4 june 2013 eic connect supply chain with...
TRANSCRIPT
EIC Connect –
supply chain with Petrofac
4 June 2013
Your speakers today
• Tony Chebat
– Head of supply chain,
Engineering, Construction,
Operations & Maintenance
2
• Sergio Torricelli
– Head of business development,
Engineering, Construction,
Operations & Maintenance
What we stand for
3
Petrofac is a culturally diverse
international company,
united by shared values:
• safe
• ethical
• innovative
• responsive
• quality and cost conscious
• driven to deliver
To be the
world’s most admired oilfield service
company
Our Vision:
Agenda
• About Petrofac
• Our supply chain
4
About Petrofac, who we are
• Petrofac is the largest UK-listed service provider to the international oil and gas
industry (FTSE #60), with over 18,000 employees across the world
• We have over 31 years’ experience and a track record of several hundred
projects across our key markets of the Middle East, Africa, CIS, Asia Pacific and UK
Continental Shelf
• Our capabilities span the oil and gas value chain; subsurface, asset management,
field development, engineering, construction, operations, maintenance and training
• We provide these services as standalone offerings but increasingly we offer our
capabilities as integrated services to resource holders to enable them to develop
their assets – we call this business “Integrated Energy Services” (IES)
• Whilst IES may deploy capital, we are fundamentally a service company, not an oil
company – we don’t do exploration and we don’t seek to book reserves
• We have been ranked number one EPC contractor in for the last 3 years in Oil
and Gas Middle East and annually train more than 56,000 delegates
5
About Petrofac, global footprint, local capability
Milan Abu Dhabi
Beijing London
Woking
Aberdeen
Moscow
Doha
Houston
Sharjah
Mumbai
Chennai
Jakarta
Kuala Lumpur Lagos
Ahmadi
Algiers
Tunis
Atyrau
Sakhalin
Khobar
Main operational centres
Other operating locations
Corporate services
Singapore
Baku
Muscat
Bangkok
Delhi
Basra
Villahermosa
Ashgaba
t
Bucharest
6
About Petrofac, organisational structure
7
Div
isio
ns
Engineering, Construction, Operations & Maintenance
(ECOM)
Chief Executive, Marwan Chedid
Integrated Energy Services
(IES)
Chief Executive, Andy Inglis
Production
Solutions Developments
Training
Services
Engineering &
Consulting
Services
Offshore
Projects &
Operations
Onshore
Engineering &
Construction
Serv
ice l
ine
s
Offshore
Capital
Projects
Two divisions, incorporating seven business units, providing life of asset solutions;
from design to decommissioning
About Petrofac, innovative solutions designed to
support resource holders
8
Integrated
Energy
Services
Engineering,
Construction,
Operations &
Maintenance
Design
Build
Maintain Train
Enhance
Production
Develop
& Co-
Invest
Operate Manage
Commercial structures employed
Reimbursable
services
e.g. Karachaganak FEED,
Kazakhstan
Cost
plus KPIs
e.g. Duty Holder on Northern
Producer, North Sea
Lump-sum
turnkey
e.g. Yoloten Project,
Turkmenistan
Production
Enhancement Contracts
Production Sharing
Contracts
Risk Services
Contracts e.g. Berantai, Malaysia
e.g. Ticleni, Romania
e.g. Cendor, Malaysia
Engineering, Construction, Operations & Maintenance
Integrated Energy Services
About Petrofac, our geographic footprint
• Strength and depth in core markets – substantially strengthened our
position in the Middle East and Asia Pacific
• Successfully expanded into new markets, such as Mexico, where we
now have four long-term contracts that will see us present in the country
for at least the next 30 years
• Building a position in West Africa, where we are seeing many
opportunities
• Strong pipeline of bidding opportunities in the onshore and offshore
sectors in 2013
9
About Petrofac
Our strategy – moving into deeper water
• Aim is to build a differentiated 1st tier offshore EPIC business
• Building upon our strong onshore EPC project management and
engineering capability, we aim to:
– expand our access to offshore facilities work
– access deepwater and SURF markets
– selectively address floating production and pipelines work
• To access top tier EPIC opportunities we intend to build our own
installation capability, which de-risks project execution and will support
IES projects
– expected capital outlay of around US$1 billion over the next 5 years
• Strong commercial networks in many regions will help to deliver our
offshore strategy
• Proven leadership team in place which we will continue to build upon
10
11
About Petrofac, our key ECOM projects
Original contract
value to Petrofac
Asab onshore oil field development, Abu Dhabi US$2,300m
US$2,200m El Merk gas processing facility, Algeria
US$500m GASCO 4th NGL train, Abu Dhabi
>US$600m Gas sweetening facilities project, Qatar
US$400m Mina Al-Ahmadi refinery pipelines 2, Kuwait
Water injection project, Kuwait US$430m
>US$800m Laggan-Tormore gas processing plant, UKCS
US$3,400 South Yoloten gas plant, Turkmenistan
US$1,200m In Salah southern fields development, Algeria
US$330m
US$240m
Customer key:
NOC/NOC led company/consortium
Joint NOC/IOC company/consortium
IOC/IOC led company/consortium
2012 2013 2014 2015
Undisclosed
Majnoon field, Iraq
US$200m
Badra field, Iraq
KOC power distribution network, North Kuwait
US$1,400m
Petro Rabigh, Saudi Arabia
Jazan oil refinery, Saudi Arabia
Upper Zakum, Abu Dhabi US$1.500m
2016
Sarb 3, Abu Dhabi US$515m
OUR SUPPLY CHAIN
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Where are we? How do you become a potential
supplier?
• Centralised in Sharjah and in strategic international work locations,
our team comprises of project specific procurement managers along
with 400+ experienced buyers, expediters, logistics officers and
materials controllers
• We have two main routes for accessing our supply chain
– approved vendor list
• provided to us by our customers so make sure you are registered
with the IOCs/NOCs
– through our own supply chain portal www.petrofac.com/vendor
and you can register through one of our ‘hubs’
13
Our supply chain, customer Approved Vendor
Lists (AVL’s)
14
Petrofac complies with customer project AVL’s
Any changes to AVL are discussed/ agreed with
Client.
For new vendors with no previous Petrofac experience (including AVL), review exercise and visits are carried out for:
1) Technical pre-qualification (including
shop visits and inspection by Petrofac
QA/QC department and Third Party
Agencies)
2) Financial audit (Petrofac Finance
Department and Third Party Agencies
(D&B)
Customer
Vendor/Supplier
Supply chain
• For supply of goods
• For site services
Our supply chain model
15
Our supply chain, procurement volumes
16
0
500
1,000
1,500
2,000
2,500
3,000
2006 2007 2008 2009 2010 2011
Va
lue
in
US
D (
Mil
lio
ns
)
Year
Our supply chain, annual procurement history
17
Woking, UK
Houston, USA
Milan, Italy
Beijing, China
Mumbai & Chennai, India
Sharjah, UAE
Centralised Team
Our supply chain centres
18
Seoul, South Korea
Above support offices provide sourcing, expediting and logistical support to home office.
Kuala Lumpur, Malaysia
Abu Dhabi, UAE
Aberdeen, UK
Centralised Team
Our supply chain - interfaces
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Freight
Forwarders
Vendor
Network
Construction
Site
Engineering
Team
QA/QC
Executive
Management
Satellite
Offices
SUPPLY
CHAIN
TEAM
Client
Accounts
Audit
19
Our supply chain, a robust procedural platform
Our supply chain, how we handle high volume
orders
• Thorough pre-qualification and short listing of vendors
• After mature design, clear definition of scope of supply including RFQ
package.High level buying/ expediting/ logistics team
• Detailed commercial negotiations with vendors to include:
– Price/ currency/ material fluctuation
– Shop load commitment
– Major milestones definition, to be linked to payment terms
• Appointment of dedicated order management team
• Procurement management involvement throughout order execution
21
Procurement Director
LLI Procurement
Manager
Project
Engineers QC
Resident Shop
Inspectors
Desk
Expeditors
Project Director
Major LLI Vendors
Our supply chain, high value order management
22
HSE TPI
Agencies
MRB
Controllers
Planning
Engineers Buyers
Project Procurement Team
– Resident at Vendor
premises
Support by Petrofac Satellite Offices
Audits
1) QA/QC
2) Internal
3) Cross Projects
Budget Reviews and Cost
Control
Delegated Authority Matrix Well Defined Evaluation and
Approval Process
Our supply chain, checks and balances
23
Our supply chain, key success factors
24
Strong, transparent relationships with our vendors
Prompt decision making
Heavy engagement with vendors at proposal stage
Early commitments to LLI’s
Booking production with fabricators, pipe mills
Pro-active expediting (desk and field), including extensive use
of support offices, resident inspectors and management visits
No bureaucracy
Underpinned by our core values
Supply chain - appendix
Buying
Receive enquiry
Requisition
Issue of RFQ to Vendors
Receive & Open Bids from
Vendor
Interface with Engineering for Technical Bid
Evaluation
Technical Bid Evaluation
Approval from Client
Placement of order and
receipt of order acknowledgment
Our supply chain, buying activities and sequence
27
Expediting
Review
the scope and conditions of each order
placed
Attend vendor kick-off and
progress meetings
Desk and shop expediting to ensure order and schedule compliance by
vendor
Interface with QA/QC and
Engineering for issue resolution
Upon inspection
release completion,
smooth handover to
Logistics
OSD
Management
Our supply chain, expediting activities
28
Our supply chain, logistics activities
29
Logistics
Shipping Documents
RTI (Request to Import)
Packing/ Repacking
Tie Down/ Sea Fastening
Vessel Survey/ Vessel Load-Out/ Load-Out Survey/
Insurance & Marine Warranty
Survey
Marshalling Yard
Management Heavy Lift and
Oversize Consignments
Interface with Engineering for Technical Bid
Evaluation
Chamber of Commerce
Attestations & Certifications
Custom Clearance, in
Country Transportation Port to Site, in Country Route
Survey
Preservation/ Storage
Chartered Flights
Material Management
Site Material Control
Asset Management
Surplus Management and Disposal
OSD Close-out
Coordination with Logistics
Our supply chain, materials management activities
30