Through Cost Effective Procurement Strategy. Gu Hong, COOEC April, 2011

Transcription

1 Managing Successful Offshore Modularized Fabrication Through Cost Effective Procurement Strategy Gu Hong, COOEC April, 2011

2 CONTENTS Offshore Project Management Need Analysis Sourcing in China Procurement Risk Mitigation 2

3 Who We Are TANGGU QINGDAO COOEC is one of the largest EPCI contractors for offshore oil & gas industry in the Asia Pacific area. CNOOC owns approximately 60% shares of COOEC. COOEC has also entered new business segment in the fabrication of modularized plant and drilling rig. 3

4 What We Do Services Products Conceptual Engineering FEED Detailed Engineering Shop Drawing As-built Drawing Procurement Fabrication Load-out and Sea fastening Offshore Transportation Offshore Installation Site Hookup & Commissioning Maintenance and Renovation Project Management Jacket Topsides / Modules FPSO Topside / Modules Subsea Pipeline Subsea Cable Mooring Structure / system Terminal Facilities Pressure Vessel & Skids Jack-up Drilling Rigs Modularized Plant 4

5 Historical Development 我国第一个对外合作油田 First oil field cooperated Self-Elevating Jackup with oversea partners in 1. Water Depth designed by China 1982 Increased from 1. Increased E&P In 1966, the first steel 100m to 300m offshore platform / module China began to After establishment of activities in South 2. Module Size more was built in Bohai Bay design and fabricate CNOOC, China China sea A milestone of China jack-up rigs by offshore Oil & Gas than 10000tons herself engineering industry 2. Water Depth Offshore Engineering 3..EPCI capability of began to see great Industry development. Increased to 120m development. large complex projects 3. International International 4..International Quality Standards applied cooperation and HSE code PSC Introduced further enhanced Executed 1950s/1960s 1970s 1980s 1990s Present 5

6 One of Key Factors for Successful Project QINGDAO YARD Choosing the Right Module Yard to Deliver a Challenging Project The yard has experience with EPCI contract in the Asia Pacific region for oil & gas industry. 6

7 Quay Line: 1,645 M Quay Water Depth: 10~12.4 M Total Area: 1,200,000 M 2 Annual Fabrication Capacity: 270, T Dock: 420 M * 110 M * 13.9 M 7

8 HSE The HSE are always the weakness in our management which need continuous improvement. Fu Chengyu, CNOOC Chairman Prevention First Process Control Continual Improvement Award of Excellent Contractor High HSE Performance HSE POLICY Manhour (Million) LTIR 8

9 Quality EN ISO :2005 Welding Certificate HSE WELDING PERFORMANCE QUALITY Environmental Management System Standard: ISO 14001:2004 PROGRESS Quality Management System Standard: ISO Occupational 9001:2008Health and Safety Management System Standard: OHSAS 18001:2007 9

10 Performance Record QUANTITY Category ARCO BP CACT-OG CHEVRON CNOOC 100+ Jacket for Fixed Platform 100+ Topside for Fixed Platform CSPC ENI GUSTO HHI 9 Single Point Mooring System HUSKY Kerr-McGee KODECO SHELL PHILLIPS TECHNIP TEXACO TOTAL WORLEY SAIPEM 10 FPSO 63 FPSO Topside/Modules 4 Jack-up Drilling Rig 1,234 Subsea Pipeline (km) 17 Modules for Mining Plant 200+ Equipments Skids / Modules 10

11 CONTENTS Offshore Project Management Need Analysis Sourcing in China Procurement Risk Mitigation 11

12 Understanding Project Clients' Requirements The difference between success and failure consists in communicatiion. Since 1982, all the upstream projects for China offshore oil & gas development adapted international codes & standards. Multi-level & -facets Channel Multicultural Communication Clients Need Analysis International Standards: ISO API ASME/ANSI AWS IEC ASTM DNV ABS BV SOLAS etc. National Standards: d Communication Protocols & Processes GB Q/HS SYT CCS etc. Teamwork 12

13 Understanding Project Clients' Requirements Correspondence Memo/File Transfer Communicate, Regularly Scheduled Meetings Technical Exchange Communicate, Regular visit it among top management and Communicate! 13

14 CONTENTS Offshore Project Management Need Analysis Sourcing in China Procurement Risk Mitigation 14

15 Sourcing in China More Material and equipment used for Modules now can be produced from China CHINA Technical Comparable of China Produced material & products Cost and time effectiveness for China Produced Material/Equipment/Products 15

16 Benefits in Sourcing China Reliable quality Competitive cost... offers strategic long-term benefits beyond cost savings Ontime delivery 16

17 CONTENTS Offshore Project Management Need Analysis Sourcing in China Procurement Risk Mitigation 17

18 Procurement Risk Mitigation DESIGN DESIGN CHANGES DESIGN STANDARDS Mainly occurs in early stage of a project, which could affects the construction schedule and material quantities ordered Once the standards determined (API, JIS, etc.), the range of the vendors also determined Asks for quick response from client and vendor to contractor to minimize the procurement risks Try to use Chinese Standards are the ultimate goal for Modularization in China 18

19 Procurement Risk Mitigation MARKET: Maximize the Local Market Potential LOCAL MARKET GLOBAL MARKET Easy to meet Schedule requirementnt Low Cost Good Service Approved vendors from client Quality assurance from client DEFECTS: Approval from client for vendor and products quality. Standard deficiency. DEFECTS: Communication and cooperation deficiency Schedule requirements hard to achieve 19

20 Procurement Risk Mitigation PAYMENT: Affects not only cost but also procurement activities period and procedure. Text in here Reimbursement Unit Rate Text in here Vendor List Cost Plus / Provisional Sum Limits the local market sourcing, affects the pro schedule EPC CONTRACT: The Base of all Procurement Activities 20

21 Procurement Risk Mitigation Cooperation Oh Other Factors With Client & Vendors Law Term Risks Vendors active Clients Anti-dumping Duties participation requirements Import Limitations Promotes efficiency and understanding Directly sent to vendors without differentiations 21

22 China Sourcing Project 22

23 Closing Summary CHALLENGES OPPORTUNITIES Advanced project management and coordination interface Logistic and technical challenges Confidence in local vendors Foreign and Chinese standards Accelerated shift of fabrication project to China yard from Overseas yard; Clients are more cost conscious Global Economic is waking up and Capex is increasing The improvement of hardware condition and human resources enables Chinese companies to get more projects. In this way, Chinese scouring steps into a larger stage. 23

24 THANK YOU! ADDRESS: No.1078, Dan Jiang Road, Tanggu, Tianjin, , P.R.China CONTACT : Mr. Li XiaoWei i ADDRESS: No.492, Lian Jiang Road, Qingdao Economic & Technical Development Zone, Qingdao, , P.R.China TEL: CONTACT : Mr. Shen Weihe FAX: TEL: /8228 WEBSITE: FAX: lxw@mail.cooec.com.cn WEBSITE: g swh@mail.cooec.com.cn