procurement of equipment_packages_at_aker_engineering

Confidential © 2013 Aker Solutions Preferred partner

Preferred partner

Procurement of Equipment packages at Aker Solutions Engineering

Eric Anderson, Procurement Department Manager, Aker Engineering, Oslo Rauma, June 3; Pori, June 11, 2014


Agenda

Aker Solutions and Aker Solutions Engineering Procurement Supplier Documentation: Vital Interface information and LCI Supplier Qualification Standardization Product Coordinators Evaluation Criteria Arctic competence

Slide 2


Aker Solutions Engineering’s market

Aker Solutions Splits Into Two Companies Slide 3

Prior to demerger with Kværner EPC = Engineering, Procurement, Construction After demerger with Kværner EP = Engineering & Procurement services EPma = Engineering, Procurement & management assistance

Slide 3


Aker Solutions

30 April 2014 Aker Solutions Splits Into Two Companies Slide 4

New Aker Solutions

Regions

Subsea

Subsea Umbilicals

Field Design

Engineering Maintenance, Modifications and Operations

Slide 4


Akastor


Akastor

Drilling Technologies

Aker Oilfield Services

Surface Products

Process Systems

Business Solutions

Financial, real estate

assets


Aker Solutions

30 April 2014 Slide 6

New Aker Solutions Revenue: NOK 29.2 billion EBITDA: NOK 2.3 billion EBITDA margin: 8% Capital employed: NOK 9 billion Employees: 20,500 Countries: 19

*Preliminary pro forma earnings for the twelve months ended March 31, 2014. Number of employees and countries as of March 31, 2014

Typically > ½

is Procurement

Does not generally include

reimbursable Procurement /

Procurement on behalf of our

clients

Slide 6


Lump Sum and Reimbursable Business Models


77%

23%

7%

93%

Subsea | Revenue 1Q 2014

Field Design | Revenue 1Q 2014

44% 56%

New Aker Solutions | Revenue 1Q 2014

Lump sum Reimbursable




Who is buying, and why?

Slide 8

Lump Sum Reimbursable Invoice Supplier selection Cost focus PO Approval Deviations

Slide 8


Aker Solutions Engineering Organization

Valborg Lundegaard

Head of Engineering

Erik Sjølie Engineering UK – London

Sanjay Joshi Engineering

India

Ravi Kashyap Engineering

Malaysia

Astrid S. Onsum Engineering

Norway – Oslo

Henning Østvig Front End Spectrum

Rune Andersen VP, Procurement

Rolv Werner Erichsen

VP, Engineering

Eric Anderson Department Mgr.

Engineering Discipline Managers

Project Proc. Managers

Slide 9

Petter Taranger VP, Operations

Project Engr. Managers

[email protected]

Slide 9


Johan Sverdrup

13 June, 2014 Slide 10

Statoil appointed as pre-unit Operator for the development

Description: Phased development Based on Field centre layout – LQ + RP+ WHP + Process Use of jacket substructures Tie-in of standalone WH platforms and/or subsea templates Oil export in a dedicated pipeline to Mongstad

PL 265 (Aldous)

Statoil 40% (operator)

Petoro 30%

Det norske 20%

Lundin 10%

PL 501 (Avaldsnes)

Lundin 40% (operator)

Statoil 40%

Mærsk 20%

Slide 10


Johan Castberg

13 June, 2014

Resources

■ Two main discoveries in a

prospective area

■ Skrugard discovered April 2011

■ Havis discovered January 2012

■ 400 – 600 millions bbls of oil

Location/Depth: ■ 240 km from Hammerfest LNG ■ 200 km from Bjørnøya ■ 360-405 m water depth

Skavl

Nunatak

Iskrystall

Kramsnø

PL532 & PL608: Statoil (O) 50% ENI 30% Petoro 20%

Slide 11


DETAIL ENGINEERING

Procurement

Slide 12

FEED

Engineering & Procurement services

STUDY

PRE PRB

Slide 12


Procurement

Slide 13

Scope: • Engineered items • Off the shelf with modifications

Slide 13


Procurement

Slide 14

Scope: • Equipment • Tagged Bulk • Studies and services • Bulk

• Mechanical • Electrical (boards, transformers) • Instrument (control systems, fiscal metering) • Safety (deluge, life boats) • Marine (mooring, thrusters) • Telecom (CCTV, radar, telemetry) • Structural (castings) • Architect (heavy doors) • Drilling • HVAC

Slide 14


Procurement

Slide 15


• Pneumatically actuated valves • Hydraulically actuated valves

Slide 15


Procurement

Slide 16


• Inspection • Analysis • Testing • Reports • Certification

Slide 16


Procurement

Slide 17

Scope: • Equipment • Tagged Bulk • Studies and services • Bulk • Large diameter manual piping valves

• Special manual valves

Slide 17


Supplier Documentation

Slide 18

• Essential part of the delivery • Often the delaying element • Critical during execution to mature and complete the overall facility design • Needed as part of final documentation for use in Operations • Must be included in the overall price • Milestone payment criteria

Slide 18


Supplier Documentation

Slide 19

SDRL = Supplier Document Requirement List SDL = Supplier Document List

• M1: Critical Vendor Information, SDRL, EPMS, Q-Plan, I&TP, GA

Drawings, P&ID • M2: Utility Consumption List, Instrument Index, Main Equipment List,

Block Diagram, Cable List, Datasheet on main equipment, Foundation drawing

• M3: SPIR, Functional Description, Cause and Effect, Wiring Diagrams (El.+Inst.), Cable index, Paint procedures, Test Procedures, HMS Check List, Datasheets

• M4: Handling and Shipping Procedure, Installation Procedure, Preservation Procedure, Shipped Loose Item list

• M6: Final Documentation

Approval Cycle • 2 weeks for supplier • 3 weeks for contractor

Slide 19


Bid Negotiation

Slide 20

• Terms and Conditions are negotiated • Bid Price is binding and non-negotiative up or down • Clarifications and Qualifications are allowed to be priced

Slide 20


Supplier Qualification / Selection

Slide 21

• Client Qualification • Commercial Qualification

• SQiS • Achilles (EU Procurement Directive)

• Screening • Commercial / Technical “filtering”

• Long List • Bidders List • Shortlist • Bid Clarification Meeting • Selected Bidder Summary Report • Client approval • Award

Processes M

anifestations

Slide 21


Standardization

Slide 22

• Client Frame Agreements • Contractor Frame Agreements • Economies of Scale • Spare parts inventory • Maintenance • Schedule considerations • Free issue

Slide 22


Product Coordinators

Slide 23

• Contact person • Responsible for general supplier meetings • Supplier database • Supplier relationship • Supplier development • In-house expert • Experience transfer

Slide 23


Evaluation Criteria

Slide 24

• Quality • Schedule • Cost

Risk

Criticality Assessment

Risk Mitigation

Slide 24


Order Execution

Slide 25

• Order Confirmation • Vital interface information

• SDL • Progress reports

• EPMS • Change Management • Supplier Evaluation Report

Slide 25


Summary

Slide 26

• Establish contact via Product Coordinator • Qualify with Client or Aker Solutions • Reply to Screening letter • Reply to RFQ / bid clarifications • Attend BCM

Slide 26


Main physical challenges in the Arctic

■ Lack of infrastructure ■ Logistics and high cost ■ Communications and positioning

■ Sensitive environment ■ Weather and light conditions

■ Polar lows, icing, snow drift, ice front, polar night

■ Unique risk factors for personnel, environment and equipment

Slide 28 Slide 28


Tromsø as Arctic Knowledge Hub

■ Aker Solutions’ “Window to the North” ■ Collaborate with Oslo, St. John’s,

Helsinki, Houston, and others

■ Arctic expert group in Tromsø

■ Main tasks: ■ Consolidate knowledge ■ Strategic positioning ■ Differentiating strategies ■ IPR / market analyses ■ External visibility

13 June, 2014 Slide 29

Houston (ENG/SUB)

Hammerfest (SUB)

Sandnessjøen (MMO) Oslo (ENG/SUB/PRS)

Arendal (MLS) Kristiansand (DRT)

Stavanger (MMO)

Narvik (WIS) TROMSØ (MMO/ENG)

Aker Arctic Finland (ENG)

Calgary (PRS)

St. Johns (MMO)


Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

Disclaimer This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker Solutions ASA and Aker Solutions ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker Solutions’ businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Aker Solutions ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Aker Solutions ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Aker Solutions ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. Aker Solutions consists of many legally independent entities, constituting their own separate identities. Aker Solutions is used as the common brand or trade mark for most of these entities. In this presentation we may sometimes use “Aker Solutions”, “we” or “us” when we refer to Aker Solutions companies in general or where no useful purpose is served by identifying any particular Aker Solutions company.

Slide 30 13 June, 2014

procurement of equipment_packages_at_aker_engineering

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