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 and package 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, chaired by BP, JIP33 had 12 fundining and 5 supporting 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 further 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 was kicked off in early July with Aker Solutions Ltd. winning the bid to provide Project Management and Lead Subject Matter Expert services to the project. Phase 2 has at present 9 funding members, continued support by the WEF Capital Project Complexity workstream and is planning for further support by stakeholder review groups and suppliers as in the pilot phase. Whilst we have sufficient support for phase 2, more operating companies are welcome to join. Please contact Sally Abou-El-Seoud for more information.
Stepping up the scope of work for JIP33 phase 2, the following plan has been developed and comprises of five workstreams:
- Adoption of specifications across the industry: Embed the specifications agreed to in 2016 within operator companies. Update the communications plan to raise awareness across the industry. Document learnings from the use of the specifications (both technical and procurement). Long-term maintenance of the specifications.
- Understand the value of standardisation. Update the draft value document with the examples from the participating operators to enable communication of the value across the industry. Develop KPIs to measure implementation and value.
- Improvement of specifications: The ball valves and subsea xmas trees specifications and/or their quality and documentation requirements will be further improved by the end of 2017 to maximise the value based on the feedback from companies and suppliers.
- Cultural change: Embed the culture change and develop communications plan to increase awareness and facilitate the culture change across the industry.
- Procurement specifications for further equipment and package items (up to 10) will be developed starting in July, including the following:
- Air compressor package
- Centrifugal pumps
- Gate/check valves
- Heat exchangers
- HV switchgear
- Line pipe for critical services
- Offshore cranes
- Pressure vessels
- Subsea tree “top down”.
For further information, please see JIP33 Standardisation of equipment specifications for procurement slide package.