www.intsok.com

FPAL and Achilles JQS –harmonization efforts

Peter J. Tronslin

Aberdeen, Scotland, 1st – 2nd June 2010

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Background

• In early 2002 the UK and Norwegian governments recognized that it was vital to ensure that North Sea oil and gas activities would be globally competitive

• Each government would seek to establish effective framework to achieve maximum value creation through:

– Efficient recovery of resources

– Optimal use of infrastructure

– Enhanced security of supply for consumers

– Improved market access for producers

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The UK-Norway North Sea Co-operation Workgroup

• Established in January 2002

• Objectives:– To develop a greater level of understanding at a Government, Industry and

Contractor level of how cross-border co-operation can enable the optimum development of the North Sea in the near term

– To develop an improved understanding of any barriers acting to inhibit the optimum development of the UK-Norway North Sea in the near term and to make practical recommendations to address any such barriers, including the sponsorship of joint activities

• Key focus areas: 1. Cross-border transportation and infrastructure

2. UK/Norway operational synergies

3. Mutual Open Market Access for Contractors and Suppliers

4. PILOT/KONKRAFT experience and information exchange

• A report from the workgroup – “Unlocking Value Through Closer Relationship” - was presented in August 2002

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The report ”Unlocking Value Through Closer Relationships”

• The report came forward with a total of 14 recommendations

• Three of these recommendations were related to the key area “Mutual Open Access for Contractors and Suppliers”:

– R10) Expand the range of opportunities available to the UK and Norway Supply Chains through delivering Mutual Share Fairs, cross-border business to business mentoring and seminars

– R12) Simplify the processes to give mutual access to the UK and Norwegian markets by creating guidelines to advise the Supply chain on regulatory compliance

– R13) Work to improve mutual open market access across the North Sea by creating a single pre-qualification system for UK and Norwegian contracts and an integrated business directory of suppliers for the UK and Norway

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Harmonization of pre-qualification systems and creation of an integrated business directory

• Before reviewing the harmonization work that actually has been carried out it should be noted that both FPAL in the UK and Achilles JQS in Norway are part of a global system, covering a number of business sectors, for supporting sustainable procurement

• This global system is operated by Achilles

• It was the development of FPAL and Achilles JQS that actually formed the initial basis for the development of this global system

• Developments derived from cooperation between FPAL and Achilles JQS may influence this global system

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Harmonization of pre-qualification systems and creation of an integrated business directory – initiatives taken

• A work group was established with representatives of both UK and Norwegian operators as well as representatives from FPAL/Achilles

• In 2003 a Gap Analysis study was completed to identify common processes within the FPAL and Achilles JQS systems and where differences in process or functionality existed

• As regards harmonization 12 processes were identified and classified as follows:A. Relatively easy to harmonize

B. Requires significant IT and/or process redesign

C. Requires major process, IT and cultural change

• Also an integrated business directory was developed as an integrated part of the harmonization efforts

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Harmonization of pre-qualification systems and creation of an integrated business directory – identified processes

• Category A– News-By-Mail Feature in FPAL

– Common Portal Development

– Integrated Supplier and Purchaser Access with Associated Subscription Fees

• Category B– Integrated Search Module

– Integrated Sourcing Output/Lists & Reports

– Supplier Questionnaire Import Tool for Dual Registration

• Category C– Common HSE Practices/Standards

– Application of Quality Standards Across Product Codes

– Micro Supplier Registration Process

• Categories B/C– Verify Option in FPAL and Achilles

JQS

– Capability Assessment Option in Achilles JQS

– Performance Feedback Option in Achilles JQS

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Harmonization of pre-qualification systems and creation of an integrated business directory – present status

• Category A– News-By-Mail Feature in FPAL

– Common Portal Development

– Integrated Supplier and Purchaser Access with Associated Subscription Fees

• Category B– Integrated Search Module

– Integrated Sourcing Output/Lists & Reports

– Supplier Questionnaire Import Tool for Dual Registration

• Category C– Common HSE Practices/Standards

Included in new CSR standards

– Application of Quality Standards Across Product Codes

– Micro Supplier Registration Process

• Categories B/C– Verify Option in FPAL and Achilles

JQS *)

– Capability Assessment Option in Achilles JQS

– Performance Feedback Option in Achilles JQS

*) An ongoing process may bring this into green

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Integrated business directories

• European Oil & Gas Directory (EOGD), developed into:

• Global Oil & Gas Directory– Includes supplier information extracted from the FPAL and Achilles databases– Provides the opportunity to acquire more information on FPAL, Achilles JQS,

RPP and SICLAR– URL: www.oildir.com

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Harmonization of pre-qualification systems and creation of an integrated business directory – present status

• Category A– News-By-Mail Feature in FPAL

– Common Portal Development

– Integrated Supplier and Purchaser Access with Associated Subscription Fees

• Category B– Integrated Search Module

– Integrated Sourcing Output/Lists & Reports

– Supplier Questionnaire Import Tool for Dual Registration

• Category C– Common HSE Practices/Standards

Included in new CSR standards

– Application of Quality Standards Across Product Codes

– Micro Supplier Registration Process

• Categories B/C– Verify Option in FPAL and Achilles

JQS *)

– Capability Assessment Option in Achilles JQS

– Performance Feedback Option in Achilles JQS

*) An ongoing process may bring this into green

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Thank you!