SEMS and Supplier Management- An Operator s Perspective
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1 SEMS and Supplier Management- An Operator s Perspective Petroleum Equipment Suppliers Association Legal Seminar Mar 26, 2013 Karl Van Scyoc Anadarko Petroleum Corporation
2 Supplier? Organization or individual providing Materials Equipment Services Advice SEMS: An Operator s Perspective All can affect SEMS performance All can affect Company performance 1
3 BEFORE SEMS (Nov. 2011)..Suppliers were important Many design codes & standards already in use 2000: Subpart O, Well Control and Production Safety Training 2003: Provisions for testing/assurance of blowout preventers (BOPs), bridge plugs, cement plugs, packers, drilling fluid, diverter, casing Shop audits, approved suppliers 2
4 AFTER SEMS..Supplier Expectations Increase Some additional supplier expectations: Independent third party BOP verification BOP testing, inspection, and maintenance Casing & cementing barrier certification Critical Equipment qualification and testing Quality Assurance for fabrication, installation, construction Contractor/supplier selection criteria Verification of personnel skills, experience & knowledge Agreement on bridging Operator & Contractor programs Practices incorporated by reference (e.g. API 53) 3
5 AFTER SEMS..Supplier Expectations Increase Some additional supplier expectations: Independent third party BOP verification BOP testing, inspection, and maintenance Casing & cementing barrier certification Critical Equipment qualification and testing Quality Assurance for fabrication, installation, construction Contractor/supplier selection criteria Verification of personnel skills, experience & knowledge Agreement on bridging Operator & Contractor programs Practices incorporated by reference (e.g. API 53) 4
6 Anadarko Mission and Values Anadarko s mission is to provide a competitive and sustainable rate of return to shareholders by acquiring, exploring for and developing oil and natural gas resources vital to the world s health and welfare. Integrity and Trust Servant Leadership People and Passion Commercial Focus Open Communication NYSE: APC NYSE: APC A N A D A R K O 5 5
7 Anadarko Management System (Gulf of Mexico) Primary Supplier Interface No. Element / Sub-elements No. Element / Sub-elements 1 Leadership 6 Operations Excellence 1.1 Commitment and Accountability 6.1 Operating Procedures 1.2 Strategy and Planning 6.2 Safe Work Practices 1.3 Performance Metrics and Reporting 6.3 Emergency Planning and Response 2 People 7 Management of Change 2.1 Organization, Roles, Responsibilities, and Resources 7.1 Technical Change 2.2 Training and Competence 7.2 Organizational and Personnel Change 3 Risk 8 Information Management 3.1 Hazard Analysis 8.1 Critical Information 3.2 Security 8.2 Record Keeping and Documentation 4 Asset Integrity 9 Assessment and Improvement 4.1 Design, Engineering, and Construction 9.1 Assurance and Audit 4.2 Commissioning and Pre-startup Review 9.2 Incident Investigation and Analysis 4.3 Inspection, Testing, and Maintenance 9.3 Management System Review and Improvement 5 Third Party Services 10 Sustainability 5.1 Contractor Management 10.1 Legal and Regulatory Compliance 5.2 Supply Chain Management 10.2 Community and Stakeholder Relationships 5.3 Transportation and Logistics 10.3 Environmental Stewardship 6
8 Feedback Supply Chain Process SEMS: An Operator s Perspective ID Need Planning & Design Assess Market AMS 5.1 Sourcing Plan Yes Capital Project Operating Facility Drilling Rig Business Support & Technical Services Reuse/Sell/Dispose AMS 5.3 Logistics: Shore Base Third Party Yards Warehouse Customs Inspections Coatings Packaging Transportation End of Life Exercise Market: APC EPC Award: OEM Distributor Fabricator Payment: Goods Receipt Invoice Approval Invoice Payment Optimize Plan? No 7
9 Feedback Supply Chain Process SEMS: An Operator s Perspective ID Need Planning & Design Assess Market AMS 5.1 Sourcing Plan Yes Capital Project Operating Facility Drilling Rig Business Support & Technical Services Reuse/Sell/Dispose AMS 5.3 Logistics: Shore Base Third Party Yards Warehouse Customs Inspections Coatings Packaging Transportation End of Life Exercise Market: APC EPC Award: OEM Distributor Fabricator Payment: Goods Receipt Invoice Approval Invoice Payment Optimize Plan? No Primary Supplier Interface 8
10 Collaborative Relationship 9
11 EH&S Incidents SEMS: An Operator s Perspective Supplier Selection Capability, Knowledge, Skill Required Duties Time 10
12 Assurance SEMS: An Operator s Perspective Equipment Assurance Criticality 11
13 Transparency 12
14 Documentation Design, Fabricate, Install 13
15 Contract Terms 14
16 Self Supplying 15
17 Communication 16
18 Summary Thoughts The bar has been raised Fewer suppliers and increased engagement Lifecycle equipment integrity management Safe practices; positive culture SEMS: An Operator s Perspective 17
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