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AVEVA World Conference NA - Mike Curtin, Shell

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Initiated by the owner operator community, Capital Facilities
Information Handover Specification (CFIHOS - pronounced
“see-fos”) is an emerging standard for a consistent approach to
information handover meant to reduce the inefficiencies and costs in the information supply chain. As one of the initiative’s earliest adopters, Mike Curtin, VP Capital Project IM/IT, discusses how Shell’s project execution approach is evolving to align with the new standards, the impacts of CFIHOS on the industry and who is affected, and finally how technology is changing to support the shift. Mike also covers Shell’s journey from document to data centric information management for CFIHOS readiness, and finally, the next steps in their path towards digitalization across greenfield project execution and operations of existing assets.

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AVEVA World Conference NA - Mike Curtin, Shell

  1. 1. © 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved. Presentation Overview Initiated by the owner operator community, Capital Facilities Information Handover Specification (CFIHOS – pronounced “see-fos”) is an emerging standard for a consistent approach to information handover meant to reduce the inefficiencies and costs in the information supply chain. As one of the initiative’s earliest adopters, Mike Curtin, VP Capital Project IM/IT, explains in this presentation how Shell’s project execution approach is evolving to align with the new standards, the impacts of CFIHOS on the industry and who is affected, and finally how technology is changing to support the shift. Mike also covers Shell’s journey from document to data centric information management for CFIHOS readiness, and finally, the next steps in their path towards digitalization across greenfield project execution and operations of existing assets.
  2. 2. 2 CAPITAL FACILITIES INFORMATION HANDOVER SPECIFICATION (CFIHOS) Accelerating Shell’s Digital Journey Mike Curtin VP IM/IT Capital Projects, Shell Shell Global Solutions International BV
  3. 3. Copyright of Shell International Definitions & cautionary note The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s Form 20-F for the year ended December 31, 2016 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward-looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, Wednesday 14th February. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. This presentation may contain references to Shell’s website. These references are for the readers’ convenience only. Shell is not incorporating by reference any information posted on www.shell.com. We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. 3
  4. 4. Copyright of Shell International Standards create beautiful music. 4
  5. 5. Copyright of Shell International Oil companies, EPCs & Equipment suppliers all suffer due to lack of information handover standards 5 M A N U F A C T U R E R S information information information information information information information information information information information OWNER OPERATOR EPC CONTRACTOR(S) EQUIPMENT SUPPLIERS specification specification specification specification specification specification specification 1. START 6. FINISH specification 2. 3. 4.5. information information information information # = ~100-1000# = 1-7# = 1
  6. 6. Copyright of Shell International CFIHOS gives the Supply Chain a common language 6 What is CFIHOS? A specification of information requirements for operators, contractors and equipment manufacturers and suppliers 1. A technical specification document 2. A data Model 3. A dictionary (Reference Data Library) 4. A process & guidance document 5. A set of requirements for implementation software Background: • Industry standard developed by www.uspi.nl • Based on Shell DEP used on ~80 projects over last 10 years. • Based on ISO 15926 & EPISTLE handover guide Participants:
  7. 7. Copyright of Shell International CFIHOS core use cases 7 Project Execution 1.Interoperability 2.Debottlenecking 3.Accelerated handovers Operations 1.Speed up searches for information 2. Reduce operational risk
  8. 8. Copyright of Shell International Agree generic software architecture and set of functional requirements Agree common equipment information requirements Align on most content definitions and overlaps Start alignment with other standardi- zation efforts Aligned Tag classes and Document Metadata. 52 members joined 12 member companies in project team joined CFIHOS EIS used on ca 80 projects and assets in Shell Shell Engineering Information Specification Join the orchestra…. Exercise your right to shape the DIGITAL FUTURE ….and create value for your company and our industry DIGITAL FUTURE Convergence to a common language via CFIHOS, transferred into a well- maintained ISO standard To join CFIHOS contact Paul van Exel, Director of www.USPI.nl at stichting@uspi.nl 2004 2012 2017 2018 2019
  9. 9. Q&A THANK YOU 9
  10. 10. Copyright of Shell International How is CFIHOS implemented? 11 Specify information 1. Define IM specification for project scope using CFIHOS templates 2. Embed IM specification in EPCM contract clauses Manage Information Review 3. Staff up Information Management team 4. Define Data and Document review processes 5. Set up information handover systems – loading, validation, staging Handover Information 6. Map to target systems and transfer information Manage Information Review Specify Information Handover Information Owner Operator Contractor Contract Award
  11. 11. Copyright of Shell International CFIHOS gives the supply chain a common language 12 CFIHOS is a specification of the taxonomy, classification and object-relationships (e.g. tag- document links) required for the “packages” of data and documents to be handed over from projects to operations. Plant Breakdown Structure Asset Classification Document Classification RDL_objects 33 RDL_object_attributes 189 Tag Class 603 Equipment Class 603 Property 565 Tag/Equipment/Model Class Property 3761 Property Picklist 130 Property Picklist Values 1506 Discipline 42 Discipline Document Type 856 Starting point: Shell EIS RDL , i.e. Typical Oil & Gas Industry requirements for Asset Management Mapped to ISO 15926 Part 4 which will be updated to complete gaps identified
  12. 12. Copyright of Shell International Oil companies, EPCs & Equipment suppliers all suffer due to lack of information handover standards 13 M A N U F A C T U R E R S information information information information information information information information information information OWNER OPERATOR ASSET HIERARCHY EQUIPMENT VENDOR DOCS EQUIPMENT DATA SHEETS DESIGN DOCUMENTS COMMISSIONING MGT OPERATIONS CORROSION MANAGEMENT MAINTENANCE MANAGEMENT REAL TIME OPERATIONS M&I # = 1 EPC CONTRACTOR(S) ENGINEERING PROJECT SERVICES PROCESS MODEL PROCESS DESIGN - P&ID INSTRUMENTATION* ELECTRICAL* MECHANICAL* 2D DRAWINGS 3D DESIGN PROCUREMENT CONSTRUCTION COMMISSIONING PLANNING & RISK MGT COST ESTIMATING COST ENGINEERING CONTRACT MGT PROJECT ENGINEERING # = 1-7 EQUIPMENT SUPPLIERS EQUIPMENTSUPPLIERS CONTRACTO RS PACKAGES STATIC EQUIPMENT ELECTRICAL EQUIPMENT CONTROL SYSTEMS FABRICATORS YARDS AUTOMATION CONSTRUCTION INSTRUMENTATION ELECTRICAL EQUIPMENT ROTATING EQUIPMENT FIRE AND GAS SITE SERVICES # = ~100-1000 inform ation specification specification specification specification specification specification specification specification specification specification 1. START 6. FINISH specification 2. 3. 4. 5.
  13. 13. Copyright of Shell International Standards make best practice common practice. 14
  14. 14. Copyright of Shell International Standards are part of every area of our daily lives 15
  15. 15. Copyright of Shell International Why we need all hands on deck… Exercise your right to shape the digital future of our industry Timeline: 1. 2004 Shell Engineering Information Specification (EIS) DEP 82.10.30.00 rev 1 2. 2014-12 EIS used on ca 80 projects and assets in Shell 3. 2012 EIS shared with industry to create CFIHOS revision 1.0, 12 member companies in project team is 4. 2017 CFIHOS gains critical mass 52 members, all key IOCs and most EPCs join. 5. 2017 Aligned Tag classes and Document Metadata. Defined deployment process for OO’s & EPC’s 6. 2017 Start alignment with other standardization efforts – Dexpi, Mimosa, EPIM STI and JIP33 . 7. 2018 Goal: Align on most content definitions and overlaps with other standards 8. 2019 Goal: Agree common equipment information requirements (input to JIP33) 9. 2019 Goal: Agree generic software architecture and set of functional requirements Outcome: Convergence towards a common language via CFIHOS, converted into a well-maintained ISO standard 1. Reduced costs of information delivery, consolidation and integration 2. Ease of use – no surprises of scope and consistency with other data standards 3. Reuse of equipment information 4. Accelerated information maturation, transparency of status, bottlenecks, rules of credit calculations 5. Lowers IT costs – no reconfigurations and fewer mappings, tool agnostic
  16. 16. Copyright of Shell International Agree generic software architecture and set of functional requirements Agree common equipment information requirements (input to JIP33) Align on most content definitions and overlaps with other standards Start alignment with other standardiz ation efforts – Dexpi, Mimosa, EPIM STI and JIP33 Aligned Tag classes and Document Metadata. Defined deployment process for OO’s & EPC’s CFIHOS gains critical mass 52 members, all key IOCs and most EPCs join. EIS shared with industry to create CFIHOS revision 1.0, 12 member companies in project team is EIS used on ca 80 projects and assets in Shell Shell Engineering Information Specification (EIS) DEP 82.10.30.00 rev 1 Why we need all hands on deck…. Exercise your right to shape the DIGITAL FUTURE …. And create value for your company and our industry… 1. Reduced costs of information delivery, consolidation and integration 2. Ease of use – no surprises of scope and consistency with other data standards 3. Reuse of equipment information 4. Accelerated information maturation, transparent status, bottlenecks, rules of credit calculations 5. Lower IT costs – no reconfigurations and fewer mappings, tool agnostic DIGITAL FUTURE Convergence to a common language via CFIHOS, transferred into a well- maintained ISO standard To join CFIHOS contact Paul van Exel, Director of www.USPI.nl at stichting@uspi.nl 2004 2012 2017 2018 2019

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