This document summarizes a presentation given by Eric Anderson, Procurement Department Manager of Aker Solutions Engineering, about procurement of equipment packages. It discusses Aker Solutions splitting into two companies, Aker Solutions' engineering organization and markets, key projects like Johan Sverdrup and Johan Castberg, the scope of procurement, supplier documentation requirements, qualification and selection of suppliers, standardization efforts, product coordinators, evaluation criteria, and the importance of Arctic competence.

1. Confidential © 2013 Aker Solutions Preferred partner
Preferred partner
Procurement of Equipment packages at
Aker Solutions Engineering
Eric Anderson, Procurement Department Manager, Aker Engineering, Oslo
Rauma, June 3; Pori, June 11, 2014

2. Confidential © 2013 Aker Solutions Preferred partner
Agenda
Aker Solutions and Aker Solutions Engineering
Procurement
Supplier Documentation: Vital Interface information and LCI
Supplier Qualification
Standardization
Product Coordinators
Evaluation Criteria
Arctic competence
Slide 2

3. Confidential © 2013 Aker Solutions Preferred partner
Aker Solutions Engineering’s market
Aker Solutions Splits Into Two CompaniesSlide 3
Prior to demerger with Kværner
EPC = Engineering, Procurement, Construction
After demerger with Kværner
EP = Engineering & Procurement services
EPma = Engineering, Procurement & management assistance
Slide 3

4. Confidential © 2013 Aker Solutions Preferred partner
Aker Solutions
30 April 2014 Aker Solutions Splits Into Two Companies
Slide 4
New Aker Solutions
Regions
Subsea
Subsea Umbilicals
Field Design
Engineering
Maintenance, Modifications
and Operations
Slide 4

5. Confidential © 2013 Aker Solutions Preferred partner
Akastor
30 April 2014 Aker Solutions Splits Into Two CompaniesSlide 5
Akastor
Drilling
Technologies
Aker Oilfield
Services
Surface
Products
Process
Systems
Business
Solutions
Financial,
real estate
assets

6. Confidential © 2013 Aker Solutions Preferred partner
Aker Solutions
30 April 2014Slide 6
New Aker Solutions
Revenue: NOK 29.2 billion
EBITDA: NOK 2.3 billion
EBITDA margin: 8%
Capital employed: NOK 9 billion
Employees: 20,500
Countries: 19
*Preliminary pro forma earnings for the twelve months ended March 31, 2014.
Number of employees and countries as of March 31, 2014
Typically
> ½
is Procurement
Does not
generally include
reimbursable
Procurement /
Procurement on
behalf of our
clients
Slide 6

7. Confidential © 2013 Aker Solutions Preferred partner
Lump Sum and Reimbursable Business Models
30 April 2014 Aker Solutions Splits Into Two CompaniesSlide 7
77%
23%
7%
93%
Subsea | Revenue 1Q 2014
Field Design | Revenue 1Q 2014 44%
56%
New Aker Solutions | Revenue 1Q 2014
Lump sum
Reimbursable
Lump sum
Reimbursable
Lump sum Reimbursable

8. Confidential © 2013 Aker Solutions Preferred partner
Who is buying, and why?
Slide 8
Lump Sum Reimbursable
Invoice
Supplier selection
Cost focus
PO Approval
Deviations
Slide 8

9. Confidential © 2013 Aker Solutions Preferred partner
Aker Solutions Engineering Organization
Valborg
Lundegaard
Head of
Engineering
Erik Sjølie
Engineering
UK – London
Sanjay Joshi
Engineering
India
Ravi Kashyap
Engineering
Malaysia
Astrid S. Onsum
Engineering
Norway – Oslo
Henning Østvig
Front End
Spectrum
Rune Andersen
VP, Procurement
Rolv Werner
Erichsen
VP, Engineering
Eric Anderson
Department Mgr.
Engineering
Discipline
Managers
Project Proc.
Managers
Slide 9
Petter Taranger
VP, Operations
Project Engr.
Managers
eric.anderson@akersolutions.com
Slide 9

10. Confidential © 2013 Aker Solutions Preferred partner
Johan Sverdrup
13 June, 2014Slide 10
Statoil appointed as pre-unit Operator for the development
Description:
Phased development
Based on Field centre layout – LQ + RP+ WHP + Process
Use of jacket substructures
Tie-in of standalone WH platforms and/or subsea templates
Oil export in a dedicated pipeline to Mongstad
PL 265 (Aldous)
Statoil 40%
(operator)
Petoro 30%
Det norske 20%
Lundin 10%
PL 501 (Avaldsnes)
Lundin 40%
(operator)
Statoil 40%
Mærsk 20%
Slide 10

11. Confidential © 2013 Aker Solutions Preferred partner
Johan Castberg
13 June, 2014
Resources
■ Two main discoveries in a
prospective area
■ Skrugard discovered April 2011
■ Havis discovered January 2012
■ 400 – 600 millions bbls of oil
Location/Depth:
■ 240 km from Hammerfest LNG
■ 200 km from Bjørnøya
■ 360-405 m water depth
Skavl
Nunatak
Iskrystall
Kramsnø
PL532 & PL608:
Statoil (O) 50%
ENI 30%
Petoro 20%
Slide 11

12. Confidential © 2013 Aker Solutions Preferred partner
DETAIL ENGINEERING
Procurement
Slide 12
FEED
Engineering & Procurement services
STUDY
PRE PRB
Slide 12

13. Confidential © 2013 Aker Solutions Preferred partner
Procurement
Slide 13
Scope:
• Engineered items
• Off the shelf with modifications
Slide 13

14. Confidential © 2013 Aker Solutions Preferred partner
Procurement
Slide 14
Scope:
• Equipment
• Tagged Bulk
• Studies and services
• Bulk
• Mechanical
• Electrical (boards, transformers)
• Instrument (control systems, fiscal metering)
• Safety (deluge, life boats)
• Marine (mooring, thrusters)
• Telecom (CCTV, radar, telemetry)
• Structural (castings)
• Architect (heavy doors)
• Drilling
• HVAC
Slide 14

15. Confidential © 2013 Aker Solutions Preferred partner
Procurement
Slide 15
Scope:
• Equipment
• Tagged Bulk
• Studies and services
• Bulk
• Pneumatically actuated valves
• Hydraulically actuated valves
Slide 15

16. Confidential © 2013 Aker Solutions Preferred partner
Procurement
Slide 16
Scope:
• Equipment
• Tagged Bulk
• Studies and services
• Bulk
• Inspection
• Analysis
• Testing
• Reports
• Certification
Slide 16

17. Confidential © 2013 Aker Solutions Preferred partner
Procurement
Slide 17
Scope:
• Equipment
• Tagged Bulk
• Studies and services
• Bulk
• Large diameter manual piping valves
• Special manual valves
Slide 17

18. Confidential © 2013 Aker Solutions Preferred partner
Supplier Documentation
Slide 18
• Essential part of the delivery
• Often the delaying element
• Critical during execution to mature and complete the overall facility design
• Needed as part of final documentation for use in Operations
• Must be included in the overall price
• Milestone payment criteria
Slide 18

19. Confidential © 2013 Aker Solutions Preferred partner
Supplier Documentation
Slide 19
SDRL = Supplier Document Requirement List
SDL = Supplier Document List
• M1: Critical Vendor Information, SDRL, EPMS, Q-Plan, I&TP, GA
Drawings, P&ID
• M2: Utility Consumption List, Instrument Index, Main Equipment List,
Block Diagram, Cable List, Datasheet on main equipment, Foundation
drawing
• M3: SPIR, Functional Description, Cause and Effect, Wiring Diagrams
(El.+Inst.), Cable index, Paint procedures, Test Procedures, HMS Check
List, Datasheets
• M4: Handling and Shipping Procedure, Installation Procedure,
Preservation Procedure, Shipped Loose Item list
• M6: Final Documentation
Approval Cycle
• 2 weeks for supplier
• 3 weeks for contractor
Slide 19

20. Confidential © 2013 Aker Solutions Preferred partner
Bid Negotiation
Slide 20
• Terms and Conditions are negotiated
• Bid Price is binding and non-negotiative up or down
• Clarifications and Qualifications are allowed to be priced
Slide 20

21. Confidential © 2013 Aker Solutions Preferred partner
Supplier Qualification / Selection
Slide 21
• Client Qualification
• Commercial Qualification
• SQiS
• Achilles (EU Procurement Directive)
• Screening
• Commercial / Technical “filtering”
• Long List
• Bidders List
• Shortlist
• Bid Clarification Meeting
• Selected Bidder Summary Report
• Client approval
• Award
ProcessesManifestations
Slide 21

22. Confidential © 2013 Aker Solutions Preferred partner
Standardization
Slide 22
• Client Frame Agreements
• Contractor Frame Agreements
• Economies of Scale
• Spare parts inventory
• Maintenance
• Schedule considerations
• Free issue
Slide 22

23. Confidential © 2013 Aker Solutions Preferred partner
Product Coordinators
Slide 23
• Contact person
• Responsible for general supplier meetings
• Supplier database
• Supplier relationship
• Supplier development
• In-house expert
• Experience transfer
Slide 23

24. Confidential © 2013 Aker Solutions Preferred partner
Evaluation Criteria
Slide 24
• Quality
• Schedule
• Cost
Risk
Criticality Assessment
Risk Mitigation
Slide 24

25. Confidential © 2013 Aker Solutions Preferred partner
Order Execution
Slide 25
• Order Confirmation
• Vital interface information
• SDL
• Progress reports
• EPMS
• Change Management
• Supplier Evaluation Report
Slide 25

26. Confidential © 2013 Aker Solutions Preferred partner
Summary
Slide 26
• Establish contact via Product Coordinator
• Qualify with Client or Aker Solutions
• Reply to Screening letter
• Reply to RFQ / bid clarifications
• Attend BCM
Slide 26

27. Confidential © 2013 Aker Solutions Preferred partner13 June, 2014Slide 27
Arctic Competence

28. Confidential © 2013 Aker Solutions Preferred partner
Main physical challenges in the Arctic
■ Lack of infrastructure
■ Logistics and high cost
■ Communications and positioning
■ Sensitive environment
■ Weather and light conditions
■ Polar lows, icing, snow drift, ice front, polar night
■ Unique risk factors for personnel, environment and equipment
Slide 28 Slide 28

29. Confidential © 2013 Aker Solutions Preferred partner
Tromsø as Arctic Knowledge Hub
■ Aker Solutions’ “Window to the North”
■ Collaborate with Oslo, St. John’s,
Helsinki, Houston, and others
■ Arctic expert group in Tromsø
■ Main tasks:
■ Consolidate knowledge
■ Strategic positioning
■ Differentiating strategies
■ IPR / market analyses
■ External visibility
13 June, 2014Slide 29
Houston (ENG/SUB)
Hammerfest (SUB)
Sandnessjøen (MMO)
Oslo (ENG/SUB/PRS)
Arendal (MLS)
Kristiansand (DRT)
Stavanger (MMO)
Narvik (WIS)
TROMSØ (MMO/ENG)
Aker Arctic Finland (ENG)
Calgary
(PRS)
St. Johns (MMO)

30. Confidential © 2013 Aker Solutions Preferred partner
Copyright and disclaimer
Copyright
Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and
third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor
used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall
be altered or removed from any reproduction.
Disclaimer
This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and
uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations,
estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major
markets for Aker Solutions ASA and Aker Solutions ASA’s (including subsidiaries and affiliates) lines of business. These expectations,
estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar
expressions. Important factors that could cause actual results to differ materially from those expectations include, among others,
economic and market conditions in the geographic areas and industries that are or will be major markets for Aker Solutions’ businesses,
oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency
exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Aker Solutions ASA believes
that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will
be achieved or that the actual results will be as set out in the Presentation. Aker Solutions ASA is making no representation or warranty,
expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Aker Solutions ASA nor any of its
directors, officers or employees will have any liability to you or any other persons resulting from your use.
Aker Solutions consists of many legally independent entities, constituting their own separate identities. Aker Solutions is used as the
common brand or trade mark for most of these entities. In this presentation we may sometimes use “Aker Solutions”, “we” or “us” when
we refer to Aker Solutions companies in general or where no useful purpose is served by identifying any particular Aker Solutions
company.
Slide 30 13 June, 2014