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PAN AMERICAN ENERGY - Management Team of the Year

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Company: PAN AMERICAN ENERGY, Ciudad de Buenos Aires, Argentina
Company Description: PAE is the main private hydrocarbon exploration and production company in Argentina. In 2016 it produced 20% of the oil and 16% of the gas produced in the country. Founded in 1997, it has 12000 workers (own and contractors). It's operations are in the main Argentine basins, in Bolivia and México. It also participates in the sector of wind power generation, oil transport and power generation.
Nomination Category: Management Categories
Nomination Sub Category: Management Team of the Year

Nomination Title: Operations Management Model for Excellence

Tell the story about what this nominated management team achieved (up to 650 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:

Pan American Energy, the leading private company in the hydrocarbons sector in Argentina, took, in 2016, a major step forward in its dynamic of continuous improvement: it concluded the creation of its Operations Management Model, an action map for operational excellence in all work areas, and began its implementation.

In this way, PAE perfects its management, assessment and improvement techniques in order to identify and minimize risks inherent to the hydrocarbon industry, take care of the environment, optimize the use of resources and maintain positive relationships with its stakeholders.

The OMM, created by an interdisciplinary team of 20 professionals, organizes fundamental policies, processes and requirements to guide the sustainable development of PAE's activity, which involves more than 12,000 employees and contractors. It consolidates the corporate identity and responds to the business strategy. It is modern, synthetic, and tailored to the hydrocarbon industry and PAE's characteristics. It has considered the highest international standards and the idiosyncrasies of the places where it develops its operations (Argentina, Bolivia and Mexico), to overcome the challenges they pose. These characteristics and the rigorous application of the OMM go beyond national standards.

The Executive Management of Operational Quality developed its work in seven phases:

Formation of the team and design of the action plan.

Collection of the analysis, assessment and improvement information and methodologies managed by the Vice Presidencies (those used when PAE was incorporated, 20 years ago, plus the corresponding adaptations and updates). This took 10 months of work.

Analysis, hierarchization and organization of the information; modernization of concepts and summary, focused on PAE's peculiarities (90% of the staff work in the hydrocarbon fields, as opposed to a 10% average in the sector) and on the idiosyncrasies of the union dynamics, the degree of compliance with the operational rules, and the stakeholders' expectations, etc.

Organization of the OMM, with focus areas, principles, expectations and reference elements, establishing common foundations and a Governing Body formed by the COO and the Vice Presidents.

Publication of the OMM documents.

Outreach campaign to reach 100% of the employees and training campaign in all the Management Units, located in different Argentine provinces and abroad.

Start of the Continuous Improvement Cycle.

These are some of the results obtained:

The OMM has strengthened PAE 's capability and commitment as regards the sustainable development of its activity. It guides all efforts for the continuous improvement towards excellence, in order to turn the employees' capabilities into energy for the progress of society.

The OMM includes digital and interactive tools created specially for its mass dissemination and as a support for training. Such training, for example, in Drilling, Completion & Facilities, exceeded by 60% the average number of training days per person of the productive sectors in Argentina, with 15,896 hours of training.

Two very relevant Management Systems, the Environmental and Social Management Systems, are already consistent with the OMM, and each Vice Presidency started the Continuous Improvement Cycle pursuant to annual plans that allow the monitoring of the closure of gaps identified in the Balance Scorecard.

Provide a brief (up to 125 words) biography about the leader of the nominated management team:

Danny Massacese – PAE's Chief Operating Officer (COO) is a geologist graduated from the Universidad Nacional de la Patagonia San Juan Bosco. He has 25 years of experience in the hydrocarbon industry and more than 10 years being part of exploration, oil and gas multidisciplinary projects in Argentina, Venezuela, Algeria and the United States. In PAE, he is responsible for all the company's operations. His functions also include partner-operated fields.