JIP33: Standardization of equipment and packages
In our industry, we have been eroding value by developing bespoke components in each of our projects. Our 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.
We have been progressing standardization of equipment and packages, and have delivered four equipment specifications for procurement. A progress update on the current initiatives is provided below.
Efforts for standardization of equipment specifications for procurement are being made across the oil and gas industry with support from the World Economic Forum (WEF) capital project complexity initiative.
JIP33 on ‘standardization of procurement specifications for equipment’ was initiated by IOGP to prove the concept of industry-level standardization. The phase 1 of JIP33, chaired by BP, had 17 participating members and focused on four types of equipment/material: ball valve, subsea xmas tree, low voltage switchgear and piping materials .
JIP33 has now proven the concept of industry-wide collaboration towards standardization by completing a pilot project to standardize the four equipment specifications for procurement. These are now available on the IOGP website:
- IOGP S-560 Low voltage switchgear, published November 2016 with including Data Sheet, SDRL and POQR supplements.
- IOGP S-561 Subsea xmas tree, published December 2016 with including SDRL and POQR supplements.
- IOGP S-562 Ball valve, published December 2016 with including SDRL and POQR supplements.
- IOGP S-563 Piping materials, published January 2017.
To prove the overall concept of industry standardization, these specifications need to be embedded by the operators within their organizations. A survey amongst the participating operating companies shows that the large majority will adopt these specifications for use in their future projects.
Phase 2 of JIP33 is currently being planned and a request for participation and funding has been sent to the WEF Capital Project Complexity workstream members and IOGP member companies.
We have received a sufficient response to kick off the phase 2 but more operating companies are welcome to join. Please contact IOGP Reception (email@example.com) for more information.
A plan for the JIP33 phase 2 has been developed and comprises of five workstreams:
- Embedding the specifications, agreed to in 2016, across the industry.
- Better understanding the value these specifications will generate to further prove the concept, based on company and supplier feedback. In order to measure the degree of industry standardization, industry KPIs will be implemented.
- The ball valves, subsea xmas trees and piping material specifications and/or their quality and documentation requirements may need to be further improved by the end of 2017 to maximise the value based on the feedback from companies and suppliers.
- Embedding the cultural change required to facilitate industry standardization. To guide this work, as well as promote further collaboration and standardization, the engineering leadership summit has been established under the auspices of IOGP and chaired by Ian Cummins, BP.
- Procurement specifications for further equipment items (up to 10) will be developed starting mid-2017.
For further information, please see this slide package.