Standardisation of procurement equipment specifications: establishing a strong foundation for oil and gas capital project development and delivery
Adri Postema A B and Ted Fletcher AA International Association for Oil & Gas Producers (IOGP), City Tower, 40 Basinghall Street, 14th floor, London EC2V 5DE, United Kingdom.
B Corresponding author. Email: ap@iogp.org
The APPEA Journal 60(2) 509-512 https://doi.org/10.1071/AJ19070
Accepted: 28 February 2020 Published: 15 May 2020
Abstract
Industry-wide standardisation is needed for operators to manage the US$3 trillion in CAPEX expenditure forecast for 2018–2025 (Global Data 2018), while maintaining competitiveness and mitigating risks. With the backing of the World Economic Forum, Joint Industry Program 33 (JIP 33) was initiated to drive industry-level standardisation for procuring equipment, moving the industry across the value chain towards common engineering designs and solutions, established by means of cross-company collaboration. Fourteen standardised specifications have been delivered. Their adoption by 12 major oil and gas operators is being measured and is progressing well. This enables the program to capture and evaluate successes, challenges, key learnings and feedback. A further 35–40 specifications, based on recognised industry or international standards, will be developed by the end of 2020. The program is also establishing a process for future maintenance of JIP33 specifications so as to achieve sustained benefits. The present paper outlines the status of JIP33 and showcases some of its early successes, challenges and learnings.
Keywords: capital projects, collaboration, EPC contractors, oil and gas operators, partnerships, suppliers, supply chain, World Economic Forum.
Adri R. Postema is Director JIP33 at the International Association of Oil & Gas Producers (IOGP). Adri is a professional in the Oil, Gas and Energy sector with more than 30 years of experience in Technology and Innovation Management, Capital Projects Development, New Business Development, Strategy, and Change and Transformation Management. |
Edwin (Ted) Fletcher is Integrating Chair JIP33 at the International Association of Oil & Gas Producers (IOGP). Ted is an Executive Manager, with over 30 years of experience leading and facilitating corporate and project teams within client and contractor organisations focused on management systems and technical standards development, deployment and improvement. |
References
Global Data (2018) Quarterly Global Oil & Gas Capital Expenditure Outlook: High New Build Capex on Crude Oil Refineries. Available at https://store.globaldata.com/report/gdge0228mar–quarterly-global-oil-gas-capital-expenditure-outlook-high-new-build-capex-on-crude-oil-refineries/#product-1097827 [verified 12 March 2020].IOGP (2019) Joint Industry Programme 33: Standardizing Procurement Specifications. Available at https://www.iogp-jip33.org/ [verified 12 March 2020].
Postema, A. R., and Wish, D. (2019). Standardization of procurement equipment specifications: a step change in facility cost and schedule reduction. In ‘The Offshore Technology Conference, Houston, Texas, 6–9 May 2019’. Offshore Technology Conference.
