DATA MANAGEMENT ACROSS YOUR END-TO-END SUPPLY CHAIN A FRESH & INNOVATIVE APPROACH. Jonathan Shortis - VP Energy EMEA Ash Nelson - Co-Founder, Biarri

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1 DATA MANAGEMENT ACROSS YOUR END-TO-END SUPPLY CHAIN A FRESH & INNOVATIVE APPROACH Jonathan Shortis - VP Energy EMEA Ash Nelson - Co-Founder, Biarri 1

2 DATA MANAGEMENT ACROSS YOUR END-TO-END SUPPLY CHAIN A FRESH & INNOVATIVE APPROACH

3 Agenda 1 2 Integrated Supply Chain Discussion Panel & Q&A Supply Chain Challenges / Barriers Effects of Poor Data Management Benefits Where Are We Now? Integrated Supply Chain Approach Case Study On-Shore CSG Australia Strategic Planning Operational Management Conclusions 3

4 Supply chain challenges Challenges Scale & Complexity Lack of Coordination Dynamic Environment Materials Control Multiple Stakeholders Site Logistics Procurement Compliance Multiple site locations / Material diversity Fragmented supply chains / Multiple providers Data interchange / Traceability / Accountabilities unclear Plans change impacting on supply chain requirements Visibility of on-site usage & expenditure IOC, NOC, Service Cos, Drilling Cos, JVs, SOEs Logistics volumetrics, congestion, vehicle utilisation Sub-Optimal / Aggregation opportunity 4

5 Barriers Barriers to a Data-Driven Approach Historic Custom & Precedence Fire-Fighting Procurement Loss of Control Multiple Stakeholders We ve always done it this way A perception of delivering value Fragmentation = optimisation Concerns over risk transfer Coherent data strategy missing NA Detroit EU Veg hel Shanghai AP SA Org Country Dest Country Org & Dest Country Sao Paulo AP-EU / AP-SA / AP-MX NA-AP / NA-EU / NA-SA 5

6 Data management Effects of Poor Data Management Visibility & Traceability Lack of visibility across the E2E supply chain / Interfaces / Data interchange loss Stakeholder frustration Supply Chain Cost Escalation Emergency shipments Procurement Cost Lack of framework compliance Lost aggregation opportunity Project Delivery Increased risk Project overruns / Cost escalation Productivity & Production Labour productivity loss Production down Loss of Control Benefits of a Data-Driven Strategy Visibility & Traceability Materials Cost Transparency Improved Communications Supply Chain Optimisation (E2E) Cost / Inventory Reduced Service Enhancement Improved Planning Horizon Standardisation Holistic Approach Asset Constraints Risk Reduction Mitigation Planning Scenario Planning Responsiveness Increased Production 6

7 Current state Where are we now? International oil companies Concept under active discussion Differences in pace of adoption / levels of focus Leading practices in major projects, globally Importance of data management understood & actively promoted Move towards single service providers / single data platform / unbundling Focus - developing geographies/technology Lagging traditional approach Procurement driving fragmentation / fire fighting proliferates Issue perception of risk Service companies Wide variation Leading practices Integrated approach - developing geographies/unconventionals Lagging entrenched Traditional procurement-driven strategy / in-house delivery / fire fighting 7

8 What is Integrated Supply Chain Management? Integrated Supply Chain Control Tower International Suppliers Physical Consolidation Hubs Customs Clearance Domestic Suppliers Consolidation Centre or X-Dock Site Store Worksite Functional Supply Chain Planning Procurement, Expediting & Supplier Management Domestic In-bound International Supply Chain Warehousing & Consolidation Distribution Reverse Logistics On-Site Materials Management Planning Construction Hand-Over Commissioning Start-Up Operations (MRO & Turnarounds) Project Lifecycle 8

9 Data management approach Case Study On-Shore CSG, Queensland, Australia Pre FEED/FEED Strategic data management Investment decisions Supply Chain design Drilling & completions SC design Defining demand Optimized facility locations Operations Tactical data management Supports day to day operations Risk mitigation Contingency planning Capital Project Freight Portal Tracking, sequencing, co-ordination, visibility (physical and financial) 9

10 Strategic data management Drilling and completions supply chain design Objectives Challenges Method Improve and optimize drilling & completions Supply Chain Safety, on time rig move scheduling, transport utilization Supply lead times & stock turns, administrative excellence Complexity 4 concurrent projects, community, assets, cost Different requirements for development and operations Data poor environment Business focus on immediate challenges not long term planning Define demand projected forecast activity/materials Transport network modeling collection, wait, load, return by asset Flood mapping Scenario analysis distance, time, productivity

11 Strategic data management - Real demand determination Focus on substantial ramp-up in drilling programme Dwarfed by the long term programme beyond 6 months Changed the logistics strategy Step change in transportation requirements 11

12 Strategic data management Optimised facility locations Scenario 1 Single site Roma Baseline Scenario 2 Single site Close to CoG Km down 40% Scenario 4 2 sites + 1 x temp laydown Km down 75% Transport cost & CO2 reduction HSE congestion/community Scenario 3 2 sites Km down 67% Supply chain reliability 12

13 Tactical data management Common accessible logistics data Data driven project operations Real time Single source of truth Complete accountability for each item Track, sequence & co-ordinate material movements and transportation assets Web based data always available to stakeholders Real time feedback on performance + rapid rescheduling Rapidly consider status, productivity, geo-spatial context, temporal sequencing by skill type and contractor Web based data always available 13

14 Tactical data management Optimised plan One common view Real time data on performance Rapid intelligent Re-planning Ahead of time delivery performance Benefits Cost visibility/ projections Simplified dynamic sequencing Better utilisation of costly assets and people Volumetrics communication Compliance tracking, authorisation, permitting 14

15 Conclusion Integrated Supply Chain control tower Supply Chain Cost Down Team Productivity Up Asset Utilisation Up Production Up 15