Doing things differently to deliver genuine efficiency. Removing complexity. Maximising efficiency
Transforming to a new way of working Industry challenges, and a rising cost base, has exerted significant pressure on oil and gas operations. What the industry needs is a new way of working, of delivering more work for less cost: More 4 Less. 40-60% less * Implementing our More 4 Less methodology focuses on efficiency, challenging assumptions and driving new ways of thinking. As an industry we need to move quickly towards a new way of working with simple, cost efficient solutions. Do less For less With less Cut spend spending less on nonvalue execution. Eliminate waste early and focus on high value scopes. Assure efficient delivery remove inefficiencies in planning and execution, leading to sustainable efficiency improvements. Reduce headcount review organisation (contractors and wider supply-chain) and culture. Enhance operations define areas to improve production opportunities. Get more *Based on traditional modifications 1 This is the new normal
Delivers 40-60% savings, safely * *30% - 60% cost saving for modifications with accelerated delivery times of more than 50%. 16,000 14,000 34 cost reduction initiatives implemented. Reduction in modification delivery duration from 20 weeks to 4-5 weeks. 40% reduction in hours to complete tasks 60% less onshore construction hours to produce work packs 20% reduction in hourly costs Reduction in overall costs by 50%. Increase in modification completion ration by over 40% 40% improvement in engineering to construction man hour ratio. 12,000 10,000 8,000 6,000 4,000 2,000 0 30,000 25,000 20,000 15,000 10,000 5,000 0 Initial Estimate Customer Costs Engineering & Design Contract & Project Management Efficiency Saving 53% 13,800 6,543 Materials Fabrication Scopus Efficient Mod Price Efficiency Saving 58% 25,656 10,754 Initial Estimate Customer Costs Engineering & Design Contract & Project Management Materials Fabrication Scopus Efficient Mod Price *Based on traditional modifications It s been three months since we awarded these contracts and we are projecting a 65% saving compared to our baseline in 2014. 2
No compromise on safety Efficient delivery is not about taking shortcuts. Ensuring that all work is safely executed is integral to our More 4 Less methodology. A key success factor is to improve the integrity of the asset by reducing the probability of process related incidents. Our safety processes are scaled in line with the applicable risk profile. More 4 Less is not about taking shortcuts. A strong HSSE culture is key to our delivery model and our Beyond Zero programme is integral to that culture. Beyond Zero contains tools, techniques and standards that help us drive a refreshed HSSE agenda, one that will stand the test of time and deliver world class protection from harm; for our people, our assets, our environment and our customers. Scope work correctly = do less Cut spend spending less on non-value execution. Eliminate waste early and focus on high value scopes. = fewer deliverables Execute high value jobs. Eliminate low value jobs early in process. Finish every job we start - one pass through. Deliver efficiently = for less Assure efficient delivery remove inefficiencies in planning and execution, leading to sustainable efficiency improvements. = fewer hours needed to deliver In our experience, applying the right level of challenge at this stage can deliver significant savings. We have executed a number of scopes recently where we have saved in excess of 50% by challenging assumptions, standards and specifications to deliver optimal solutions for our customers. 3
Minimise overheads = with less Reduce headcount review organisation (contractors and wider supply-chain) and culture. Efficient organisation standard delivery model Efficient project management & services Efficient procurement - Benefits of Utilising Strategic Fabrication Alliances: Efficient delivery One team ethos for construction activities is key to success. Maximising wrench time offshore is vital to the success of efficient work execution. Work executed by the team relies on effective planning, preparation, scheduling of work scopes and the ability to minimise non-productive time. Removing complexity. Maximising efficiency. Optimised cost per hour Get more Enhance operations define areas to improve production opportunities. HVEC Amec Foster Wheeler s High Value Engineering Centres (HVEC) in India support our client based teams to deliver a proportion of engineering scopes. The delivery model is tried and tested - we have utilised our Chennai office to deliver engineering expertise for customers for over ten years. 4
Efficient FEED (Front End Engineering Design) A focussed and flexible approach No more, no less than what is required Our approach to efficient FEEDs (front end engineering designs) is to develop the essential technical definition to enable the next phases, applying a pragmatic approach, and highlighting potential areas of saving during the FEED tendering process. We make sure the scope of work is developed to fit with our client s requirements and preferences Technical Authorities Specialist Consultancy We identify the best resource to execute each segment of work FEED hub of expertise We then use the best tools to execute and manage the work HVEC 5
Piping Process Electrical Structural Instruments Mechanical Tech Safety Discipline scopes of work developed in segments: Essential technical definition Extra technical development De-risk detailed design i.e. additional model development, early procurement Our aim is to minimise the workscope that falls into the extra technical development and de-risk detailed design segments 6
Efficient projects Our approach to efficient projects is to do them differently. This includes: Do one, build many Copy designs Modularization Efficient information hand over Efficient delivery covers a whole range of areas. Leading-edge modularisation skills We are world-leaders in the design and execution of modularised construction, for example we have designed and delivered the only LNG plants to have been completed to date on a multiple module construction basis. Leading optimisation skills One of our areas of particular expertise is in optimising the design facilities such as power generation or industrial plants. For example we are able to design systems to utilise waste heat from adjoining facilities. Customer Relationship Clarity of Scope & Information Project Startup Management of No Change Information & Data Flows Leadership and Drive Control and Predictability Sequence of Activities Supply Chain Management Strategy Interfaces Technology 7 Our aim is to minimise the workscope that falls into the extra technical development and de-risk detailed design segments
Example Dimensional control in Abu Dhabi using state-of-theart survey equipment, and our proprietary software and methods, to advance build schedules and dramatically reduce costs. Dimensional control Dimensional control can be applied across greenfield and brownfield projects, from modular build construction or build verification through to individual repair orders. It ensures that all items will fit together first time, be this a single pipe spool change out, or an entire package fabricated off site. Dimensional Control advances build schedules and dramatically reduces costs for topsides, module, PAU, PAR, pipework and new build projects. Dimensionally accurate to within 1mm, it is used for critical interfaces and tie-in points to ensure that newly fabricated pipework, equipment and structures always fit-first-time. The benefits are: Reduced schedules Budget control Mitigated risk Reduced project costs Direct and indirect savings Eliminated re-work For the modular build, our job is to ensure that the components of the new infrastructure are fabricated in parallel across multiple locations, and are then brought to fit seamlessly together at site. Pre-assembled units (PAUs) are built around the world including Oman, Abu Dhabi, Italy, Dubai, China, South Korea and Singapore, and then shipped to site. Piping in the racks are then joined together using our single-weld philosophy, developed for the specific needs of this project, to provide a clash-free first-time-fit. Efficient procurement Having the right spares, their availability and then tracking them is vital. Our knowledge and experience, including prior knowledge of equipment types/manufacturer, will deliver your mitigation strategy, sparing requirements stock holding and location. Innovation: Track & Trace We apply innovative technology to make sure you can track all your spares and equipment with accuracy, keeping down costs and improving efficiency. Creating & executing less 8
Efficient operations and maintenance Efficient Management Execute (Less) Reduce Unit Rates Bring Efficiency Cut waste Maintenance review Redundant equipment (asset assessment guidelines) PM optimisation SC rationalisation Skills passports (remove training per asset) Spares holding Technology avoid flights Flights optimisation Strategic fabric maintenance Example: Decomplexing Leman Echo 9 Assure efficiency
Revolution Facility De-complexing Remove plant and need for use/maintenance Lighthouse Mode Contractor Commercial Model Assure efficiency Reduce headcount Enlarge production (optimise) Plant efficiency Optimisation Technology permit control Wrenchtime Open Up the Day Standard procedures - spares Planning discipline Paperless maintenance execution Multi skill Vendor rationalisation Campaign maintenance Litehouse / NUI (normally unmanned installation) Technology move indirect management onshore Integrated services Production efficiency De-bottlenecking Strategic decommissioning Production loss elimination / optimisation 10
Amec Foster Wheeler (www.amecfw.com) designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors. Employing around 40,000 people in more than 55 countries, the company operates across the oil and gas industry from production through to refining, processing and distribution of derivative products and in the mining, clean energy, power generation, pharma, environment and infrastructure markets. Amec Foster Wheeler offers full life-cycle services to offshore and onshore oil and gas projects (conventional and unconventional, upstream, midstream and downstream) for greenfield, brownfield and asset support projects, plus leading refining technology. Amec Foster Wheeler shares are publicly traded on the London Stock Exchange and its American Depositary Shares are traded on the New York Stock Exchange. Both trade under the ticker AMFW. Amec Foster Wheeler 2016