Reorganising relationships within the subsea supply chain to maximise value

By introducing a new alliance model, Aker BP aims to drive greater collaboration across its supply chain, speed up delivery and improve efficiency on its subsea projects in Norway.

Key information

Location: Norway

Completion date: Ongoing

Client type: Natural resources

Key services: Cost and commercial management

Client's requirements

Exploration and production company, Aker BP, has a large portfolio of subsea projects across Norway in development or planning stages. These production facilities are installed on the seabed and connected to floating or remote fixed platforms. Pipelines are used to transport the oil or gas to onshore process facilities.

In 2016, Aker BP set about reorganising its supply chain for these projects by entering into strategic alliances with key contractors and suppliers. By introducing better ways of working, the business aims to speed up delivery, improve efficiency and ultimately reduce time and costs.

Our contribution

Through our cost and commercial management services we have facilitated increased collaboration between the engineering, supply chain, construction and corporate functions, leading to improved processes related to construction framework contracts.

We’ve also introduced improved cost assurance techniques including detailed invoice and cost verification exercises, which has increased confidence in expenditure and identified significant savings at all worksites.

Making the difference

The alliance model brings client and contractors together with a common set of goals and collaboration principles, with a single integrated central team. This approach has resulted in faster and more efficient project development from concept selection to completion, with improved interface management, resolution of technical issues, information flow and risk management.

Working in collaborative relationships and using a shared incentives model has also secured a mutual commitment to reduce waste and deliver value. The contracts are based on market-rate terms, but add the possibility of a sizeable upside for all parties, based on actual delivery and performance.

The model has been highly successful and Aker BP has since established similar agreements for wellhead platform construction, major offshore modifications and for drilling operations. We continue to support the company in the execution of subsea and modification projects using their alliances.

For further information contact:

John Price-Stephens
Director