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Strictly Private & Confidential, © Copyright Bibby Offshore

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2017SHARE FAIREuan Stevenson – Commercial Team Lead

Fraser Grant – Senior Contracts Engineer


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EMERGENCY EXITS


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AGENDA

• Unlocking Subsea Productivity

• Business Excellence

• Challenging Commercial Models

PART 1 – VALUE ADDING INITIATIVES

• Working with Bibby Offshore

• Our Procurement Process

PART 2 – OUR SUPPLY CHAIN AND

ENGAGEMENT • Current Market

• Forward Work Plan

• What we need from you

PART 3 – CURRENT MARKET FOCUS AND

OPPORTUNITIES

INT

RO

DU

CT

ION

WH

O T

O C

ON

TAC

T


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INTRODUCTION – BIBBY BACKGROUND

Established in 2003, Bibby Offshore is part of Bibby Line

Group

A leading subsea services provider

Core geography of North Sea and international bases in

Norway and Houston

Over 400 projects completed

Over 9000 vessel days delivered since 2010

Global fleet of four vessels

Fleet of 12 advanced electric modern ROVs

VISION

To be the subsea life of field partner of choice

MISSION

Bibby Offshore will be acknowledged as the leading

subsea services provider delivering safe and quality

performance to all stakeholders


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WHAT WE DO

• Integrated subsea service offering encompassing

project management, design, engineering,

procurement, installation and commissioning activities

• Subsea work sites accessed using divers, remote

intervention technology or a combination of both

– Diver operations up to a depth of 300m

– Comprehensive suite of remote intervention tools for

depths up to 3,000m

• Key services delivered:

– Inspection, repair and maintenance of subsea assets

– Installation and commissioning of new subsea

architecture

– Decommissioning

– Renewables

Leading subsea contractor with an outstanding track

record in safety and efficiency – Winner of Oil & Gas UK

Offshore Safety Awards – Workforce Engagement

Category for Team DSV Bibby Topaz


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PART 1 - VALUE ADDING INITIATIVES


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UNLOCKING SUBSEA PRODUCTIVITY

Collaboration with supply chain - new ways of working

Repeated pressure on supply chain to cut rates

Independent Campaigns = Independent Costs

Non Productive Time – borne to each project

USP (Unlocking Subsea Productivity) collaborative shared campaign approach

Current Climate:

High cost base and short IRM scopes not viable

Challenge:

Behaviours, current mind set, buy-in

Opportunity:

Efficient, sustainable campaign management, cost savings


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BUSINESS EXCELLENCE

Key Objectives

• Business excellence and improvement projects

• Delivering sustainable business and process improvement

• Facilitate the delivery of client projects from initial scope through to

completion and benefits realisation

Define Measure Analyse Improve Control

• Select strategic issue to

address

• Project Charter

• Form the team

• Define SIPOC

• Verify performance with

data

• Agree team contract

• Define the review

process

• Flowchart process

• Streamline &

standardise

• Agree customer

requirements

• Select key measures

• Define data

collection

• Listen to the voice of

the process

• Investigate waste

• Create pull & flow

• Balance the work

• Prioritise root causes

• Collect data to verify

causes

• Select root causes to

address

• Define possible

solutions

• Select solutions to test

• Plan & carry out tests

• Study the results of

tests

• Define next steps to

take

• Determine

competency

• Implementation plan

• Communication plan

• Monitor Plan

• Review

• Deploy standardised

improvements

• Monitor process and

react appropriately

• Review conclusions and

lessons learned

• Training

• Define future plans


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CHALLENGING CURRENT COMMERCIAL MODELS

•Supply Chain Initiatives

– Preferred contractor models

– Encouraging collaboration between

complimentary service providers to maximise

efficiency and value for money

– Cross training of supplier personnel

– Integrated use of back deck plant and

equipment

– Training of Bibby personnel in use of Supplier

Equipment

– Risk and Reward Models

– Encouraging new technology


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PART 2 - OUR SUPPLY CHAIN AND

ENGAGEMENT


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WORKING WITH BIBBY OFFSHORE

We recognise:

• The important role our suppliers play in the successful

development of our business

• Having strong relationships with our suppliers is

fundamental to delivering excellent service to our clients

We expect our chosen suppliers to:

• Provide safe, efficient and cost effective solutions;

• Be kind to the environment;

• Be focused on delivery;

• Be ethical and fair;

• Share our Core Values


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SUPPLY CHAIN OVERVIEW

8000 Purchase Orders raised per

year

Contracted with more than 750 suppliers in

the last 2 years

47 Active Frame Agreements for

procurement

Circa £51m supplier expenditure in 2016; £65m 2017 to date

6 key services potentially up for renewal in 2018


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OUR PROCUREMENT PROCESS

1. Identifying a requirement for third party support

2. Preparation of Scope of Work / Services and collate ITT documentation

3. Definition of commercial strategy

- Pricing and terms

- Market approach – single source, RFQ, ITT

- Always seeking best value solution

4. Identification of prospective suppliers

Bibby utilise FPAL in order to identify suppliers who:

- Supply the specific service/material

- Score highly in supplier reviews

-Supplier Engagement Sessions

-Non-FPAL registered suppliers may be considered subject to suitable pre-qualification exercise.

Determining Service Requirements

Prepare ITT/RFQ

Commercial Strategy review

Supplier selection


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PROSPECTIVE SUPPLIER PROCESS

1. Prior to Approval:

– Suppliers are required to comply with Bibby AB&C Policy

– Suppliers will be asked to complete a Due Diligence Questionnaire

– Suppliers may be subject to a QA/QC and Compliance Audit

2. Once approved:

– Periodic data reviews shall take place

– Regular performance review meetings (where appropriate)

– Supplier Engagement Sessions focusing on new / improved products

and services

Adherence to ABC Policy

Due diligence questionnaire

Initial AuditOngoing

performance reviews


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PART 3 - CURRENT MARKET FOCUS

AND OPPORTUNITIES


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CURRENT MARKET CHALLENGES

• Reactive due to an increase in “fix on failure” approach

• Reduced visibility of upcoming works

• Reduced turnaround for ITTs – both Client / Suppliers

• Tighter lead-in time to offshore execution

• Increased demand for lower costs with the same level of

service

• Mitigation measures:

– Use proven technology in an innovative way to deliver a safe,

high standard deliverable at a lower overall cost

– Utilise new technologies that offer efficiencies leading to a lower

overall cost

– Pre-agreed terms and conditions / Frame Agreements


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FORWARD PLANS / OPPORTUNITIES 2018

• Technology innovations

• Engagement sessions

• Project specific procurement (Increase FA numbers)

• Well P&A

• Decommissioning

• Renewables

• Pre-commissioning

• Freight Forwarding

• Rigging

• Tools / Consumables

• Training Services

• Office based supplies and stationery

Business Procurement

Project Procurement

Supply chain focus

Forward plans (Target

Areas)

Description Potential

Renewal

Date

Potential

Tender date

Pre-commissioning Q4 2018 Q3 2018

Freight Forwarding Q4 2018 Q3 2018

Rigging Q4 2018 Q3 2018

Tools /

Consumables

Q2 2017 Q1 2018


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WHAT WE NEED FROM YOU

We would like to talk to you if you have:

– Excellent QHSE track records

– Rapid response capability

– Technical excellence and skilled personnel

– Proven systems and procedures to aid successful, cost-effective

project delivery

– Innovative solutions to offer both core business streams and USP

– A collaborative approach

– Proactive supplier engagement sessions and presentations suitable to

our business

– Are willing to work with Bibby and other suppliers to develop

sustainable cost savings


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WHO TO CONTACT

• Anna Walls – Commercial Manager, Operations

• Euan Stevenson – Commercial Team Lead

• Fraser Grant – Senior Contracts Engineer

• Vikki Thom – Subsea Business Manager (USP enquiries / general business information)

• Email enquiries [email protected]

mailto:[email protected]


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THANK YOU

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