‘In our industry, we have been eroding value by developing bespoke components in each of our projects. JIP33’s vision is to achieve industry-level standardization to enable efficient procurement and support delivery of safe, reliable and competitive projects and operations across the globe,’ says Gordon Ballard, IOGP Executive Director.
‘In other words, we’ll stop gold-plating and over-engineering oil field equipment and pay more attention to harmonizing industry needs. It’s just the sort of thing that other industries, like aviation and automobiles, have been doing for years.’
Following a successful initial phase to prove the concept of industry standardization in procurement, IOGP’s Joint Industry Project (JIP) 33 is now in Phase 2.
It consists of five workstreams:
- Adopting specifications across the industry: Embedding within operator companies specifications agreed in 2016.
- Understanding the value of standardization: Updating the draft value document with the examples from the participating operators to enable communication of the value of standardization across the industry.
- Improving specifications: The ball valves and subsea Xmas trees specifications and/or their quality and documentation requirements will be further improved to maximize the value based on the feedback from companies and suppliers.
- Changing culture: Developing and implementing a communications plan to increase awareness and facilitate the culture change across the industry.
- Publishing procurement specifications for further equipment and package items: These may include an air compressor package, centrifugal pumps, gate/check valves, heat exchangers, HV switchgear, linepipe for critical services, offshore cranes, pressure vessels and subsea tree ‘top downs’.
The project has nine funding members and continued support by the World Economic Forum Capital Project Complexity workstream. It expects further support by stakeholder review groups and suppliers as in the pilot phase.
Aker Solutions Ltd is providing project management and Lead Subject Matter Expert services.
Operating companies are welcome to join. They should contact Sally Abou-El-Seoud at email@example.com for more information.