JIP33 - Standardizing procurement specifications

Milan - October 2019 1

Welcome

Gabriele Franceschini – EVP, Director of Project Management, Engineering and Construction, ENI 2
Purpose of today

• Raise awareness, understanding, and engagement in JIP33

• To demonstrate the commitment and momentum it has in the industry

• To show the opportunities for the supply chain in using JIP33

• For Operators to understand views and needs of their key stakeholder;

Engineering Contractors and Suppliers, to best make JIP33 a success

• To start a conversation, to encourage participation and collaboration

JIP33 is a opportunity for a step change in

efficiency for the industry,
but only through effective collaboration across the
supply chain.
3
 An introduction
to IOGP

Giorgio Guidi - SVP Safety, Environment & Quality for Eni Upstream
Global Membership – 84 Members

Map shows locations of Member Head Offices. Many operate globally

Committee Structure
Committee structure details are correct as of 1st January 2019

For more information on Committees and their work, please contact us

Joint Industry Projects (JIPs)

Standardisation of Equipment Specifications

E&P Sound & Marine Life (JIP22) Phase III Offshore Structures Standards (JIP30)
for Procurement (JIP33)
www.soundandmarinelife.org www.iogp.org/international-standards
www.iogp.org/jip33

Committee Environment Committee Standards Committee Standards

BHP, BP, Chevron, ConocoPhillips, Eni, BP, Chevron, ConocoPhillips, Eni, Equinor,
Members Equinor, ExxonMobil, IAGC, Santos, Shell, Members BP, Chevron, Equinor, ExxonMobil, Total Members ExxonMobil, Petrobras, Petronas,
Total, Woodside Saudi Aramco, Shell, Total, Woodside

Chair Gary Isaksen (ExxonMobil) Chair Michel Birades (Total) Chair Richard Mortimer (BP)

Environmental Genomics (JIP34)

Offshore Structural Specifications (JIP35)
Launched June 2019

Committee Environment Committee Standards

Chevron, ExxonMobil, Hess, Eni, Equinor, Members BP, Chevron, Equinor, ExxonMobil, INPEX, Total
Members
Shell, Total

Chair Simen Moxnes, Equinor

Chair Jeffrey Pollock (Chevron)
External Events

• IOGP attends and speaks at events globally

• Examples have included:
JIP33 – Background & the case for change

Richard Mortimer – VP Engineering BP, JIP33 Steering Committee Chair 9

Anti Competition Reminder

• The meeting participants are reminded that the participants are competitors, and are subject to antitrust laws
• The parties are committed to compliance with all applicable antitrust laws and other applicable laws and
regulations
• Discussions which might be misconstrued as price fixing, customer or market allocation, attempts to alter the
competitive open bidding season, or boycott suppliers and customers are not allowed
• Discussions of other competitively sensitive subjects such as marketing strategies, supply and demand
forecasts, open season bids, specific suppliers, and customer information are not allowed
• If any meeting participant has any questions/concerns regarding these antitrust considerations with respect to
the meeting, he/she will consult his/her counsel

10
Agenda
Agenda
Timing Title
09:00 Networking & Coffee
Safety Moment
09:30
Welcomes
09:45 Anti competition brief
09:50 JIP33: The Case For Change
10:10 JIP33 Explained: The Past, Present, and Future
10:50 Break
Advocacy - View from Member Operator
11:00
leadership
Advocacy - An Eng.Contractors View on JIP33
11:30 Saipem
Aker Solutions
12:00 Break
12:10 Benefits realisation workshop
13:25 Break for Lunch
14:10 Reconvene and key messages
Questions from the audience/ going round the
14:25
tables
14:55 Closing remarks 11
15:10 Finish
Mentimeter 1

12
13
14
Global Context from an IOC perspective

• Oil Price crash – lower for longer

• Abundancy of Fossil Fuels – Peak supply to Peak demand
• Rise of Shale
• The Reducing Cost of Renewables
• Dual Challenge – more energy – less carbon.
• International Policy and the volatility in oil price

15
Case for Change

Our relevancy and profitability is becoming increasingly challenged

We have evolved deeply ingrained Sector wide inefficiencies
Efficiency will be key to Sector competitiveness
Standardisation is a key driver of efficiency

16
IOGP Madrid workshop 2014: Laying the foundations for JIP33

Evolution of Operator Company specifications -

IOGP Reports 450, 500 & Madrid workshop 2014:
- Average number of specifications per company: 466;
- Average number of pages: 28
Specifications Number of pages

Specification

Pages
17
“Standardization is a key lever we can pull as an industry
to structurally reduce large capital project lifecycle costs”
Source: McKinsey Energy Insights

Project A: specification requires key components, Project B: specification requires key components,
including motors to be painted ORANGE. including motors to be painted BLUE.

Same company, different projects

18
JIP33 Context, Objective and vision

Context
Between 2010-2014, 75% of large E&P projects exceeded budget by 50% on
average, and 50% of projects exceeded schedule by almost 40%.
Objective
We seek to drive a structural reduction in upstream project costs and schedule
improvement with a focus on industry-wide, non-competitive collaboration and
standardization.
Vision
To standardize specifications for procurement for equipment and packages,
facilitating improved standardization of major projects across the globe.

19
“The old way” of procuring equipment
Generated for procurement by engineering contractor

Operator Technical Project Specs Data Sheets

Practices

Project Quality Project Document

Industry Standards Requirements Requirements

Project bespoke/customized
Company and Industry ‘Standards’
Standardized documents
Suppliers 20
“The new way” with standard specs
Generated for procurement by
engineering contractor

Operator Technical Standard

Data Sheets
Practices Project Specs

Standard Standard
Industry Standards Project Quality Project Document
Requirements Requirements

Project bespoke/customized
Company and Industry ‘Standards’ Suppliers 21
Standardized documents
Completed HV Switchgear Example
Generated for procurement by
engineering contractor

Operator Technical
Practices Standard
Data Sheets
Project Specs

Industry Standards Standard

Project Quality
Requirements

Project bespoke/customized
Company and Industry ‘Standards’ Suppliers 22
Standardized documents
JIP33 – Structure, Scope

Adri Postema – Programme Director – JIP33 23

JIP33: A supplier’s perspective

24
Key elements to realising value

1. Standardized requirements
• Industry adoption means repeatability for the supplier leading to improved
efficiency, reducing schedule and cost risk.

2. Essential Minimum
• Aim not to harmonize existing specifications, but to create a new set of minimum
requirements to meet essential needs only.
• Vendor can standardize production processes to a cost effective design

3. Defined Optionality
• The supply chain only remains “standardized” when users choose from the
options given within the standardised specifications.
• No changes by the user, supplementary requirements added by users will
erode the benefits of standardisation. 25
JIP33 framework

The output of each JIP33 specification takes the form of:

• A Supplementary Specification to an industry standard
• Containing a set of “minimum requirements” sufficient to purchase equipment that
meets the functional needs of the users

• An Information Requirements Specification or “IRS”

• Containing a list of pre-defined documents and data required to be delivered by
the supplier

• A Quality Requirements Specification or “QRS”

• Containing the quality management system, inspection and testing activity

• An Equipment Data Sheet Template

• Containing the options the purchaser wishes to select, and project specific information
26
JIP33 scale up

Phase 3 – Scale up
- 12 Operators
- 35+ specifications
- Early supply chain engagement
- Leveraging digital developments

Scale Up – Number /
Complexity Phase 2

Proof of Concept Phase 1 “Pilot”

27
Successful delivery of Phase 2

Specs delivered end-2018 Votes Facts and Figures:

Air compressor packages 9/10 • 152 SMEs involved
Ball valves (Revision of IOGP S-562) 9/10
• 40 workshops conducted including framing and
Centrifugal pumps 10/10
final alignment sessions
Gate valves 9/10
HV switchgear 10/10 • 100 suppliers involved
Line pipe for critical service 9/10 • 5,000 supplier comments provided and reviewed
Offshore cranes/pedestal cranes 10/10
• 4,000 supplementary requirements defined in
Pressure vessels 10/10 published specs
Shell and tube heat exchangers 10/10
• 36 Steering Committee meetings in less than 2
Subsea trees (Revision of IOGP S-561) 8/9
years
Dryers 10/10
Materials 8/9

28
JIP33 Phase 2 engaged vendors

29
The library today:
Specs delivered end-2018
Air compressor packagesAir Compressor – Integrally Geared Centrifugal
to API Std 672
Air Dryer Package
Cranes – Offshore General purpose to EN 13852-1
Cranes – Offshore Pedestal Mounted to API Spec 2C
Heat Exchangers – Shell and Tube to API Std 660
High-voltage switchgear and controlgear to IEC 62271-200
Line Pipe to API Spec 5L and ISO 3183
Low-Voltage Switchgear and Controlgear to IEC 61439-1 and 2
Pressure Vessels – Unfired, Fusion Welded
Pumps – Centrifugal to API Std 610
Subsea Trees to API Spec 17D
Valve – Ball to API Spec 6D
Valve – Gate to API Spec 600 and API Spec 603

Freely available to all on JIP33 website: https://www.iogp-jip33.org

30
Adoption dashboard (June 2019)

31
Recent value proof points
Centrifugal Pumps
LV Switchgear
• LV switchgear operational
• Confirmed 13% cost
reduction
• Supplier feedback on LV
switchgear
• 10% cost reduction
• 4 weeks schedule reduction
HV Switchgear
• Significant savings at PO
placement for HV and LV
switchgear on major project
• Supplier feedback:
• 9% – 19% overall predicted saving vs
company spec
• Potential 30% – 40% reduction in
supplier engineering hours if this
became the standard design
Line Pipe • Supplier feedback to operator: Significant
value in aligning users to common
specification for inspecting welds
(Appendix in specification)
• Operators are recommending that this
is incorporated into API standard
32
 Phase 3 current scope
Packages
Uninterruptible Power System (UPS)
Diesel/Emergency Generator
Flare Packages
Air Cooled Heat Exchanger
Firewater Pump Package
Gas Dehydration (Glycol) Package
Package
Equipment
Supporting
Equipment Specs Supporting Spec (tbd during Framing)
Low Voltage Motors General Engineering Specifications for Packaged
Equipment
High Voltage Motors
Noise Control
Stationary Batteries
Instrument Tubing and Fittings
DC Power Supplies
General and Special Purpose Couplings
Low Voltage A.C. Drives
Lubrication, Shaft-Sealing, and Control-Oil Systems and
Transformers Auxiliaries
Electric Process Heaters Flange Bolts & Gaskets
Actuators for On/Off Valves Isolation of Packaged Equipment
Pressure Relief Valves Thermal Insulation of Piping and Equipment
Materials Specifications
Control Valves and Pressure Regulators
Elec Transmitters (Press/ Level/ Flow/ Temp) Welding Specifications
Water Mist Fire Protection Package Coating and Painting of Supplier Equipment
Positive Displacement Pumps – Reciprocating
Diesel Engines Next tranche to be
General and Special Purpose Gear Units decided in course of
Subsea valves 2019 33
Deluge skid
Maintenance

JIP33 Programme members recognise that an effective maintenance process is critical to achieving sustained benefits

Specification publishing and maintenance principles:

❑ IOGP will publish, promote and maintain the JIP33 specifications on behalf of its members for broad energy sector use.
❑ Management and resourcing will initially be provided by JIP33 Project Management Team (Transition Phase – nominally to end
Phase 3 - end 2020).

2019 2020 2021 2022 2023

Transition Phase (2-5 years) Sustaining Phase

❑ JIP33 Project Management Team Managed ❑ Management organization embedded within IOGP
❑ Established JIP33 processes and tools; ❑ Specification ownership and leadership through IOGP committees and subcommittees
❑ Established JIP33 processes and tools; Execution resourcing and contracting strategy to be
developed **

Propose content back to base standard bodies

34
Constructive discussions with API

The last API 17D Sub-Committee meeting occurred in January and we are still waiting for
the balloting of the 3rd edition, when we will know what has been incorporated
35
Standardization gives a range of benefits

Standardization will create a mutually-beneficial outcome for industry by addressing

safety, cost, schedule, quality, reliability

Safety Cost Schedule Quality Reliability 1. Estimated reduction from

supplier based on Phase 1
LV switchgear
• Familiarity with • Minimum • Rapid • Continuous • Elimination of specification and expert
designs over time standards procurement improvement and inconsistencies in interviews for ball valves
• Safety transfers • Est. lifecycle • Est. lead time innovation of performance and subsea trees
between projects savings: 10-20% reduction: designs
25-40%+1

Standardised industry specifications

36
And brings supply chain benefits
Optimization through simplification and standardization
Bids and proposals
Standard bid template and
clarification process
• Fewer questions to answer
• Less deviation requests
• Increased focus
• Quicker response and decisions possible
Saved time, resources and costs
Benefits
Engineering and manufacturing
Optimized engineering / more certain
information
• Streamlined design and approval process
• Fewer last-minute changes / interruptions
• Fewer inspection hold points / quicker
release
• Repeatability enables continuous
improvement
Enhanced efficiency
and quality of supply
Installation and commissioning
Streamlined equipment simplifies
fleet management
• Reduced wiring / testing / tools / spare parts
• Fewer items on secondary punch list
• Condensed commissioning time
• Reduced drawing updates required
Enhanced reliability
and improved safety
37
Summary

✓ Huge industry commitment for JIP33 supported with funding and resources
✓ Successfully demonstrated the concept and developed the framework
✓ Adoption process has started and first benefits proven

We welcome your feedback

feedback@jip33.org
www.iogp-jip33.org

38
 BREAK
10 minutes

NEXT: A view from Engineering Contractors:

Saipem

Aker Solutions

39
IOGP JIP33
Adoption of Industry Standard Specifications
Harry van Langen – Deputy Head of Technology
 Standardisation of specifications

Total’s efforts towards standardisation are driven by the view that it

• boosts business,
• helps reduce costs,
• mitigates industrial risks

IOGP JIP33 plays a crucial role in this effort and is supplemented within Total by an
ambitious programme to

• Harmonise standards across the various branches (Exploration and Production,

Refining and Chemicals, Gas Renewables and Power)
• Digitalise general specifications with a view to prioritise requirements and simplify their
use

These initiatives are met with enthusiastic sponsorship from senior management within
the company

11 October 2019 41
 Standardisation of specifications

Our commitment to standardization is evidenced by the nomination of Subject

Matter Experts (SME) for each JIP33 working group, with 8 involved in direction
setting (Core SMEs)

Implementation of JIP33 standard specifications into our orders will be a

gradual process that depends on progressing the aforementioned initiatives
(harmonization and digitalization) as well as, of course, business need

We continue to welcome any feedback from suppliers on how we can

collectively improve our standards to achieve continuous improvement to
Safety, Quality, Reliability, Schedule and Cost

11 October 2019 42
JIP 33 in Equinor
Ketil Rongved
Head of Simplification, Standardisation and Industrialisation (SSI)

Member of JIP33 Steering Committee

Alternate member of the IOGP Engineering Leadership Committee (ELC)
Why?

Restricted
Our commitment

• SSI one of the most important corporate improvement program

• IOGP JIP33 Supported by our CEO through Capital Project Complexity in WEF

• Dedicated support by EVP Technology, Projects & Development

• Strong participitation in ELC and JIP33 SC

• 18 SME’s and 9 Core SME’s currently working on specification development

• One 1/2 time employee seconded to the JIP33 phase 3

• IOGP JIP33 Implementation

• Phase 2 specifications by 1st of November implemented in standards library, ready for use by project
• To be included in ITT documents for first projects

Restricted
IOGP JIP33 Procurement Specifications
Eni involvement

Marco Barbieri – SVP Technical Authority & Engineering

(IOGP Engineering Leadership Committee rep.)

11 October 2019
 Eni Internal Standardization of Plants and Facilities

▪ Structured and aligned with sector benchmarks

Policy
• Reports to Eni Regulatory System - MSG SVI
Eni Regulatory
• Contains approx. 80 multidisciplinary design MSG SVI, System
philosophies, and 450 product standards, in line with Procedures
the systems of other IOC & OPI
▪ Set up to receive the supply specs produced by JIP33
• The standards review & updating activty is conducted Best Facilities
in accordence with IOGP guidelines, and through the Practices Tech. Standards
participation to international committees (ISO, IEC,..)

▪ It is the basis for Asset Integrity and Energy Efficiency

• The standardization system is the foundation of design &
technical integrity of plants and facilities, which are the
main sub-processes of asset integrity during the
development phases
• Prescribes criteria for safety, operability, sustainability,
energy efficiency and carbon neutrality of facilites

▪ The technical authority framework (MSG DEV – OPI 10 r02) defines critical mandatory standards, their application, the
managment of deviations and relevant responsibilities
 Eni participation in JIP33 Phase 2 Procurement Specifications
Involvement
▪ SME in all 10 Phase 2 Work Groups,
incl Quality & Information support groups
▪ Chair in WG1 – Pressure Vessels
▪ Chair in WG2 – Centrifugal Pumps
▪ Chair in WG3 – S&T Heat Exchangers
▪ LSME in WG9 – Subsea Xmas Trees
▪ Major participation in Phases 1 & 2 with
Engineering offices from Milano, Rome,
Vibo Valentia and Basingstoke
2
Phase 2 Working Groups:
▪ WG 1 – Pressure Vessels
▪ WG 2 – Centrifugal Pumps
▪ WG 3 – Shell & Tube Heat Exchangers
▪ WG 4 – Air Compressor Package
▪ WG 5 – Line Pipes
▪ WG 6 – Offshore Cranes
▪ WG 7 – HV Switchgear
▪ WG 8 – Ball Valves & Gate Valves
▪ WG 9 – Subsea Xmas Trees
▪ WG 11 – Materials (Piping & Valves)
(Already Adopted)
(Adoption is in progress)
 Eni participation in JIP33 Phase 3 Procurement Specifications
Involvement
▪ SME in all 30 current Phase 3 Work Groups ,
incl Quality & Information support groups
▪ Experience from Initial Phases is now
spreading across multiple discipline areas
and JIP33 is becoming the primary driver of
standards revision
▪ Adoption Process of JIP33 specifications is
triggering additional internal standards
revisions to ensure consistency and cross
referencing. For ex:
▪ Ball Valves & Piping Materials adoption
requires the revision of Piping Classes
Specifications
▪ Subsea Xmas Trees – is affecting the entire
2 Subsea Production System (SPS)
Phase 3 Core SME:
▪ PM3 – Flare System Package
▪ PM2 – Emergency Diesel Generator Package
▪ PM5 – Firewater Pumps Package
▪ PM4 – Air Cooled Heat Exchangers
▪ EX17 – Subsea Valves
▪ EM21 – Positive Displacement Pumps - reciprocating
▪ EM22 – Diesel Engines
And additional ones for newly proposed initiatives
▪ Subsea Actuators
▪ Subsea Manifolds
▪ Drilling Equipment (tbc)
IOGP JIP33 Procurement Specifications
Eni adoption

Giorgio Cognigni – Mgr Technical Authority Coordination

(JIP33 Steering Committee rep.)

11 October 2019
51
Eni Subsea internal specifications before JIP 33
▪ 27 off specifications:
• 1 off covering general requirements for a Subsea Production System
• 2 off covering X-mas tree (horizontal / vertical)
• 3 off covering Completion & Workover systems (in-riser horizontal / in-riser vertical / open water)
• 9 off related to Control system components (like EPU, HPU, MCS, etc.)
• 1 off covering Multiphase Flowmeters
• 3 off covering Subsea Valves (ball, check and gate types) for flowbases, manifolds and SSIV modules
• 1 off related to Choke valves for subsea applications
• 4 off covering Structures, Manifolds and SSIV modules
• 1 off related to Diverless Tie-in connection system
• 1 off covering Umbilical systems
• 1 off covering SDU (Subsea Distribution Unit)

▪ Characteristics:
• Main references are ISO 13628 series standards
• Not written / structured as addendum / amendment to the applicable parent standard
• In some cases, they include requirements / statements already present in international standards referenced
to in the documents
52
Eni subsea internal specifications after JIP 33 (Phases 1 & 2)
▪ 14 off specifications (reduction of about 50%):
• 1 off covering general requirements for a Subsea Production System [based on API RP 17A, 5th Ed. (May 2017)]
• 1 off covering X-mas tree (horizontal and vertical), overlay of IOGP S-561 document [based on API SPEC 17D, 2nd Ed. (Feb. 2011)]
• 1 off covering Completion & Workover systems (in-riser horizontal and vertical; open water) [based on API RP 17G, 2nd Ed. (July 2006)]
• 6 off related to Control system components (like EPU, HPU, MCS, etc.) [based on API SPEC 17F, 4th Ed. (Nov. 2017)]
• 1 off covering Subsea Valves (ball, check and gate types) for flowbases and manifolds [based on API SPEC 17D, 2nd Ed. (Feb. 2011)]
• 1 off related to Choke valves for subsea applications [based on API SPEC 17D, 2nd Ed. (Feb. 2011)]
• 1 off covering Structures, Manifolds and SSIV modules [based on API RP 17P, 1st Ed. (Jan. 2013)]
• 1 off related to Diverless Tie-in connection system [based on API RP 17R, 1st Ed. (Mar. 2015)]
• 1 off covering Umbilical systems [based on API SPEC 17E, 5th Ed. (July 2017)]

▪ Characteristics:
• Based on API 17 series standards
• Written / structured as addendum / amendment to the applicable parent standard
• Avoided repetition of requirements already included in international standards referenced in the documents

▪ Progresss:
• Work in progress. Plan to complete within 2019 the updating of these specs dated 2015/16
• Existing MFWA (Master Frame Work Agreement) with main SPS suppliers to be subsequently updated
Extract of Mechanical Equipment & Machinery/Packages applicable Codes & Standards

Upon completion of
embedding process,
the previous Company
Specifications have
been replaced by
corresponding IOGP
ones.
Extract of Piping & Valve Materials applicable Codes & Standards

Upon completion of
embedding process,
the current Company
Specifications will be
replaced by the
corresponding IOGP
ones.
 Merged Material Data Sheets – example

Product applicable to Piping only

Requirement applicable to Piping and Valve

Currently, Piping and Valve have different

certification requirements

55
Build-up of Procurement Specifications – Adoption of Supplements, DS, QRS, IRS
Standardisation of specifications for procurement and designs, taking an “essential minimum” approach.
▪ Supplementary Requirements
Important supplementary requirements such as the ones for the
offshore pedestal cranes IOGP S-618 (API 2C) & IOGP S-617 (EN 13852-
1) relating to Overload Protection Systems are retrofitted to projects Equipment
even if they started before the publication of these specifications Data Sheet
Template

▪ Equipment Data Sheet Template

General improvement with drop down menus for features with Supplementary
optionalities (guided selection of allowable choice) Technical
Requirements
▪ Quality Requirements (QRS) Quality Information
Alignment with Eni IDS (Inspection Data Sheet) via the adoption of CAS Requirements Requirements
Levels (Conformity Assessment System). Standardization of inspection (QRS) (IRS)
activities is fully agreed but definition of levels of surveillance needs
linking to the Supply Chain Risk.
International & Industry Standards
▪ Information Requirements (IRS)
No major difference in changing from previous RDDS (Required
Documentation Data Sheets). Improved consistency and focus on LCI
(CFIHOS – Capital Facilities Information Handover Specification).
Engineering Contractor - Saipem

Antonio Careddu - Saipem 57

ANTONIO CAREDDU
11 October 2019
San Donato Milanese
ITALIAN NATIONAL ASSOCIATION OF
INDUSTRIAL PLANT ENGINEERING
to carry out complex projects
we need an overall view

JIP33: STANDARDIZING PROCUREMENT SPECIFICATIONS| 11 October 2019

 ANIMP promotes dialogue
between all those involved
in designing and building industrial plants
▪ EPC Engineering, Procurement, Construction
▪ SMEs suppliers of raw materials, services, installations and fittings
▪ END-USERS
▪ UNIVERSITIES and ACADEMIES
▪ RESEARCHERS
▪ STUDENTS

JIP33: STANDARDIZING PROCUREMENT SPECIFICATIONS| 11 October 2019

JIP33: STANDARDIZING PROCUREMENT SPECIFICATIONS| 11 October 2019 MILESTONES
 INDUSTRIAL AUTOMATION

PLANT COMPONENTS

CONSTRUCTION

ENERGY

MULTIPHASE FLOW

IPMA ITALY

LOGISTICS, TRANSPORT AND SHIPPING

MAINTENANCE

PACKAGES

SIM (SYSTEMS & INFORMATION MANAGEMENT)

JIP33: STANDARDIZING PROCUREMENT SPECIFICATIONS| 11 October 2019 SECTIONS

JIP33: STANDARDIZING PROCUREMENT SPECIFICATIONS| 11 October 2019 WHAT WE DO
 An Engineering
Contractor’s View
on JIP33

11th October 2019

Phil Keen, Project Director, Aker Solutions

2019 © Aker Solutions

My Background
• 30 years in the upstream Oil & Gas sector, mostly with Phil Keen
engineering contractors

• Chartered Process Engineer originally

• 20 years in project management, mostly front end and FEEDs

• Registered Project Management Professional (RPP)

• With Aker Solutions since 2012

• Project Manager for JIP33 since start of Phase 2 mid 2017

Now Previously

2019 © Aker Solutions 15 October 2019 Slide 66

The Need for Change – An EPC Perspective
Case A
Established Operating Company
• Custom project specifications for mature
client in mature basin (UKCS)
• Extended period in FEED to develop critical
path POs
• Marginal project did not make sanction –
project specs never used again!
2019 © Aker Solutions
Case B
New Operating Company
• Project specifications developed using
collection of individual experiences –
developed from scratch
• No industry library to call on
• Constant change throughout order
execution with suppliers, even at FAT
08 October 2019 Slide 67
 Support for Standardisation

Technical
Excessive Innovation
Customisation
High Capital
Costs

Uncertainty in
Outcomes Economic
Value

Erosion through
unnecessary
customisation

Stifles O&G Economic

Activity

“Standardisation is inevitable and like technology, fast adopters will benefit most”….

2019 © Aker Solutions 08 October 2019 Slide 68

Make it Happen
Culture
• Promote and reward standardisation as we do
technological innovation

Competitive Advantage
• Move away from familiarity with client company
specifications being a source of competitive
advantage

Integration in Delivery
• Integrate into our engineering and procurement
delivery toolkit
• Remove the opportunity for customisation on projects

2019 © Aker Solutions 08 October 2019 Slide 69

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2019 © Aker Solutions 08 October 2019 Slide 70

 BREAK
10 minutes

NEXT: Benefits Realisation workshop – lead by the “Fifth Business” consultants

On your return from the break:

Suppliers return to lecture theatre

Engineering Contractors go to Goliat breakout room

Operators – please join in the workshop conversations, give ideas, collaborate!

71
Feedback from working sessions

72
Reflections from the room

73
Mentimeter 3 – Final Ques and Ratings

74
75
76
77
Closing remarks

• Our requests
• Tell your organisations, spread the word!
• JIP33 team will share a version of this slidepack following this event
• We welcome requests for follow-up meetings, lunch and learns etc
• Sign up to our mailing list at www.iogp-jip33.org

• Invite your colleagues to our other industry days

• Kuala Lumpur – 18th November, hosted by Petronas
• Request offers to present on behalf of Engineering Contractors, Suppliers

• Download and use the published JIP33 specifications

• Support JIP33 phase 3 development

• Draft specifications are published online during development for comments from the supply chain

• Give us your feedback via www.iogp-jip33.org or email feedback@iogp-jip33.org

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For more information, please contact:

feedback@iogp-jip33.org – Programme Mailbox

ap@iogp.org – Adri Postema (JIP33 Project Director)

jb@jip33.org – Jack Bristow (JIP33 Project Engineer)

www.iogp.org/jip33
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