Norwegian Subsea 150415002242 Conversion Gate01 PDF

SUBSEA
Norway
Written by: Simen Jonassen and Henrik Dannstrm

Table of Contents
1. Introduction
Norwegian Subsea 6. Subsea Standardization
Joint Industry Project (JIP)
2. Subsea Industry
Operators 7. Qualification requirement
Contractors (Suppliers) Document and Certification Requirement
Sub-suppliers HMS Certification
Traceability and Part Marking Requirement
3. Supply Chain Manufacturing Process Quality Plan -
Qualified Suppliers list Audits
Procurement Process Transportation and Packing Requirements
Order Execution Process
Invoice and Payment 8. Contact Information
4. Components 9. Summary and Recommendations
5. Procurement needs
Product list
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Introduction Norwegian Subsea
Subsea production is an essential option for field
development on the Norwegian Continental Shelf.
Subsea Operators and Suppliers are fully
committed, but projections indicate an increasing
gap between Operators demand and the industrys
ability to supply, this will give the Finnish Industry a
possibility to enter the Norwegian Subsea market.
In five years, the subsea market is anticipated to
grow from around $30 billion to between $60 and
$70 billion annually1)
1) Jarand Rystad, Oil Analyst and Managing Partner in Rystad Energy .
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From 2013, the operators' subsea expenditure is
forecasted to grow by an annual rate of 15%, to
$115 billion in 2020.
To reach this expenditure level, operators need to
continue to sanction projects. However, to put it in
perspective, this growth rate is far less than the 25%
annual growth during the five-year investment cycle
culminating in the market high of 2008.
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Global E&P subsea expenditures estimated to
exceed 100 billion USD by 2020.
Source: DCube by Rystad Energy.
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Subsea technology has come far over the last 20 years.
In most regions, subsea production systems are now
considered a conventional part of offshore
developments.
The first two steps toward the subsea factory - booster
pumps and separation - are proven. With the first full-
scale deployment of subsea gas compression just a
couple of years away, the industry continues to expand
the market space for subsea-related equipment and to
enable future developments that may not be
commercial or technically feasible today.
With a good portfolio of projects, there should be a high
development activity going forward.
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Typical components in a subsea assembly comprise among

other things connectors, metering systems, valves, valve
controls,corrosion and erosion monitoring systems ans
chemical injection, power distribution and communication
systems.
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SUBSEA
INDUSTRY
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Subsea Industry Operators
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Norwegian Subsea Industry -
Operators
Statoil www.statoil.com
ConocoPhillips www.conocophillips.no
BP www.bp.com/no
Shell www.shell.com
Total www.total.no
ExxonMobil - www.corporate.exxonm
Wintershall obil.com
MarathonOil www.winthershall.no
Others www.marathonoil.com
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Subsea Industry Contractors (first
tier)
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Subsea Industry Contractors
FMC Technologies www.fmctechnologies.com
Aker Solutions www.akersolutions.com
GE Oil & Gas www.geoilandgas.com
Cameron www.c-a-m.com
Others
23.03.15 Press release: FMC and Technip join forces and establish
new entity Forsys Subsea. Main office in London with branches in
Oslo, Houston, Paris, Rio and Singapore
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Subsea Industry Suppliers (second
tier)
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Subsea Industry Suppliers
Kongsberg Group
www.kongsberg.com/nb-
Wood Group Mustang no
Agility Subsea Fabrication www.mustangeng.com
AS
www.agilitygroup.no
Jotne Subsea AS
www.jotne.no
NLI Subsea AS
www.nli.no
Bandak Group
www.bandakgroup.com
Subsea 7
www.subsea7.com
Technip
www.technip.com
NOV
www.nov.com
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SUPPLY CHAIN
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Qualified Suppliers list
The Qualified Suppliers List (QSL) is a listing of all
suppliers who have successfully undergone a Operator,
Contractor or Suppliers qualification supplier process.
All Purchasers / Buyers are required to choose suppliers
from the QSL when issuing purchase orders.
The QSL and the processes around the qualification is
different from each company issuing it. Many
qualification requirements are however similar, in the
following three slides FMC is used as an example.
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Suppliers may use sub-contractors as part of their
supply chains when they do not have the internal
capability and / or capacity to provide such goods or
services. Examples include the purchase of raw
material, heat treatment services, NDE services,
coatings, etc
The QSL is maintained through periodic reviews and
performance assessments. Supplier audits will be
conducted on a new supplier and a survey or
surveillance audit conducted periodically regardless
of performance.
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The Quality Management System Audit for ISO Compliant
Suppliers / Sub-contractors will be based on the ISO9001
standard and in some cases on API requirements. An ISO
certification does not exclude a supplier / sub-contractor
from being audited by FMC who is expected to perform
regular audits of its suppliers / sub-contractors to meet its
certification requirements.
Follow-up audits are performed in the same manner as
Qualification Audits but are generally based upon only the
parts of the audit that resulted in Non-Conformances. The
Supplier's / Sub-contractor's completed Internal Corrective
Actions will be attached to the final report as evidence.
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This is an example regarding

FMC and QSL
FMC Technologies constantly strives to add
new and innovative suppliers to its supplier
base. Please take a moment to fill out
an Online Supplier Registration Form which
will give us general information about your
organization. Your registration form will be
reviewed by one of our sourcing
representatives. If there is a possibility that
FMC Technologies Inc. and your organization
can enter into a mutually beneficial business
relationship, you will be contacted to provide
additional information.
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All Operators, Contractors and most Sub-suppliers
have their own QSL. Requirements, qualifications
and certifications will be different.
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Procurement Process
1. 2. 3. 4.
5.
Define Develop Supplier Negotiation
Induction &
Business Procurement Evaluation & and Award
Integration
Need Strategy Selection of Contract
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Procurement Process
Ensure that supply chain management is tightly
integrated in the planning, execution and follow-up of
projects and operations
Develop, integrate and implement sourcing strategies to
achieve the best contracts for the benefit of all groups
through a category approach to goods and services,
based on aggregated demand management, the global
market position and robust analysis to minimise
execution risk
Incorporate the effects of country-specific requirements
for supplier development and collaboration when
considering new commercial developments
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Procurement Process
Base procurement on competitive bidding and the
principles of transparency, non-discrimination and
equal treatment of bidders
Support cost-effective procurement through simple
and standardised tools, systems and work processes
to ensure quality, efficiency, spending transparency
and appropriate automation
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Procurement Process
Operate in accordance with the principle of segregation
of duties, compliance and control principles, which
means:
Line management is responsible for planning demand,

allocating technical and operational expertise and
approving recommended suppliers
Procurement entities are responsible for coordinating
proactive demand, planning and executing procurement
on behalf of line management, and committing us in
relation to the supplier in accordance with the authority
delegated from the chief procurement officer (CPO)
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Procurement Process
Operate in accordance with the principle of
segregation of duties, compliance and control
principles, which means:
Undertake internal consultation (engagement) to

identify the needs and agree business needs and
procurement objectives will be
External consultation, where appropriate
Existing Category Management Plan
Previous/current arrangement/s (supplier performance,
contract management issues)
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Procurement Process
Operate in accordance with the principle of segregation
of duties, compliance and control principles, which
means:
Define project scope and objectives

Preliminary procurement strategy
Preliminary risk, stakeholder and change management plans
Develop business case and funding request
Have funding approved
Identify and apply requirements of relevant category
management plan
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Procurement Process
Operate in accordance with the principle of segregation of duties,
compliance and control principles, which means:
Prepare procurement strategy

Ensure authority to conduct the procurement
Consider special requirements for particular types of procurement
Consider and apply policy requirements
Consider special requirements for particular categories of goods and
services
Have the procurement plan approved
the procurement plan will define the extent of each procurement (a

component, a system, a service...)
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Procurement Process
It is critical that throughout the evaluation process all documentation is
retained and provides an acceptable audit trail to provide supporting
evidence in the case of probity or litigation concerns. The level of
documentation required will vary depending on the complexity and risk
of the sourcing event.
The result of the evaluation process will be a ranked list of suppliers,
which will lead to the creation of a shortlist of suppliers to be taken
through to negotiation and contract award.
Negotiate and award contract
Read the award criteria and prepare your tender accordingly. This will increase
the chance of coming out high on the ranking and be invited to negotiations
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Procurement Process
Prepare a negotiation plan and protocol:
Identifying the key outcomes that need to be achieved through the

negotiation process which may include pricing, service levels, KPIs,
incentives etc. It should also include a risk assessment to ensure any
risks identified during the sourcing event are managed in the final
contract.
Conduct the negotiation. This involves running structured
negotiations with the chosen supplier/s. In this step the negotiator
will present the argument, watch for signals, make and respond to
proposals, identify packaging issues and bargain.
be prepared to negotiate on various issues. Buyers often have their own KPI:s to
achieve, for example to always get the price down 10%
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Procurement Process
Once the negotiations are finalised and the
preferred supplier/s selected, the contract can be
awarded. In this step the relevant recommendation
need to be prepared and approved. Contract
execution should be attended to including
identifying the appropriate officer to execute the
agreement.
if the Work requires start-up prior to having a signed contract -
signatures may take time to get in place - then ensure that costs are
covered through a Letter of Intent or similar, and also check the
applicable background law
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Procurement Process
Disclose contract information:
Ensure supplier(s) deliver the goods or services in

accordance with contractual obligations
Manage supplier performance
Manage contract administration (including price and
product variations)
Manage transition and exit
technical issues may be resolved (and requested) by technical
contacts, but it may require the approval of a Contracts
Administrator to for example approve a Variation Order
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Procurement Process
Supply Management Process
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Part report (DBI - Data Base Information) is a Customer
Engineering document which contains information on
how to meet Customers requirements for part numbers.
It is important that suppliers:
Read and review the entire Part Report to ensure that all
specifications, drawings, and documents referenced are
available and understood.
Review Miscellaneous Notes, Engineering Notes and
Specifications.
Read and review drawings/models since important information
can be placed as notes or comments.
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Always contact the Customer if:
Information on the Part Report (DBI) is unclear.

Information appears incomplete or with mistakes.
The Part Report (DBI) does not state END OF PART at the end
of the report. Then you do not have the complete Part Report
(DBI). Try to re-print.
The Part Report (DBI), drawing or specification is not
understandable.
You have doubts. Do not make assumptions; get definitive
answers.
You disagree with or cannot achieve the requirements of the
Part Report (DBI), drawing or specifications.
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Invoice and Payment
The invoice shall reflect the PO terms and conditions and shall
at least include:
Invoice date and reference number
Supplier name, full address, and Tax ID Number
Contract number or Purchase Order number and Line Item
A clear description of what is billed
Net amount payable and currency of the invoice
If applicable, the milestone to which the invoice relates or all
Variation Order numbers that are covered, in whole or in
part, by the invoice
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COMPONENTS
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Components
The subsea industry comprises a whole variety of systems
and services.
Work over
Subsea drilling systems
Satellite subsea trees
Smart well control systems
Subsea manifolds
Subsea processing
Tie-in systems
Guidelines, deepwater satellite trees.
Different components are used in the different systems
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Components
In this section you will be able to understand the overall
component needs of Subsea system production. We are not able
to give you all products and parts, but necessary information
about the complexity and massive production and products.
Subsea structures will always be in need of suppliers within:
Steel production
Cutting and assembly
Welding, piping and other crafts with necessary certification
CNC turning and milling
Hydraulic and electrical systems
Instruments and sensors
Cables
Umbilicals
And others
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Components
The normal NCS subsea field developments are based on the subsea equipment
being located in template structures. The template is the foundation that carries
the weight and loads of the structure, and supports the wellhead and drilling
activities, manifold and control system as well as the protection structure. The
protection structure covers the template, manifold and the trees to protect the
equipment from third party damages as e.g. dropped objects, anchors or trawl
equipment.
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Components
A wellhead is the components at the surface or seabed of a
well that provides the structural and pressure-containing
interface for the drilling and production equipment. The
wellhead is supported by the conductor housing, normally a
30 or 36 casing against the foundation cement and the
soil. The wellhead also supports the pressure containing
casings and also the production tubing when vertical trees
are used. The standard size of the high pressure wellhead
being used all over the world is 18 .
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Components
Generally todays subsea tree design is divided into two

main concepts; horizontal trees or conventional Dual Bore
trees. Due to design limitations w.r.t. production tubing size
for Dual Bore trees, the focus has been on the development
of new vertical trees with same production tubing bore (7
tubing) as used for horizontal trees.
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Components
Subsea Production Systems
Examples on products, parts and drawing:
Wellhead Systems
Subsea Trees
Illustrative figures of the various components can be

found on www.iso.org
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Components
Wellhead equipment
casing head housings

casing head spools
tubing head spools
cross-over spools
multi-stage head
housings and spools
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Components
Wellhead equipment
Connectors and fittings

cross-over connectors
tubing head adapters
top connectors
tees and crosses
fluid-sampling devices
adapter and spacer
spools
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Components
Wellhead equipment
Casing and tubing

hangers
mandrel hangers
slip hangers
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Components
Wellhead equipment
Valves and chokes

single valves
multiple valves
actuated valves
valves prepared for
actuators
check valves
chokes
surface and underwater
safety valves and actuators
back-pressure valves.
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Components
Wellhead equipment
Loose connectors
weld neck connectors
blind connectors
threaded connectors
adapter and spacer
connectors
bullplugs
valve-removal plugs
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Components
Wellhead equipment
Other parts
actuators
hubs
pressure boundary
penetrations
ring gaskets
running and testing tools
wear bushings
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Components
Wellhead equipment
Coating
Assembly
Packing
Transport
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Components
Subsea Tree
Tree equipment
steelframe
steelcasing
piping
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Components
Subsea Tree
Tree valves and chokes

valves
valve blocks
valve actuators
chokes and choke
actuators
bleed system
test and isolation valves
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Components
Subsea Tree
Tree system
connectors and tubing
hangers
TFL wye spool
re-entry interface
tree cap
tree piping
ring gaskets
tree guide frames
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Components
Subsea Tree
Tree tools
tree running tools,
tree cap running tools
flowline bases and
running/retrieval tools
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Components
Subsea Tree
Tree connectors
tree mounted
flowline/umbilical
connector
tubing heads and tubing
head connectors
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Components
Subsea Tree
Tree interface and

systems
tree mounted controls
interfaces
instrumentation
sensors
hydraulic tubing/piping
and fittings
electrical controls cable
and fittings
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Components
Subsea Tree
Coating
Assembly
Packing
Transport
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SUPPLY CHAIN
PROCUREMENT NEEDS
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Procurement needs
Subsea Trees manufacturers and suppliers
FMC Kongsberg Subsea

Aker Subsea
Cameron
Suppliers and sub-suppliers
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Procurement needs
Wellhead equipment manufacturers and suppliers
FMC Kongsberg Subsea

Aker Subsea
Wood Group Pressure Control
Cameron
Suppliers and sub-suppliers
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Procurement needs
Subsea products
Main product groups
Auxiliary Equipment
Downhole Tools
General Supplies
Instrumentation
Materials
Production Equipment
Tubulars
Valves
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Procurement needs
Auxiliary Equipment
Contractors: Aker Solution, FMC, GE Oil & Gas
Suppliers: Agility Fabrication, NLI Group, NOV, Kongsberg
Sub-suppliers: See Subsea overview end of this chapter
Communications
Corrosion Control
Cutters - Engines
Handling Tools
Hoisting
Hydraulic Power Units
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Procurement needs
Auxiliary Equipment
Lights
Pneumatic
Pumps
Umbilical Reels
Winches
Hydraulics
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Procurement needs
Downhole Tools
Contractors: Aker Solution, FMC, GE Oil & Gas, Cameron
Suppliers: NLI Group, NOV, Jotne, Bandak
Drill Bits
Completion Tools
Downhole Motors
Fishing Tools
Jars
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Procurement needs
Downhole Tools
Contractors: Aker Solution, FMC, GE Oil & Gas, Cameron
Suppliers: NLI Group, NOV, Jotne, Bandak
Logging Tools
Keel Joints
Running Tools
Tongs
Stabilizers
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Procurement needs
General Supplies
Contractors: Cameron, FMC, Aker Solution, GE Oil & Gas
Suppliers: Tecnip, Agility Fabrication, NLI Group, NOV, Kongsberg,
Bandak
Adhesive
Bearings
Battery
Cable Trays
Connectors
Couplers
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Procurement needs
General Supplies
Bandak, Subsea7
Fasteners
Flanges
Heater
Hoses
Lubricants
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Procurement needs
General Supplies
Bandak, Subsea7
Gaskets
Grating
Marking
O Rings
Ropes and Wires
Seals
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Procurement needs
General Supplies
Shackles
Springs
Lines and Fittings
Safety Products
Welding Supplies
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Procurement needs
Instrumentation
Contractors: GE Oil & Gas, FMC, Aker Solution
Suppliers: NOV, Kongsberg, Technip
Acoustic
Analyses
Automation
Cable
Calibration
Computers
Control pods
Control Systems
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Procurement needs
Instrumentation
Downhole -Electrical
Erosion
Fieldbus
Gas Detectors
Gauges
Logging
Monitoring
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Procurement needs
Instrumentation
Drilling
Fiber Optic
Flowmeters
Liquid
Manifolds
Master Control Station
Measurement
Multiphase
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Procurement needs
Instrumentation
Optical
Pressure
Production
Sensors
Temperature
Vibration
Wet Gas Meters
Umbilical
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Procurement needs
Materials
Suppliers: Agility Fabrication, NLI Group, NOV, Kongsberg, Wood
Group, Subsea7
Alloy
Aluminum
Anodes
Castings
Ceramic
Composites
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Procurement needs
Materials
Group, Subsea7
Concrete
Copper
Elastomer
Duplex
Forgings
FRP
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Procurement needs
Materials
Group, Subsea7
Heat Treatment
Polymer
Rubber
Stainless Steel
Steel
Super Duplex
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Procurement needs
Materials
Group, Subsea7
Syntactic Foam
Weld Overlay
Polymer
Tungsten Carbide
Tungum
Titanium
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Procurement needs
Contractors: FMC, Cameron, GE Oil & Gas, Aker Solution
Suppliers: Wood Group, NLI Group, NOV, Bandak, Jotne
BOPs
Chokes
Coalescer
Compressors
Diesel Engines
Drilling Rigs
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Procurement needs
Filtration
Heat Exchange
Horizontal Tree
Jars
Line Hangers
Packers
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Procurement needs
Plugs
Power
Pumps
Processing Systems
Separators
Tanks
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Procurement needs
Transmission
Turbines
Xmas Trees
Vessels
Wellheads
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Procurement needs
Tubulars
Suppliers: Agility Fabrication, NLI Group, NOV, Wood Group
See Subsea overview end of this chapter
Casing
Drill Pipe
Expansion Joints
Fiberglass Joints
Flexible Pipe
Flowline
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Procurement needs
Tubulars
Suppliers: Agility Fabrication, NLI Group, NOV, Wood Group
Piping
Polyethylene Pipe
Spoolable Pipeline
Tubing Hangers
Tubing
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Procurement needs
Valves
Contractors: Cameron, GE Oil & Gas, Aker Solution, FMC
Suppliers: NLI Group, Agility Fabrication, NOV, Wood Group, Technip
Actuators
Ball
Butterfly
Check
Chemical Injection
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Procurement needs
Valves
Choke
Control
Electrical Actuators
Flow Control
High Pressure
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Procurement needs
Valves
HIPPS
Instrumentation
Gate
Globe
On Stock
Needle
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Procurement needs
Valves
Pressure Relief
Process
Safety
Solenoid
Double Block and Bleed
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Procurement needs
Overview of Subsea Companies and services in
Norway
Operators
Contractors
Suppliers
Sub-suppliers
Manufactures Link to Excel
Others sheet
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Procurement needs
In this chapter we have tried to give you a understanding about the Subsea
Procurement needs and the products and companies involved.
Subsea procurement in Norway are so much complex than we have reflected in this
chapter, but it will give you necessary overhead information to start selling your
product or services in Norway.
All companies; Operators, Contractors, Supplier and Sub-suppliers in this chapter are
operating in Norway. They are always in need of products and services, look at the
overview over Subsea companies in Norway and start your strategy for your
company in Norway.
Fell free to contact us for more guides about procurement needs.
henrik@finity.no
Mob. +47 90 73 00 02 (ky ja suomeksi)
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SUBSEA
STANDARDIZATION
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Document Harmonisation Joint
Industry Project (JIP)
Det Norske Veritas (DNV), as part of its portfolio, is known for taking part in
developing joint industry reference codes, ranging from Rules, Standards,
Approval Programs, Classification Notes, Guidelines and Recommended
Practices. This is derived from a long track record of serving industry with
activities which include R&D, analytical and qualification services for
innovative solutions, relevant assessments with dedicated testing, and
facilitating Joint Industry Projects (JIPs).
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Background/Challenge
A typical subsea project can involve more than

10,000 documents (and up to 80,000 for a complex
project) over a lifecycle of 30 years. Participants will
often spend millions of dollars on document
control- and information management systems to
maintain and verify the quality, security, accuracy
and availability of documentation.
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A major time consumer and cost driver is the lack of
standardization of the industries approach to documentation. A
primary reason is the multiple ways to document subsea
equipment. Different Operators and Suppliers have over the years
worked out their own methods of recording, structuring and
describing the content. Different document types can have many
different meanings, content may vary, other terminology might be
used, identification methods will differ and therefore compliance
with HSE-, engineering-, government-, security- and operational
requirements cannot be assured.
This lack of consistency and rationality can lead to severe
misunderstandings, which can have a negative effect on quality,
ability to handle approvals, distribution, availability and project
lead-times. And of course these issues increase the overall costs of
documentation for both customer and supplier.
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Objectives and Scope
To ensure the best chance of achieving a minimum documentation

standard.
The workshop confirmed the feasibility of the objective and
outlined the work scope for the JIP as follows:
A scoping activity to understand the required system and product
documentation types.
Common descriptions of standard system/engineering documentation
for a subsea field.
Agreement on a minimum documentation set that suppliers can readily
provide for all major subsea components that also meets the basic needs
of the Operators.
A method for identifying company specific/additional requirements.
Development of data and documentation definitions.
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An outline of lifecycle phases, typical subsea products/systems and
references to the documentation to be produced, maintained and
managed. A review of existing industry standards and practices (other
RPs) to set the scope for this JIP.
A minimum set of documentation, covering documentation
requirements from systems and products as well as company
specific/additional requirements. This set of requirements includes but is
not limited to document types, content description, templates, required
metadata, verification, approval, interfaces and file formats.
Continuous work to clarify terms and definitions (taxonomy, dictionary),
acronyms, classification, numbering codes, and identification. Reference
to national/international industry standards (such as ISO 13628, NORSOK
Z-018), government guidelines and user definitions.
Package the above into an RP and use established RP methodologies to
record requirements and content as well as to structure, approve and
verify the content.
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Inspection and test plan
Engineering index and design data
Stack up and General Arrangement Drawings
Hydraulic Schematic
Cathodic Protection report
Installation, Operation and Maintenance Manuals
Sub-Supplier Documentation
Product Data Sheet
Manufacturing Record Books (MRB)
Preservation and Packing procedures
Spare parts Indexes ( typically SPIR )
Sea fastening and weight reports
Dispach dossier
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The results from this JIP would:
Improve industry practices; helping both customers and

suppliers to manage requirements (definition, verification
and compliance) for subsea documentation.
Provide correct/complete information for the right
equipment and user, increased predictability for all parties
involved (i.e. ITT process).
Simplify communication and understanding of subsea
documentation.
Reduce variations and versions of the same information, and
as a result increase documentation consistency, quality and
thereby reduce costs.
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Participants will during the JIP project period have
the opportunity to:
Influence the objective, scope of work and execution

plan.
Share their ideas in the execution of the work.
Access up-to-date experience and lessons learned from
DNV and other participants.
Compare and evaluate what others have done.
Use the JIP and the results to influence their company
specific processes.
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Schedule
Contracts signed and JIP kick-off by end Q1 2015

Phase 1 Definition of Scope for Standardisation Q2-
Q4 2015
Phase 2 Technical Studies. Development of
Guideline Q1-Q4 2016
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Companies
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QUALIFICATION
REQUIREMENTS
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Document and Certification
Requirement
Subsea Standardisation in Norway is overseen by Norwegian
Standards (NS) via the Expert Group Underwater (EGU)
Work is focussed on generating ISO 13628 Standards (1-17)
which are developed from the Norsok Standards U 001- 012
and aligned with the API RP17 Standards (A-P)
Full alignment of ISO and API standards is the goal of NS.
Making progress with standards is also challenging due to
heavy workloads on key subsea specialists
www.finity.no
Document and Certification Requirement
www.finity.no
Requirement
Initial focus is on carbon steel & low alloy forgings, aiming to
rationalise the wide range of Operator compositional, QA
/QC and verification requirements
Comparisons of typical Operator specifications found NO
contradiction or irreconcilable differences that cannot be
resolved by a common forging spec agreed across the
industry, featuring several material grades
How will the new forging specification work?
Three grades of forgings - similar to grades of gasoline at gas station
End user specifies:
Material (e.g. AISI 8630, ASTM A 182 F22)
Forging specification (i.e. this new Subsea Forging Spec.)
Forging grade (from Grade 1 to Grade 3)
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Requirement
Structural strength and foundation aspects for
designing Subsea Production Systems:
Fabrication/Load-out
Transportation
Lift (air and Submerged)
Impact loads
In-place Accidental loads
In-place Operational loads
www.finity.no
Requirement
The load conditions are often designed according to the following standards
and regulations :
Fabrication/Load-out
DNV Rules for planning and execution of Marine Operations, part 2, ch. 1, Load
Transfer Operations
Transportation
DNV Rules for planning and execution of Marine Operations, part 2, ch. 6, Marine
Operations
General Guidelines for Marine Operations, Noble Denton
Impact loads
Foundation Design: ISO 19901-4, Specific requirements for offshore structures --
Part 4: Geotechnical and foundation design considerations
API RP2A Specific requirements for offshore structures - Part 4: Geotechnical and
foundation design considerations
DNV class note 30.4, Foundations
DNV OS-C101: Design of Offshore Steel Structures, General
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Requirement
Lift (air and Submerged)
DNV Rules for planning and execution of Marine Operations, part 2, ch. 5 Lifting
DNV class note 30.5, Environmental conditions and Environmental loads
In-place accidental loads
NORSOK U001 Subsea Production System ( Dropped objects, trawlboard snag)
NORSOK N004 Design of Steel Structures, annex A, Design against accidental
actions.
In-place operational loads
NORSOK U001 Subsea Production System ( trawl loads, drilling/conductor loads )
NORSOK N001 Structural Design (Load combinations)
ISO 13628-1: Design and Operation of Subsea Production Systems, General
Foundation Design: ISO 19901-4, Specific requirements for offshore structures --
Part 4: Geotechnical and foundation design considerations
API RP2A - Recommended practice for Planning, designing and construction of
Fixed Offshore Platforms
DNV class note 30.4, Foundations
www.finity.no
Requirement
The following Standards are often used to
documenting the structural capacity:
NORSOK N001: Structural Design

NORSOK N004: Design of Steel Structures
DNV OS-C101: Design of Offshore Steel Structures, General
API RP2A: Recommended practice for Planning, designing
and construction of Fixed Offshore Platforms
www.finity.no
Requirement
The challenge is to improve the engineers compliance
with industry and pre-established standards. Because
every project is a little different, it is tempting to
implement preference engineering
A review of industry best practice indicates the
optimum approach:
Corporate subsea organization overseeing implementation of

standards and - strategic procurement
Frequent internal publication and awareness session on subsea
standards and relevant frame agreements
Involvement of engineers in ongoing standards review and
generation work
www.finity.no
Requirement
Ready availability to Company engineers of standard
designs appropriate for company projects which in
turn, minimize qualification risk
Configurable components available that can be
adjusted to suit specific projects and increase
project flexibility
Material stocking to reduce lead times ( either
finished or part finished components)
Suppliers proactively demonstating the advantages
of standardisation
www.finity.no
Requirement
The NORSOK standards are developed by the
Norwegian petroleum industry to ensure adequate
safety, value adding and cost effectiveness for
petroleum industry developments and operations.
Furthermore, NORSOK standards are as far as possible
intended to replace oil company specifications and
serve as references in the authorities regulations.
The NORSOK directive A-001N states the procedures for
the professional work and rules for structuring, writing
and approval of NORSOK standards.
www.finity.no
Requirement
In relation to coating, NORSOK M-501 is the recognised
standard for the selection of coating materials, surface
preparation and inspection for protective coatings. The
NORSOK M-501 standard is applied during construction and
installation of offshore products and facilities.
The M-501 standard covers passive fire resistant coatings,
metallic coatings and paints. According to the NORSOK M-
501 standard, its objectives are as follows:
Optimal protection of the installation with a minimum need for
maintenance
The coating system is maintenance friendly
The coating system is application friendly
Health, safety and environmental impacts are evaluated and
documented
www.finity.no
Requirement
Achilles JQS (Joint Qualification System) is a supplier
register and pre-qualification system used by the buyers
in the Norwegian and Danish oil and gas sector to
manage supplier information and risk within the supply
chain as well as to procure efficiently in accordance with
EU regulations.
Achilles JQS is a cost effective system where suppliers in
an easy and standardised way can advice details on
their company and products and services to potential
customers in a fair, open and transparent way. This
facilitates and simplifies the tender process, offering
new business opportunities for both buyers and
suppliers.
www.finity.no
Requirement
The Achilles JQS community was launched in 1991 and
is developed continuously together with the steering
committee comprising of representatives from buying
organisations in this sector to cover the majority of their
procurement needs.
The buyer members within this sector are virtually all
Norwegian and Danish oil and gas operators and leading
management contractors active in this region.
Additionally, suppliers and contractors, who are
qualified in Achilles JQS, can be granted the option to
use the same supplier database for their purchases.
www.finity.no
Requirement
www.finity.no
Requirement
The Oil companies and the Main Contractors using Achilles JQS to have
up-to-date and validated supplier information, a pre-qualification in
Achilles JQS makes you visible to relevant customer group in the industry
and offers you opportunity to win new business. Joining Achilles JQS
enables you to:
Win new business

Over 2800 individual buyer users for you to promote your products and
services to. Being visible and searchable in Achilles JQS allows you to be chosen
for tenders where selection is made directly from Achilles JQS without a
separate calls for competition.
Increase credibility
Via pre-qualification, you can demonstrate your capability to meet the industry
requirements. Many suppliers use the pre-qualification certificate and logo
stamp as integral part of their marketing programmes to show their credibility.
www.finity.no
Requirement
Reduce overhead
Complete and maintain a single pre-qualification
questionnaire for the whole oil and gas industry and
avoid having to repeatedly provide information about
your company. Buyers can view your details through
Achilles JQS at any stage of the tender process.
Gain competitive advantage

Via Achilles JQS you are positioning your company to
multiple buyer organisations, hence gaining competitive
advantage in the market.
www.finity.no
Requirement
www.finity.no
Requirement
Operators should specify Subsea equipment with the
same/similar specifications (forgings, interfaces,
documentation etc.)
They should utilise standard catalogues which include
configurable components with industry standard
interfaces
Wherever possible, costs should be shared by renting
work-over systems, tooling and conducting joint
qualification programs
The industry should drive for designs, standards and
work processes that simplify and improve life extension,
help the refurbishment/upgrading of old equipment and
facilitate field expansion
www.finity.no
Requirement
This work has helped initiate two JIPs:
Recommended Practice for Subsea Forgings
Standandardised Subsea Documentation ...
The workgroup recommends the subsea industry to adopt:
Use of standard catalogues with configurable components for NCS
application
A universal workover system to be used on a wide range of Xmas
trees and rigs
Implementation of best practices for exisiting and future Brownfield
developments
Strategic Procurement to increase production runs of standards
products
Improved compliance with existing standards and the development
of a forward looking qualification program.
www.finity.no
Requirement
www.finity.no
HSE Certification
www.finity.no
HSE Certification
Take responsibility for the safety and security
Work systematically to understand and manage risk
Provide all people with the necessary resources, equipment and
training to deliver in accordance with their designated
responsibilities
Cooperate with contractors and suppliers on the basis of mutual
respect
Stop unsafe acts and operations
Aim for a safe and attractive working environment characterised
by respect, trust and cooperation
Monitor risk related to the working environment, and monitor the
occupational health of people
Establish work processes as well as goals and performance
indicators to control, measure and improve these processes
www.finity.no
HSE Certification
Run safety improvement processes based on
surveys and risk assessments, and involve people in
this work
Build robust installations/plants and maintain them
to prevent accidents.
If accidents occur, a emergency response
organisation will do its utmost to reduce injury and
loss. Saving lives is ourhighest priority
Transform lessons learned into improved safety
measures through continuous learning
www.finity.no
HSE Certification
Environmental Management Systems:
ISO 14001
Occupational Health and Safety Management Systems:
OHSAS 18001
Human Rights at work: SA8000
IEH- plakaten
www.finity.no
HSE Certification
www.finity.no Source: Global Process Systems Inc

HSE Certification
www.finity.no
HSE Certification
All operators, contractors, suppliers and other
companies working with Subsea products must follow
more or less all information in this HSE sections. You
must accept this responsibility to help protect human
health, safety and the surrounding environment.
This responsibility has been a core value of Subsea
businesses for a number of years and has been made
possible through the leadership, dedication, and
teamwork of all companies.
Health, Safety and Environment is an important
business responsibility. You cant do enough!
www.finity.no
Traceability and Part Marking
Requirement
www.finity.no
Requirement
Traceability is meant to ensure proper identification
of finished products down to raw materials.
Suppliers shall demonstrate effective material
control procedures that, where specified, can trace
materials from point of origin through stages of the
manufacturing process through to acceptance by
customer.
The Supplier material control system and
traceability procedures shall be made available,
upon request, for review for the customer.
www.finity.no
Requirement
The Job Batch number shall be marked on the parts at a
location and by a method indicated on the drawing/part
report.
A Certificate of Compliance shall accompany each delivery to
document the information required by the Engineering
specifications on the Part Report (DBI).
Use the raw material, i.e. bar, tubing, forging, etc.,
traceability number, i.e. mill heat number, forging heat code.
This is the preferred method.
Alternatively, the Supplier may develop their own internal
traceability system, provided the method maintains
traceability to the mill test reports. To maintain traceability
batch numbers/heat codes must not be mixed.
www.finity.no
Requirement
Serial numbers shall be structured in accordance
with the customers specification. Alternatively, the
Suppliers own serialization system may be used.
The heat number (with or without a dash number)
shall not be used as the serial number. Heat
numbers used as serial numbers do not provide
unique serialization for an individual part, since
many parts can be made from the same heat of
material.
www.finity.no
Requirement
Marking of parts is a critical step where many new
and some existing suppliers to customer encounter
issues. The Part Report (DBI) and drawings provide
instructions for the marking requirements. In
general, the customer will always ask for permanent
marking of the part, unless the part is too small or
fragile or material precludes permanent marking.
www.finity.no
Manufacturing Process Quality Plan -
Audits
Manufacturing Process / Quality Plan (MP/QP):
Is a risk mitigation tool depending on the criticality and

on the application of Special Processes in manufacturing
of a part / component.
The requirement for MP/QP is stated in the Part Report
(DBI). However, the need for a MP/QP may also be
required by Customer Specifications, or by Purchase
Orders, when the MP/QP requirement is Project driven.
MP/QPs shall be uniquely identified and revision
controlled documents to ensure proper communication
of the latest requirements.
www.finity.no
Manufacturing Process Quality Plan
- Audits
MP/QP is a part number and revision specific document
prepared by Supplier and submitted to Customer for review
and approval prior to start of manufacturing.
It details all applicable internal procedures and customer
specifications for each process step that will be used to
manufacture the part in accordance to the Part Report (DBI)
requirements.
It details further pertinent parameters related to the process
steps, and all applicable surveillance activities for Supplier
and Customer.
Suppliers should use their own formats for communicating
requirements to their work force. If a Supplier does not have
an appropriate format, the Customer MP/QP template may
be requested and used.
www.finity.no
- Audits
Once a MP/QP is approved by the Customer, the signed
document will be returned to Supplier allowing
manufacturing to begin.
When the Customer place a new PO for a part with an
existing MP/QP, it is Supplier responsibility to ensure
that the part number revision has not changed and that
all manufacturing process steps will remain the same. If
any change in part number revision or manufacturing
process has occurred, a new MP/QP shall be written and
submitted to the Customer for review and approval.
If MP/QP specific training is required, please contact
your Purchaser / Buyer regarding the MP/QP submittal
and approval process details.
www.finity.no
- Audits
Quality Plan describes the administrative process
for execution of Quality Assurance and Quality
Surveillance activities in manufacturing of a part /
component in accordance with contractual
requirements, similar to MP/QP.
The requirement for Quality Plan is stated in the
Purchase Order.
Quality Plan is a part number and revision specific
document prepared by Supplier and submitted to
the Customer for review and approval prior to start
of manufacturing.
www.finity.no
- Audits
Quality Plan shall identify as a minimum:
All important production processes in all phases of

production
All examinations, inspections, and tests to be performed
by Supplier and / or Subcontractor with reference to
relevant production, examination, inspection and test
procedures
Supplier's Witness and Hold activities
A list of Sub-contractors used, specifying their products
and processes
www.finity.no
- Audits
An external audit is an assessment to:
Determine if the necessary Quality Management System (QMS) has been
established, maintained, and documented according to specified requirements.
Verify the compliance with current legislation requirements.
Verify during spot-checks and evaluation that documented systems are
implemented and in the case of an existing supplier that Customer specified
requirements are being achieved.
Determine whether the systems are sufficient and effective to produce the
correct level of product and certification.
Identify any non-conformances; enable the possibility for Corrective Actions and
/ or opportunities for improvement.
Verify that both the equipment utilized in the manufacturing processes and the
methods employed comply with Customers technical specified requirements
that calibration is performed and documented in accordance with specifications
and procedures.
Verify that, where appropriate, operators are qualified and that training records
exist. www.finity.no
Transportation and Packing
Requirements
www.finity.no
Requirements
Transportation:
For large constructions, the delivery term may vary

between FOB and FAS.
For FCA transports, in every Customer PO, Supplier will
find instructions how to contact Customers contracted
freight forwarder for collection of ready-made items.
When the freight forwarder is contacted, he will agree
with Supplier upon a date for collection of the items.
In all other matters related to transportation, the
Customer Purchaser / Buyer named in the PO shall be
contacted.
www.finity.no
Requirements
Packing:
Material / components delivered to Customers must be adequately

protected from rain, sea spray, condensation, high humidity, high
temperature, and fine dust, to prevent damage and contamination
during handling, storage and shipping. Packing shall provide
mechanical protection of the part sufficient to withstand normal
shipping and handling conditions.
Most Costumers are focused on HSE/HMS related to transport and
packing.
For heavy items, always ask for Supplier's Packing Procedure for
comment prior to transport. They need a verification that the
material in question is packed /chocked / blocked in such a way that
after transporting by air and / or sea around the world, they can
deliver the material safely to final destination in good condition
without any transport damages.
www.finity.no
Requirements
All hazardous materials must be properly identified,
packed, and labeled in accordance applicable
directives and regulations established in
International Maritime Organization (IMO),
International Air Transport Association (IATA), and /
or any other government or trade organization
regulations or requirements that may apply.
Hazardous materials must be accompanied with a
copy of the Material Safety Data Sheet (MSDS).
NB: Always review the Part Report (DBI) for specific
packing requirements.
www.finity.no
CONTACT
INFORMATION
www.finity.no
Contact information
Please note that although some contact information is given
here, consideration should be given before contacting.
It is highly recommended to engage a local advisor who can

advice on how, when and what to ensure that the message is
perceived in a interesting and positive manner and not the
opposite, and who also has a personal network and local
understanding and who may guide to the right organisation
and recipient.
Organisations and projects are also dynamic, people move

around and a local advisor will have better insight in the
organisational, commercial and technical status of the various
companies.
www.finity.no
Contact information
Statoil
Ingvild Braathen, Procurement Manager. E-mail: ibra@statoil.com
Trond Skjveland, Subsea Valves responsible. E-mail:
trond.skjaeveland@statoil.com
BP
Josephine Leslie-Jackson, Contract Administrator
ABB
Hans Christian Felde, Procurement Manager subsea
KOGT
Kristian Khler, Purchaser. E-mail: kristian.kohler@kogt.kongsberg.com
Aker Solutions
Henrik Stormbom, Manager. E-mail:
henrik.stormbom@akersolutions.com
Cato Andersen, Procurement Manager. E-mail:
cato.andersen@akersolutions.com
www.finity.no
Contact information
FMC Technologies
Terje Emil Grstad, Global Category Manager. E-mail:
terjeemil.grostad@fmcti.com
Erlend Blankert, Senior Purchaser. E-mail: erlend.blankert@fmcti.com
Bandak Group
Helge Lund, Senior Purchaser. E-mail: helge.lund@bandakgroup.com
Knut Erik Finnestad, Manager. E-mail: knut.finnestad@bandakgroup.com
Wood Group
Egil Jan Haugland, VP Sourcing. E-mail: ejh@woodgroup.no
Svein Vatland, Manager. E-mail: svein.vatland@woodgroup.no
Kongsberg Subsea
Pl Hansen, Senior Purchaser. E-mail: pal.hansen@kongsberg.com
Jotne
Fredrik Bamsrud, Manager. E-mail: fredrik.bamsrud@jotne.com
www.finity.no
Contact information
GE Oil & Gas
Annette Sparby, Contract Administrator. E-mail:
annette.sparby@ge.com
Gunalingam Gunadasan, Manager. E-mail: g.guna@ge.com
Agility Group
Ole Petter Red, Out Sourcing Manager. E-mail:
opr@agilitygroup.no
NLI
yvind Holt, Manager. E-mail: oyvind.holt@nli.no
NOV
Arne Lindekleiv, Vice President, arne.lindekleiv@nov.com
www.finity.no
SUMMARY AND
RECOMMENDATIONS
www.finity.no
Summary and Recommendations
The requirement on Documentation from suppliers in the
Norwegian Subsea industry is large and complex, especially if
your company does not have extensive experience or
someone who can help you step by step in the startup
phase.
Normally it is difficult to get main customers to contribute,

but they could help with answers to simple questions, but
not profound challenges. Therefore, always have someone
who can help as a consultant or someone who can take
responsibility for documentation at your project internal.
www.finity.no
It is naive to believe that the documentation will be ready on the
way, learn by doing, therefore you must have necessary
overview and control early in all projects; Document
requirement and how it should be submitted. The fact that such
questions are asked from the start of each project, simplifies and
clarifies the project and the Document requirements. This will
always be helpful to secure cost and progress.
When it comes to cost and Documentation this is always a

challenge. Main customers may not want to pay extra for this,
especially in situations where the supplier does not have
extensive experience with Subsea Documentation. All suppliers
or vendors must go through their own organization and find out
if they can satisfy the necessary requirements and have the
resources to become a supplier to the subsea industry.
www.finity.no
Misrepresenting necessary Subsea documentation is very
extensive and not least time consuming, therefore it is very
important with the necessary knowledge and experience. It
also means that the internal control must be accurate and
quality assured. All uncertain elements should be addressed
and handled appropriate and implemented in each project
with the necessary procedures in accordance with the
document requirements.
In Subsea projects Document requirements may be as much
as 20-30% of the time required, sometimes higher when the
supplier does not have the necessary knowledge and
experience.
www.finity.no
When a supplier work in the Subsea industry they must
always add the cost and time required for Documents,
Internal control and HSE into the design and the cost of the
project. This aspects are always included in the total
project, also cost and time spent. There are unfortunately
many suppliers who make big miscalculations and lose
money and time, this could hurt the project and suppliers
reputation and profits.
All Subsea suppliers should always have a very close dialogue

with the main customer in good time before agreement and
project start, this dialogue provides the necessary security
and control of the project and not least the requirements
and expectations for documentation and quality.
www.finity.no

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SUBSEA

Written by: Simen Jonassen and Henrik Dannstrm

4. Components 9. Summary and Recommendations

Source: DCube by Rystad Energy.

Typical components in a subsea assembly comprise among

This is an example regarding

Line management is responsible for planning demand,

Undertake internal consultation (engagement) to

Define project scope and objectives

Prepare procurement strategy

the procurement plan will define the extent of each procurement (a

Identifying the key outcomes that need to be achieved through the

Ensure supplier(s) deliver the goods or services in

Information on the Part Report (DBI) is unclear.

Generally todays subsea tree design is divided into two

Examples on products, parts and drawing:

Illustrative figures of the various components can be

casing head housings

Connectors and fittings

Casing and tubing

Valves and chokes

Tree valves and chokes

Tree interface and

FMC Kongsberg Subsea

Suppliers and sub-suppliers

FMC Kongsberg Subsea

Suppliers and sub-suppliers

Fell free to contact us for more guides about procurement needs.

A typical subsea project can involve more than

To ensure the best chance of achieving a minimum documentation

Improve industry practices; helping both customers and

Influence the objective, scope of work and execution

Contracts signed and JIP kick-off by end Q1 2015

NORSOK N001: Structural Design

Corporate subsea organization overseeing implementation of

Win new business

Gain competitive advantage

www.finity.no Source: Global Process Systems Inc

Is a risk mitigation tool depending on the criticality and

All important production processes in all phases of

For large constructions, the delivery term may vary

Material / components delivered to Customers must be adequately

It is highly recommended to engage a local advisor who can

Organisations and projects are also dynamic, people move

Normally it is difficult to get main customers to contribute,

When it comes to cost and Documentation this is always a

All Subsea suppliers should always have a very close dialogue

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