Statoil supplier days 2015

Statoil supplier days 2015
Extract from Statoil presentations
Welcome and introduction
The industry challenge
Crude Oil price USD per barrel
Real price
2
2
Welcome and introduction
Our objective: Profitable and sustainable
production at today’s level until
2030 and beyond
Kilde: Norwegian Petroleum Directorate
Welcome and introduction
Efficiency improvements on track – target increased
Operational efficiency improvements to date 2015
30 percent step‐up
Welcome and introduction
…neither of this could be achieved without suppliers
Strong relationships with high-quality suppliers drives sustainable competitiveness
The majority of Statoil’s yearly
expenditures arises from suppliers
5
Statoil procurement 2014 in NOK Bn
Welcome and introduction
Safety, security and sustainability (SSU)
SERIOUS INCIDENT FREQUENCY (SIF)
Number of serious incidents in Statoil per million hours worked
Future outlook
“Statoil’s references for an uncertain world”
‐ Energy Perspectives 2015
Macro and market outlook to 2040 – www.statoil.com/energyperspectives
7
Future outlook
A world of volatility and change
Hope to be vaguely right, not precisely wrong…
Supply and demand factors (indexed 2002=100)
Sources: Thomson Reuters Datastream, DOE, CEIC, IEA
Future outlook
Long‐term forecasts are uncertain
Climate change, policy, technology, consumers and economy will decide
Sources: The Economist, Google, UN, Statoil, McKinsey & Company, National Geographic, twistedsifter.com
9
Future outlook
A strong trend affecting economics and energy
Economic gravity moves (back) to the east, and so does energy demand
The global centre is in Asia Each region home to1 billion people
Source: Imgur, IEA, Statoil (projections)
10
World energy demand per region
Bn toe
Future outlook
Energy demand and energy mix differ
… depending on growth, efficiency, technology and policies
World energy mix
World energy demand per fuel
Share of total energy demand in 2012 and 2040 (TPED), %
Bn toe
Rivalry
Renewal
2012
Reform
Source: IEA (history), Statoil (projections)
11
Today’s
energy mix
2020
2040
Future outlook
Oil and gas are here to stay
Considerable need for new investments, irrespective of scenario
Global oil demand* Mbd
* Excl. Bio‐fuels
Source: IEA (history), Statoil (projections)
12
Global gas demand Bcm
Future outlook
Two key challenges in our operating environment
Competitiveness
13
Classification: Internal
2015-08-12
Climate
Future outlook
Building blocks for future competitiveness
1 Further standardisation
Targeted technology
2 development
“Subsea plug and play”
Capitalising on market
3 opportunities
4 Operational excellence
Future outlook
High activity on the Norwegian continental shelf
Johan Castberg
Aasta Hansteen
Åsgard Havbunnskompresjon
Polarled
Valemon
Johan Sverdrup
Gudrun
Gina Krog
15
Future outlook
Future project opportunities
Mega projects ‐ Cost efficiency and technology upsides
SNORRE 2040
TANZANIA
JOHAN CASTBERG
EAST COAST CANADA
OSEBERG FUTURE
DEVELOPMENT
JOHAN SVERDRUP PHASE II
Efficiency today – opportunities tomorrow!
NJORD FUTURE
16
TRESTAKK
Procurement process
Statoil procurement policy to drive performance
Strategy
 Utilise the global supplier market
 Performance based evaluation/reward
 Supplier development
Principles
 Competition
 Transparency
 Fair treatment
17
Procurement process
Category Management in Statoil
18
Procurement process
Steps in the procurement process
CATEGORY
STRATEGY
PROCUREMENT
STRATEGY
MARKET
ANALYSIS
BIDDERS LIST
RECOMMENDATION
CONTRACT
AWARD
EVALUATE
AND
NEGOTIATE
CONTRACT
MANAGEMENT
• Cross-functional participation throughout the process
• Understand and manage risk is key throughout the procurement process:
‒ Determine which products and services are available
‒ Understand supplier‘s capabilities
‒ Award contract to the supplier best able to perform the job
19
Procurement process
Defined minimum requirements
Suppliers have to meet certain
minimum requirements:





Legal information
Integrity due diligence (IDD)
Safety
Quality
Technical
Achilles registration is not a
requirement but will increase
visibility
Good performance is a
prerequisite for future work
20
Of qualified suppliers, only those invited
can submit a tender
Qualified
supplier
Qualified
supplier
Qualified
supplier
Suppliers invited to
tender
Procurement process
21
Procurement process
22
• Have in place
relevant policies
• Carry out risk
assessments and
implement
relevant actions
• Ensure resources
to handle relevant
principles in the
Supplier
Declaration
• Handle relevant
dilemmas and
incidents
Supplier shall
• Ensure
implementation of
Supplier
Declaration
principles
Supplier shall:
Supplier shall:
The supplier declaration
• Implement and
follow up
requirements
regarding the
Supplier
Declaration issues
towards own
suppliers and subsuppliers
Procurement process
Expectations and commitment go both ways
Expectations to Suppliers
• Strong HSSE culture, social and ethical responsibility
Breaking the cost
curve together..
• Productivity, cost efficiency and quality deliveries on time
• Competitive terms, continuous improvement and
innovativeness
• Professional sub-supplier follow-up
• Similar expectations to sub-suppliers
What to expect from Statoil
• Open communication and collaboration
.. through supplierbuyer collaboration
• Fact-based - and KPI driven follow-up and evaluation to appraise
total performance
• Performance-driven with fit-for-purpose incentives: Rewards the
best suppliers, but consequences for lack of performance
• Willingness to change and to drive standardization and
industrialization
23
Back-up
The Statoil organisation
Eldar Sætre
Chief
executive officer
COA
CFO
LEG
COO
CCOM
CHSE
PO
Randi
Grung-Olsen
Hans Jakob
Hegge
Hans Henrik
Klouman
Anders Opedal
Reidar Gjærum
Jannicke Hilland
Magne Hovden
Corporate audit
CFO
organisation
Legal
Chief operating
officer
Corporate
communication
Corporate
Safety and
Security
Corporate
People and
Organisation
DPN
Arne Sigve
Nylund
Development
and Production
Norway
DPI
Lars Christian
Bacher
Development
and Production
International
DPUSA
MMP
Torgrim Reitan
Jens Økland
Development
and Production
USA
Marketing,
Midstream &
Processing
TPD
Margareth
Øvrum
Technology,
Projects and
Drilling
EXP
GSB
NES
Tim Dodson
John Knight
Irene
Rummelhoff
Exploration
Global Strategy
and Business
Development
New Energy
Solutions
Back-up
Category Managers
Category
Equipment
Engineering & Construction
Subsea & Surface Technology & Operations
Operations, Maintenance & Modifications
Marine Construction & Installation
Business Consulting & Temporary Staffing
Geo & Intervention
Rigs & LWI Vessels
Drilling & Completion
Onshore Drilling & Related Services
Steel
IT
Business Support Services
HSE, Chemicals & Commodities
Logistics
25
Category Manager
Thomas Aspelund
Stein Frode Knudsen
Nina Jevnaker
Tom Eirik Fredriksen
Anna Sindre
Tor Hellandsvik
Gry Lindboe
Trond Særsten
Trond Særsten
Diana Valentine
Jostein Clement Stokka
Per Erik Bøe Hansen
Ingvild Ekkje
Anna Sindre
Anna Sindre
Back-up
Where we are
Algeria
Angola
Australia
Azerbaijan
Bahamas
Belgium
Brazil
Canada
China
Colombia
Denmark
Faroe Islands
Germany
Greenland
India
Indonesia
Ireland
Kazakhstan
Libya
Mexico
Mozambique
Myanmar
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Russia
Singapore
South Korea
Suriname
Tanzania
Turkey
United Arab Emirates
United Kingdom
USA
Venezuela