FPAL and Achilles JQS – harmonization efforts

1. FPAL and Achilles JQS –harmonization efforts Peter J. Tronslin Aberdeen, Scotland, 1st – 2nd June 2010

2. 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

3. 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: • Cross-border transportation and infrastructure • UK/Norway operational synergies • Mutual Open Market Access for Contractors and Suppliers • PILOT/KONKRAFT experience and information exchange • A report from the workgroup – “Unlocking Value Through Closer Relationship” - was presented in August 2002

4. 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

5. 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

6. 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: • Relatively easy to harmonize • Requires significant IT and/or process redesign • Requires major process, IT and cultural change • Also an integrated business directory was developed as an integrated part of the harmonization efforts

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

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

9. 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

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

11. Thank you!