.
“It is imperative for our industry to embrace the digital revolution to stay efficient and nimble, and Noble is leading the way. We look forward to developing our Digital Rig solution with GE,” said Noble Corporation’s chief executive officer and chairman, David W. Williams.
Low oil prices
Some of the factors that have necessitated data-driven solutions in the offshore oil industry include geopolitical complexities, market volatility and sluggish oil prices that are impacting the sector. This is having the effect of piling pressure on industry players to reduce costs and increase productivity. The sector is also bracing for a retirement wave where a significant number of experienced workers will be bowing out resulting in a skills gap.
On Monday shares of General Electric Company fell by 0.94% to close the day at $29.44.
