TOTAL Subsea Technical Specifications - alignment with SPS Contractors. P.A. NILSEN Head of Subsea Technology Department

Transcription

1 TOTAL Subsea Technical Specifications - alignment with SPS Contractors P.A. NILSEN Head of Subsea Technology Department

2 SCENE SETTING We see a continuing and significant cost increase in the subsea market We consider that lack of qualified technical resources has been a challenge globally for some time and it is predicted to become an even bigger challenge Lead time for Subsea equipment is increasing it takes longer from discovery, via development/project execution to production Capacity in the subsea market is tight market predictions indicates that this will continue to be a challenge A very high percentage of developments using SUBSEA technology has a bespoke design approach optimization of each development for each operator is the main driver for decisions Increased demands for local content work in is a natural and logical development in the subsea industry. The consequence is limited global centralization i.e. Potentially reduced global execution efficiencies (fragmented global operations) 2

3 PROBLEM DESCRIPTION The subsea global business in not industrial and has few global standards and solutions. Most operators globally have their own prescriptive technical specifications in addition to reference international design standards. SPS Contractors (and suppliers) have a large portfolio of proprietary technology mostly not interchangeable. Very different product specifications Service and operational support becomes challenging and expensive 3

4 THEY ALL DO MAINLY THE SAME THING...? 4

5 WHAT CAN WE DO? A commonly used phrase in the subsea industry today..stop the bespoke design and do more standardization!! Do we mean it? STANDARDIZATION of subsea solutions/equipment has been discussed for decades. But with very limited success/progress. What is different now? Cost level. The current situation is not sustainable. But do we all have the same definition of standardization? 5

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7 PROS & CONS Internal curbs to standardisation Projects and affiliates autonomy Suppliers diversity and competition Culture of optimization External curbs to standardisation Local content and legislation Suppliers motivation to invest in standardisation Bargaining power of chosen suppliers Innovation 7

8 IDEAL WORLD...? High level: We want standardized solutions and standard products I. We want a catalogue of standard field proven products II. III. IV. We want the ability to configure the subsea system based on these standards We want a system that is used by everybody, as it is then probably proven to be of acceptable quality We want equipment that is on the shelf V. We want short and predictable delivery time VI. VII. VIII. We want low cost And we want technology evolution to happen in the background not affecting any of the above We want full competition in the complete supply chain But we cannot get all of the above!! The question is what can we realistically get and how fast can we get it? 8

9 CONCLUSIONS AND CURRENT WORK: It is challenging to achieve any type of standardization unless the detailed technical specifications are aligned Subsea product specifications are absolutely not aligned between Contractors, suppliers and vendors. TOTAL initiated last year a work program to align better the technical specifications with the contractor product specifications The objective: To have a technical agreement with each of the main system integrators with Company technical specifications aligned with the Contractors product specification. 9

10 PRINCIPLE Contractor A Specific Addendum - Product alignment Technical Frame Agreement TOTAL & Contractor A Contractor B Specific Addendum - Product alignment Technical Frame Agreement TOTAL & Contractor B TOTAL Technical Specifications Contractor C Specific Addendum - Product alignment Technical Frame Agreement TOTAL & Contractor C Contractor D Specific Addendum - Product alignment Technical Frame Agreement TOTAL & Contractor D 10

11 CHALLENGES Resources and time it takes a lot of time and requires significant resources Ensure that the results are used in future work and overlapping projects Maintain competition Continue to stimulate technology evolution, to facilitate new ides and to allow newcomers to enter the market HOW TO: Maintain our lessons learned (they are embedded in our technical specifications). And how to capture and implement new lessons learned. Contractors assessment of good enough often stops at delivery (or when installed) our perspective is 25+ years of operation. 11

12 CONCLUSIONS AND CURRENT WORK: The next level of standardization will be INDUSTRIALIZATION. The Subsea industry need to increase focus on achieving global standard practises and development of standard interfaces. TOTAL is supporting initiatives to achieve a larger degree of industrialization We are open to new proposals! OBJECTIVE? SAFER, QUICKER, BETTER, CHEAPER 12

13 SPS TECHNICAL FRAME AGREEMENT SCHEDULE Steps Tasks 1 Specification list definition Definition of the General Specifications applicable to a typical SPS package March April May June January February March April May June July August September October November December Breakdown of the GS applicable per SPS equipment type (GS SBS + other GS TEC + other métiers FP, EXP ) Validation of the set of spec with the different entities involved ( other TEC entities + other métiers FP, EXP ) SPS GS major updates Analyse the last projects list of deviations/clarifications issued by the vendors Kaombo's Workshops list of deviation/clarifications analysis other projects (MOHO, EGINA) deviation/clarifications analysis Consideration of some PPS for GS revision/creation GS SPS updates (final draft before quality control) Set of Update GS SBS + other entities GS applicable to an SPS package (draft version before final quality control check) 2 SPS CONTRACTORS - GS REVIEW Kick-off Meeting with the 4 SPS CONTRACTORS Provide the list of update specifications to the 4 SPS CTR (AKER, OneSubsea, FMC & GE) Receive the first set of deviations/comments from the CONTRACTORS Review of the CTR deviations/comments by TOTAL on the first set internal TOTAL coordination Meeting Send the CPY comments on the CTR deviations/comments Receive the second set of deviations/comments from the CONTRACTORS Review of the CTR deviations/comments by TOTAL on the second set Send the CPY comments on the CTR deviations/comments 3 SPS CONTRACTORS WORKSHOPS Workshop 1: Package : Subsea Material selection/corrosion Protection Workshop 2: Package Subsea Control System Workshop 3: Package PGB/Wellhead/XT and tubing hangers Workshop 4: Package IWOCS & associated tools Workshop 5: Package Jumper & Connector and intervention Tools Workshop 6: Subsea valves Workshop 7: Package Manifold and SSIV Module Workshop 8: Package other Equipments : Subsea Process (MPP, Subsea Pig Launchers, ) 4 Technical Frame Agreement Preparation of the SPS Technical Frame Agreement 1st draft preparation with OPS/CA 1st proposal to the different vendors (contractual part) Final Technical Frame Agreement signature with the SPS CTR This is a major undertaking but if we do it right it should be significant value added 13

14 DISCLAIMER AND COPYRIGHT RESERVATION The TOTAL GROUP is defined as TOTAL S.A. and its affiliates and shall include the party making the presentation. Disclaimer This presentation may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, business, strategy and plans of TOTAL GROUP that are subject to risk factors and uncertainties caused by changes in, without limitation, technological development and innovation, supply sources, legal framework, market conditions, political or economic events. TOTAL GROUP does not assume any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise. Further information on factors which could affect the company s financial results is provided in documents filed by TOTAL GROUP with the French Autorité des Marchés Financiers and the US Securities and Exchange Commission. Accordingly, no reliance may be placed on the accuracy or correctness of any such statements. Copyright All rights are reserved and all material in this presentation may not be reproduced without the express written permission of the TOTAL GROUP. 14