Lean Production.

Arrow Energy is implementing Lean Production to improve the efficiency and effectiveness of development and operating activities to achieve its business goals, particularly the delivery of the world’s first coal seam gas to liquefied natural gas (LNG) export facility to be located at Gladstone.

Lean principles have played a key role in the success of many manufacturing industries throughout the world. The focus is on reducing waste and improving how the business operates at all levels to return greater value to customers and shareholders.

At Arrow, we believe the high repetition of activities within the upstream coal seam gas business lends itself to the concepts used in a manufacturing environment. Internally we have people producing wells, well sites, flowlines, compression facilities, and water treatment plants.

Implementation of Lean principles throughout Arrow is now underway and being used to increase gas sales, accelerate reserves growth and decrease costs in order to deliver value to customers and shareholders. The value delivered will increase as waste is removed from work processes and work-in-progress inventories are reduced throughout the value chain of activities.

Lean production is being driven in Arrow by a number of Shell secondees who implemented lean principles with great success at Aera Energy, a stand alone US company jointly owned by Shell and ExxonMobil. Aera is one of California’s largest oil and gas producers, accounting for around 30 percent of the State’s production. The company currently operates more than 16,000 wells and drills more than 1,000 wells a year.