Transcript Title Page - Main Title – Futura Bold 28pt

Shell Exploration & Production
UK Norway Share Fair
April 20th 2006
Copyright: Shell Exploration & Production Ltd.
Ardoe House Aberdeen
Alastair Reid
Supply Chain Team Leader - Projects
Agenda
•
Overview - Shell Exploration & Production
•
Global Category Management
•
Selling to Shell E&P in Europe
•
Norwegian Focus
•
Contact us
Shell Exploration & Production
EP Key Locations
Canada
NW Europe
Oman
USA
Nigeria
Malaysia
Australia
Brunei
E&P Supply Chain Strategic Elements
Strategic focus: fit-for-purpose strategies for major spend categories.
Business integration: Supply Management hardwired in business processes
•
dedicated global matrix organisation, clear accountabilities
•
processes to enable synergy with suppliers & efficient requisition to pay
Common approach: common processes, tools & behaviours.
•
Best practice processes, min standards & enabling tools, “one voice” to market
•
Consistent & pervasive performance mgt with credible measures to monitor
progress & support delivery of benefits.
Valued people: competent professionals working on strategic level.
•
Assuring competence development to meet business needs
Global Category Management
•
Dedicated capability across a majority of third party spend
for major market categories
•
Global strategies that support business objectives
•
Making full use of market intelligence
•
Sourcing contracts optimise total cost of ownership
•
Post contract award: continually improve cost and value
performance as well as ensuring contract compliance
Global Category Management
Stakeholders
Regional/OU structure
WELL ENGINEERING: rigs, bits, cementing, OCTGs, completion equip, expandables, liner hangers, fishing/
milling, coiled tubing, ESPs, well control, casing/tubing running, Directional Drlg/Wireline
Upstream
Business
Category
Groupings
PRODUCTION : boats, helicopters, prod chemicals, Integrated Services, Facilities Management, installed base
compression
CAPITAL PROJECTS : linepipe, pipelay services, compression, subsea facilities - deepwater, agency manpower
SEISMIC, IT, TRAVEL, CONSULTANCY and other SERVICES
Shell Exploration & Production in Europe
E P
E u r o p e
•
1 Management team
•
1 Business plan
•
1 Strategy
•
Aligned policies
•
Aligned procedures
•
Integrated support team
Shell Exploration & Production in Europe
•
Approx. 4,500 employees - contributing approx. one third to Shell EP Business.
•
And the prize in each country:
– Norway - Est. 70% hydrocarbons still to be produced.
•
–
U.K. - just under 50% hydrocarbons still to be produced.
–
The Netherlands - Over 50% still to be produced.
–
Ireland - Plans to bring Irish gas onshore
–
Germany - Successful gas production in Europe’s biggest mature energy market.
–
Italy - Turn largest onshore oil accumulation in Europe into a legacy position.
–
Austria - Successful mature operator with growth aspirations.
–
Denmark - Successful venture with an extended licence period (2042).
UNDERPINNING OUR BUSINESS IS LEADERSHIP IN HS&E PERFORMANCE
Supply Chain Management in E&P in Europe
Supply Chain Manager
John Lickvar
ABERDEEN
Well Engineering SCM
Projects SCM
Services SCM
Jeff Prestwich
Iain Middelton
ABERDEEN
ABERDEEN
Drilling
Well Engineering
Capital Projects
Production SCM
Support Manager SCM
NOV SCM
Marie Marsh
Neil MacLean
Alex de Jager
Clive Bray
ABERDEEN
ABERDEEN
ASSEN
STAVANGER
IM/IT, Geosciences
E&M, Logistics
Assurance, Process,
HR, FM
Production Services
External relationships
Non Shell
Operated Ventures
Number of Current EPE Contracts
We ll
Engine e ring
12%
Production
35%
Services
38%
Projects
15%
Total
Supply Chain
Production
Projects
Services
Well Engineering
Total
UK
826
349
908
284
2,367
538
63
310
127
1,038
Nor w ay
The Ne the r lands
53
38
432
73
596
233
22
138
61
454
Ir e land
2
226
22
23
273
Italy
0
0
6
0
6
Integrated Service Contractors (ISC)
• Significant volume of our activity is
performed by ISC's
• Where we have an ISC - generally
– Shell contract with 1st tier suppliers
– ISC contract with 2nd tier suppliers
• Key contacts within the ISC’s are available
Shell Exploration & Production
in Europe - ISC Overview
Groningen
GLT Maint
Land
MultiGas
OMC
Norway/Brent
AKOP
WGE
“Central”
“Mature”
Sigma 3
GLT Proj
LOP(Projects)
Supply infrastructure
Maintenance only
Projects only
P+M
EPE gas/oil fields
Onegas
AJS
Integrated Maintenance and Modifications Contract (ISC)
Aker Kværner Offshore Partner (AKOP)
Integration with and between Stavanger and Kr. sund organisations
•
•
•
Project Engineering and Engineering & Maintenance
•
Engineering Services: Mechanical, E&I, etc
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Support: Procurement, Cost/ Plan, DCC etc
•
Prefabrication
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Construction: Mechanical, E&I, Structural, Process, Safety, Surface Treatment, Insulation, Scaffolding
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Maintenance Support: disciplines as above
Subcontracts:
• Surface Treatment, Scaffolding/ rigging, Insulation
• Process Support: pressure testing, high pressure cleaning, nitrogen purging. Option.
• Civil: roads, structures, buildings, concrete, drains. Option
• Material frame agreements: piping, steel, cable trays, nuts and bolts etc.
Does not include: maintenance discipline contracts (valves etc – managed directly), front end engineering/ concept. Larger mods/ projects
can be run separately
Our Value Proposition to Suppliers
Relationships
•
It is our aim to work effectively with the industry, and where business needs justify
and competitive supply assured, we build long-term relationships based on trust
and clear, mutually agreed objectives.
•
We capture the efficiencies of dealing with suppliers, for example through
standardising prequalification and terms & conditions.
Collaboration
•
We work with suppliers in development and deployment of key technologies.
•
We actively promote the fair sharing of risk between supplier and operator, which
is increasingly important as we venture into more technically and commercially
challenging environments.
Performance
•
Relationships with suppliers who perform to an excellent standard will be
nurtured.
•
We measure performance and build differentiating performance into our
contracting strategies.
Doing Business With Shell Exploration & Production in Europe
• Shell E&P in Europe use the oil & gas industry supplier database - Achilles in Norway and FPAL in UK and
NL which eliminates the need to maintain our own in-house supplier database.
• Achiles and FPAL give us a structured way of identifying and selecting potential suppliers & contractors based
on the quality of their data in the database.
• Suppliers interested in working with us should register with Achilies andFPAL and build up an attractive
supplier profile by registering as fully and as accurately as possible.
• Large or Critical suppliers may also be required to undergo FPAL Capability Assessment, to reduce duplication
of requests for information in the tender process.
The Supply Chain Code of Practice outlines a set of best practice guidelines for the UKCS oil and gas industry to:
First adopted by the industry in 2002, signatories undertake to work towards full compliance. They include major purchasers (UKCS operators and principal contractors)
and suppliers (companies providing goods or services).
Transparent planning of contracting activity by major purchasers to
improve supply chain capability
• Communicate forward plans to the industry
• Support the annual industry Share Fair
• Publicise a list of internal contacts
Streamline pre-qualification, tendering and negotiation processes to
reduce billing costs, eliminate waste and value and increase
competitiveness
• Where pre-qualification data is required only invite bids from suppliers
registered with FPAL
• Eliminate supplier data duplication by utilising FPAL
• Use industry standard ITT Models where appropriate
Increase feedback dialogue and shorten payment cycles to improve
performance
• Include performance indicators
• Give FPAL performance feedback
• Pay all valid invoices within 30 days
• Provide appropriate de-briefing for all bids
• Use industry standard contract forms
• Include payment terms of 30days in all contracts
• Review Purchaser plans, FPAL Purchaser Profiles and attend Industry
Share Fairs
• Keep FPAL records valid and up-to-date
• Track and discuss key contract performance indicators
• Refer purchasers to FPAL if duplicate information is required
• Request and participate in PLAL performance feedback
• Participate in the Industry Mutual Hold Harmless
• Submit complete and valid invoices
• Use standard industry contracts (LOGIC type or company specific
• Adopt a prompt payment policy for own suppliers
global contracts)
Shell Exploration & Production
in Europe expects from vendors
• Business Principles
•
– Satisfactory financial
position to provide
continuity in the market
where it operates
– Services and products
delivered in accordance with
Shell General Business
Principles
• HS&E & Quality
– Aligned management systems
and a very good performance
track record
• Mutual Indemnity Agreement
– Undersign the deed
Financial
•
Technical (product features /
vendor business capabilities)
– Meet requirements of
(inter)national and if
required specific Shell /
E&P in Europe defined
standards
Shell Exploration & Production
Copyright: Shell Exploration & Production Ltd.
Norwegian Specifics
Shell E&P Europe - Norway
Kristiansund:
50 staff approx.
Draugen Field Production
Orman Lange Field Production (Oct.2007)
Engineering Maintenance
Aukra:
30 staff approx.
Orman Lange Field - Plant & Admin
Gas Processing
Kristiansund
Stavanger:
550 staff approx.
Aukra
Central Office
Well Engineering
Exploration Drilling
Project Engineering
Corporate Functions (FM, HR, Finance)
Stavanger
Operations: Mid-Norway and Norske Shell
o Office established in
Kristiansund 1989
o Operations in Kr. sund in 1992.
o 1 platform & single train
o Shell ownership, skilled
offshore staff
o Value creation in Mid-Norway
seen as target also for Ormen
Lange: 40 year perspective
Draugen Subsea Layout
D3
E3
2007/8 Activity
Draugen
• Draugen project funnel
showing big potential
future projects:
– new loading buoy
Draugen Opportunity Funnel, March 2006
IG
Pre -Init.
FG
Identify
Select
CG
Approval
AG
Execute
Platform Rig
PWM Phase 2,
incl. NWIT line
D3 well
E3 well
F-gate
May/ June
CO2 for EOR +
Electrification
I-gate April
RG
1 st
HC
FID
I-gate Q2
Review
A-55 gas
injection
HOLD
Fire& Gas
SWIT
(integrity)
Joint rig
opportunity poss
Leak detection
Loading bouy
EF Appraisal well
e-Operation
A55 repair
– CO2 pipeline supply
from the beach and
injection into reservoir
– re-installing a drilling rig
on the platform
Next 4D
New infill wells/
remaining oil targets
F-gate May
RS flowbase
X-mas tree integrity work,
D2, A53, A5 GI,
EF Dev work,
Draugen 2025
14
Trym Development
Trym
• Trym is a Norwegian gas/condensate
development
• Trym Owners
• Shell (50%)
• Statoil (30%)
• DONG (20%)
• Tri-lateral subsea well
• Tied back to Harald (located in Danish sector) via
5 km 8” flow-line.
• Harald is a DUC owned and Maersk operated
platform.
• DUC = Danish Underground Consortium (39%
A.P. Møller – Mærsk AS, 46% Shell, 15%
ChevronTexaco).
• Cross border issues Norway / Denmark
Plan
• Rig availability - critical factor
• Drilling operations: Q1 and Q2 2007
• Marine installations during
summer season 2007
• Harald platform modifications
during Q2 and Q3 - 2007
• Production start: Q4 - 2007
Ormen Lange
Location:
120 km northwest of Kristiansund
Gas production:
20 GSm3/yr
Recoverable gas reserves:
Recoverable condensate
375 GSm3
22 MSm3
Water depth:
800 – 1 100 metres
Field investments:
Approx 55 bn NOK (2002)
Pipelines investments:
NOK 5 - 17 bn NOK
Operator for development
and construction:
Norsk Hydro ASA
Operator for production:
A/S Norske Shell
Ormen Lange Production Stair Case
•Strategies
•PDO
•Organisation
•Design
2003
•Recruitment
•Operability Rev.
•Contract Strategy
•Power
•Commissioning
2004
•Recruitment
•IT systems
•Man systems
•Procedures
• Tender
• Organisation
2005
• Recruitment
• Contracts
• Maint.
Systems
• Emerg Org.
• Take-over
2006
•Commissioning
•Start-UP
•Transfer of
Operatorship
2007
Ormen Lange
Maintenance: Outsourcing Level
Support preventive,
corrective, shutdowns
etc
MAINTENANCE SUPPORT BY ISC
SPECIALIST MAINTENANCE
Call-off based on
condition monitoring
and preventive
maintenance routines
Preventive, Corrective and Condition Monitoring
Equipment Suppliers and Other Specialists
CORE MAINTENANCE
1st Line, Corrective and
by Shell Personnel
Supervision of
execution,
PMRs, 1st Line
Core Maintenance
32%
I.e. Shell ownership retained;
outsourcing level:
- Stable,
- Builds on current organisation
Support
38%
Specialist
30%
Examples of Ongoing and Upcoming Tenders:
Ormen Lange and Draugen
•
USC
Ongoing
•
Draugen Area Tiebacks
2007
•
Frame Agreement for Lifting Equipment
Tender Evaluation ongoing
•
Maritime Support/ Tugs – Ormen Lange
Tender Evaluation ongoing
•
Inspection & Corrosion Monitoring tender
Strategy/ plan for approval
•
Condition Monitoring Services tender
Prequal performed
•
Quantitative Risk Assessment Services
Screening & Prequal final
•
Control System Support Services
Strategy/ plan for approval
•
Maintenance of Valves
2nd half 2006
•
FM – Work Environment
Q2 2006
www.shell.co.uk/supplychain
• Contracting future plans
– Updated Quarterly
– Includes key contacts and timing per
activity
• Selling to Shell overview
• Shell Group Business Principles
• Supply Chain Management
– key contacts
Contact Us ……
We have a hard copy listing of
contacts available for you
For follow up please use our
Contact List or contact:
Shell email
[email protected]