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

2. 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. 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: 1.Cross-border transportation and infrastructure 2.UK/Norway operational synergies 3.Mutual Open Market Access for Contractors and Suppliers 4.PILOT/KONKRAFT experience and information exchange A report from the workgroup – Unlocking Value Through Closer Relationship - was presented in August 2002

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

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

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

9. 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.comwww.oildir.com

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

11. 11 Thank you!