Transcript Headline

Introduction of Petrofac China Sourcing Practice
China Sourcing Submit 2012
Jiang Junyan
Country Manager – Petrofac E&C
Agenda
1. Petrofac at a glance
2. Petrofac’s sourcing activities in China
3. Experience sharing
•Further details
Petrofac at a glance
• Financial
– Listed in London Stock Exchange,
– approximate market capitalization of US$8.5 billion
– 2011 revenue US$4.5 Billion , backlog of US$ 11.7 Billion
– largest of the oil services sector listed in the UK by market capitalisation
• Personnel and Locations
– more than 15,000 personnel, HQ in London UK, have 27 offices around the
world
• Ranking
– Engineering News - Record (ENR) Survey 2011 rated Petrofac again in the
top 10 international contractors in the oil & gas industry
• Business
– Engineering & Construction, Operations & Maintenance, Production
Solutions and Investment
•Further details
Ranking - 2011
4
Q3 2011
Offshore
Projects &
Operations
•Partnership With CPECC
5
Q3 2011
Offshore
Projects &
Operations
•Business units - services
•Engineering &
Construction
•Engineering &
Construction Ventures
 Engineering Procurement & Construction (EPC)
 Project management
 Lump sum EPC
 Consultancy
•Engineering Services
 Front End Engineering Design (FEED)
•Offshore Engineering
•& Operations
 Offshore Projects
 Project Management Consultancy (PMC)
 Operations
 Competency-led training
•Training services
 Consultancy managed solutions
 Emergency response and crisis management
•Production Solutions
 Facilities management
 Well engineering & well consultancy
 Production enhancement
 Production modelling & optimisation
 Improved reservoir recovery
•Energy Developments
 Investment in upstream opportunities based on proven hydrocarbon reserves and in
oil & gas infrastructure, leveraging our core skills
Recently completed & current EPC projects
PROJECT
COUNTRY
PROJECT VALUE
SCOPE
Agip KOC -Kashagan field development
Kazakhstan
US$ 2,500 mm
EP&CM
ADCO – Asab field development project
UAE
US$ 2,452 mm
EPC
El Merk - Central Processing Facilities (CPF)
Algeria
US$ 2,216 mm
EPC
Gasco - NGL4 , Ruwais, integrated gas development project
UAE
US$ 2,100 mm
EPC
PDO - Harweel field development project
Oman
US$ 1,400 mm
FEED/EPC
AGT - pipelines and pumping stations
Georgia & Azerbaijan
US$ 1,140 mm
EPC, JV
KOC – facilities upgrade project
Kuwait
US$
800 mm
EPC
ISG - In Salah Gas compression project
Algeria
US$
665 mm
EPC
Ohanet gas development project
Algeria
US$
660 mm
EPC, JV
QP, gas sweetening facilities
Qatar
>US$
600 mm
EPC
Karachaganak - fourth stabilisation &
sweetening train project
Kazakhstan
US$
600 mm
FEED/EPCM
Petro Canada - Ebla gas plant project
Syria
US$
565 mm
EPC
KOC – 40” gas pipeline
Kuwait
US$
550 mm
EPC
Saudi Aramco – Karan utilities and offsites
Saudi Arabia
US$
480 mm
EPC
BG - Hasdrubal terminal project
Tunisia
US$
475 mm
EPC
HPC - Jihar development project
Syria
US$
433 mm
EPC
PDO - Kauther depletion compression project
Oman
>US$
350 mm
EPC
China Sourcing – a must for EPC contractors
• China now ranked as 2nd largest economy after US , has huge
manufacturing capacity and is capable of producing products to
international standards- ASME, API, ISO …
• Most major International oil companies and EPC contractors are fully
aware of China Sourcing opportunities through their many years of
presence/ work experiences in China.
• In general, Chinese manufactured goods are cost effective than
European/American vendors , they can work 7/24 which guarantee fast
delivery
Overview: Petrofac Procurement Activities in China

Beijing office established in July 2007, mainly responsible for RFQ
progress follow up, vendor auditing and expediting support. It currently
has 7 staff.

Good progress made in 2010 since launching of China initiative in 2009
1.
Recruitment : 4 inspector/expeditors hired in 2010, 5 graduates joined
Sharjah office . Additional 5 to join in Oct 2012
2.
Significant increase of volume of RFQs routed to Chinese vendors and
record of PO’s placed on Chinese vendors.
3.
Intensive Vendor prequalification programme to approve Chinese vendors
into database.
4.
Procurement Volum increased from few million dollars in 2007 to over 40
million in 2011
Presentation title
July 15
Order Records in China (Direct Orders)
Year
Item
Vendor
South Yoloten - Turkmenistan
LSAW Pipe
PCK
Valves
Jiangsu Jiulong
Fittings SS
Hymco
Fittings/Flanges CS
ZNHI
Fittings CS
Yingkou
Pressure Vessels
Morimatsu
Seamless Pipe s
TPCO
Seamless Pipe s
Hengyang Tube
LSAW Pipes
PCK
2011
Project
KOC/KNPC Effluent Water Injection
Value Million (US$)
Chinese Vendor Pre-qualification Program
o SCA Register now available
o Specific focus on China, 58 vendors evaluated since 2007,
35 approved levels 1 and 2
o Prequalification visits by Petrofac Technical and Quality
Specialists - not by TPI
o Petrofac certificate being developed for approval of
vendors!!
Vendor Quality Management – SCA Register
 Equipment categories are now in line with Procurement nomenclature.
 Standard format used by All Assessors
 Team of QA & Technical experts for assessment
 SCA Register updated and released every Thursday COB
 Restricted distribution to decision makers
Risk Assessment and Mitigation plans for new suppliers
Extended with Post Order Performance
Key Factors Considered
• Manufacturing capacity
• Quality Management system and procedures
• Previous references and certification
• Major IOC /NOC experience and approvals
• Financial strength
Why are we doing this?
• Evaluate technical and quality risk; invest in quality;
reap the reward in project performance
• Petrofac takes responsibility for products in EPC lump
sum contract, so we must minimize our risk by
selecting reliable vendors
• Reduce chance of integrity/quality failures in the field
• Help Chinese vendors to improve and understand
better Petrofac requirements
Future Plans
• Issuing Petrofac certificate of approval for approved vendors
• Organize Petrofac Chinese vendor conference to update
Petrofac’s procurement policy
• Evaluation team in Quality/Integrity reporting directly to
Procurement
• Monitoring existing and new vendors and updating
confidence levels based on performance
• To recruit more local expeditors/inspectors to help improve
the communications between vendors and project team
THANK YOU !
Contact Point: Jiang Junyan
Country Manager – Petrofac China
[email protected]
+86 10 8453 9288 , 139 1003 7273
Offshore Projects & Operations
Q3 2011
16