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SCM ISSUES IN WEST AFRICA LOCAL CONTENT DEVELOPMENT. JUNE 2006. What we do. SURF Conventional Trunklines IMR. Africa & Mediterranean : Countries of operation. 40% of ACERGY worldwide activity : circa 750 MUSD in 2005.
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SCM ISSUES IN WEST AFRICALOCAL CONTENT DEVELOPMENT JUNE 2006
What we do SURF Conventional Trunklines IMR
Africa & Mediterranean : Countries of operation • 40% of ACERGY worldwide activity : circa 750 MUSD in 2005. • 45% of which is related to procurement of Projects : 350 MUSD • 450 MUSD foreseen in 2006 & 2007. • Projects in the Gulf of Guinea • Nigeria • Angola • Equatorial Guinea • Congo Regional permanent implantation in Angola, Nigeria and Gabon.
SCM Issues 1/2 Logistic Delivery on site Engineering Installation Fabrication Transport Customs • Weak and critical point : • Risky • Remote environment • Uncontrolled planning
SCM Issues 2/2 • How to succeed the installation ? Engineering : - over design => secure installation and in service life Fabrication : - zero default => high QA/QC capabilities • How to succeed the delivery on site ? Ensure good structure for logistics : - Availability of transport (flexible planning) - Very good knowledge of local regulations which are constantly changing - Strong set up and full control of local logistics from shore to site.
West African Top Priority : Local Content = Constraint but also an Opportunity Transport Customs Delivery on site Fabrication Installation Engineering • 1. Constraint : • Access to local Human Resources • - Engineers (Engineering) • - Workers (Fabrication) • Control of Quality • 2. Opportunity : • Transport and Customs are cleared Upstream • - Improve Float on planning • - Less complex nature of goods to import.
Flexible Umbilicals Forging Coating Local logistic Engineering West Africa : A region with high “Country Specifics” high Pipe fabrication (Steel mill) CAPEX \ Investment Yard long-product base (Jacket-piles /double joint) low low high Technology / Complexity
Conclusion • Common objective for main Contractors and Suppliers : - Localisation in country with guaranteed quality and delivery Strong and relationship / partnership required