A Service Contractors View

of
Shared Risk and Reward
John R. Huff
Chairman
Chief Executive Officer
Oceaneering International, Inc.

Collaboration
To Be Successful

Team Effort
Win-Win Relationship
Long Term Big Picture Culture
Mutual Respect and Trust

Reality (Most Of The Time)

Operators Control Relationship

Each Party Maximizes Their Position
Short Term Culture
Lack of Respect and Trust

Collaboration Key Ingredients

Full and Open Alignment of Goals

Technical and Commercial Drivers

Commercial Compensation and Risk
Cost and Schedule Goals
HSE Standards and Goals

Integrated Team With No Hidden Agenda

Results Focus
Company Affiliation Should Be Secondary
Build Team Spirit
Open Communication
Respect and Trust

Contracting Trends
Lower Operators Life-Of-Field Costs
Traditional Contracts vs. Collaboration
Long Term Agenda to Shift More Cost and
Risk to Contractors
Outsourcing Personnel and Technology

Technology Development and

Innovation
Operators Are:
Outsourcing Personnel
Outsourcing of Technology Development and Innovation

Contractor

Increasing Staff and Costs

Responding to Operators Pressure to Fund Development
Operators Reluctance <Not Invented Here>
Most Cases Not a Commercial Success

Logical Area For Collaboration

Operator Knows Requirements
Contractor Knows How to Apply Technology

Oceaneering Has Been Lucky

Examples Of Successful
Collaboration
FPSO Zafiro Production
SILS Subsea System
VSIS Simulator

Very Powerful Relationship When Successful

Fast Track Development

FPSO Zafiro Producer
Record Time Discovery to
First Oil
Effective Integrated Team
On Budget
On Schedule
Win-Win Relationship

Subsea Intervention Lubricator

System
Developed In Response to
Customers Need
Customer Input During Design
Deploy from DSV
Subsea Light Well Intervention
Plug and Abandonment
Operator Potential Savings
$1 3 million per use

VSIS/MIMIC Simulations
Easily Model
Entire Field

Electronic S-I-T
Electronic Wet Test
On-Shore Learning
Remote Sim Images
Remote Operations
Live Recording
Risk Mitigation

VSIS / MIMIC Savings

T im e

V a lu e

o f T r a in in g

8 0

Hours for Job Completion

7 0
6 0
5 0
4 0
3 0
2 0
1 0
0

P re

V S IS

V S IS

1 0

1 1

1 2

1 3

1 4

1 5

7 2

6 4

5 6

4 8

4 0

3 2

2 4

1 6

1 2

1 0

6 .5

1 0

6 .5

N u m b e r o f J o b s

C o m p le t e d

The Time Value of Training - 310 Hours Saved at 20k per hour is $6,200,000