Norwegian subsea

SUBSEA
Norway
Written by: Simen Jonassen and Henrik Dannstrøm

Table of Contents
1. Introduction
– Norwegian Subsea
2. Subsea Industry
– Operators
– Contractors (Suppliers)
– Sub-suppliers
3. Supply Chain
– Qualified Suppliers list
– Procurement Process
– Order Execution Process
– Invoice and Payment
4. Components
5. Procurement needs
– Product list
6. Subsea Standardization
– Joint Industry Project (JIP)
7. Qualification requirement
– Document and Certification Requirement
– HMS Certification
– Traceability and Part Marking Requirement
– Manufacturing Process – Quality Plan -
Audits
– Transportation and Packing Requirements
8. Contact Information
9. Summary and Recommendations
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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 industry’s
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 – Operators
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Norwegian Subsea Industry -
Operators
• Statoil
• ConocoPhillips
• BP
• Shell
• Total
• ExxonMobil -
• Wintershall
• MarathonOil
• Others
• www.statoil.com
• www.conocophillips.no
• www.bp.com/no
• www.shell.com
• www.total.no
• www.corporate.exxonm
obil.com
• www.winthershall.no
• www.marathonoil.com
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Subsea Industry – Contractors (first
tier)
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Subsea Industry – Contractors
• FMC Technologies
• Aker Solutions
• GE Oil & Gas
• Cameron
• Others
• www.fmctechnologies.com
• www.akersolutions.com
• www.geoilandgas.com
• www.c-a-m.com
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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

Subsea Industry – Suppliers (second
tier)
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Subsea Industry – Suppliers
• Kongsberg Group
• Wood Group Mustang
• Agility Subsea Fabrication
AS
• Jotne Subsea AS
• NLI Subsea AS
• Bandak Group
• Subsea 7
• Technip
• NOV
• www.kongsberg.com/nb-
no
• www.mustangeng.com
• www.agilitygroup.no
• www.jotne.no
• www.nli.no
• www.bandakgroup.com
• www.subsea7.com
• www.technip.com
• www.nov.com
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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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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.
This is an example regarding
FMC and QSL
Page 1 of 15 FMC Supplier Registration Formwww.finity.no

• 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.
Define
Business
Need
2.
Develop
Procurement
Strategy
3.
Supplier
Evaluation &
Selection
5.
Induction &
Integration
4.
Negotiation
and Award
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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Order Execution Process
• 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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Order Execution Process
• 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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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

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 ¾”.
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Components
• Generally today’s 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
Production Equipment
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
– Others
Link to Excel
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 (käy 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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Joint Industry Project (JIP)
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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Joint Industry Project (JIP) –
Companies
www.finity.no

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
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Document and Certification Requirement
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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
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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
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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
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Requirement
• The challenge is to improve the engineer’s 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
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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
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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
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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
• 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

HSE Certification
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• 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
HSE Certification
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
• 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.
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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
Supplier’s 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.
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- 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
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- 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
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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.
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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.
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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.
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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.
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Contact information
Statoil
– Ingvild Braathen, Procurement Manager. E-mail: ibra@statoil.com
– Trond Skjæveland, Subsea Valves responsible. E-mail:
trond.skjaeveland@statoil.com
BP
– Josephine Leslie-Jackson, Contract Administrator
ABB
– Hans Christian Felde, Procurement Manager subsea
KOGT
– Kristian Köhler, 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 Grøstad, 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
– Pål 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 Røed, Out Sourcing Manager. E-mail:
opr@agilitygroup.no
NLI
– Øyvind 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.
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• 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.
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• 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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