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Critical

Components for
Successful
Collaboration

Don Vardeman
Kerr-McGee

Offshore Technology Conference


May 2, 2005
Collaboration

collaborate
Function: verb

1 To work with others (as in writing a book)

2 To cooperate with an enemy force that has taken


over one's country
How Much Collaboration

Operator(s) internal team


only

Operator(s) & contractors

Operator(s), contractors &


infrastructure players
Drivers & Expectations

Operator staff size/availability


Schedule considerations
Technology ownership
Budget
Expectations
Long-term perspective
Mutual success
Risk sharing
Swedish Vasa Battleship

Sanctioned in 1625
Most ornate ship in fleet
Added second gun deck
after keel was set
Stability test stopped early
Sailed with great fanfare in
1628
Sank after sailing less
than a mile
Vasa Syndrome
Dont imitate ideas unless
you understand them
Goal confusion - define clear
user needs
Obsession with speed
Feedback system failure -
deal with bad news too
Communication barriers -
collaboration
Poor organizational memory
Top-management meddling
From: Kessler, Eric, et.al. Vasa Syndrome: Insights from a 17th-Century
New-Product Disaster, IEEE Engineering Management Review 1Q, 2004
Relationships
Relationships

Executive
Empower the project team
How you act when you have problems
Important for large problem resolution
Steering committees for large projects
Other Contractors
Interface management is critical
Include supply chain
Driving standardization across
operator companies
Standardization
Operational familiarity

Vendor support

Risk mitigation

Quick recovery from


problems

Technology ownership

Applies to small and


large components
Contracting Strategy
Right strategy for overall development,
market conditions & contractor capability

Risk elements in subcontractor selection

Ownership of subs is a plus

Preference for EPIC

Financially healthy contractor


Business Relations Between
Operators & Service Industry
Daniel Valot, CEO, Technip-2004 OTC

THE WAY FORWARD: A NEW BEHAVIOR?


Contracting strategy:
Clarify & stabilize the rules
Limit EPIC contracts to well-defined scope & technologies
Allocate risks/costs to the right party
Relationship:
Let business people run the show (rather than lawyers)
and provide them some give-and-take authority
Forget short-term & focus on long-term partnerships

In their best interest, oil companies should try to re-establish


an appropriate risk-reward balance for their contractors
Results of Collaboration

Topside Design
Topside Fabrication
Hull Design
Hull Fabrication
Hull Installation
Topside Installation
Subsea Design
Subsea Installation
Subsea Equipment

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